SF 274 (LSB 1850SS (5) 85)

SENATE FILE 274

BY  HATCH, MATHIS, SODDERS, BEALL, and DOTZLER

A BILL FOR

An Act creating a technology prairie by promoting an environment to foster the growth of technology, start-up, and small businesses and to attract a skilled workforce by providing incentives and financial assistance to businesses and certain employees, and including effective date and applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I

LEGISLATIVE FINDINGS —— PURPOSES
    Section 1.  LEGISLATIVE FINDINGS —— PURPOSES.
   1.  The general assembly finds all of the following:
   a.  That small businesses and start-up businesses may not qualify for conventional financing and may lack the resources to expand a business.
   b.  That the limited availability of a skilled workforce hampers economic growth of small and start-up businesses in the state.
   c.  That to enhance competitiveness and foster economic development, this state must focus on the technological, cultural, and community environment in order to attract a skilled workforce and improve the economic climate for small businesses throughout the state.
   2.  The general assembly declares the purposes of this Act to be all of the following:
   a.  To promote a cultural and community environment which encourages the retention of skilled technology workers in the state and attracts other skilled technology workers to the state.
   b.  To create incentives and assistance to compete with other markets in attracting a skilled technology workforce.
   c.  To create incentives and assistance to increase the flow of capital to start-up businesses and small businesses seeking to expand in the state.
   d.  To promote the advancement of technology in the state to assist small businesses throughout the state.
   e.  To create a technology prairie which promotes a cultural, technological, community, and economic development environment that fosters the growth of small businesses and start-up companies and attracts a skilled technology workforce.

DIVISION II

EXCITE IOWA GRANT PROGRAM
    Sec. 2.  NEW SECTION.  303.96  Excite Iowa grant program.
   1.  The department of cultural affairs shall establish and administer an excite Iowa grant program. The excite Iowa grant program is established to provide grants to business entities seeking to invest in community economic activities. A grant shall not be awarded to a business entity unless the business can match at least twenty percent of the amount of the grant to be awarded. The matching funds may be from the business entity, private foundations, federal or local government funds, financial institutions, or individuals.
   2.  The grants are to be used by the business to invest in community economic activities. Community economic activities are those activities that promote and assist with the visual arts, music, literature, drama, fine arts, recreation including trails, and other related community activities and events as deemed appropriate by the department.
   3.  In awarding a grant to a business to invest in community economic activities, the department may consider the following:
   a.  The business entity’s relationship to the community.
   b.  The business entity’s status as a not-for-profit single management company or other entity.
   c.  The location of the community and the need for community economic activity in the community.
   d.  The overall geographic diversity of the applicants for grants, including urban and rural communities.
   e.  The type of activity in which the business seeks to invest.
   f.  Any other information the department deems relevant.
   4.  The department may accept, reject, or defer a business entity’s application for a grant under this section.
   5.  A grant awarded under the program to a business entity shall not exceed two hundred fifty thousand dollars.
   6.  The department may enter into an agreement with a business entity selected to receive financial assistance pursuant to this section for purposes of ensuring the program is administered pursuant to the requirements of this section.

   7.
  a.  The department may seek the repayment of a grant provided pursuant to this section as provided in paragraph “b”.
   b.  If, after receiving a grant from the department pursuant to this section, the business entity fails to use the awarded moneys for the purposes described in subsections 1 and 2, all or a portion of the grant received is subject to immediate repayment to, and recapture by, the department.
   c.  All repayments and recaptures of grants awarded under the program shall be remitted to the department.
   8.  The department shall adopt rules pursuant to chapter 17A as necessary to administer the program.
    Sec. 3.  NEW SECTION.  303.97  Excite Iowa grant fund.
   1.  An excite Iowa grant fund is created in the state treasury under the control of the department of cultural affairs and consisting of moneys appropriated by the general assembly and any other moneys available to and obtained or accepted by the department for deposit in the fund.
   2.  The fund shall be used to provide grants under the excite Iowa grant program established in section 303.96.
   3.  Interest payments and repayments and recaptures of moneys provided as grants pursuant to section 303.96, subsection 7, shall be deposited in the fund.
   4.  Moneys in the fund are not subject to section 8.33. Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys in the fund shall be credited to the fund.

