Bill Text: IA HF2448 | 2013-2014 | 85th General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: A bill for an act relating to the administration of programs by the economic development authority by modifying the high quality jobs program, creating a workforce housing tax incentives program and making penalties applicable, and repealing the enterprise zone program, and including effective date and retroactive and other applicability provisions. Effective 7-1-14, with exception of Division II and section 27, effective 5-30-14.

Spectrum: Committee Bill

Status: (Passed) 2014-05-30 - Signed by Governor. H.J. 896. [HF2448 Detail]

Download: Iowa-2013-HF2448-Amended.html

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House File 2448 - Reprinted
HOUSE FILE 2448
BY COMMITTEE ON WAYS AND MEANS
(SUCCESSOR TO HF 2305)
(SUCCESSOR TO HSB 542)
(As Amended and Passed by the House March 26, 2014 )
A BILL FOR
An Act relating to the administration of programs by the
economic development authority by modifying the high quality
jobs program, creating a workforce housing tax incentives
program and making penalties applicable, and repealing the
enterprise zone program, and including effective date and
retroactive and other applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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DIVISION I
HIGH QUALITY JOBS PROGRAM
Section 1. Section 15.327, Code 2014, is amended by adding
the following new subsections:
NEW SUBSECTION . 3A. “Brownfield site” means the same as
defined in section 15.291.
NEW SUBSECTION . 12A. “Grayfield site” means the same as
defined in section 15.291.
NEW SUBSECTION . 17A. “Project” means an activity or set
of activities directly related to the start-up, location,
modernization, or expansion of a business, and proposed
in an application by a business, that will result in the
accomplishment of the goals of the program.
Sec. 2. Section 15.327, subsection 18, Code 2014, is amended
to read as follows:
18. “Project completion assistance” means financial
assistance or technical assistance provided to an eligible
business in order to facilitate the start-up, location, or
expansion of the business completion of a project in this state
and provided in an expedient manner to ensure the successful
completion of the start-up, location, or expansion project.
Sec. 3. Section 15.329, subsection 1, paragraph a, Code
2014, is amended to read as follows:
a. If the qualifying investment is ten million dollars or
more, the community has approved by ordinance or resolution the
start-up, location, or expansion of the business project for
the purpose of receiving the benefits of this part.
Sec. 4. Section 15.331A, subsection 1, Code 2014, is amended
to read as follows:
1. The eligible business shall be entitled to a refund
of the sales and use taxes paid under chapter 423 for gas,
electricity, water, or sewer utility services, goods, wares, or
merchandise, or on services rendered, furnished, or performed
to or for a contractor or subcontractor and used in the
fulfillment of a written contract relating to the construction
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or equipping of a facility that is part of a project of the
eligible business. Taxes attributable to intangible property
and furniture and furnishings shall not be refunded. However,
an eligible business shall be entitled to a refund for taxes
attributable to racks, shelving, and conveyor equipment to be
used in a warehouse or distribution center subject to section
15.331C .
Sec. 5. Section 15.332, subsection 1, Code 2014, is amended
to read as follows:
1. The community may exempt from taxation all or a portion
of the actual value added by improvements to real property
directly related to new jobs created by the location or
expansion of an eligible business under the program project
and used in the operations of the eligible business. The
exemption may be allowed for a period not to exceed twenty
years beginning the year the improvements are first assessed
for taxation.
Sec. 6. Section 15.333, subsection 1, Code 2014, is amended
to read as follows:
1. An eligible business may claim a tax credit equal to a
percentage of the new investment directly related to new jobs
created or retained by the location or expansion of an eligible
business under the program project . The tax credit shall be
amortized equally over five calendar years. The tax credit
shall be allowed against taxes imposed under chapter 422,
division II, III, or V , and against the moneys and credits tax
imposed in section 533.329 . If the business is a partnership,
S corporation, limited liability company, cooperative organized
under chapter 501 and filing as a partnership for federal tax
purposes, or estate or trust electing to have the income taxed
directly to the individual, an individual may claim the tax
credit allowed. The amount claimed by the individual shall
be based upon the pro rata share of the individual’s earnings
of the partnership, S corporation, limited liability company,
cooperative organized under chapter 501 and filing as a
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partnership for federal tax purposes, or estate or trust. The
percentage shall be determined as provided in section 15.335A .
