Senate
Study
Bill
1162
-
Introduced
SENATE/HOUSE
FILE
_____
BY
(PROPOSED
ECONOMIC
DEVELOPMENT
AUTHORITY
BILL)
A
BILL
FOR
An
Act
establishing
the
major
economic
growth
attraction
1
program
to
be
administered
by
the
economic
development
2
authority,
and
providing
penalties.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
Section
9I.3,
subsection
3,
Code
2023,
is
amended
1
by
adding
the
following
new
paragraph:
2
NEW
PARAGRAPH
.
f.
(1)
An
interest
in
agricultural
land
3
acquired
by
a
foreign
business
for
an
immediate
use
other
than
4
farming
if
all
of
the
following
requirements
are
met:
5
(a)
The
foreign
business
qualifies
as
an
eligible
business
6
pursuant
to
section
15.283.
7
(b)
The
foreign
business
is
incorporated
under
the
laws
of
8
a
foreign
country
that
is
an
allied
country
and
the
foreign
9
business
is
wholly
owned
directly
or
indirectly
by
nonresident
10
aliens
of
an
allied
country,
or
is
a
business
entity,
whether
11
or
not
incorporated,
which
is
wholly
owned
directly
or
12
indirectly
by
nonresident
aliens
of
an
allied
country.
As
part
13
of
the
foreign
business’s
application
under
section
15.284,
14
the
foreign
business
provides
documentation
to
the
authority,
15
as
deemed
necessary
by
the
authority,
to
establish
that
the
16
foreign
business
is
incorporated
under
the
laws
of
a
foreign
17
country
that
is
an
allied
country
and
the
foreign
business
is
18
wholly
owned
directly
or
indirectly
by
nonresident
aliens
of
19
an
allied
country;
or
is
a
business
entity,
whether
or
not
20
incorporated,
which
is
wholly
owned
directly
or
indirectly
by
21
nonresident
aliens
of
an
allied
country.
22
(c)
The
agricultural
land
is
a
mega
site,
or
included
in
a
23
mega
site.
24
(d)
The
foreign
business
is
not
actively
engaged
in
farming.
25
(e)
The
board
authorizes
the
acquisition
of
the
26
agricultural
land
under
the
MEGA
program
administered
by
the
27
economic
development
authority
pursuant
to
sections
15.281
28
through
15.289.
29
(2)
As
used
in
this
paragraph:
30
(a)
“Actively
engaged
in
farming”
means
the
same
as
defined
31
in
section
15.282.
32
(b)
“Allied
country”
means
the
same
as
defined
in
10
U.S.C.
33
§2350f(d)(1).
34
(c)
“Authority”
means
the
economic
development
authority.
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(d)
“Board”
means
the
members
of
the
authority
appointed
by
1
the
governor
and
in
whom
the
powers
of
the
authority
are
vested
2
pursuant
to
section
15.105.
3
(e)
“Certified
site”
means
a
site
that
has
been
issued
a
4
certificate
of
readiness
by
the
authority
pursuant
to
section
5
15E.18.
6
(f)
“Mega
site”
means
the
same
as
defined
in
section
15.282.
7
Sec.
2.
NEW
SECTION
.
15.281
Short
title.
8
This
part
shall
be
known
and
may
be
cited
as
the
“Major
9
Economic
Growth
Attraction
Program”
or
“MEGA
Program”
.
10
Sec.
3.
NEW
SECTION
.
15.282
Definitions.
11
As
used
in
this
part,
unless
the
context
otherwise
requires:
12
1.
“Actively
engaged
in
farming”
means
any
of
the
following:
13
a.
Performing
physical
work
which
significantly
contributes
14
to
crop
or
livestock
production.
15
b.
Regularly
and
frequently
making
or
taking
an
important
16
part
in
making
management
decisions
substantially
contributing
17
to
or
affecting
the
success
of
a
farm’s
operations.
18
2.
“Base
employment
level”
means
the
number
of
full-time
19
equivalent
positions
at
a
business,
as
established
by
the
20
authority
and
the
business
using
the
business’s
payroll
21
records,
as
of
the
date
the
business
applies
for
tax
incentives
22
under
the
program.
23
3.
“Benefit”
means
nonwage
compensation
provided
to
an
24
employee.
“Benefits”
include
medical
and
dental
insurance,
a
25
pension,
a
retirement
plan,
a
profit-sharing
plan,
child
care,
26
life
insurance,
vision
insurance,
and
disability
insurance.
