Senate Study Bill 1269 - Introduced
SENATE FILE _____
BY (PROPOSED COMMITTEE ON
WAYS AND MEANS BILL BY
CHAIRPERSON DAWSON)
A BILL FOR
1 An Act relating to the administration and implementation of
2 state taxation matters and credits, including economic
3 development and energy tax incentives and programs, and
4 future tax contingencies, making appropriations, and
5 including effective date provisions.
6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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1 DIVISION I
2 HIGH QUALITY JOBS AND RENEWABLE CHEMICAL PRODUCTION TAX CREDITS
3 Section 1. Section 15.119, subsection 2, paragraph a,
4 subparagraphs (2) and (3), Code 2021, are amended to read as
5 follows:
6 (2) In allocating tax credits pursuant to this subsection
7 for each fiscal year of the fiscal period beginning July 1,
8 2016, and ending June 30, 2021 the fiscal year beginning July
9 1, 2021, and for each fiscal year thereafter, the authority
10 shall not allocate more than one hundred five seventy million
11 dollars for purposes of this paragraph. This subparagraph (2)
12 is repealed July 1, 2021.
13 (3) (a) In allocating tax credits pursuant to this
14 subsection for the fiscal year beginning July 1, 2021, and
15 ending June 30, 2022, the authority shall not allocate more
16 than one hundred five million dollars for purposes of this
17 paragraph if the aggregate amount of renewable chemical
18 production tax credits under section 15.319 that were awarded
19 on or after July 1, 2018, but before July 1, 2021, equals or
20 exceeds twenty-seven million dollars.
21 (b) As soon as practicable after June 30, 2021, the
22 authority shall notify the general assembly of the aggregate
23 amount of renewable chemical production tax credits awarded
24 under section 15.319 on or after July 1, 2018, but before
25 July 1, 2021, and whether or not the tax credit allocation
26 limitation described in subparagraph division (a) is
27 applicable.
28 (c) This subparagraph (3) is repealed July 1, 2022.
29 Sec. 2. Section 15.119, subsection 2, paragraph h, Code
30 2021, is amended to read as follows:
31 h. The renewable chemical production tax credit program
32 administered pursuant to sections 15.315 through 15.322. In
33 allocating tax credits pursuant to this subsection for the
34 fiscal year beginning July 1, 2021, and for each fiscal year
35 thereafter, the authority shall not allocate more than ten five
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1 million dollars for purposes of this paragraph. This paragraph
2 is repealed July 1, 2030.
3 Sec. 3. EFFECTIVE DATE. This division of this Act, being
4 deemed of immediate importance, takes effect upon enactment.
5 DIVISION II
6 HIGH QUALITY JOBS —— ELIGIBILITY REQUIREMENTS
7 Sec. 4. HIGH QUALITY JOBS —— REDUCTIONS IN OPERATIONS.
8 1. Notwithstanding section 15.329, subsection 1, paragraph
9 “b”, subparagraph (2), the economic development authority shall
10 not presume that a reduction in operations is a reduction in
11 operations while simultaneously applying for assistance with
12 regard to a business that submits an application on or before
13 June 30, 2022, if the business demonstrates to the satisfaction
14 of the authority all of the following:
15 a. That the reduction in operations occurred after March 1,
16 2020.
17 b. That the reduction in operations was caused by the
18 COVID-19 pandemic.
19 2. The economic development authority shall consider
20 whether the benefit of the project proposed by a business
21 under subsection 1 outweighs any negative impact related to
22 the business’s reduction in operations. The business shall
23 remain subject to all other eligibility requirements pursuant
24 to section 15.329.
25 3. This section is repealed July 1, 2022.
26 DIVISION III
27 MANUFACTURING 4.0
28 Sec. 5. NEW SECTION. 15.371 Manufacturing 4.0 technology
29 investment program.
30 1. This section shall be known as and may be cited as the
31 “Manufacturing 4.0 Technology Investment Program”.
32 2. For purposes of this section unless the context otherwise
33 requires:
34 a. “Financial assistance” means the same as defined in
35 section 15.102.
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1 b. “Manufacturing 4.0 technology investments” means projects
2 that are intended to lead to the adoption of, and integration
3 of, smart technologies into existing manufacturing operations
4 located in the state by mitigating the risk to the manufacturer
5 of significant technology investments. Projects may include
6 investments in specialized hardware, software, or other
7 equipment intended to assist a manufacturer in increasing the
8 manufacturer’s productivity, efficiency, and competitiveness.
9 3. a. A manufacturing 4.0 technology investment fund
10 is created within the state treasury under the control of
11 the authority for the purpose of financing manufacturing 4.0
12 technology investments as described in this section.