DIVISION III

ENTREPRENEURIAL START-UP BUSINESS INCENTIVES
    Sec. 4.  NEW SECTION.  15E.364  Definitions.
   For purposes of this division, unless the context otherwise requires:
   1.  “Financial institution” means an institution listed in section 422.61, subsection 1, or such other financial institution as defined by the authority for purposes of this section.
   2.  “Program” means the entrepreneur incentives and guarantee program.
   3.  “Qualified business” means a start-up business in the state that is participating in a guaranteed loan program under the United States small business administration. However, “qualified business” does not include businesses engaged primarily in retail sales, real estate, or the provision of health care or other professional services.
    Sec. 5.  NEW SECTION.  15E.365  Entrepreneur incentives and guarantee program.
   1.
  a.  The authority shall establish and administer an entrepreneur incentives and guarantee program. The authority, pursuant to agreements with financial institutions, shall provide loan and credit guarantees, or other forms of credit guarantees, for qualified businesses to assure the repayment of loan and credit guarantees or other extensions of credit made to or on behalf of qualified businesses. The authority may provide up to twenty-five percent of the amount of the loan or credit as a guarantee of the loan or credit for a qualified business. The total amount of the loan or credit to be guaranteed shall not exceed one hundred thousand dollars. A loan or credit guarantee provided under this section shall be used in conjunction with a loan or credit guarantee provided by the United States small business administration.
   b.  The authority may purchase insurance to cover defaulted loans or credit meeting the requirements of the program to the extent of the amount of the guarantee provided by the authority. However, the authority shall not in any manner directly or indirectly pledge the credit of the state.
   2.  In administering the program, the authority shall consult and cooperate with financial institutions. Administrative procedures and application procedures, as practicable, shall be responsive to the qualified businesses and shall be consistent with prudent investment and lending practices and criteria.
   3.  The authority shall obtain certification from the United States small business administration of the small business administration’s agreement with the eligible business under one of the small business administration’s guaranteed loan programs.
    Sec. 6.  NEW SECTION.  15E.366  Entrepreneur incentives and guarantee fund.
   1.  An entrepreneur incentives and guarantee fund is created and established as a separate and distinct fund in the state treasury under the control of the authority. Moneys in the fund shall be used only for the purposes provided in this section.
   2.  The moneys in the fund are appropriated to the authority to be used for all of the following purposes:
   a.  Payment of claims pursuant to loan and credit guarantee agreements entered into under section 15E.365.
   b.  Payment of administrative costs of the authority for actual and necessary administrative expenses incurred by the authority in administering the program.
   c.  Purchase or buyout of superior or prior liens, mortgages, or security interests against a loan or credit that is the subject of an agreement under section 15E.365.
   d.  Purchase of insurance to cover the default of loans or credit made pursuant to the requirements of the entrepreneur incentives and guarantee program to the extent of the amount guaranteed under section 15E.365.
   3.  Moneys in the entrepreneur incentives and guarantee fund shall consist of all of the following:
   a.  Moneys appropriated by the general assembly for the purposes in subsection 1 and any other moneys available to and obtained or accepted by the authority for deposit in the fund.
   b.  Proceeds from collateral assigned to the authority, fees for guarantees, gifts, and moneys from any grant made to the fund by a federal agency.
   4.  Moneys in the fund are not subject to section 8.33. Notwithstanding section 12C.7, subsection 2, interest or earnings on the moneys in the fund shall be credited to the fund.
   5.
  a.  The authority shall only use moneys in the entrepreneur incentives and guarantee fund as loan or credit guarantees, and for the purposes provided in subsection 2, and not any other moneys of the authority. During a fiscal year, the authority may pledge an amount not to exceed the total amount appropriated to the fund for the same fiscal year for the purposes of the program.
   b.  The authority shall not in any manner, directly or indirectly, pledge the credit or taxing power of this state or any political subdivision of this state or make debts payable out of any moneys except for those in the entrepreneur incentives and guarantee fund.