27
4.
“Certified
site”
means
a
site
that
has
been
issued
a
28
certificate
of
readiness
by
the
authority
pursuant
to
section
29
15E.18.
30
5.
“Community”
means
a
city,
county,
or
entity
established
31
pursuant
to
chapter
28E.
32
6.
“Contract
completion”
means
the
date
of
completion
of
33
the
terms
of
a
contract
between
a
contractor
and
an
eligible
34
business.
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7.
“Contractor”
means
a
person
that
has
executed
a
contract
1
with
an
eligible
business
for
the
provision
of
property,
2
materials,
or
services
for
the
construction
or
equipping
of
a
3
facility
that
is
part
of
the
eligible
business’s
project.
4
8.
“Created
jobs”
or
“create
jobs”
means
new,
permanent,
5
full-time
equivalent
positions
added
to
an
eligible
business’s
6
payroll
in
excess
of
the
eligible
business’s
base
employment
7
level.
8
9.
“Data
center
business”
means
the
same
as
defined
in
9
section
423.3,
subsection
95.
10
10.
“Eligible
business”
means
a
business
that
meets
the
11
requirements
of
section
15.283.
12
11.
“Foreign
business”
means
the
same
as
defined
in
section
13
9I.1.
14
12.
“Full-time
equivalent
position”
means
a
non-part-time
15
position
for
the
number
of
hours
or
days
per
week
considered
16
to
be
full-time
work
for
the
kind
of
service
or
work
performed
17
for
an
employer.
Typically,
a
“full-time
equivalent
position”
18
requires
two
thousand
eighty
hours
of
work
in
a
calendar
year,
19
including
all
paid
holidays,
vacations,
sick
time,
and
other
20
paid
leave.
21
13.
“Maintenance
period”
means
the
period
of
time
between
22
the
project
completion
date
and
the
maintenance
period
23
completion
date
during
which
an
eligible
business
must
maintain
24
all
created
jobs
per
the
agreement
under
section
15.285.
25
14.
“Maintenance
period
completion
date”
means
the
date
on
26
which
the
maintenance
period
ends.
27
15.
“Mega
site”
means
a
certified
site
greater
than
one
28
thousand
acres.
29
16.
“Program”
means
the
major
economic
growth
attraction
30
program.
31
17.
“Project”
means
an
activity
or
set
of
activities
32
directly
related
to
the
start-up
or
location
of
an
eligible
33
business,
proposed
in
an
eligible
business’s
application
to
the
34
program,
that
will
accomplish
the
goals
of
the
program.
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18.
“Project
completion
date”
means
the
date
by
which
1
an
eligible
business
that
has
been
issued
a
tax
incentive
2
certificate
by
the
authority
under
the
program
agrees
to
3
complete
the
terms
and
conditions
of
the
agreement
under
4
section
15.285.
5
19.
“Project
completion
period”
means
the
period
of
6
time
between
the
date
the
authority
issues
a
tax
incentive
7
certificate
to
an
eligible
business
and
the
project
completion
8
date.
9
20.
“Qualifying
investment”
means
a
capital
investment
10
in
real
property
located
on
a
certified
site,
including
the
11
purchase
price
of
the
land,
site
preparation,
infrastructure,
12
and
building
construction.
“Qualifying
investment”
also
means
a
13
capital
investment
in
depreciable
assets.
14
21.
“Qualifying
wage
threshold”
means
the
wage
level
15
represented
by
the
wages
within
two
standard
deviations
of
16
the
mean
wage
within
the
laborshed
area
in
which
the
eligible
17
business
is
located,
as
calculated
by
the
authority
by
rule,
18
using
the
most
current
covered
wage
and
employment
data
19
available
from
the
department
of
workforce
development
for
the
20
laborshed
area
in
which
the
eligible
business
is
located.
21
22.
“Subcontractor”
means
a
person
that
contracts
with
22
a
contractor
for
the
provision
of
property,
materials,
or
23
services
for
the
construction
or
equipping
of
a
facility
that
24
is
part
of
an
eligible
business’s
project.
25
23.
“Tax
incentives”
means
tax
credits,
tax
refunds,
or
tax
26
exemptions
authorized
under
the
program
by
the
authority
for
an
27
eligible
business.
28
Sec.
4.
NEW
SECTION
.
15.283
Eligible
business.