Any tax credit in excess of the tax liability for the tax year
may be credited to the tax liability for the following seven
years or until depleted, whichever occurs first.
Sec. 7. Section 15.333, subsection 2, unnumbered paragraph
1, Code 2014, is amended to read as follows:
For purposes of this subsection , “new investment directly
related to new jobs created by the location or expansion of an
eligible business under the program project ” 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 location
or expansion of an eligible business under the program project ”
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:
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Sec. 8. Section 15.333A, subsection 1, Code 2014, is amended
to read as follows:
1. An eligible business may claim an insurance premium tax
credit equal to a percentage of the new investment directly
related to new jobs created by the location or expansion of an
eligible business under the program project . The tax credit
shall be amortized equally over a five-year period. The tax
credit shall be allowed against taxes imposed in chapter 432 .
A tax credit in excess of the tax liability for the tax year may
be credited to the tax liability for the following seven years
or until depleted, whichever occurs first. The percentage
shall be determined as provided in section 15.335A .
Sec. 9. Section 15.333A, subsection 2, unnumbered paragraph
1, Code 2014, is amended to read as follows:
For purposes of this section , “new investment directly
related to new jobs created by the location or expansion of an
eligible business under the program project ” 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 location
or expansion of an eligible business under the program project ”
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,
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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. 10. Section 15.335C, Code 2014, is amended to read as
follows:
15.335C Economically Wage thresholds for brownfield and
grayfield projects and economically distressed areas.
1. a. Notwithstanding section 15.329, subsection 1 ,
paragraph “c” , the authority may provide tax incentives or
project completion assistance under this part to an eligible
a business paying for a project that will create or retain
jobs that will pay less than one hundred twenty percent of the
qualifying wage threshold if that business project is located
at a brownfield site, a grayfield site, or in an economically
distressed area.
b. (1) A business with a project located in an economically
distressed area or at a grayfield site and receiving incentives
or assistance pursuant to this section shall be required to pay
at least one hundred percent of the qualifying wage threshold
for jobs created or retained by the project .
(2) A business with a project located at a brownfield
site and receiving incentives or assistance pursuant to this
section shall be required to pay at least ninety percent of the
qualifying wage threshold for jobs created or retained by the
project.
2. For purposes of this section , “economically distressed
area” means a county that ranks among the bottom twenty-five
thirty-three of all Iowa counties, as measured by one of the
following:
a. Average monthly unemployment level for the most recent
twelve-month period.
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b. Average annualized unemployment level for the most recent
five-year period.
Sec. 11. APPLICABILITY. This division of this Act applies
to high quality jobs program agreements entered into by an
eligible business and the economic development authority on or
after the effective date of this division of this Act, and high
quality jobs program agreements entered into by an eligible
business and the economic development authority prior to the
effective date of this division of this Act shall be governed
by sections 15.327, 15.329, 15.333, 15.333A, and 15.335C, Code
2014.
DIVISION II
WORKFORCE HOUSING TAX INCENTIVES PROGRAM
Sec. 12. Section 15.119, subsection 2, Code 2014, is amended
by adding the following new paragraph:
NEW PARAGRAPH . g. The workforce housing tax incentives
program administered pursuant to sections 15.351 through
15.356. In allocating tax credits pursuant to this subsection,
the authority shall not allocate more than twenty million
dollars for purposes of this paragraph.
Sec. 13. NEW SECTION . 15.351 Short title.
This part shall be known and may be cited as the “Workforce
Housing Tax Incentives Program” .
Sec. 14. NEW SECTION . 15.352 Definitions.
As used in this part, unless the context otherwise requires:
1. “Brownfield site” means an abandoned, idled, or
underutilized property where expansion or redevelopment is
complicated by real or perceived environmental contamination.
A brownfield site includes property contiguous with the site
on which the property is located. A brownfield site does
not include property which has been placed, or is proposed
for placement, on the national priorities list established
pursuant to the federal Comprehensive Environmental Response,
Compensation, and Liability Act, 42 U.S.C. §9601 et seq.
