House Study Bill 274 - Introduced
HOUSE FILE _____
BY (PROPOSED COMMITTEE ON
WAYS AND MEANS BILL BY
CHAIRPERSON HEIN)
A BILL FOR
1 An Act relating to workforce housing tax credits, the high
2 quality jobs program, tax credits administered by the
3 economic development authority for certain investments in
4 qualifying businesses, and including effective date and
5 applicability provisions.
6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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1 DIVISION I
2 HOUSING TRUST FUND
3 Section 1. Section 428A.8, subsection 3, Code 2021, is
4 amended by striking the subsection.
5 DIVISION II
6 WORKFORCE HOUSING TAX INCENTIVES
7 Sec. 2. Section 15.119, subsection 2, paragraph g, Code
8 2021, is amended to read as follows:
9 g. (1) The workforce housing tax incentives program
10 administered pursuant to sections 15.351 through 15.356.
11 In allocating tax credits pursuant to this subsection, the
12 authority shall not allocate more than twenty-five million
13 dollars for purposes of this paragraph. Of the moneys
14 allocated under this paragraph, ten million dollars shall be
15 reserved for allocation to qualified housing projects in small
16 cities, as defined in section 15.352, that are registered on
17 or after July 1, 2017.
18 (2) (a) Notwithstanding subparagraph (1), in allocating
19 tax credits pursuant to this subsection for each fiscal
20 year of the period beginning July 1, 2021, and ending June
21 30, 2024, the authority shall not allocate more than fifty
22 million dollars for purposes of this paragraph. Of the moneys
23 allocated under this paragraph for each fiscal year of the
24 period beginning July 1, 2021, and ending June 30, 2024, twenty
25 million dollars shall be reserved for allocation to qualified
26 housing projects in small cities, as defined in section 15.352,
27 that are registered on or after July 1, 2017.
28 (b) This subparagraph is repealed July 1, 2024.
29 Sec. 3. Section 15.353, subsection 3, Code 2021, is amended
30 to read as follows:
31 3. a. Except as provided in paragraph “b”, the The average
32 dwelling unit cost does not exceed two hundred thousand dollars
33 per dwelling unit an amount determined by the authority by
34 rule. In determining the average dwelling unit cost the
35 authority shall consider, at a minimum, building materials,
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1 labor, site development, and land or property acquisition
2 costs.
3 b. (1) The average dwelling unit cost does not exceed
4 two hundred fifty thousand dollars per dwelling unit if the
5 project involves the rehabilitation, repair, redevelopment,
6 or preservation of property described in section 404A.1,
7 subsection 8, paragraph “a”.
8 (2) The average dwelling unit cost for the project does not
9 exceed two hundred fifteen thousand dollars per dwelling unit
10 if the project is located in a small city.
11 Sec. 4. Section 15.354, subsection 3, paragraph d, Code
12 2021, is amended to read as follows:
13 d. Upon completion of a housing project, an a housing
14 business shall submit all of the following to the authority:
15 (1) An examination of the project in accordance with the
16 American institute of certified public accountants’ statements
17 on standards for attestation engagements, completed by a
18 certified public accountant authorized to practice in this
19 state, shall be submitted to the authority.
20 (2) A statement of the final amount of qualifying new
21 investment for the housing project.
22 (3) Any information the authority deems necessary to ensure
23 compliance with the agreement signed by the housing business
24 pursuant to paragraph “a”, the requirements of this part,
25 and rules the authority and the department of revenue adopt
26 pursuant to section 15.356.
27 Sec. 5. Section 15.354, subsection 3, paragraph e,
28 subparagraph (1), Code 2021, is amended to read as follows:
29 (1) Upon review of the examination, and verification of
30 the amount of the qualifying new investment, and review of
31 any other information submitted pursuant to paragraph “d”,
32 subparagraph (3), the authority may notify the housing business
33 of the amount that the housing business may claim as a refund
34 of the sales and use tax under section 15.355, subsection 2,
35 and may issue a tax credit certificate to the housing business
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1 stating the amount of workforce housing investment tax credits
2 under section 15.355, subsection 3, the eligible housing
3 business may claim. The sum of the amount that the housing
4 business may claim as a refund of the sales and use tax and
5 the amount of the tax credit certificate shall not exceed the
6 amount of the tax incentive award.
7 Sec. 6. Section 15.354, subsection 6, paragraphs b and c,
8 Code 2021, are amended to read as follows:
9 b. Notwithstanding subsection 1, the authority may accept
10 applications for disaster recovery housing projects on a
11 continuous basis establish a disaster recovery application
12 period following the declaration of a major disaster by the
13 president of the United States for a county in Iowa.