29
1.
To
be
eligible
to
receive
tax
incentives
under
30
the
program,
a
business
must
meet
all
of
the
following
31
requirements:
32
a.
The
business’s
proposed
project
must
be
located
on
a
33
certified
site
greater
than
two
hundred
fifty
acres
that
the
34
authority
has
determined
is
suitable
for
the
project.
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b.
The
business’s
qualifying
investment
in
the
proposed
1
project
must
exceed
one
billion
dollars.
2
c.
The
community
in
which
the
proposed
project
is
located
3
must
approve
the
project
either
by
ordinance
or
resolution.
4
d.
(1)
The
business
must
be
primarily
engaged
in
advanced
5
manufacturing,
biosciences,
or
research
and
development.
6
The
business
shall
not
be
a
data
center
business,
a
retail
7
business,
or
a
business
where
a
cover
charge
or
membership
8
requirement
restricts
certain
individuals
from
entering
the
9
business.
10
(2)
Factors
the
authority
shall
consider
to
determine
if
11
a
business
is
primarily
engaged
in
advanced
manufacturing,
12
biosciences,
or
research
and
development
shall
include
but
are
13
not
limited
to
all
of
the
following:
14
(a)
The
business’s
North
American
industry
classification
15
system
code.
16
(b)
The
business’s
main
sources
of
revenue.
17
(c)
The
business’s
customer
base.
18
e.
(1)
The
business
must
not
be
solely
relocating
19
operations
from
one
area
of
the
state
to
another
area
of
20
the
state.
A
proposed
project
that
does
not
create
jobs
or
21
involve
a
substantial
amount
of
new
capital
investment
shall
22
be
presumed
to
be
a
relocation
of
operations.
For
purposes
of
23
this
subparagraph,
the
authority
shall
consider
a
letter
from
24
the
affected
local
community’s
government
officials
supporting
25
the
business’s
move
away
from
the
affected
local
community
26
in
making
a
determination
whether
the
business
is
solely
27
relocating
operations.
28
(2)
This
paragraph
shall
not
be
construed
to
prohibit
29
a
business
from
expanding
the
business’s
operations
in
a
30
community
if
the
business
has
similar
operations
in
this
state
31
that
are
not
closing
or
undergoing
a
substantial
reduction
in
32
operations.
33
f.
The
business
must
create
jobs
as
part
of
the
business’s
34
proposed
project.
The
business
must
demonstrate
that
the
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created
jobs
will
pay
at
least
one
hundred
forty
percent
of
the
1
qualifying
wage
threshold
by
the
project
completion
date,
and
2
through
the
maintenance
period
completion
date.
3
g.
The
business
must
provide
comprehensive
benefits
to
4
each
employee
employed
in
a
created
job.
The
authority
may
5
adopt
rules
under
chapter
17A
to
determine
the
requirements
for
6
comprehensive
benefits.
7
h.
(1)
The
business
must
not
have
a
record
of
violations
8
of
the
law
or
of
regulations,
including
but
not
limited
to
9
antitrust,
environmental,
trade,
or
worker
safety,
that
over
10
a
period
of
time
show
a
consistent
pattern
or
that
establish
11
the
business’s
intentional,
criminal,
or
reckless
conduct
in
12
violation
of
such
laws
or
regulations.
13
(2)
If
the
authority
determines
that
the
business
has
a
14
record
of
violations
described
in
subparagraph
(1),
and
the
15
authority
finds
that
the
violations
did
not
seriously
affect
16
public
health,
public
safety,
or
the
environment,
the
business
17
may
be
eligible
to
qualify
for
tax
incentives
under
the
18
program.
19
(3)
If
the
authority
determines
that
the
business
has
20
a
record
of
violations
described
in
subparagraph
(1),
and
21
the
authority
finds
that
there
were
mitigating
circumstances
22
related
to
the
violations,
the
business
may
be
eligible
to
23
qualify
for
tax
incentives
under
the
program.
24
(4)
In
making
determinations
and
findings
under
25
subparagraphs
(2)
and
(3),
and
making
a
determination
whether
a
26
business
is
disqualified
from
the
program,
the
authority
shall
27
be
exempt
from
chapter
17A.
28
2.
a.
In
determining
if
a
business
is
eligible
to
29
participate
in
the
program,
the
authority
shall
consider
a
30
variety
of
factors,
including
but
not
limited
to
all
of
the
31
following:
32
(1)
The
quality
of
the
business’s
proposed
project’s
33
created
jobs.