2. “Community” means a city or county.
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3. “Grayfield site” means a property meeting all of the
following requirements:
a. The property has been developed and has infrastructure in
place but the property’s current use is outdated or prevents a
better or more efficient use of the property. Such property
includes vacant, blighted, obsolete, or otherwise underutilized
property.
b. The property’s improvements and infrastructure are at
least twenty-five years old and one or more of the following
conditions exists:
(1) Thirty percent or more of a building located on the
property that is available for occupancy has been vacant or
unoccupied for a period of twelve months or more.
(2) The assessed value of the improvements on the property
has decreased by twenty-five percent or more.
(3) The property is currently being used as a parking lot.
(4) The improvements on the property no longer exist.
4. “Housing business” means a business that is a housing
developer, housing contractor, or nonprofit organization that
completes a housing project in the state.
5. “Housing project” means a project located in this state
meeting the requirements of section 15.353.
6. “Multi-use building” means a building whose street-level
ground story is used for a purpose that is other than
residential, and whose upper story or stories are currently
used primarily for a residential purpose, or will be used
primarily for a residential purpose after completion of the
housing project associated with the building.
7. “Program” means the workforce housing tax incentives
program administered under this part.
8. a. “Qualifying new investment” means costs that are
directly related to the acquisition, repair, rehabilitation, or
redevelopment of a housing project in this state.
b. “Qualifying new investment” includes costs that are
directly related to new construction of dwelling units if the
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new construction occurs in a distressed workforce housing
community.
c. The amount of costs that may be used to compute
“qualifying new investment” shall not exceed the costs used for
the first one hundred fifty thousand dollars of value for each
dwelling unit that is part of a housing project.
d. “Qualifying new investment” does not include the
following:
(1) The portion of the total cost of a housing project
that is financed by federal, state, or local government tax
credits, grants, forgivable loans, or other forms of financial
assistance that do not require repayment, excluding the tax
incentives provided under this part.
(2) If a housing project includes the rehabilitation,
repair, or redevelopment of an existing multi-use building,
the portion of the total acquisition costs of the multi-use
building, including a proportionate share of the total
acquisition costs of the land upon which the multi-use building
is situated, that are attributable to the street-level
ground story that is used for a purpose that is other than
residential.
Sec. 15. NEW SECTION . 15.353 Housing project requirements.
1. To receive workforce housing tax incentives pursuant to
the program, a proposed housing project shall meet all of the
following requirements:
a. The project includes at least one of the following:
(1) Four or more single-family dwelling units.
(2) One or more multiple dwelling unit buildings each
containing three or more individual dwelling units.
(3) Two or more dwelling units located in the upper story of
an existing multi-use building.
b. The project consists of any of the following:
(1) Rehabilitation, repair, or redevelopment at a
brownfield or grayfield site that results in new dwelling
units.
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(2) The rehabilitation, repair, or redevelopment of
dilapidated dwelling units.
(3) The rehabilitation, repair, or redevelopment of
dwelling units located in the upper story of an existing
multi-use building.
(4) (a) The new construction, rehabilitation, repair,
or redevelopment of dwelling units in a distressed workforce
housing community.
(b) The determination as to whether a community is
considered a distressed workforce housing community shall be
within the discretion of the authority after considering all
of the following:
(i) Whether or not the community has a severe housing
shortage relative to demand, low vacancy rates, or rising
housing costs combined with low unemployment.
(ii) The relative merits of all applications for
designation as a distressed workforce housing community.
(iii) The demand for projects applying under this
subparagraph compared to the demand for projects applying under
subparagraphs (1) through (3).
c. (1) Except as provided in subparagraph (2), the average
dwelling unit cost does not exceed two hundred thousand dollars
per dwelling unit.
(2) The average dwelling unit cost does not exceed two
hundred fifty thousand dollars per dwelling unit if the
project involves the rehabilitation, repair, redevelopment, or
preservation of eligible property, as that term is defined in
section 404A.1, subsection 2.
d. The dwelling units, when completed and made available
for occupancy, meet the United States department of housing
and urban development’s housing quality standards and all
applicable local safety standards.