DIVISION IV

SMALL BUSINESS MICROLOAN PROGRAM
    Sec. 7.  NEW SECTION.  15E.25  Small business microloan program.
   1.  The economic development authority shall establish and administer a small business microloan program. The small business microloan program is established to provide loans to local economic organizations to provide microloans to small businesses.
   2.  To receive a loan from the program, the local economic development organization shall demonstrate a dollar-for-dollar fund match. The matching funds may be from a business, private foundations, or individuals.
   3.  A loan awarded under the program to any local economic development organization shall not exceed two hundred fifty thousand dollars.
   4.  In awarding loans to local economic development organizations to provide microloans to small businesses, the authority may consider the following:
   a.  The local economic development organization’s relationship to the community.

   b.  The local economic development organization’s ability to provide accounting and audits of the microloans.
   c.  The location of the local economic development organization.
   d.  The overall geographic diversity of the applicants for loans, including urban and rural communities.
   e.  Any other information the authority deems relevant.
   5.  The authority may accept, reject, or defer a local economic development organization’s application for funds under this section.
   6.
  a.  The authority shall enter into an agreement with a local economic development organization selected to receive a loan pursuant to this section for purposes of ensuring the program is administered pursuant to the requirements of this section.
   b.  Upon repayment of the microloan by the business to the local economic development organization, the authority may require payment of an administrative fee of up to one percent of the microloan to be deposited in the small business microloan program revolving loan fund established in section 15E.26.
   7.
  a.  A local economic development organization awarded financial assistance pursuant to this section shall establish a microloan application process and conduct a microloan program for small businesses. A local economic development organization receiving financial assistance pursuant to this section may accept and evaluate, and approve, deny, or defer, applications for financial assistance from small businesses pursuant to the requirements of this section.
   b.  A local economic development organization receiving assistance shall only provide a microloan using the loan awarded by the authority pursuant to this section for a new or expanding business in this state which has twenty or fewer employees at the time of the business’s application to the local economic development organization.

   c.  The amount of a microloan awarded by a local economic development organization using the loan awarded by the authority pursuant to this section shall not exceed fifteen thousand dollars to any single business.
   d.  The local economic development organization shall conduct an annual audit of the small businesses to which it provided a microloan using funds received pursuant to this section.
   8.
  a.  The authority may seek the recapture of a loan provided pursuant to this section as provided in paragraph “b”.
   b.  If, after receiving financial assistance from the authority pursuant to this section, the local economic development organization fails to use the moneys for the purposes described in subsections 1 and 7, all or a portion of the financial assistance received is subject to immediate repayment to, or recapture by, the authority.
   c.  All payments, repayments, and interest on loans awarded to an economic development organization under the program shall be remitted to the authority.
   9.  The authority shall adopt rules pursuant to chapter 17A as necessary to administer the program.
    Sec. 8.  NEW SECTION.  15E.26  Small business microloan program revolving loan fund.
   1.  A small business microloan program revolving loan fund is created in the state treasury under the control of the economic development authority. The revolving loan fund shall be administered by the authority and shall consist of moneys appropriated by the general assembly, moneys collected by the authority as fees, and any other moneys obtained or accepted by the authority for deposit in the revolving loan fund. The proceeds of the revolving loan fund are appropriated to the authority and shall be used to provide loans under the small business microloan program established in section 15E.25.
   2.  Payments of interest on loans and repayments or recaptures of moneys provided to an economic development organization shall be deposited in the revolving loan fund.

   3.  Moneys in the fund are not subject to section 8.33. Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys in the fund shall be credited to the fund.

