This bill amends the workforce housing tax incentives program in Iowa by defining a "rehabilitation project" and adjusting the maximum tax incentives available. A rehabilitation project is characterized as a proposed housing project that includes at least four single-family dwelling units (or two in small cities), involves the rehabilitation or redevelopment of dilapidated units, and is intended for resale to buyers who will occupy the units as their primary residences. The bill also increases the maximum amount of tax incentives that the economic development authority can award from $36.5 million to $40 million for the fiscal year 2026-2027 and subsequent years, with 50% of this amount reserved for small cities.

Additionally, the bill allocates $5 million specifically for rehabilitation projects, with half of that amount reserved for small cities. It allows the authority to award remaining tax incentives to other projects if the reserved amounts for small cities are not fully utilized. The bill also establishes a maximum limit of $1 million on the total tax incentives that can be awarded to a housing business for any project and removes the previous requirement for tax incentives to be issued on a first-come, first-served basis.

Statutes affected:
Introduced: 15.352, 15.353