Sec. 16. NEW SECTION . 15.354 Housing project application
and agreement.
1. Application.
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a. A housing business seeking workforce housing tax
incentives provided in section 15.355 shall make application to
the authority in the manner prescribed by the authority. The
authority may accept applications on a continuous basis.
b. The application shall include all of the following:
(1) The following information establishing local
participation for the housing project:
(a) A resolution in support of the housing project by the
community where the housing project will be located.
(b) Documentation of local matching funds pledged for the
housing project in an amount equal to at least one thousand
dollars per dwelling unit, including but not limited to
a funding agreement between the housing business and the
community where the housing project will be located. For
purposes of this paragraph, local matching funds shall be in
the form of cash or cash equivalents, or in the form of a local
property tax exemption, rebate, refund, or reimbursement.
(2) A report that meets the requirements and conditions of
section 15.330, subsection 9.
(3) Information showing the total costs and funding sources
of the housing project sufficient to allow the authority to
adequately determine the financing that will be utilized for
the housing project, the actual cost of the dwelling units, and
the amount of qualifying new investment.
(4) Any other information deemed necessary by the authority
to evaluate the eligibility and financial need of the housing
project under the program.
2. Registration.
a. Upon review of the application, the authority may
register the housing project under the program. If the
authority registers the housing project, the authority shall
make a preliminary determination as to the amount of tax
incentives for which the housing project qualifies.
b. After registering the housing project, the authority
shall notify the housing business of successful registration
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under the program. The notification shall include the amount
of tax incentives under section 15.355 for which the housing
business has received preliminary approval and a statement
that the amount is a preliminary determination only. The
amount of tax credits included on a tax credit certificate
issued pursuant to this section, or a claim for refund of sales
and use taxes, shall be contingent upon completion of the
requirements in subsection 3.
3. Agreement and fees.
a. Upon successful registration of the housing project,
the housing business shall enter into an agreement with the
authority for the successful completion of all requirements of
the program.
b. The compliance cost fees imposed in section 15.330,
subsection 12, shall apply to all agreements entered into
under this program and shall be collected by the authority in
the same manner and to the same extent as described in that
subsection.
c. A housing business shall complete its housing project
within three years from the date the housing project is
registered by the authority.
d. Upon completion of a housing project, an audit of
the project, completed by an independent certified public
accountant licensed in this state, shall be submitted to the
authority.
e. Upon review of the audit and verification of the amount
of the qualifying new investment, the authority may issue a tax
credit certificate to the housing business stating the amount
of workforce housing investment tax credits under section
15.355 the eligible housing business may claim.
4. Maximum tax incentives amount.
a. The maximum aggregate amount of tax incentives that may
be awarded under section 15.355 to a housing business for a
housing project shall not exceed one million dollars.
b. If a housing business qualifies for a higher amount
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of tax incentives under section 15.355 than is allowed by
the limitation imposed in paragraph “a” , the authority and
the housing business may negotiate an apportionment of the
reduction in tax incentives between the sales tax refund
provided in section 15.355, subsection 2, and the workforce
housing investment tax credits provided in section 15.355,
subsection 3, provided the total aggregate amount of tax
incentives after the apportioned reduction does not exceed the
amount in paragraph “a” .
c. The authority shall issue tax incentives under the
program on a first-come, first-served basis until the maximum
amount of tax incentives allocated pursuant to section 15.119,
subsection 2, is reached. The authority shall maintain a list
of registered housing projects under the program so that if
the maximum aggregate amount of tax incentives is reached in
a given fiscal year, registered housing projects that were
completed but for which tax incentives were not issued shall
be placed on a wait list in the order the registered housing
projects were registered and shall be given priority for
receiving tax incentives in succeeding fiscal years.
5. Termination and repayment. The failure by a housing
business in completing a housing project to comply with any
requirement of this program or any of the terms and obligations
of an agreement entered into pursuant to this section may
result in the reduction, termination, or recision of the
approved tax incentives and may subject the housing business
to the repayment or recapture of tax incentives claimed under
section 15.355. The repayment or recapture of tax incentives
pursuant to this section shall be accomplished in the same
manner as provided in section 15.330, subsection 2.
