Bill Text: IA HF2443 | 2015-2016 | 86th General Assembly | Enrolled
Bill Title: A bill for an act relating to the programs and duties of the economic development authority by making changes relative to the use of life cycle cost analyses, by making technical changes related to the high quality jobs program, by making changes relative to authority assistance for certain federal small business programs, by allowing counties, cities, and the authority to amend certain economic development enterprise zones agreements, and by making changes to the historic preservation and cultural and entertainment district tax credit, including transferring administrative oversight of the tax credit from the department of cultural affairs to the economic development authority, and including effective date provisions. (Formerly HF 2412) (Formerly HSB 612)
Spectrum: Committee Bill
Status: (Enrolled - Dead) 2016-05-04 - Sent to Governor. H.J. 999. [HF2443 Detail]
Download: Iowa-2015-HF2443-Enrolled.html
House File 2443 - Enrolled
HOUSE FILE
BY COMMITTEE ON WAYS AND
MEANS
(SUCCESSOR TO HF 2412)
(SUCCESSOR TO HSB 612)
\5
A BILL FOR
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House File 2443
AN ACT
RELATING TO THE PROGRAMS AND DUTIES OF THE ECONOMIC DEVELOPMENT
AUTHORITY BY MAKING CHANGES RELATIVE TO THE USE OF LIFE
CYCLE COST ANALYSES, BY MAKING TECHNICAL CHANGES RELATED
TO THE HIGH QUALITY JOBS PROGRAM, BY MAKING CHANGES
RELATIVE TO AUTHORITY ASSISTANCE FOR CERTAIN FEDERAL SMALL
BUSINESS PROGRAMS, BY ALLOWING COUNTIES, CITIES, AND THE
AUTHORITY TO AMEND CERTAIN ECONOMIC DEVELOPMENT ENTERPRISE
ZONES AGREEMENTS, AND BY MAKING CHANGES TO THE HISTORIC
PRESERVATION AND CULTURAL AND ENTERTAINMENT DISTRICT TAX
CREDIT, INCLUDING TRANSFERRING ADMINISTRATIVE OVERSIGHT OF
THE TAX CREDIT FROM THE DEPARTMENT OF CULTURAL AFFAIRS TO
THE ECONOMIC DEVELOPMENT AUTHORITY, AND INCLUDING EFFECTIVE
DATE PROVISIONS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
DIVISION I
LIFE CYCLE COST ANALYSES
Section 1. Section 470.1, Code 2016, is amended by adding
the following new subsection:
NEW SUBSECTION. 01. "Addition" means new construction equal
to or greater than twenty thousand square feet of usable floor
space that is heated or cooled by a mechanical or electrical
system and is joined to an existing facility.
Sec. 2. Section 470.1, subsections 6, 7, and 10, Code 2016,
are amended to read as follows:
6. "Facility" means a building having twenty thousand square
feet or more of usable floor space that is heated or cooled
by a mechanical or electrical system or any building, system,
or physical operation which consumes more than forty thousand
British thermal units (BTUs) per square foot per year.
7. "Initial cost" means the moneys required for the capital
construction or renovation of a facility or the construction
of an addition.
10. "Renovation" means a project where additions or
alterations, that are not additions, to an existing facility
exceed fifty percent of the value of a facility and will affect
an energy system.
Sec. 3. Section 470.2, Code 2016, is amended to read as
follows:
470.2 Policy ==== analysis required.
The general assembly declares that energy management is of
primary importance in the design of publicly owned facilities.
Commencing January 1, 1980 On or after the effective date of
this division of this Act, a public agency responsible for the
construction or renovation of a facility or the construction of
an addition shall, in a design begun after that date, include
as a design criterion the requirement that a life cycle cost
analysis be conducted for the facility. The objectives of the
life cycle cost analysis are to optimize energy efficiency at
an acceptable life cycle cost. The life cycle cost analysis
shall meet the requirements of section 470.3.