13 b. The fund may be administered as a revolving fund and
14 may consist of any moneys appropriated by the general assembly
15 for purposes of this section and any other moneys that are
16 lawfully available to the authority. Any moneys appropriated
17 to the fund shall be used for purposes of the manufacturing
18 4.0 technology investment program. The authority may use all
19 other moneys in the fund, including interest, earnings, and
20 recaptures, for purposes of this section.
21 c. Notwithstanding section 8.33, moneys appropriated in this
22 section that remain unencumbered or unobligated at the close of
23 the fiscal year shall not revert but shall remain available for
24 expenditure for the purposes designated until the close of the
25 succeeding fiscal year.
26 d. Notwithstanding any law to the contrary, the authority
27 may transfer any unobligated and unencumbered moneys in the
28 fund, except for moneys appropriated for purposes of this
29 section, to any fund created pursuant to section 15.106A,
30 subsection 1, paragraph “o”.
31 4. The authority shall establish and administer a
32 manufacturing 4.0 technology investment program and shall use
33 moneys in the fund to award financial assistance to eligible
34 manufacturers for manufacturing 4.0 technology investments.
35 5. To be eligible for a financial assistance award under the
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1 manufacturing 4.0 technology investment program, a manufacturer
2 must do all of the following:
3 a. Manufacture goods at a facility located in this state.
4 b. Have a North American industry classification system
5 number within the manufacturing sector range of 31-33.
6 c. Have been an established business for a minimum of three
7 years prior to the date of application to the program.
8 d. Derive a minimum of fifty-one percent of the
9 manufacturer’s overall revenue from the sale of manufactured
10 goods.
11 e. Employ a minimum of three full-time employees and no
12 more than seventy-five full-time employees across all of the
13 manufacturer’s locations.
14 f. Have an assessment of the manufacturer’s proposed
15 manufacturing 4.0 technology investment completed by the center
16 for industrial research and service at Iowa state university of
17 science and technology.
18 g. Demonstrate the ability to provide matching financial
19 support for the manufacturer’s manufacturing 4.0 technology
20 investment on a one-to-one basis. The matching financial
21 support must be obtained from private sources.
22 6. Eligible manufacturers shall submit applications to the
23 manufacturing 4.0 technology investment program in the manner
24 prescribed by the authority by rule.
25 7. a. The authority may accept applications during one
26 or more application periods each fiscal year as determined by
27 the authority. All completed applications shall be reviewed
28 and scored on a competitive basis pursuant to rules adopted by
29 the authority. The authority may engage an outside technical
30 review panel to complete technical reviews of applications.
31 The board shall review the recommendations of the authority
32 and of the technical review panel, if applicable, and shall
33 approve, defer, or deny each application.
34 b. In making recommendations to the board, the authority and
35 the technical review panel, if applicable, shall consider all
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1 of the following:
2 (1) The completeness of the manufacturer’s application.
3 (2) Whether the board should approve or deny an application.
4 (3) If the board approves an application, the type and
5 amount of financial assistance that should to be awarded to the
6 applicant.
7 (4) The percentage of the manufacturer’s overall revenue
8 that is derived from the sale of manufactured goods pursuant
9 to subsection 5, paragraph “d”.
10 (5) Whether the manufacturer’s proposed manufacturing
11 4.0 technology investment is consistent with the assessment
12 completed by the center for industrial research and service at
13 Iowa state university of science and technology pursuant to
14 subsection 5, paragraph “f”.
15 c. The board shall not approve an application for financial
16 assistance for a manufacturing 4.0 technology investment that
17 was made prior to the date of the application.
18 8. The maximum amount of financial assistance awarded to an
19 eligible manufacturer under the manufacturing 4.0 technology
20 investment program shall not exceed seventy-five thousand
21 dollars.
22 9. The authority shall adopt rules pursuant to chapter 17A
23 necessary to implement and administer this section.
24 DIVISION IV
25 ENERGY INFRASTRUCTURE REVOLVING LOAN PROGRAM
26 Sec. 6. Section 476.10A, subsection 2, Code 2021, is amended
27 to read as follows:
28 2. Notwithstanding section 8.33, any unexpended moneys
29 remitted to the treasurer of state under this section shall be
30 retained for the purposes designated. Notwithstanding section
31 12C.7, subsection 2, interest or earnings on investments or
32 time deposits of the moneys remitted under this section shall
33 be retained and used for the purposes designated, pursuant to
34 section 476.46.
35 Sec. 7. Section 476.46, subsection 2, paragraph e,
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1 subparagraph (3), Code 2021, is amended to read as follows:
2 (3) Interest on the fund shall be deposited in the fund.
3 A portion of the interest on the fund, not to exceed fifty
4 percent of the total interest accrued, shall be used for
5 promotion and administration of the fund.