The
authority
shall
place
greater
emphasis
on
34
created
jobs
that
are
high
wage,
low
turnover,
that
provide
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comprehensive
benefits,
and
that
expose
employees
to
minimal
1
occupational
hazards.
A
business
that
pays
wages
substantially
2
below
that
of
similar
businesses
located
in
the
same
geographic
3
area
shall
not
be
given
priority
under
the
program.
4
(2)
The
impact
of
the
business’s
proposed
project
on
5
businesses
that
are
in
competition
with
the
business.
6
The
authority
shall
make
a
good-faith
effort
to
identify
7
existing
Iowa
businesses
in
competition
with
the
business
8
being
considered
for
the
program.
The
authority
shall
make
9
a
good-faith
effort
to
determine
the
probability
that
any
10
proposed
tax
incentives
will
displace
employees
of
the
11
competing
businesses.
In
determining
the
impact
on
the
12
competing
businesses,
created
jobs
resulting
from
employees
13
being
displaced
from
the
competing
businesses
shall
not
be
14
counted
as
created
jobs
for
the
applying
business’s
project.
15
(3)
The
business’s
proposed
project’s
economic
impact
16
on
the
state.
The
authority
shall
place
greater
emphasis
17
on
businesses
and
proposed
projects
that
meet
the
following
18
requirements:
19
(a)
The
business
has
a
high
proportion
of
in-state
20
suppliers.
21
(b)
The
proposed
project
will
diversify
the
state
economy.
22
(c)
The
business
has
few
in-state
competitors.
23
(d)
The
proposed
project
has
the
potential
to
create
jobs
on
24
an
ongoing
basis.
25
(e)
Any
other
factors
the
authority
deems
relevant
in
26
determining
the
economic
impact
of
a
proposed
project.
27
Sec.
5.
NEW
SECTION
.
15.284
Applications
——
authorization
28
of
tax
credits
and
exemptions.
29
1.
Applications
for
the
program
shall
be
submitted
to
the
30
authority
in
the
form
and
manner
prescribed
by
the
authority
by
31
rule.
Each
application
must
be
accompanied
by
an
application
32
fee
in
an
amount
determined
by
the
authority
by
rule.
33
2.
In
determining
the
eligibility
of
a
business
to
34
participate
in
the
program,
the
authority
may
engage
outside
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H.F.
_____
experts
to
complete
a
technical,
financial,
or
other
review
1
of
an
application
submitted
by
a
business
if
such
review
is
2
outside
the
expertise
of
the
authority.
3
3.
a.
The
authority
and
the
board
may
negotiate
with
an
4
eligible
business
regarding
the
terms
of,
and
the
aggregate
5
value
of,
the
tax
incentives
the
eligible
business
may
receive
6
under
the
program.
7
b.
The
board
may
authorize
any
combination
of
tax
incentives
8
available
under
the
program
for
an
eligible
business.
9
4.
The
board
may
authorize
an
exemption
to
restrictions
on
10
agricultural
land
holdings
pursuant
to
section
9I.3,
subsection
11
3,
paragraph
“f”
.
12
Sec.
6.
NEW
SECTION
.
15.285
Agreement.
13
1.
An
eligible
business
that
is
approved
by
the
authority
to
14
participate
in
the
program
shall
enter
into
an
agreement
with
15
the
authority
that
specifies
the
criteria
for
the
successful
16
completion
of
all
requirements
of
the
program.
The
agreement
17
must
contain,
at
a
minimum,
provisions
related
to
all
of
the
18
following:
19
a.
The
eligible
business
must
certify
to
the
authority
20
annually
that
the
business
is
in
compliance
with
the
agreement.
21
b.
If
the
eligible
business
fails
to
comply
with
any
22
requirements
of
the
program
or
the
agreement,
the
eligible
23
business
may
be
required
to
repay
any
tax
incentives
the
24
authority
issued
to
the
eligible
business.
A
required
25
repayment
of
a
tax
incentive
shall
be
considered
a
tax
payment
26
due
and
payable
to
the
department
of
revenue
by
any
taxpayer
27
that
claimed
the
tax
incentive,
and
the
failure
to
make
the
28
repayment
may
be
treated
by
the
department
of
revenue
in
the
29
same
manner
as
a
failure
to
pay
the
tax
shown
due,
or
required
30
to
be
shown
due,
with
the
filing
of
a
return
or
deposit
form.
