SF 606 (LSB 1907SV (2) 88)

SENATE FILE 606

BY  COMMITTEE ON WAYS AND MEANS

(SUCCESSOR TO SF 103)

A BILL FOR

An Act relating to the transfer of investment tax credits issued to housing businesses under the enterprise zone program, and including effective date and retroactive applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  2014 Iowa Acts, chapter 1130, section 27, is amended to read as follows:
   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, in writing, before July 1, 2014, of its intent to transfer such tax credits, or provided the eligible housing business was awarded the investment tax credit before July 1, 2015, for a housing development located in a blighted area and in a county with a total population of less than one hundred five thousand as determined by the most recent federal decennial census, and submits a written request to the economic development authority before June 1, 2019, for approval 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. Notwithstanding any other provision of law to the contrary, a tax credit transferred pursuant to this section shall not be claimed by a transferee prior to January 1, 2016.
    Sec. 2.  EFFECTIVE DATE.  This Act, being deemed of immediate importance, takes effect upon enactment.
    Sec. 3.  RETROACTIVE APPLICABILITY.  This Act applies retroactively to May 30, 2014.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to the transfer of investment tax credits issued to housing businesses under the enterprise zone program. 
   Under current law, the economic development authority can approve a transfer of an investment tax credit awarded to a housing business under the enterprise zone program if an eligible business was awarded the tax credit before May 30, 2014, and notified the authority before July 1, 2014, of its intent to transfer the tax credit. The bill allows the authority to also approve the transfer of tax credits that were awarded to an eligible housing business before July 1, 2015, for a housing development in a blighted area in a county with a population of less than 105,000, if the housing business submitted a request for approval to the authority before June 1, 2019. 
   The bill is effective upon enactment and is retroactive to May 30, 2014.