14 c. Notwithstanding subsection 2, paragraphs “a”, “b”, and
15 “d”, upon Upon review of a housing business’s application,
16 and scoring of all applications received during a disaster
17 recovery application period, the authority may make a tax
18 incentive award to a disaster recovery housing project. The
19 tax incentive award shall represent the maximum amount of tax
20 incentives that the disaster recovery housing project may
21 qualify for under the program. In determining a tax incentive
22 award, the authority shall not use an amount of project costs
23 that exceeds the amount included in the application of the
24 housing business. Tax incentive awards shall be approved by
25 the director of the authority.
26 Sec. 7. Section 15.355, subsection 2, Code 2021, is amended
27 to read as follows:
28 2. A housing business may claim a refund of the sales and
29 use taxes paid under chapter 423 that are directly related to
30 a housing project and specified in the agreement. The refund
31 available pursuant to this subsection shall be as provided in
32 section 15.331A, excluding subsection 2, paragraph “c”, of
33 that section. For purposes of the program, the term “project
34 completion”, as used in section 15.331A, shall mean the date
35 on which the authority notifies the department of revenue that
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1 all applicable requirements of an the agreement entered into
2 pursuant to section 15.354, subsection 3, paragraph “a”, and
3 all applicable requirements of this part, including the rules
4 the authority and the department of revenue adopted pursuant to
5 section 15.356, are satisfied.
6 DIVISION III
7 HIGH QUALITY JOBS PROGRAM —— DAY CARE CENTERS
8 Sec. 8. Section 15.327, Code 2021, is amended by adding the
9 following new subsection:
10 NEW SUBSECTION. 016. “Licensed center” means the same as
11 defined in section 237A.1.
12 Sec. 9. Section 15.329, Code 2021, is amended by adding the
13 following new subsection:
14 NEW SUBSECTION. 3A. In addition to the factors in
15 subsection 3, in determining the eligibility of a business to
16 participate in the program the authority may consider whether a
17 proposed project will provide a licensed center for use by the
18 business’s employees.
19 DIVISION IV
20 HIGH QUALITY JOBS PROGRAM —— RURAL COMMUNITIES
21 Sec. 10. Section 15.327, Code 2021, is amended by adding the
22 following new subsection:
23 NEW SUBSECTION. 27. “Rural community” means any city
24 located in this state with a population of thirty thousand
25 or less in a county with a population of fifty thousand or
26 less. A rural community located in more than one county shall
27 be considered to be located in the county having the greatest
28 taxable base within the city.
29 Sec. 11. Section 15.335A, subsection 1, unnumbered
30 paragraph 1, Code 2021, is amended to read as follows:
31 Tax incentives are available to eligible businesses as
32 provided in this section subsection and subsection 1A. The
33 incentives are based upon the number of jobs created or
34 retained that pay at least one hundred twenty percent of the
35 qualifying wage threshold and the amount of the qualifying
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1 investment made according to the following schedule:
2 Sec. 12. Section 15.335A, Code 2021, is amended by adding
3 the following new subsection:
4 NEW SUBSECTION. 1A. Tax incentives are available to
5 eligible businesses located in rural communities as provided
6 in this subsection. The incentives are based upon the number
7 of jobs created or retained that pay at least one hundred ten
8 percent of the qualifying wage threshold and the amount of the
9 qualifying investment made according to the following schedule:
10 a. The number of jobs is zero and economic activity is
11 furthered by the qualifying investment and the amount of the
12 qualifying investment is one of the following:
13 (1) Less than fifty thousand dollars, then the tax incentive
14 is the investment tax credit of up to two percent.
15 (2) At least fifty thousand dollars but less than two
16 hundred fifty thousand dollars, then the tax incentives are the
17 investment tax credit of up to two percent and the sales tax
18 refund.
19 (3) At least two hundred fifty thousand dollars, then the
20 tax incentives are the investment tax credit of up to two
21 percent, the sales tax refund, and the additional research and
22 development tax credit.
23 b. The number of jobs is one but not more than five and the
24 amount of the qualifying investment is one of the following:
25 (1) Less than fifty thousand dollars, then the tax incentive
26 is the investment tax credit of up to three percent.
27 (2) At least fifty thousand dollars but less than two
28 hundred fifty thousand dollars, then the tax incentives are the
29 investment tax credit of up to three percent and the sales tax
30 refund.
31 (3) At least two hundred fifty thousand dollars, then the
32 tax incentives are the investment tax credit of up to three
33 percent, the sales tax refund, and the additional research and
34 development tax credit.
35 c. The number of jobs is six but not more than ten and the
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1 amount of the qualifying investment is one of the following:
2 (1) Less than fifty thousand dollars, then the tax incentive
3 is the investment tax credit of up to four percent.