Sec. 4. Section 470.3, subsection 2, Code 2016, is amended
to read as follows:
2. A public agency or a person preparing a life cycle cost
analysis for a public agency shall consider the methods and
analytical models provided by the authority and available
through the commissioner, which are suited to the purpose
for which the project is intended. Within sixty days of
final selection of a design architect or engineer, a public
agency, which is also a state agency under section 7D.34, shall
notify the commissioner and the authority of the methodology
to be used to perform the life cycle cost analysis, on forms
provided by the authority use the methodology set forth in the
guidelines established, by rule, by the commissioner.
Sec. 5. Section 470.4, Code 2016, is amended to read as
follows:
470.4 Analysis approved.
The life cycle cost analysis shall be approved by the public
agency before contracts for the construction or renovation
of a facility or the construction of an addition are let. A
public agency may accept a facility design and shall meet
the requirements of this chapter if the design meets the
operational requirements of the agency and provides the optimum
life cycle cost. The public agency shall retain a copy of the
life cycle cost analysis and a statement justifying a design
decision both of which shall be available for public inspection
at reasonable hours.
Sec. 6. Section 470.6, Code 2016, is amended to read as
follows:
470.6 Restriction on use of public funds.
Public funds shall not be used for the construction or
renovation of a facility or the construction of an addition
unless the design for the work is prepared in accordance with
this chapter and the actual construction or renovation of
the facility or the construction of the addition meets the
requirements of the design.
Sec. 7. Section 470.7, Code 2016, is amended to read as
follows:
470.7 Life cycle cost analysis ==== approval.
1. The public agency responsible for the new construction
or renovation of a public facility or the construction of an
addition to a public facility shall submit a copy of the life
cycle cost analysis for review by the commissioner who shall
consult with the authority. If the public agency is also a
state agency under section 7D.34, comments by the authority
or the commissioner, including any recommendation for changes
in the analysis, shall, within thirty days of receipt of the
analysis, be forwarded in writing to the public agency. If
either the authority or the commissioner disagrees with any
aspects of the life cycle cost analysis, the public agency
affected shall timely respond in writing to the commissioner
and the authority. The response shall indicate whether the
agency intends to implement the recommendations and, if the
agency does not intend to implement them, the public agency
shall present its reasons. The reasons may include but are
not limited to a description of the purpose of the facility or
renovation, preservation of historical architectural features,
architectural and site considerations, and health and safety
concerns.
2. Within thirty days of receipt of the response of the
public agency affected, the authority, the commissioner, or
both, shall notify in writing the public agency affected of
the authority's, the commissioner's, or both's agreement
or disagreement with the response. In the event of a
disagreement, the authority, the commissioner, or both, shall
at the same time transmit the notification of disagreement
with response and related papers to the executive council
for resolution pursuant to section 7D.34. The life cycle
cost analysis process, including submittal and approval, and
implementation exemption requests pursuant to section 470.8,
shall be completed prior to the letting of contracts for the
construction or renovation of a facility or the construction
of an addition.
Sec. 8. Section 470.8, Code 2016, is amended to read as
follows:
470.8 Life cycle cost analysis ==== implementation and
exemptions.
1. The public agency responsible for the new construction
or renovation of a public facility or the construction of an
addition shall implement the recommendations of the life cycle
cost analysis.
2. The commissioner shall adopt rules for the
implementation and administration of the life cycle cost
analysis. The commissioner, in consultation with the director,
shall, by rule, develop criteria to exempt facilities from
the implementation requirements of this section. Using the
criteria, the commissioner, in cooperation with the director,
shall exempt facilities on a case by case case=by=case basis.
Factors to be considered when developing the exemption criteria
shall include, but not be limited to, a description of the
purpose of the facility or renovation, the preservation
of historical architectural features, site considerations,
and health and safety concerns. The commissioner and the
director shall grant or deny a request for exemption from the
requirements of this section within thirty days of receipt of
the request.
Sec. 9. EFFECTIVE UPON ENACTMENT. This division of this
Act, being deemed of immediate importance, takes effect upon
enactment.