31
c.
If
the
eligible
business
undergoes
a
layoff
or
32
permanently
closes
any
of
its
facilities
within
the
state,
the
33
eligible
business
may
be
subject
to
all
of
the
following:
34
(1)
A
reduction
or
elimination
of
some
or
all
of
the
tax
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incentives
the
authority
issued
to
the
eligible
business.
1
(2)
Repayment
of
any
tax
incentives
that
the
business
2
has
claimed,
and
payment
of
any
penalties
assessed
by
the
3
department
of
revenue.
4
d.
The
project
completion
date,
the
maintenance
period
5
completion
date,
the
required
number
of
created
jobs,
and
any
6
other
terms
and
obligations
the
authority
deems
necessary.
7
e.
The
eligible
business
shall
only
employ
individuals
8
legally
authorized
to
work
in
this
state.
If
the
eligible
9
business
is
found
to
knowingly
employ
individuals
who
are
10
not
legally
authorized
to
work
in
this
state,
in
addition
11
to
any
penalties
provided
by
law,
all
or
a
portion
of
any
12
tax
incentives
issued
by
the
authority
shall
be
subject
to
13
recapture
by
the
authority
or
the
department
of
revenue.
14
f.
Any
terms
deemed
necessary
by
the
authority
to
effect
the
15
eligible
business’s
ongoing
compliance
with
section
15.283.
16
2.
The
business
shall
satisfy
all
applicable
terms
of
17
the
agreement
by
the
project
completion
date;
however,
the
18
board
may
for
good
cause
extend
the
project
completion
date
or
19
otherwise
amend
the
terms
of
the
agreement.
20
3.
The
eligible
business
shall
not
assign
the
agreement
21
to
another
entity
without
the
advance
written
approval
of
the
22
board.
23
4.
The
authority
may
enforce
the
terms
of
the
agreement
as
24
necessary
and
appropriate.
25
Sec.
7.
NEW
SECTION
.
15.286
Sales
and
use
tax
refund.
26
1.
An
eligible
business
that
has
been
issued
a
tax
incentive
27
certificate
under
the
program
shall
be
entitled
to
a
refund
28
of
the
sales
and
use
taxes
paid
under
chapter
423
for
gas,
29
electricity,
water,
and
sewer
utility
services,
tangible
30
personal
property,
or
on
services
rendered,
furnished,
or
31
performed
to
or
for
a
contractor
or
subcontractor
and
used
32
in
the
fulfillment
of
the
contract
for
the
construction
or
33
equipping
of
a
facility
that
is
part
of
the
eligible
business’s
34
project.
Taxes
attributable
to
intangible
property
and
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furniture
and
furnishings
shall
not
be
refunded.
1
2.
To
receive
the
sales
and
use
tax
refund,
the
eligible
2
business
shall
file
a
claim
with
the
department
of
revenue
as
3
follows:
4
a.
The
contractor
or
subcontractor
shall
state
under
oath,
5
on
forms
provided
by
the
department
of
revenue,
the
amount
of
6
the
sales
of
tangible
personal
property
or
services
rendered,
7
furnished,
or
performed
including
water,
sewer,
gas,
and
8
electric
utility
services
upon
which
sales
or
use
tax
has
been
9
paid
prior
to
contract
completion,
and
shall
submit
the
forms
10
to
the
eligible
business
before
contract
completion.
11
b.
The
eligible
business
shall
inform
the
department
of
12
revenue
in
writing
of
contract
completion.
The
eligible
13
business
shall,
after
contract
completion,
submit
an
14
application
to
the
department
of
revenue
for
a
refund
of
the
15
amount
of
the
sales
and
use
taxes
paid
pursuant
to
chapter
423
16
upon
any
tangible
personal
property,
or
services
rendered,
17
furnished,
or
performed,
including
water,
sewer,
gas,
and
18
electric
utility
services.
The
application
shall
be
submitted
19
in
the
form
and
manner
prescribed
by
the
department
of
revenue.
20
The
department
of
revenue
shall
audit
the
application
and,
21
if
approved,
issue
a
warrant
to
the
eligible
business
in
the
22
amount
of
the
sales
or
use
tax
which
has
been
paid
to
the
23
state
of
Iowa
under
subsection
1.