DIVISION V

TECHNOLOGY WORKERS TAX CREDIT PROGRAM
    Sec. 9.  NEW SECTION.  261.114  Technology Workers Tax Credit Program.
   1.  For purposes of this section, unless the context otherwise requires:
   a.  “Commission” means the college student aid commission.
   b.  “Eligible lender” means the same as defined in section 261.35.
   c.  “Program” means the technology workers tax credit program established in this section.
   d.  “Program agreement” means an agreement entered into between the commission and a technology worker pursuant to this section.
   e.  “Qualified student debt” means the maximum amount of an eligible technology worker’s student loan principal as determined pursuant to this section.
   f.  “Technology worker” means a worker employed as a computer and information scientist, systems analyst, computer programmer or developer, or computer professional, or any skilled worker who performs any function related to information technology, including the study, design, development, implementation, support, or management of computer-based information systems.
   2.  The commission shall establish and administer a technology workers tax credit program pursuant to this section. The purpose of the program is to reimburse eligible technology workers, or employers of such workers, for the amount of qualified student debt borrowed and repaid in order to attend a postsecondary institution.
   3.  The commission shall coordinate with postsecondary institutions, technology workers, eligible lenders, and the department of revenue in the administration of this program.

   4.  The commission shall enter into a program agreement with an eligible technology worker residing and working in Iowa who wishes to participate in the program. As part of the program agreement, the technology worker shall covenant and agree to the following:
   a.  That the person is or will become an Iowa resident and will remain an Iowa resident for the entirety of each tax year for which the person wishes to claim a tax credit under the program. A person not meeting the residency requirements of this paragraph is not eligible to claim a tax credit.
   b.  That the person was enrolled in a program of study at a postsecondary institution and has qualified student debt.
   c.  To keep all necessary financial and educational records relating to the degree pursued and the qualified student debt incurred for a period of not less than three years after the last tax year in which a tax credit under the program is claimed.
   d.  That only repayment of qualified student debt is eligible to be claimed as a tax credit under the program.
   e.  That any acceleration in the repayment schedule of the qualified student debt will result in a forfeiture of the tax credit in that tax year and all subsequent tax years.
   f.  To refinance the loans comprising qualified student debt only if the loans remain separate from all other debt and if both annual repayments and the total remaining indebtedness under the loan’s amortization schedule will be reduced by such refinancing.
   5.  A technology worker shall not enter into more than one program agreement or claim the tax credit available under the program more than once.
   6.
  a.  After entering into a program agreement with an eligible technology worker, and before a tax credit certificate is issued, the commission shall request the postsecondary institution in which the technology worker was enrolled to verify the technology worker’s enrollment at the institution and to certify to the commission the technology worker’s amount of qualified student debt.
   b.  The program agreement shall terminate if the commission is unable to verify the technology worker’s enrollment at a postsecondary institution or unable to certify the amount of the technology worker’s qualified student debt.
   7.
  a.  An eligible technology worker’s qualified student debt shall be the total amount of principal borrowed from an eligible lender for purposes of paying the amount of tuition and mandatory fees required in order to obtain a degree from a postsecondary institution.
   b.  Only loans included as part of a financial aid package awarded to the eligible technology worker by a postsecondary institution shall be included in the amount of qualified student debt determined pursuant to this subsection.
   8.  After verifying whether the technology worker qualifies for the program and after certifying the amount of qualified student debt, the commission shall issue to the technology worker a tax credit certificate which shall contain the technology worker’s name, address, tax identification number, the amount of the tax credit, and any other information required by the department of revenue.
   9.
  a.  (1)  A technology workers 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, for the repayment of qualified student debt.
   (2)  An individual may claim the tax credit under this section 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.
   b.