DIVISION II
HIGH QUALITY JOBS PROGRAM ==== DEFINITION
Sec. 10. Section 15.333, subsection 2, unnumbered paragraph
1, Code 2016, is amended to read as follows:
For purposes of this section, "new investment directly
related to new jobs created by the project" investment" means the
cost of machinery and equipment, as defined in section 427A.1,
subsection 1, paragraphs "e" and "j", purchased for use in the
operation of the eligible business, the purchase price of which
has been depreciated in accordance with generally accepted
accounting principles, the purchase price of real property and
any buildings and structures located on the real property, and
the cost of improvements made to real property which is used
in the operation of the eligible business. "New investment
directly related to new jobs created by the project" investment"
also means the annual base rent paid to a third=party developer
by an eligible business for a period not to exceed ten years,
provided the cumulative cost of the base rent payments for that
period does not exceed the cost of the land and the third=party
developer's costs to build or renovate the building for the
eligible business. The eligible business shall enter into a
lease agreement with the third=party developer for a minimum
of five years. If, however, within five years of purchase,
the eligible business sells, disposes of, razes, or otherwise
renders unusable all or a part of the land, buildings, or other
existing structures for which tax credit was claimed under this
section, the tax liability of the eligible business for the
year in which all or part of the property is sold, disposed of,
razed, or otherwise rendered unusable shall be increased by one
of the following amounts:
Sec. 11. Section 15.333A, subsection 2, unnumbered
paragraph 1, Code 2016, is amended to read as follows:
For purposes of this section, "new investment directly
related to new jobs created by the project" investment" means the
cost of machinery and equipment, as defined in section 427A.1,
subsection 1, paragraphs "e" and "j", purchased for use in the
operation of the eligible business, the purchase price of which
has been depreciated in accordance with generally accepted
accounting principles, the purchase price of real property and
any buildings and structures located on the real property, and
the cost of improvements made to real property which is used
in the operation of the eligible business. "New investment
directly related to new jobs created by the project" investment"
also means the annual base rent paid to a third=party developer
by an eligible business for a period not to exceed ten years,
provided the cumulative cost of the base rent payments for that
period does not exceed the cost of the land and the third=party
developer's costs to build or renovate the building for the
eligible business. The eligible business shall enter into a
lease agreement with the third=party developer for a minimum
of five years. If, however, within five years of purchase,
the eligible business sells, disposes of, razes, or otherwise
renders unusable all or a part of the land, buildings, or other
existing structures for which tax credit was claimed under this
section, the tax liability of the eligible business for the
year in which all or part of the property is sold, disposed of,
razed, or otherwise rendered unusable shall be increased by one
of the following amounts:
DIVISION III
FEDERAL SMALL BUSINESS PROGRAMS ==== AUTHORITY ASSISTANCE
Sec. 12. Section 15.411, subsection 4, paragraphs a, b, and
c, Code 2016, are amended to read as follows:
a. (1) The authority shall establish and administer an
outreach program for purposes of assisting businesses with
applications to the federal small business innovation research
and small business technology transfer programs.
(2) The goals of this assistance are to increase the number
of successful phase II small business innovation research grant
and contract proposals in the state, increase the amount of
such grant and contract funds awarded in the state, stimulate
subsequent investment by industry, venture capital, and other
sources, and encourage businesses to commercialize promising
technologies.
b. (1) In administering the program, the authority may
provide technical and financial assistance to businesses.
Financial assistance provided pursuant to this subsection
shall may be awarded to a business in an amount not to exceed
twenty=five one hundred thousand dollars to for any single
business individual federal award under this subsection.
(2) The authority may require successful applicants to
repay the amount of financial assistance received, but shall
not require unsuccessful applicants to repay such assistance.
Any moneys repaid pursuant to this subsection may be used to
provide financial assistance to other applicants.
c. The authority may also provide financial assistance
for purposes of helping businesses meet the matching funds
requirements of the federal small business innovation research
and small business technology transfer programs.
