Senate File 2055

                                   SENATE FILE       
                                   BY  HATCH, BEALL, RAGAN, SENG,
                                       BOLKCOM, WARNSTADT, STEWART
                                       DVORSKY, CONNOLLY, GRONSTAL,
                                       BLACK, McCOY, COURTNEY,
                                       KREIMAN, DOTZLER, HORN,
                                       and DEARDEN


    Passed Senate, Date               Passed House,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to the amount of tax credits that may be approved
  2    in a fiscal year under the property rehabilitation tax credit
  3    program when projects are located in cultural and
  4    entertainment districts.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  6 TLSB 5845SS 80
  7 mg/sh/8

PAG LIN

  1  1    Section 1.  Section 404A.4, subsection 4, Code Supplement
  1  2 2003, is amended to read as follows:
  1  3    4.  The total amount of tax credits that may be approved
  1  4 for a fiscal year under this chapter shall not exceed two
  1  5 million four hundred thousand dollars.  For the fiscal years
  1  6 beginning July 1, 2005, and July 1, 2006, an additional five
  1  7 hundred thousand dollars of tax Tax credits may be approved
  1  8 each fiscal year for purposes of projects located in cultural
  1  9 and entertainment districts certified pursuant to section
  1 10 303.3B shall not be counted toward the limit on the amount of
  1 11 tax credits that can be approved in a fiscal year under this
  1 12 subsection.  Any of the additional tax credits allocated for
  1 13 projects located in certified cultural and entertainment
  1 14 districts that are not approved during a fiscal year may be
  1 15 carried over to the succeeding fiscal year.  Tax credit
  1 16 certificates shall be issued on the basis of the earliest
  1 17 awarding of certifications of completion as provided in
  1 18 subsection 1.  The departments of economic development and
  1 19 revenue shall each adopt rules to jointly administer this
  1 20 subsection and shall provide by rule for the method to be used
  1 21 to determine for which fiscal year the tax credits are
  1 22 approved.
  1 23                           EXPLANATION
  1 24    This bill amends the limit on the amount of tax credits
  1 25 that may be approved for purposes of the rehabilitation tax
  1 26 credit program.  Present law has a limit of $2.4 million per
  1 27 fiscal year with another $500,000 for FY 2005=2006 and FY
  1 28 2006=2007 for tax credits approved if the property is located
  1 29 in a cultural and entertainment district.  The bill leaves the
  1 30 $2.4 million limit in place but allows for unlimited tax
  1 31 credits if the property is located in a cultural and
  1 32 entertainment district.  This change will begin July 1, 2004,
  1 33 and last indefinitely.
  1 34 LSB 5845SS 80
  1 35 mg/sh/8