Sec. 17. NEW SECTION . 15.355 Workforce housing tax
incentives.
1. A housing business that has entered into an agreement
pursuant to section 15.354 is eligible to receive the tax
incentives described in subsections 2 and 3.
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2. A housing business may claim a refund of the sales and
use taxes paid under chapter 423 that are directly related
to a housing project. The refund available pursuant to this
subsection shall be as provided in section 15.331A to the
extent applicable for purposes of this program.
3. a. A housing business may claim a tax credit in
an amount not to exceed ten percent of the qualifying new
investment of a housing project.
b. The tax credit shall be allowed against the taxes imposed
in chapter 422, divisions II, III, and V, and in chapter 432,
and against the moneys and credits tax imposed in section
533.329.
c. An individual may claim a tax credit under this
subsection of a partnership, limited liability company,
S corporation, estate, or trust electing to have income
taxed directly to the individual. The amount claimed by the
individual shall be based upon the pro rata share of the
individual’s earnings from the partnership, limited liability
company, S corporation, estate, or trust.
d. Any tax credit in excess of the taxpayer’s liability
for the tax year is not refundable but may be credited to the
tax liability for the following five years or until depleted,
whichever is earlier.
e. (1) To claim a tax credit under this subsection, a
taxpayer shall include one or more tax credit certificates with
the taxpayer’s tax return.
(2) The tax credit certificate shall contain the taxpayer’s
name, address, tax identification number, the amount of the
credit, the name of the eligible housing business, any other
information required by the department of revenue, and a place
for the name and tax identification number of a transferee and
the amount of the tax credit being transferred.
(3) The tax credit certificate, unless rescinded by the
authority, shall be accepted by the department of revenue as
payment for taxes imposed pursuant to chapter 422, divisions
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II, III, and V, and in chapter 432, and for the moneys and
credits tax imposed in section 533.329, subject to any
conditions or restrictions placed by the authority upon
the face of the tax credit certificate and subject to the
limitations of this program.
(4) Tax credit certificates issued under section 15.354,
subsection 3, paragraph “e” , 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, and 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 of the authority shall not be transferable.
(5) 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.
(6) 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, and against the moneys and
credits tax imposed in section 533.329, 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,
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divisions II, III, and V.
f. For purposes of the individual and corporate income
taxes and the franchise tax, the increase in the basis of the
property that would otherwise result from the qualifying new
investment shall be reduced by the amount of the tax credit
computed under this subsection.
Sec. 18. NEW SECTION . 15.356 Rules.
The authority and the department of revenue shall adopt
rules as necessary for the implementation and administration
of this part.
Sec. 19. NEW SECTION . 422.11C Workforce housing investment
tax credit.
The taxes imposed under this division, less the credits
allowed under section 422.12, shall be reduced by a workforce
housing investment tax credit allowed under section 15.355,
subsection 3.
Sec. 20. Section 422.33, Code 2014, is amended by adding the
following new subsection:
NEW SUBSECTION . 15. The taxes imposed under this division
shall be reduced by a workforce housing investment tax credit
allowed under section 15.355, subsection 3.
Sec. 21. Section 422.60, Code 2014, is amended by adding the
following new subsection:
NEW SUBSECTION . 12. The taxes imposed under this division
shall be reduced by a workforce housing investment tax credit
allowed under section 15.355, subsection 3.
Sec. 22. NEW SECTION . 432.12G Workforce housing investment
tax credit.
The taxes imposed under this chapter shall be reduced by a
workforce housing investment tax credit allowed under section
15.355, subsection 3.
Sec. 23. Section 533.329, subsection 2, Code 2014, is
amended by adding the following new paragraph:
NEW PARAGRAPH . k. The moneys and credits tax imposed under
this section shall be reduced by a workforce housing investment
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tax credit allowed under section 15.355, subsection 3.
Sec. 24. EFFECTIVE UPON ENACTMENT. This division of this
Act, being deemed of immediate importance, takes effect upon
enactment.
Sec. 25. RETROACTIVE APPLICABILITY. This division of this
Act applies retroactively to January 1, 2014, for tax years
beginning on or after that date.