DIVISION IV
ENTERPRISE ZONES
Sec. 13. 2014 Iowa Acts, chapter 1130, section 43,
subsection 1, is amended to read as follows:
1. On or after the effective date of this division of this
Act, a city or county shall not create an enterprise zone under
chapter 15E, division XVIII, or enter into a new agreement or
amend an existing agreement under chapter 15E, division XVIII.
A city or county and the economic development authority, with
the approval of the economic development authority board, may
amend an agreement for compliance reasons if the amendment
does not increase the amount of incentives awarded under the
agreement.
DIVISION V
HISTORIC PRESERVATION AND CULTURAL AND ENTERTAINMENT DISTRICT
TAX CREDIT
Sec. 14. Section 404A.1, Code 2016, is amended by adding the
following new subsection:
NEW SUBSECTION. 01. "Authority" means the economic
development authority created in section 15.105.
Sec. 15. Section 404A.2, subsection 1, Code 2016, is amended
to read as follows:
1. An eligible taxpayer who has entered into an agreement
under section 404A.3, subsection 3, is eligible to receive a
historic preservation and cultural and entertainment district
tax credit in an amount equal to twenty=five percent of
the qualified rehabilitation expenditures of a qualified
rehabilitation project that are specified in the agreement.
Notwithstanding any other provision of this chapter or any
provision in the agreement to the contrary, the amount of
the tax credits shall not exceed twenty=five percent of the
final qualified rehabilitation expenditures verified by the
department authority pursuant to section 404A.3, subsection 5,
paragraph "c".
Sec. 16. Section 404A.2, Code 2016, is amended by adding the
following new subsection:
NEW SUBSECTION. 2A. a. Tax credit certificates issued
under section 404A.3 may be transferred to any person. Within
ninety days of transfer, the transferee shall submit the
transferred tax credit certificate to the department of revenue
along with a statement containing the transferee's name, tax
identification number, address, the denomination that each
replacement tax credit certificate is to carry, and any other
information required by the department of revenue. However,
tax credit certificate amounts of less than the minimum amount
established by rule by the department of revenue shall not be
transferable.
b. Within thirty days of receiving the transferred tax
credit certificate and the transferee's statement, the
department of revenue shall issue one or more replacement tax
credit certificates to the transferee. Each replacement tax
credit certificate must contain the information required for
the original tax credit certificate and must have the same
expiration date that appeared on the transferred tax credit
certificate.
c. A tax credit shall not be claimed by a transferee
under this section until a replacement tax credit certificate
identifying the transferee as the proper holder has been
issued. The transferee may use the amount of the tax credit
transferred against the taxes imposed in chapter 422, divisions
II, III, and V, and in chapter 432, for any tax year the
original transferor could have claimed the tax credit. Any
consideration received for the transfer of the tax credit shall
not be included as income under chapter 422, divisions II, III,
and V. Any consideration paid for the transfer of the tax
credit shall not be deducted from income under chapter 422,
divisions II, III, and V.
Sec. 17. Section 404A.2, subsection 3, Code 2016, is amended
to read as follows:
3. Any For a tax credit claimed by an eligible taxpayer
or a transferee for qualified rehabilitation projects with
agreements entered into on or after July 1, 2014, any credit in
excess of the taxpayer's tax liability for the tax year shall
be refunded with interest computed under section 422.25. In
lieu of claiming a refund, a taxpayer may elect to have the
overpayment shown on the taxpayer's final, completed return
credited to the tax liability for the following year may be
refunded or, at the taxpayer's election, credited to the
taxpayer's tax liability for the following five years or until
depleted, whichever is earlier. A tax credit shall not be
carried back to a tax year prior to the tax year in which the
taxpayer redeems the tax credit. As used in this subsection,
"taxpayer" includes an eligible taxpayer or a person transferred
a tax credit certificate pursuant to subsection 2A.
Sec. 18. Section 404A.2, subsection 4, paragraph c, Code
2016, is amended to read as follows:
c. The tax credit certificate, unless rescinded by the
department authority, shall be accepted by the department
of revenue as payment for taxes imposed in chapter 422,
divisions II, III, and V, and in chapter 432, subject to any
conditions or restrictions placed by the department authority
or the department of revenue upon the face of the tax credit
certificate and subject to the limitations of this program.