  (1)  An employer may claim a tax credit under this section for payments made directly to an eligible lender on behalf of a technology worker who has been issued a tax credit certificate pursuant to this subsection.
   (2)  The employer may claim the tax credit in an amount equal to the payments made by the employer of qualified student debt that came due during the technology worker’s period of employment with the employer.
   (3)  The employer may require a person to provide a copy of the program agreement and a copy of the tax credit certificate issued pursuant to this section in order to verify that a person is an eligible technology worker with qualified student debt.
   (4)  The employer claiming a tax credit under the program shall retain all relevant records for at least three tax years following the last tax year in which the tax credit is claimed.
   c.  A technology worker and the technology worker’s employer may both claim tax credits for payments of qualified student debt made in the same year, but the same payment of qualified student debt shall not be claimed by more than one taxpayer.
   d.  A technology worker and the technology worker’s employer shall receive a credit for the amount of qualified student debt repaid by the employer or technology worker up to a combined amount of one thousand dollars each year for a maximum of five years.
   e.  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. A tax credit shall not be carried back to a tax year prior to the tax year in which the taxpayer first receives the tax credit.
   f.  A technology worker or employer may claim the tax credit only if the technology worker is in compliance with the program agreement, and the technology worker is not in arrears on the repayment schedule for the qualified student debt.
   10.
  a.  (1)  To claim the technology workers tax credit, a technology worker shall attach the tax credit certificate issued by the commission to the taxpayer’s tax return.
   (2)  To claim the technology workers tax credit for payments made on behalf of a technology worker, a taxpayer shall attach a copy of the tax credit certificate issued to the technology worker along with any information required by the department of revenue pertaining to the payments made to an eligible lender.
   b.  The tax credit certificate attached to the taxpayer’s tax return shall expire on or after the last day of the taxable year for which the taxpayer is claiming the tax credit and show a tax credit amount equal to or greater than the tax credit claimed on the taxpayer’s tax return.
   c.  The tax credit certificate, unless rescinded by the commission, shall be accepted by the department of revenue as payment for taxes imposed pursuant to chapter 422, divisions II, III, and V, and in chapter 432, and for the moneys and credits tax imposed in 533.329, subject to any conditions or restrictions placed by the commission upon the face of the tax credit certificate and subject to the limitations of this section.
   11.  Except as otherwise provided in this section, a tax credit certificate is not transferable to any person or entity.
   12.  An eligible technology worker who exercises the forbearance or deferment provisions of a student loan agreement that comprises a portion of the technology worker’s qualified student debt does not forfeit the right to claim the tax credit available under this section. The department of revenue shall toll the carryforward provisions of subsection 9, paragraph “e”, for any worker exercising forbearance or deferment provisions.
   13.
  a.  The commission, in consultation with the department of revenue, shall adopt rules pursuant to chapter 17A for the implementation and administration of the program.
   b.  The department of revenue, in consultation with the commission, may adopt rules pursuant to chapter 17A for the implementation and administration of subsections 9 through 12.
    Sec. 10.  NEW SECTION.  422.11R  Technology workers tax credit.
   The taxes imposed under this division, less the credits allowed under section 422.12, shall be reduced by a technology workers tax credit authorized pursuant to section 261.114.
    Sec. 11.  Section 422.33, Code 2013, is amended by adding the following new subsection:
   NEW SUBSECTION.  30.  The taxes imposed under this division shall be reduced by a technology workers tax credit authorized pursuant to section 261.114.
    Sec. 12.  Section 422.60, Code 2013, is amended by adding the following new subsection:
   NEW SUBSECTION.  12.  The taxes imposed under this division shall be reduced by a technology workers tax credit authorized pursuant to section 261.114.
    Sec. 13.  NEW SECTION.  432.12N  Technology workers tax credit.
   The taxes imposed under this chapter shall be reduced by a technology workers tax credit authorized pursuant to section 261.114.
    Sec. 14.  Section 533.329, subsection 2, Code 2013, 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 technology workers tax credit authorized pursuant to section 261.114.
    Sec. 15.  APPLICABILITY.  This division of this Act applies to tax years beginning on or after January 1, 2014.