The
eligible
business’s
24
application
must
be
submitted
to
the
department
of
revenue
25
within
one
year
after
the
project
completion
date.
An
26
application
filed
by
the
eligible
business
in
accordance
with
27
this
section
shall
not
be
denied
by
reason
of
a
limitation
set
28
forth
in
chapter
421
or
423.
29
c.
The
refund
shall
be
remitted
by
the
department
of
revenue
30
to
the
eligible
business
equally
over
not
fewer
than
three
tax
31
years,
and
not
more
than
five
tax
years,
as
elected
by
the
32
eligible
business
in
its
application
under
paragraph
“b”
.
33
3.
A
contractor
or
subcontractor
that
willfully
makes
a
34
false
report
of
tax
paid
under
this
section
is
guilty
of
an
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aggravated
misdemeanor,
and
shall
be
liable
for
payment
of
the
1
tax
and
any
applicable
penalty
and
interest.
2
Sec.
8.
NEW
SECTION
.
15.286A
Qualifying
investment
tax
3
credit.
4
1.
The
authority
may
authorize
a
tax
credit
for
an
5
eligible
business
that
is
up
to
five
percent
of
the
eligible
6
business’s
qualifying
investment
in
a
certified
site.
The
7
eligible
business
shall
not
claim
the
tax
credit
until
the
8
eligible
business’s
project
has
been
placed
in
service,
9
and
at
least
fifty
percent
of
the
created
jobs
the
eligible
10
business
agreed
to
in
the
agreement
under
section
15.285
have
11
been
created.
The
department
of
revenue
shall
remit
the
tax
12
credit
to
the
eligible
business
equally
over
five
tax
years.
13
The
tax
credit
shall
be
allowed
against
taxes
imposed
under
14
chapter
422,
subchapter
II,
III,
or
V,
and
against
the
moneys
15
and
credits
tax
imposed
in
section
533.329.
If
the
eligible
16
business
is
a
partnership,
S
corporation,
limited
liability
17
company,
cooperative
organized
under
chapter
501
and
filing
18
as
a
partnership
for
federal
tax
purposes,
or
estate
or
trust
19
electing
to
have
the
income
taxed
directly
to
the
individual,
20
an
individual
may
claim
the
tax
credit
allowed.
The
amount
21
claimed
by
the
individual
shall
be
based
upon
the
pro
rata
22
share
of
the
individual’s
earnings
of
the
partnership,
S
23
corporation,
limited
liability
company,
cooperative
organized
24
under
chapter
501
and
filing
as
a
partnership
for
federal
tax
25
purposes,
or
estate
or
trust.
Any
tax
credit
in
excess
of
26
the
eligible
business’s
tax
liability
for
the
tax
year
may
be
27
refunded
or,
at
the
eligible
business’s
election,
credited
to
28
the
eligible
business’s
tax
liability
in
any
of
the
following
29
five
consecutive
tax
years
or
until
depleted,
whichever
occurs
30
first.
A
tax
credit
shall
not
be
carried
back
to
a
tax
year
31
prior
to
the
tax
year
in
which
the
tax
credit
is
first
claimed
32
by
the
eligible
business.
33
2.
If
within
five
years
of
the
date
the
authority
issues
34
an
eligible
business
a
tax
credit
under
subsection
1,
the
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eligible
business
sells,
disposes
of,
razes,
or
otherwise
1
renders
unusable
all
or
a
part
of
the
land,
buildings,
or
2
other
structures
for
which
the
tax
credit
was
claimed
under
3
this
section,
the
tax
liability
of
the
eligible
business
for
4
the
year
in
which
all
or
part
of
the
land,
buildings,
or
other
5
existing
structures
are
sold,
disposed
of,
razed,
or
otherwise
6
rendered
unusable
shall
be
increased
by
one
of
the
following
7
amounts:
8
a.
One
hundred
percent
of
the
tax
credit
claimed
under
9
this
section
if
all
or
a
part
of
the
land,
buildings,
or
other
10
structures
for
which
the
tax
credit
was
claimed
under
this
11
section
cease
to
be
eligible
for
the
tax
credit
within
one
12
year
after
the
date
the
authority
issued
the
tax
credit
to
the
13
eligible
business.
14
b.