Sec. 19. Section 404A.2, subsection 5, Code 2016, is amended
by striking the subsection.
Sec. 20. Section 404A.3, subsections 1 and 2, Code 2016, are
amended to read as follows:
1. Application and fees.
a. An eligible taxpayer seeking historic preservation
and cultural and entertainment district tax credits provided
in section 404A.2 shall make application to the department
authority in the manner prescribed by the department authority.
b. The department authority may accept applications on a
continuous basis or may accept applications, or one or more
components of an application, during one or more application
periods.
c. The application shall include any information deemed
necessary by the authority, in consultation with the
department, to evaluate the eligibility under the program
of the applicant and the rehabilitation project, the amount
of projected qualified rehabilitation expenditures of a
rehabilitation project, and the amount and source of all
funding for a rehabilitation project. An applicant shall have
the burden of proof to demonstrate to the department authority
that the applicant is an eligible taxpayer and the project is a
qualified rehabilitation project under the program.
d. The department authority may establish criteria for the
use of electronic or other alternative filing or submission
methods for any application, document, or payment requested or
required under this program. Such criteria may provide for the
acceptance of a signature in a form other than the handwriting
of a person.
e. (1) The department authority may charge application and
other fees to eligible taxpayers who apply to participate in
the program. The amount of such fees shall be determined based
on the costs of the authority and the department associated
with administering the program.
(2) Fees collected by the department authority pursuant to
this paragraph shall be deposited with the department pursuant
to authority notwithstanding section 303.9, subsection 1.
(3) A portion of the fees collected shall be directed by the
authority to the department.
2. Registration.
a. Upon review of the application by the authority, the
department authority may register a qualified rehabilitation
project under the program. If the department authority
registers the project, the department authority shall make a
preliminary determination as to the amount of tax credits for
which the project qualifies.
b. After registering the qualified rehabilitation project,
the department authority shall notify the eligible taxpayer of
successful registration under the program within a period of
time established by the authority by rule. The notification
shall include the amount of tax credits under section 404A.2
for which the qualified rehabilitation project has received
a tentative award and a statement that the amount is a
preliminary determination only.
Sec. 21. Section 404A.3, subsection 3, paragraph a, Code
2016, is amended to read as follows:
a. Upon successful registration of a qualified
rehabilitation project, the eligible taxpayer shall enter into
an agreement with the department authority for the successful
completion of all requirements of the program.
Sec. 22. Section 404A.3, subsection 3, paragraph b,
subparagraphs (1) and (2), Code 2016, are amended to read as
follows:
(1) The amount of the tax credit award. An eligible
taxpayer has no right to receive a tax credit certificate or
claim a tax credit until all requirements of the agreement and
subsections 4 and 5 have been satisfied. The amount of tax
credit included on a tax credit certificate issued under this
section shall be contingent upon verification by the department
authority of the amount of final qualified rehabilitation
expenditures.
(2) The rehabilitation work to be performed. An eligible
taxpayer shall perform the rehabilitation work consistent with
the United States secretary of the interior's standards for
rehabilitation, as determined by the department.
Sec. 23. Section 404A.3, subsection 4, paragraphs a and b,
Code 2016, are amended to read as follows:
a. The eligible taxpayer shall, for the length of the
agreement, annually certify to the department authority
compliance with the requirements of the agreement. The
certification shall be made at such time as the department
authority shall determine in the agreement.
b. The eligible taxpayer shall have the burden of proof to
demonstrate to the department authority that all requirements
of the agreement are satisfied. The taxpayer shall notify
the department authority in a timely manner of any changes
in the qualification of the rehabilitation project or in
the eligibility of the taxpayer to claim the tax credit
provided under this chapter, or of any other change that may
have a negative impact on the eligible taxpayer's ability to
successfully complete any requirement under the agreement.