Sec. 26. APPLICABILITY. This division of this Act applies
to qualifying new investment costs incurred on or after the
effective date of this division of this Act.
DIVISION III
TERMINATION AND TRANSITION OF ENTERPRISE ZONE PROGRAM
Sec. 27. INVESTMENT TAX CREDITS ISSUED TO ELIGIBLE
HOUSING BUSINESSES UNDER THE ENTERPRISE ZONE PROGRAM ——
TRANSFERABILITY. Notwithstanding the requirement in section
15E.193B, subsection 8, Code 2014, that not more than three
million dollars worth of tax credits for housing developments
located in a brownfield site or a blighted area shall be
eligible for transfer in a calendar year unless the eligible
housing business is also eligible for low-income housing tax
credits authorized under section 42 of the Internal Revenue
Code, and notwithstanding the requirement in section 15E.193B,
subsection 8, Code 2014, that the economic development
authority shall not approve more than one million five hundred
thousand dollars in tax credit certificates for transfer to
any one eligible housing business located on a brownfield
site or in a blighted area in a calendar year, all investment
tax credits determined under section 15E.193B, subsection 6,
paragraph “a”, Code 2014, for housing developments located on
a brownfield site or in a blighted area may be approved by
the economic development authority for transfer in calendar
year 2014, or any subsequent calendar year, provided the
eligible housing business was awarded the investment tax credit
before the effective date of this section of this division
of this Act and notifies the economic development authority,
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in writing, before July 1, 2014, of its intent to transfer
such tax credits, and provided the eligible housing business
and the related housing development meet all other applicable
requirements under section 15E.193B, Code 2014.
Sec. 28. Section 2.48, subsection 3, paragraph e,
subparagraph (9), Code 2014, is amended by striking the
subparagraph.
Sec. 29. Section 15.106B, subsection 5, paragraph c, Code
2014, is amended to read as follows:
c. Fees collected by the authority pursuant to this
subsection shall be deposited in a fund within the state
treasury created pursuant to section 15.106A, subsection 1 ,
paragraph “o” , and are appropriated to the authority for the
purposes set out in section 15.106A, subsection 1 , paragraph
“o” . However, fees collected by the authority pursuant to
section 15.330, subsection 12 , and section 15E.198 , Code 2014,
and section 15.354, subsection 3, paragraph “b” , shall be used
exclusively for costs associated with the administration of due
diligence and compliance.
Sec. 30. Section 15.119, subsection 2, paragraph b, Code
2014, is amended to read as follows:
b. The enterprise zones program administered pursuant to
sections 15E.191 through 15E.197 , Code 2014 .
Sec. 31. Section 15A.1, subsection 5, paragraph c, Code
2014, is amended by striking the paragraph.
Sec. 32. Section 15H.5, subsection 2, Code 2014, is amended
to read as follows:
2. The Iowa summer youth corps program is established
to provide meaningful summer enrichment programming to
Iowa youth. The program shall be administered by the Iowa
commission on volunteer service using a competitive grant
process to implement projects in accordance with program
requirements. The commission shall adopt administrative rules
for the program, including but not limited to incentives, grant
criteria, and grantee selection processes. A percentage of the
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grants shall be designated by the commission to address the
needs of city enterprise zones that meet the distress criteria
outlined in section 15E.194 economically distressed areas as
defined in section 15.335C .
Sec. 33. Section 15H.5, subsection 5, paragraph c, Code
2014, is amended to read as follows:
c. The commission shall give priority consideration to
approving those projects that target communities that have
disproportionately high rates of juvenile crime or low rates
of high school graduation or that have been designated as city
enterprise zones that meet the distress criteria outlined in
section 15E.194 economically distressed areas as defined in
section 15.335C .
Sec. 34. Section 15J.4, subsection 1, paragraph b, Code
2014, is amended to read as follows:
b. The area is was in whole or in part either an a
designated economic development enterprise zone designated
under chapter 15E, division XVIII , Code 2014, immediately prior
to the effective date of this Act, or the area is in whole or in
part an urban renewal area established pursuant to chapter 403 .
