HOUSE FILE 377

BY  KAJTAZOVIC

(COMPANION TO SF 178 BY SODDERS)

A BILL FOR

An Act relating to community development by allocating tax credits for redevelopment of brownfields and grayfields and by making an appropriation for certain community partnership programs designed to support community beautification projects.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

   Section 1.  Section 15.119, subsection 2, Code 2011, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  f.  The redevelopment tax credit program for brownfields and grayfields administered pursuant to sections 15.293A and 15.293B.
   Sec. 2.  Section 15.119, Code 2011, is amended by adding the following new subsection:
   NEW SUBSECTION.  2A.  In allocating the amount of tax credits authorized pursuant to subsection 1 among the programs specified in subsection 2, the department shall allocate at least five million dollars for purposes of subsection 2, paragraph “f”.
   Sec. 3.  Section 15.293A, subsections 6, 7, and 12, Code 2011, are amended to read as follows:
   6.  For the fiscal year beginning July 1, 2009, the maximum amount of tax credits issued by the department shall not exceed one million dollars. The department shall not issue tax credits pursuant to this section in subsequent fiscal years unless authorized pursuant to this subsection.  For each subsequent fiscal year, the amount of tax credits that may be issued by the department shall be subject to the limitation in section 15.119.
   7.  An investment shall be deemed to have been made on the date the qualifying redevelopment project is completed. An investment made prior to January 1, 2009, or after June 30, 2010, shall not qualify for a tax credit under this part.
   12.  If the maximum amount of tax credits available has not been issued at the end of a fiscal year, the remaining tax credit amount may be carried over to a subsequent fiscal year or may be issued in advance to qualifying redevelopment projects for a subsequent fiscal year department does not issue tax credits for the full amount allocated pursuant to section 15.119, subsection 2, paragraph “f”, the remaining unallocated amount of tax credits shall not carry forward to a subsequent fiscal year allocation. Whenever the council approves a tax credit which has not been allocated at the end of a fiscal year, the department may prorate the remaining credit amount to more than one eligible applicant.
   Sec. 4.  COMMUNITY PARTNERSHIP PROGRAM.  There is appropriated from the general fund of the state to the department of natural resources for the fiscal year beginning July 1, 2011, and ending June 30, 2012, the following amount, or so much thereof as is necessary, to be used for the purposes designated:
   For the purposes of the community partnership program described in section 455E.11, subsection 2, paragraph “a”, subparagraph (1), subparagraph division (a), subparagraph subdivision (ii), subparagraph part (B):
.................................................. $    200,000
EXPLANATION
   This bill relates to community development.
   The bill includes the redevelopment tax credits program for brownfields and grayfields under the department of economic development’s aggregate tax credit limitation and makes conforming changes to Code section 15.293A in order to allow the department to issue tax credits under the program beginning July 1, 2011. The bill requires the department to allocate at least $5 million of its maximum aggregate tax credit limitation for purposes of the program. Including the program under this limitation prevents the department from carrying forward unissued credit amounts to the next fiscal year allocation.
   In 2010, the general assembly authorized the department of natural resources to expend up to $100,000 for purposes of providing grants to certain community partnership programs designed to support community beautification projects. The bill appropriates an additional $200,000 for such purposes.