Sec. 24. Section 404A.3, subsection 4, paragraph c,
subparagraphs (1) and (2), Code 2016, are amended to read as
follows:
(1) If after entering into the agreement but before a
tax credit certificate is issued, the eligible taxpayer or
the qualified rehabilitation project no longer meets the
requirements of the agreement, the department authority may
find the taxpayer in default under the agreement and may revoke
the tax credit award.
(2) If an eligible taxpayer obtains a tax credit certificate
from the department authority by way of a prohibited activity,
the eligible taxpayer and any transferee shall be jointly and
severally liable to the state for the amount of the tax credits
so issued, interest and penalties allowed under chapter 422,
and reasonable attorney fees and litigation costs, except
that the liability of the transferee shall not exceed an
amount equal to the amount of the tax credits acquired by the
transferee. The department of revenue, upon notification
or discovery that a tax credit certificate was issued to an
eligible taxpayer by way of a prohibited activity, shall revoke
any outstanding tax credit and seek repayment of the value
of any tax credit already claimed, and the failure to make
such a repayment may be treated by the department of revenue
in the same manner as a failure to pay the tax shown due or
required to be shown due with the filing of a return or deposit
form. A qualifying transferee is not subject to the liability,
revocation, and repayment imposed under this subparagraph.
Sec. 25. Section 404A.3, subsection 4, paragraph c,
subparagraph (3), Code 2016, is amended by adding the following
new subparagraph division:
NEW SUBPARAGRAPH DIVISION. (0a) "Control" means when a
person, directly or indirectly or acting through or together
with one or more persons, satisfies any of the following:
(i) Owns, controls, or has the power to vote fifty percent
or more of any class of voting securities or voting membership
interests of another person.
(ii) Controls, in any manner, the election of a majority of
the directors, managers, trustees, or other persons exercising
similar functions of another person.
(iii) Has the power to exercise a controlling influence over
the management or policies of another person.
Sec. 26. Section 404A.3, subsection 4, paragraph c,
subparagraph (3), subparagraph division (b), unnumbered
paragraph 1, Code 2016, is amended to read as follows:
"Qualifying transferee" means a transferee who acquires a
tax credit certificate issued under this chapter for value,
in good faith, without actual express or constructive implied
notice of a prohibited activity of the eligible taxpayer who
was originally issued the tax credit, and without actual
express or constructive implied notice of any other claim to
or defense against the tax credit, and which transferee is not
associated with the eligible taxpayer by being one or more of
the following:
Sec. 27. Section 404A.3, subsection 4, paragraph c,
subparagraph (3), subparagraph division (b), subparagraph
subdivision (i), Code 2016, is amended to read as follows:
(i) An owner, member, shareholder, or partner of the
eligible taxpayer who directly or indirectly owns or and
controls, in whole or in part, the eligible taxpayer.
Sec. 28. Section 404A.3, subsections 5, 6, and 7, Code 2016,
are amended to read as follows:
5. Examination and audit of project.
a. An eligible taxpayer shall engage a certified public
accountant authorized to practice in this state to conduct an
examination of the project in accordance with the American
institute of certified public accountants' statements on
standards for attestation engagements. Upon completion of the
qualified rehabilitation project, the eligible taxpayer shall
submit the examination to the department authority, along with
a statement of the amount of final qualified rehabilitation
expenditures and any other information deemed necessary by
the department or the department of revenue authority in
order to verify that all requirements of the agreement, this
chapter, and all rules adopted pursuant to this chapter have
been satisfied. The authority shall adopt rules governing
examinations required under this subsection.
b. Notwithstanding paragraph "a", the department authority
may waive the examination requirement in this subsection if all
the following requirements are satisfied:
(1) The final qualified rehabilitation expenditures of the
qualified rehabilitation project, as verified by the department
authority, do not exceed one hundred thousand dollars.
