Senate File 138 - Introduced
SENATE FILE
BY JOHNSON
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to cultural and entertainment districts and
2 cultural, entertainment, and historical rehabilitation
3 projects and providing an applicability date provision.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 1578SS 81
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PAG LIN
1 1 Section 1. NEW SECTION. 303.3B CULTURAL AND
1 2 ENTERTAINMENT DISTRICTS.
1 3 1. The department of cultural affairs shall establish and
1 4 administer a cultural and entertainment district certification
1 5 program. The program shall encourage the growth of
1 6 communities through the development of areas within a city or
1 7 county for public and private uses related to cultural and
1 8 entertainment purposes.
1 9 2. A city or county may create and designate a cultural
1 10 and entertainment district subject to certification by the
1 11 department of cultural affairs, in consultation with the
1 12 department of economic development. A cultural and
1 13 entertainment district shall consist of a geographic area not
1 14 exceeding one square mile in size. A cultural and
1 15 entertainment district certification shall remain in effect
1 16 for ten years following the date of certification. Two or
1 17 more cities or counties may apply jointly for certification of
1 18 a district that extends across a common boundary. Through the
1 19 adoption of administrative rules, the department of cultural
1 20 affairs shall develop a certification application for use in
1 21 the certification process. The provisions of this subsection
1 22 relating to the adoption of administrative rules shall be
1 23 construed narrowly.
1 24 3. The department of cultural affairs shall encourage
1 25 development projects and activities located in certified
1 26 cultural and entertainment districts through incentives under
1 27 cultural grant programs pursuant to section 303.3, chapter
1 28 303A, and any other grant programs.
1 29 Sec. 2. Section 404A.4, subsection 4, Code 2005, is
1 30 amended to read as follows:
1 31 4. The total amount of tax credits that may be approved
1 32 for a fiscal year under this chapter shall not exceed two
1 33 twenty million four hundred thousand dollars. For the fiscal
1 34 years beginning July 1, 2005, and July 1, 2006, an additional
1 35 five hundred thousand dollars of tax credits may be approved
2 1 each fiscal year for purposes of projects located in cultural
2 2 and entertainment districts certified pursuant to section
2 3 303.3B. Any of the additional tax credits allocated for
2 4 projects located in certified cultural and entertainment
2 5 districts that are not approved during a fiscal year may be
2 6 carried over to the succeeding fiscal year. For each fiscal
2 7 year, at least ten percent of the maximum amount of credits
2 8 that may be approved shall be dedicated for awarding to
2 9 projects with qualified rehabilitation costs equal to five
2 10 hundred thousand dollars or less. For the fiscal years
2 11 beginning July 1, 2005, and July 1, 2006, an additional five
2 12 hundred thousand dollars of tax credits may be approved each
2 13 fiscal year for purposes of projects located in cultural and
2 14 entertainment districts certified pursuant to section 303.3B.
2 15 Any of the additional tax credits allocated for projects
2 16 located in certified cultural and entertainment districts that
2 17 are not approved during a fiscal year may be carried over to
2 18 the succeeding fiscal year. The department of cultural
2 19 affairs shall establish by rule the procedures for the
2 20 application, review, selection, and awarding of certifications
2 21 of completion. The departments of economic development,
2 22 cultural affairs, and revenue shall each adopt rules to
2 23 jointly administer this subsection and shall provide by rule
2 24 for the method to be used to determine for which fiscal year
2 25 the tax credits are available.
2 26 Sec. 3. APPLICABILITY DATE. Section 2 of this Act applies
2 27 to fiscal years beginning on or after July 1, 2005.
2 28 EXPLANATION
2 29 This bill requires the department of cultural affairs to
2 30 establish and administer a cultural entertainment district
2 31 certification program to encourage the growth of communities
2 32 through the development of areas within a city or county for
2 33 public and private uses related to cultural and entertainment
2 34 purposes. Two or more cities or counties may apply jointly
2 35 for certification of a district that extends across a common
3 1 boundary. The division requires the department to encourage
3 2 development projects and activities located in certified
3 3 cultural and entertainment districts through incentives under
3 4 cultural grant programs and any other grant programs.
3 5 The bill also increases the amount of annual tax credits
3 6 that may be awarded for historical and cultural rehabilitation
3 7 projects from $2.4 million to $20 million with at least 10
3 8 percent of the maximum amount to be set aside for projects of
3 9 $500,000 or less. In addition to the $20 million in credits,
3 10 for FY 2005=2006 and FY 2006=2007, an additional $500,000 is
3 11 available for each year for projects located in the cultural
3 12 and entertainment districts.
3 13 The bill provides for an applicability date provision.
3 14 LSB 1578SS 81
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