Eighty
percent
of
the
tax
credit
claimed
under
this
15
section
if
all
or
a
part
of
the
land,
buildings,
or
other
16
structures
for
which
the
tax
credit
was
claimed
under
this
17
section
cease
to
be
eligible
for
the
tax
credit
within
two
18
years
after
the
date
the
authority
issued
the
tax
credit
to
the
19
eligible
business.
20
c.
Sixty
percent
of
the
tax
credit
claimed
under
this
21
section
if
all
or
a
part
of
the
land,
buildings,
or
other
22
structures
for
which
the
tax
credit
was
claimed
under
this
23
section
cease
to
be
eligible
for
the
tax
credit
within
three
24
years
after
the
date
the
authority
issued
the
tax
credit
to
the
25
eligible
business.
26
d.
Forty
percent
of
the
tax
credit
claimed
under
this
27
section
if
all
or
a
part
of
the
land,
buildings,
or
other
28
structures
for
which
the
tax
credit
was
claimed
under
this
29
section
cease
to
be
eligible
for
the
tax
credit
within
four
30
years
after
the
date
the
authority
issued
the
tax
credit
to
the
31
eligible
business.
32
e.
Twenty
percent
of
the
tax
credit
claimed
under
this
33
section
if
all
or
a
part
of
the
land,
buildings,
or
other
34
structures
for
which
the
tax
credit
was
claimed
under
this
35
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section
cease
to
be
eligible
for
the
tax
credit
within
five
1
years
after
the
date
the
authority
issued
the
tax
credit
to
the
2
eligible
business.
3
Sec.
9.
NEW
SECTION
.
15.286B
Withholding
tax
credit.
4
1.
From
the
remittance
due
to
the
department
of
revenue
5
pursuant
to
section
422.16,
subsection
2,
an
eligible
business
6
may
withhold
an
amount
not
to
exceed
three
percent
of
the
gross
7
wages
paid
to
each
employee
in
a
created
job
that
pays
at
least
8
the
qualifying
wage
threshold
pursuant
to
the
agreement
under
9
section
15.285.
10
2.
If
the
amount
withheld
under
subsection
1
is
less
than
11
three
percent
of
the
gross
wages
paid
to
each
employee
in
a
12
created
job,
the
eligible
business
shall
receive
a
credit
13
against
the
remaining
withholding
taxes
due
from
the
eligible
14
business,
or
the
eligible
business
may
carry
the
credit
forward
15
up
to
five
consecutive
tax
years
or
until
depleted,
whichever
16
is
earlier.
17
3.
In
any
tax
year,
the
aggregate
amount
of
withholding
tax
18
credit
under
this
section
and
under
any
other
program
for
which
19
an
eligible
business
is
receiving
a
withholding
tax
credit
20
shall
not
exceed
the
amount
the
eligible
business
is
required
21
to
deduct
and
remit
to
the
department
of
revenue
under
section
22
422.16,
subsection
2,
for
that
tax
year.
23
Sec.
10.
NEW
SECTION
.
15.287
Foreign
businesses
——
24
acquisition
of
agricultural
land.
25
1.
If
a
foreign
business’s
proposed
project
is
located
on
a
26
mega
site
that
includes
agricultural
land,
the
requirements
of
27
section
9I.3,
subsection
3,
paragraph
“f”
,
must
be
satisfied
in
28
order
for
the
foreign
business
to
be
eligible
for
the
program.
29
2.
a.
A
foreign
business
under
subsection
1
that
is
30
approved
by
the
authority
to
participate
in
the
program
shall
31
enter
into
an
agreement
with
the
authority
pursuant
to
section
32
15.285.
The
agreement
shall
include
a
provision
that
requires
33
the
foreign
business
to
comply
with
chapter
9I,
and
specifies
34
that
failure
to
do
so
may
result
in
revocation
of
all
tax
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incentives
issued
by
the
authority
to
the
foreign
business.
1
b.
The
authority
may
grant
the
foreign
business
one
or
2
more
one-year
extensions
in
which
the
foreign
business
must
3
comply
with
section
9I.4.
The
authority
shall
not
grant
4
more
than
five
one-year
extensions.
The
community
in
which
5
the
agricultural
land
is
located
must
approve
each
one-year
6
extension
by
ordinance
or
resolution
prior
to
the
authority
7
granting
each
extension.
The
foreign
business
shall
comply
8
with
the
remaining
provisions
of
chapter
9I
to
the
extent
the
9
provisions
do
not
conflict
with
this
section.
10
Sec.
11.
NEW
SECTION
.