(2) The qualified rehabilitation project is funded
exclusively by private funding sources.
c. Upon review of the examination, if applicable, the
department authority shall verify that all requirements of
the agreement, this chapter, and all rules adopted pursuant
to this chapter have been satisfied and shall verify the
amount of final qualified rehabilitation expenditures. After
consultation with the department of revenue, the department may
issue a tax credit certificate to the eligible taxpayer stating
the amount of tax credit under section 404A.2 the eligible
taxpayer may claim. The department If the authority determines
that all requirements of the agreement, this chapter, and all
rules adopted pursuant to this chapter have been satisfied and
it has verified the amount of final qualified rehabilitation
expenditures, the authority shall issue the a tax credit
certificate not later than sixty days following the completion
of the examination review, if applicable, and the verifications
and consultation required under this paragraph to the eligible
taxpayer stating the amount of the credit under section 404A.2
the eligible taxpayer may claim.
6. Waivers. Notwithstanding any other provision of this
chapter to the contrary, the department authority may waive
the requirements of subsections 1 through 4, except the
requirements relating to allowable cost overruns in subsection
3, paragraph "b", subparagraph (3), and the requirements
in subsection 4, paragraphs "b" and "c", for qualified
rehabilitation projects with final qualified rehabilitation
expenditures of seven hundred fifty thousand dollars or less
and may establish by rule different application, registration,
agreement, compliance, or other requirements relating to such
projects.
7. Amendments. The department authority may for good cause
amend an agreement.
Sec. 29. Section 404A.4, subsection 1, paragraph a, Code
2016, is amended to read as follows:
a. Except as provided in subsections 2 and 3, the department
authority shall not award in any one fiscal year an amount of
tax credits provided in section 404A.2 in excess of forty=five
million dollars.
Sec. 30. Section 404A.4, subsection 3, paragraph a, Code
2016, is amended to read as follows:
a. If during the fiscal year beginning July 1, 2016, or
any fiscal year thereafter, the department authority awards
an amount of tax credits that is less than the maximum
aggregate tax credit award limit specified in subsection 1,
the difference between the amount so awarded and the amount
specified in subsection 1, not to exceed ten percent of the
amount specified in subsection 1, may be carried forward to the
succeeding fiscal year and awarded during that fiscal year.
Sec. 31. Section 404A.5, subsections 1 and 3, Code 2016, are
amended to read as follows:
1. The department authority, in consultation with the
department of revenue, shall be responsible for keeping the
general assembly and the legislative services agency informed
on the overall economic impact to the state of qualified
rehabilitation projects.
3. The department authority, to the extent it is able, shall
provide recommendations on whether the limit on tax credits
should be changed, the need for a broader or more restrictive
definition of qualified rehabilitation project, and other
adjustments to the tax credits under this chapter.
Sec. 32. Section 404A.6, Code 2016, is amended to read as
follows:
404A.6 Rules.
The authority, department, and the department of revenue
shall each adopt rules to jointly administer as necessary for
the administration of this chapter.
Sec. 33. IMPLEMENTATION ==== COSTS. For the fiscal year
beginning July 1, 2016, the department of revenue and the
economic development authority shall agree on the total cost
of implementing this division of this Act, and the economic
development authority shall pay those costs from fees charged
by and deposited with the authority pursuant to section 404A.3,
subsection 1, paragraph "e". If the department of revenue
and the economic development authority fail to come to an
agreement, the department of management shall determine the
costs to be paid by the economic development authority under
this subsection.
Sec. 34. TRANSITION PROVISIONS. The department of cultural
affairs shall cooperate with the economic development authority
to ensure the effective transition of powers, duties, and funds
from the department to the authority in implementing this
division of this Act.
Sec. 35. EFFECTIVE DATE. This division of this Act takes
effect August 15, 2016.
Sec. 36. APPLICABILITY.
1. Except as provided in subsection 2, this division of this
Act applies to qualified rehabilitation projects registered on
or after August 15, 2016.
2. The section of this division of this Act amending section
404A.2, subsection 3, applies retroactively to agreements
entered into by an eligible taxpayer on or after July 1, 2014.
LINDA UPMEYER
Speaker of the House
PAM JOCHUM
President of the Senate
I hereby certify that this bill originated in the House and
is known as House File 2443, Eighty=sixth General Assembly.
CARMINE BOAL
Chief Clerk of the House
Approved , 2016
TERRY E. BRANSTAD
Governor
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