4 (2) At least fifty thousand dollars but less than two
5 hundred fifty thousand dollars, then the tax incentives are the
6 investment tax credit of up to four percent and the sales tax
7 refund.
8 (3) At least two hundred fifty thousand dollars, then the
9 tax incentives are the investment tax credit of up to four
10 percent, the sales tax refund, and the additional research and
11 development tax credit.
12 d. The number of jobs is eleven but not more than fifteen
13 and the amount of the qualifying investment is one of the
14 following:
15 (1) Less than fifty thousand dollars, then the tax incentive
16 is the investment tax credit of up to five percent.
17 (2) At least fifty thousand dollars but less than two
18 hundred fifty thousand dollars, then the tax incentives are the
19 investment tax credit of up to five percent and the sales tax
20 refund.
21 (3) At least two hundred fifty thousand dollars, then the
22 tax incentives are the investment tax credit of up to five
23 percent, the sales tax refund, and the additional research and
24 development tax credit.
25 e. The number of jobs is sixteen or more and the amount of
26 the qualifying investment is one of the following:
27 (1) Less than fifty thousand dollars, then the tax incentive
28 is the investment tax credit of up to six percent.
29 (2) At least fifty thousand dollars but less than two
30 hundred fifty thousand dollars, then the tax incentives are the
31 investment tax credit of up to six percent and the sales tax
32 refund.
33 (3) At least two hundred fifty thousand dollars, then the
34 tax incentives are the investment tax credit of up to six
35 percent, the sales tax refund, and the additional research and
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1 development tax credit.
2 f. The number of jobs is thirty-one but not more than forty
3 and the amount of the qualifying investment is at least five
4 million dollars, then the tax incentives are the local property
5 tax exemption, the investment tax credit of up to seven
6 percent, the sales tax refund, and the additional research and
7 development tax credit.
8 g. The number of jobs is forty-one but not more than sixty
9 and the amount of the qualifying investment is at least five
10 million dollars, then the tax incentives are the local property
11 tax exemption, the investment tax credit of up to eight
12 percent, the sales tax refund, and the additional research and
13 development tax credit.
14 h. The number of jobs is sixty-one but not more than
15 eighty and the amount of the qualifying investment is at least
16 five million dollars, then the tax incentives are the local
17 property tax exemption, the investment tax credit of up to nine
18 percent, the sales tax refund, and the additional research and
19 development tax credit.
20 i. The number of jobs is eighty-one but not more than one
21 hundred and the amount of the qualifying investment is at least
22 five million dollars, then the tax incentives are the local
23 property tax exemption, the investment tax credit of up to ten
24 percent, the sales tax refund, and the additional research and
25 development tax credit.
26 j. The number of jobs is at least one hundred one and the
27 amount of the qualifying investment is at least ten million
28 dollars, then the tax incentives are the local property
29 tax exemption, the investment tax credit of up to eleven
30 percent, the sales tax refund, and the additional research and
31 development tax credit.
32 Sec. 13. Section 15.335B, subsection 3, paragraph c, Code
33 2021, is amended to read as follows:
34 c. (1) Consider the amount and type of the local community
35 match. The as follows:
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1 (a) In a community with a population of less than five
2 thousand, a community match shall not be required.
3 (b) In a community with a population equal to or greater
4 than five thousand, but less than fifteen thousand, a community
5 match of at least five percent of the projected funds to be
6 expended by the eligible business shall be required.
7 (c) In a community with a population equal to or greater
8 than fifteen thousand, but less than thirty thousand, a
9 community match of at least ten percent of the projected funds
10 to be expended by the eligible business shall be required.
11 (d) In a community with a population equal to or greater
12 than thirty thousand, a community match of at least twenty
13 percent of the projected funds to be expended by the eligible
14 business shall be required.
15 (2) Notwithstanding subparagraph (1), the authority may
16 provide assistance to an early-stage business in a high-growth
17 industry regardless of the amount of local match involved.
18 Sec. 14. NEW SECTION. 15.337A Rules.
19 The authority shall adopt rules pursuant to chapter 17A to
20 administer this part.
21 Sec. 15. EFFECTIVE DATE. This division of this Act, being
22 deemed of immediate importance, takes effect upon enactment.
23 DIVISION V
24 INVESTMENTS IN QUALIFYING BUSINESSES AND EQUITY INVESTMENTS IN
25 INNOVATION FUNDS
26 Sec. 16. Section 15.119, subsection 2, paragraph d, Code
27 2021, is amended to read as follows:
28 d. (1) The tax credits for investments in qualifying
29 businesses issued pur