Sec. 35. Section 403.19A, subsection 3, paragraph j, Code
2014, is amended to read as follows:
j. An employer may participate in a new jobs credit from
withholding under section 260E.5 , or a supplemental new jobs
credit from withholding under section 15E.197 , Code 2014,
or under section 15.331 , Code 2005, at the same time as the
employer is participating in the withholding credit under this
section . Notwithstanding any other provision in this section ,
the new jobs credit from withholding under section 260E.5 , and
the supplemental new jobs credit from withholding under section
15E.197 , Code 2014, or under section 15.331 , Code 2005, shall
be collected and disbursed prior to the withholding credit
under this section .
Sec. 36. Section 422.11F, subsection 2, Code 2014, is
amended to read as follows:
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2. The taxes imposed under this division , less the credits
allowed under section 422.12 , shall be reduced by investment
tax credits authorized pursuant to sections section 15.333 and
section 15E.193B , subsection 6 , Code 2014 .
Sec. 37. Section 422.16A, Code 2014, is amended to read as
follows:
422.16A Job training withholding —— certification and
transfer.
Upon the completion by a business of its repayment
obligation for a training project funded under chapter 260E ,
including a job training project funded under section 15A.8
or repaid in whole or in part by the supplemental new jobs
credit from withholding under section 15A.7 or section 15E.197 ,
Code 2014, the sponsoring community college shall report to
the economic development authority the amount of withholding
paid by the business to the community college during the
final twelve months of withholding payments. The economic
development authority shall notify the department of revenue
of that amount. The department shall credit to the workforce
development fund account established in section 15.342A
twenty-five percent of that amount each quarter for a period
of ten years. If the amount of withholding from the business
or employer is insufficient, the department shall prorate the
quarterly amount credited to the workforce development fund
account. The maximum amount from all employers which shall be
transferred to the workforce development fund account in any
year is four million dollars.
Sec. 38. Section 422.33, subsection 12, paragraph b, Code
2014, is amended to read as follows:
b. The taxes imposed under this division shall be reduced by
investment tax credits authorized pursuant to section 15.333
and section 15E.193B, subsection 6 , Code 2014 .
Sec. 39. Section 422.60, subsection 5, paragraph b, Code
2014, is amended to read as follows:
b. The taxes imposed under this division shall be reduced by
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investment tax credits authorized pursuant to sections 15.333
and 15E.193B , subsection 6 , Code 2014 .
Sec. 40. Section 432.12C, subsection 2, Code 2014, is
amended to read as follows:
2. The taxes imposed under this chapter shall be reduced by
investment tax credits authorized pursuant to section 15.333A
and section 15E.193B, subsection 6 , Code 2014 .
Sec. 41. REPEAL. Sections 15E.191, 15E.192, 15E.193,
15E.193B, 15E.194, 15E.195, 15E.196, 15E.197, and 15E.198, Code
2014, are repealed.
Sec. 42. EFFECTIVE UPON ENACTMENT. The following provision
or provisions of this division of this Act, being deemed of
immediate importance, take effect upon enactment:
1. The section of this division of this Act allowing
the transfer of certain investment tax credits issued to
eligible housing businesses under the enterprise zone program,
notwithstanding the requirements limiting transfer of such
credits under section 15E.193B, subsection 8.
Sec. 43. APPLICABILITY.
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.
2. a. Agreements entered into under chapter 15E, division
XVIII before the effective date of this division of this
Act between an eligible business and a city, county, or
the economic development authority or between an eligible
business and the department of revenue and a community college
or between an eligible housing business and the economic
development authority shall remain in effect until they expire
under their own terms and except as otherwise provided in this
division of this Act, such agreements shall be governed by
chapter 15E, division XVIII, Code 2014.
b. The elimination of the enterprise zone program under this
Act shall not constitute grounds for recision or modification
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of agreements entered into under the program, except as
otherwise provided in this division of this Act.
3. Except as otherwise provided in this division of this
Act, this division of this Act is not intended to and shall not
limit, modify, or otherwise adversely affect any tax credit
certificate or related tax credit issued before the effective
date of this Act or limit, modify, or otherwise adversely
affect the redemption or transfer of any tax credit or tax
credit certificate issued before the effective date of this
division of this Act.
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