6 Sec. 8. Section 476.46, Code 2021, is amended by adding the
7 following new subsections:
8 NEW SUBSECTION. 3. The Iowa energy center shall not
9 initiate any new loans under this section after June 30, 2021.
10 NEW SUBSECTION. 4. Loan payments received under this
11 section on or after July 1, 2021, and any other moneys in the
12 fund on or after July 1, 2021, shall be deposited in the energy
13 infrastructure revolving loan fund created in section 476.46A.
14 Sec. 9. NEW SECTION. 476.46A Energy infrastructure
15 revolving loan program.
16 1. a. An energy infrastructure revolving loan fund is
17 created in the office of the treasurer of state and shall be
18 administered by the Iowa energy center established in section
19 15.120.
20 b. The fund may be administered as a revolving fund and may
21 consist of any moneys appropriated by the general assembly for
22 purposes of this section and any other moneys that are lawfully
23 directed to the fund.
24 c. Moneys in the fund shall be used to provide financial
25 assistance for the development and construction of energy
26 infrastructure, including projects that support electric or gas
27 generation transmission, storage, or distribution; electric
28 grid modernization; energy-sector workforce development;
29 emergency preparedness for rural and underserved areas; the
30 expansion of biomass, biogas, and renewable natural gas;
31 innovative technologies; and the development of infrastructure
32 for alternative fuel vehicles.
33 d. Notwithstanding section 8.33, moneys appropriated in this
34 section that remain unencumbered or unobligated at the close of
35 the fiscal year shall not revert but shall remain available for
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1 expenditure for the purposes designated until the close of the
2 succeeding fiscal year.
3 e. Notwithstanding section 12C.7, subsection 2, interest or
4 earnings on moneys in the fund shall be credited to the fund.
5 2. a. The Iowa energy center shall establish and administer
6 an energy infrastructure revolving loan program to encourage
7 the development of energy infrastructure within the state.
8 b. An individual, business, rural electric cooperative, or
9 municipal utility located and operating in this state shall be
10 eligible for financial assistance under the program. With the
11 approval of the Iowa energy center governing board established
12 under section 15.120, subsection 2, the economic development
13 authority shall determine the amount and the terms of all
14 financial assistance awarded to an individual, business, rural
15 electric cooperative, or municipal utility under the program.
16 All agreements and administrative authority sha11 be vested in
17 the Iowa energy center governing board.
18 c. The economic development authority may use not more than
19 five percent of the moneys in the fund at the beginning of each
20 fiscal year for purposes of administrative costs, marketing,
21 technical assistance, and other program support.
22 3. For the purposes of this section:
23 a. “Energy infrastructure” means land, buildings, physical
24 plant and equipment, and services directly related to the
25 development of projects used for, or useful for, electricity or
26 gas generation, transmission, storage, or distribution.
27 b. “Financial assistance” means the same as defined in
28 section 15.102.
29 Sec. 10. ALTERNATE ENERGY REVOLVING LOAN FUND —— MONEYS
30 TRANSFERRED AND APPROPRIATED. Any unencumbered or unobligated
31 moneys remaining after June 30, 2021, in the alternate energy
32 revolving loan fund created pursuant to section 476.46, are
33 transferred and appropriated to the energy infrastructure
34 revolving loan fund created pursuant to section 476.46A, to be
35 used for purposes of the energy infrastructure revolving loan
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1 program.
2 DIVISION V
3 WORKFORCE HOUSING TAX INCENTIVES
4 Sec. 11. Section 15.119, subsection 2, paragraph g, Code
5 2021, is amended to read as follows:
6 g. (1) The workforce housing tax incentives program
7 administered pursuant to sections 15.351 through 15.356.
8 In allocating tax credits pursuant to this subsection, the
9 authority shall not allocate more than twenty-five thirty
10 million dollars for purposes of this paragraph. Of the moneys
11 allocated under this paragraph, ten fifteen million dollars
12 shall be reserved for allocation to qualified housing projects
13 in small cities, as defined in section 15.352, that are
14 registered on or after July 1, 2017.
15 (2) (a) Notwithstanding subparagraph (1), in allocating
16 tax credits pursuant to this subsection for the fiscal year
17 beginning July 1, 2021, and ending June 30, 2022, the authority
18 shall not allocate more than forty million dollars for the
19 purposes of this paragraph. Of the moneys allocated under
20 this paragraph for the fiscal year beginning July 1, 2021, and
21 ending June 30, 2022, twelve million dollars shall be reserved
22 for allocation to qualified housing projects in small cities,
23 as defined in section 15.352, that are registered on or after
24 July 1, 2017.
25 (b) This subparagraph is repealed July 1, 2022.
26 Sec. 12. Section 15.354, subsection 3, paragraph d, Code
27 2021, is amended to read as follows:
28 d. Upon completion of a housing project, an a ho