DIVISION VI

BROADBAND LOAN PROGRAM
    Sec. 16.  NEW SECTION.  15E.367  Broadband loan program.
   1.  The economic development authority shall establish and administer a broadband loan program to provide low-interest loans to broadband and telecommunications businesses to expand broadband access in the state.

   2.  In awarding loans to businesses to invest in expanding broadband access, the authority may consider the following:
   a.  The business’s relationship to the community.
   b.  The location of the community and the need for broadband access in the community.
   c.  The overall geographic diversity of the applicants for loans, including urban and rural communities.
   d.  Any other information the authority deems relevant.
   3.  The authority may accept, reject, or defer a business entity’s application for funds under this section.
   4.  In awarding financial assistance, the authority shall ensure that businesses that seek to expand broadband access to communities that are underserved or are not served by broadband technology shall receive financial assistance prior to awarding financial assistance to businesses that seek to expand broadband access to communities that have adequate service.
   5.  A loan awarded under the program to any single business entity shall not exceed two hundred fifty thousand dollars.
   6.  The authority shall enter into an agreement with a business entity selected to receive financial assistance pursuant to this section for purposes of ensuring the program is administered pursuant to the requirements of this section. The agreement shall set the loan period and interest rate of the loan.
   7.
  a.  The authority may seek immediate repayment or recapture of the financial assistance awarded pursuant to this section as provided in paragraph “b”.
   b.  If, after receiving financial assistance from the authority pursuant to this section, the business entity fails to use the awarded moneys for the purposes described in subsection 1, all or a portion of the financial assistance received is subject to immediate repayment or recapture.
   c.  All repayments, recaptures, and interest on loans awarded under the program shall be remitted to the authority to be deposited in the broadband loan program fund established in section 15E.368.
   8.  The economic development authority shall have the power to bond as necessary to carry out the purposes of the broadband loan program. The bonds shall be issued in the same manner as, and under the same conditions and restrictions of, section 15.106D.
    Sec. 17.  NEW SECTION.  15E.368  Broadband loan program fund.
   1.  A broadband loan program fund is created in the state treasury under the control of the economic development authority and consisting of moneys appropriated by the general assembly and any other moneys available to and obtained or accepted by the authority for placement in the fund.
   2.  Payments or repayments of moneys provided, and interest, shall be deposited in the fund.
   3.  The fund shall be used to provide low-interest loans under the broadband loan program established in section 15E.367.
   4.  Moneys in the fund are not subject to section 8.33. Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys in the fund shall be credited to the fund.

DIVISION VII

SALES AND USE TAX COLLECTION ALLOWANCE
    Sec. 18.  NEW SECTION.  423.32A  Collection allowance.
   1.  Each retailer subject to section 423.31 and each retailer maintaining a place of business in this state subject to section 423.32 may, at the time of making a return required by those sections, take a collection allowance in the form of a credit equal to five percent of the tax due as properly computed on the return.
   2.  The collection allowance in this section shall not apply to any of the following:
   a.  A person who files a return under section 423.31 pursuant to a direct pay tax permit authorized under section 423.36, subsection 8.
   b.  Tax due as a result of the retailer’s own purchase or use of tangible personal property or enumerated services.
   c.  A return that is not timely filed or for which the tax is not timely remitted.
   3.  The collection allowance in this section shall not exceed fifty dollars per retailer per calendar year. For purposes of this section, an affiliated group as defined in section 422.32 or a retailer operating multiple places of business shall be considered one retailer, regardless of whether or not such retailer files a consolidated return.
    Sec. 19.  Section 423.49, Code 2013, is amended by adding the following new subsection:
   NEW SUBSECTION.  11.
  a.  In addition to any other monetary allowance provided under the agreement, each seller registered under the agreement and filing a return pursuant to this section may, at the time of making the return, take a collection allowance in the form of a credit equal to five percent of the tax due as properly computed on the return.
   b.  The collection allowance in this subsection shall not apply to any of the following:
   (1)  Tax due as a result of the purchase or use of tangible personal property or enumerated services by the seller registered under the agreement.
   (2)  A return that is not timely filed or for which the tax is not timely remitted.
   c.  The collection allowance in this subsection shall not exceed fifty dollars per seller registered under the agreement per calendar year. For purposes of this subsection, an affiliated group as defined in section 422.32 or a seller operating multiple places of business shall be considered one seller registered under the agreement, regardless of whether or not such seller files a consolidated return.
    Sec. 20.  EFFECTIVE DATE.  This division of this Act takes effect January 1, 2014.
    Sec. 21.  APPLICABILITY.  This division of this Act applies to returns filed for calendar years beginning on or after January 1, 2014.
EXPLANATION
   This bill relates to the establishment of programs to provide financial and community incentives and financial assistance to businesses in the state and certain employees.
   Division I provides the legislative findings and establishes the purposes of the bill.
   Division II of the bill requires the department of cultural affairs (DCA) to establish an excite Iowa grant program and establishes an excite Iowa grant program fund under the department’s control for the purpose of providing grants to business entities seeking to invest in community economic activities, as defined in the bill.
   To receive an excite Iowa grant, a business entity must match at least 20 percent of the amount of the grant with funds from the business, private foundations, federal or local government funds, financial institutions, or individuals. A grant awarded under the program may not exceed $250,000.
   The bill allows DCA to consider the business’s relationship with the community, the business’s management status, the location of the community in which the business seeks to invest, the geographic diversity of the applicants, the type of activity in which the business seeks to invest, and other information DCA deems relevant in awarding the grants.
   The bill authorizes DCA to enter into an agreement with a business selected to receive financial assistance to ensure compliance with the program requirements. The bill allows DCA to seek repayments or recaptures of all or a portion of grant moneys if the business entity receiving the grant fails to use the awarded moneys to invest in a community economic activity.
   The bill requires DCA to adopt rules to administer the program.
   Division III of the bill requires the economic development authority (authority) to establish and administer an entrepreneur incentives and guarantee program to provide loan and credit guarantees for qualified businesses. The bill provides that a “qualified business” means a start-up business in the state that has entered into a guaranteed loan program under the United States small business administration (SBA), but does not include businesses engaged primarily in retail sales, real estate, or the provision of health care or other professional services.
   The bill allows the authority to invest up to 25 percent of the amount of the loan or credit as a loan or credit guarantee for a qualified business. The amount of the loan or credit for which the authority provides a guarantee shall not exceed $100,000. The loan or credit guarantee provided by the authority is to be used in conjunction with a guarantee provided by the SBA.
   The bill authorizes the authority to purchase insurance to cover defaulted loans meeting the requirements of the program, but states that the authority shall not directly or indirectly pledge the credit of the state.
   The bill also establishes an entrepreneur incentives and guarantee fund under the control of the authority. The moneys in the fund are to be used to pay claims of the loan and credit guarantee agreements, pay administrative costs of the authority in administering the program, or purchase or buy out superior or prior liens, mortgages, or security interests on a loan or credit that is the subject of an agreement.
   The bill provides that the authority may only pledge moneys in the entrepreneur incentives and guarantee fund and not any other moneys of the authority. Additionally, the authority may not pledge an amount during a fiscal year that exceeds the total amount appropriated to the fund for that fiscal year to assure the repayment of loan and credit guarantees made to or on behalf of qualified businesses.
   Division IV of the bill requires the economic development authority to establish and administer a small business microloan program and revolving loan fund to provide loans to local economic development organizations to provide microloans to small businesses.
   The bill requires a local economic development organization to demonstrate a dollar-for-dollar match to receive assistance under the program. The bill provides that the maximum amount of a loan to any single economic development organization may not exceed $250,000.
   The bill requires the authority to consider factors specified in the bill and other information the authority deems relevant when awarding the loans to local economic development organizations.
   The bill requires the authority to enter into an agreement with the local economic development organization selected to receive financial assistance under the program for purposes of ensuring compliance with the program requirements. The bill also allows the authority to require the local economic development organization to pay up to a 1 percent administrative fee upon a small business’s repayment of a microloan to the organization for deposit in the small business microloan program revolving fund.
   The bill requires the local economic development organization receiving financial assistance under the program to establish a microloan application process and conduct a microloan program for small businesses. The local economic development organization may only use the financial assistance received pursuant to the program to provide a microloan for a new or expanding business in the state which has 20 or fewer employees at the time of the business’s application for a microloan. A microloan awarded by the local economic development organization using financial assistance from the program may not exceed $15,000 to any single business. The bill requires the local economic development organization to conduct an audit of the small businesses to which it provided a microloan.
   Financial assistance awarded under the program is subject to immediate repayment or recapture if the local economic development organization fails to use the financial assistance for the program’s intended purposes.
   Division V of the bill provides for the establishment of a technology workers tax credit program to be administered by the college student aid commission and the department of revenue.
   The purpose of the program is to provide a tax credit to eligible technology workers or to provide a tax credit to an eligible technology worker’s employer for payments made toward the qualified student debt. For purposes of the bill, “qualified student debt” is the total amount of principal borrowed by the eligible technology worker to attend a postsecondary institution. Only those loans included as part of an eligible technology worker’s financial aid package from a postsecondary institution may be included in the amount of qualified student debt.
   To be eligible for the program, a technology worker must be or become an Iowa resident and remain an Iowa resident for the entirety of any tax year in which the technology worker seeks to claim the tax credit available under the program. The bill defines a “technology worker” for purposes of the bill as a worker who is employed as a computer and information scientist, systems analyst, computer programmer or developer, or computer professional, or any skilled worker who performs any function related to information technology, including the study, design, development, implementation, support, or management of computer-based information systems. The eligible technology worker must enter into an agreement with the college student aid commission.
   The commission is required to coordinate with postsecondary institutions, technology workers, eligible lenders, and the department of revenue in the administration of the program. Upon entering into a program agreement, the commission must request information from the postsecondary institution in which the technology worker was enrolled in order to verify that the technology worker was enrolled at the institution and to certify the amount of qualified student debt. Upon receiving this information, the commission must issue a tax credit certificate to an eligible technology worker. If the commission is unable to verify or certify the information, the agreement is terminated.
   The technology worker may claim the repayment of qualified student debt as a credit against state income taxes and may carry the credit forward for up to five years. A technology worker and the technology worker’s employer may receive a combined maximum tax credit amount of $1,000 a year for up to five years.
   An employer may claim the portion of the credit for payments made directly to eligible lenders on the technology worker’s behalf to the extent that such payments are due under the terms of the loan during the eligible technology worker’s period of employment with that employer. The credit is not refundable or transferable and may not be carried back to prior tax years but may be carried forward for the earlier of five years or until depleted. The credit is only available if the technology worker is in compliance with the agreement entered into with the college student aid commission, and is not in arrears on the repayment schedule for the qualified student debt.
   The bill provides for rulemaking by both the college student aid commission and the department of revenue for the administration of the program.
   Division V of the bill applies to tax years beginning on or after January 1, 2014.
   Division VI of the bill requires the economic development authority to establish and administer a broadband loan program to provide low-interest loans to broadband and telecommunications businesses to expand broadband access in the state.
   When determining whether to award a loan to a business, the authority may consider factors specified in the bill and other information the authority deems relevant. When awarding financial assistance, the authority must ensure that businesses seeking to expand broadband access in communities that are underserved or are not served by broadband technology shall receive financial assistance prior to awarding assistance to businesses seeking to expand broadband access into communities that have adequate service.
   The bill provides that a loan awarded under the program to any single business entity may not exceed $250,000.
   The bill requires the authority to enter into an agreement with business entities selected to receive assistance under the program to ensure compliance with the program’s requirements. The agreement must also set the loan period and the interest rate of the loan.
   The bill authorizes the authority to seek immediate repayment or recapture of a loan awarded pursuant to the program if the business entity fails to use the loan moneys to expand broadband access in the state. All payments, repayments, or recaptures, and interest on loans awarded under the program must be remitted to the authority for deposit in the broadband loan program fund. The bill authorizes the authority to use its bonding power as necessary to carry out the purpose of the broadband loan program.
   The bill also establishes a broadband loan program fund under the control of the authority. This fund is to be used to provide low-interest loans under the broadband loan program.
   Division VII of the bill provides a collection allowance to retailers who collect and remit sales and use tax and file sales and use tax returns.
   Every retailer required to file a sales or use tax return pursuant to Code section 423.31 or 423.32 is allowed to take on the tax return a collection allowance in the form of a credit equal to 5 percent of the tax due, not to exceed $50 per retailer per calendar year. For purposes of the collection allowance, an affiliated group or a retailer operating multiple places of business shall be considered one retailer, regardless of whether or not the retailer files a consolidated return. The collection allowance does not apply to a person who files a sales tax return pursuant to a direct pay tax permit authorized under Code section 423.36, any tax due resulting from the retailer’s own purchase or use of taxable goods or services, or a return that is not timely filed or for which the tax is not timely remitted. The collection allowance is also available to sellers who are registered under, and who file tax returns pursuant to, the streamlined sales and use tax agreement.
   Division VII of the bill takes effect on January 1, 2014, and applies to returns filed for calendar years beginning on or after that date.