15.288
Other
incentives.
11
1.
Except
for
the
high
quality
jobs
program
administered
12
by
the
authority
pursuant
to
sections
15.326
through
15.336,
13
and
the
targeted
jobs
withholding
credit
pursuant
to
section
14
403.19A,
an
eligible
business
may
apply
for
and
be
eligible
to
15
receive
other
federal,
state,
and
local
incentives
in
addition
16
to
the
tax
incentives
issued
by
the
authority
to
the
eligible
17
business
under
the
program.
18
2.
The
authority,
in
its
discretion,
may
prohibit
an
19
eligible
business
that
has
been
issued
tax
incentives
under
20
the
program
from
receiving
any
additional
tax
incentive,
tax
21
credit,
grant,
loan,
or
other
financial
assistance
under
any
22
program
administered
by
the
authority.
23
Sec.
12.
NEW
SECTION
.
15.289
Property
tax
exemption.
24
1.
A
community
in
which
an
eligible
business’s
project
25
is
located
may
grant
the
eligible
business
a
property
tax
26
exemption
for
all
of,
or
a
portion
of,
the
actual
value
added
27
by
improvements
to
real
property
directly
related
to
the
28
eligible
business’s
created
jobs.
The
community
may
allow
a
29
property
tax
exemption
for
a
period
not
to
exceed
twenty
years
30
beginning
the
year
that
the
improvements
to
real
property
are
31
first
assessed
for
taxation.
32
2.
For
purposes
of
this
section,
“improvements”
means
new
33
construction,
and
rehabilitation
of
and
additions
to
existing
34
structures.
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3.
A
property
tax
exemption
granted
under
subsection
1
shall
1
apply
to
all
taxing
districts,
except
for
school
districts,
in
2
which
the
real
property
is
located.
3
EXPLANATION
4
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
5
the
explanation’s
substance
by
the
members
of
the
general
assembly.
6
This
bill
establishes
a
major
economic
growth
attraction
7
program
(program)
to
be
administered
by
the
economic
8
development
authority
(authority).
9
To
be
eligible
to
receive
tax
incentives
(incentives)
under
10
the
program,
a
business’s
proposed
project
(project)
must
11
be
located
on
a
certified
site
greater
than
250
acres
that
12
the
authority
has
determined
is
suitable
for
the
project,
13
and
the
business’s
qualifying
investment
in
the
project
must
14
exceed
$1
billion.
Other
requirements
for
a
business
to
be
15
eligible
for
the
program
are
detailed
in
the
bill.
“Qualifying
16
investment”
is
defined
in
the
bill
as
a
capital
investment
17
in
real
property
located
on
a
certified
site,
including
the
18
purchase
price
of
the
land,
site
preparation,
infrastructure,
19
and
building
construction.
“Qualifying
investment”
also
means
20
a
capital
investment
in
depreciable
assets.
“Certified
site”
21
is
defined
as
a
site
that
has
been
issued
a
certificate
of
22
readiness
by
the
authority
pursuant
to
Code
section
15E.18.
23
“Tax
incentives”
and
“project”
are
also
defined
in
the
bill.
24
In
determining
if
a
business
is
eligible
to
participate
25
in
the
program,
the
authority
shall
consider
a
variety
of
26
factors,
including
but
not
limited
to
whether
the
jobs
created
27
by
the
business’s
project
are
high
wage,
low
turnover,
provide
28
comprehensive
benefits,
and
expose
employees
to
minimal
29
occupational
hazards;
the
impact
of
the
project
on
businesses
30
that
compete
with
the
business
applying
to
the
program;
and
31
the
project’s
economic
impact
on
the
state.
The
bill
requires
32
the
authority
to
place
greater
emphasis
on
businesses
that
33
have
a
high
proportion
of
in-state
suppliers
and
few
in-state
34
competitors;
and
on
projects
that
diversify
the
state
economy
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and
have
the
potential
to
create
jobs
on
an
ongoing
basis.
1
Applications
for
the
program
shall
be
submitted
in
the
2
form
and
manner
prescribed
by
the
authority
by
rule
and
be
3
accompanied
by
an
application
fee
in
an
amount
determined
by
4
the
authority
by
rule.
In
determining
a
business’s
eligibility
5
for
the
program,
the
authority
may
engage
outside
experts
6
to
complete
a
technical,
financial,
or
other
review
of
an
7
application
if
such
review
is
outside
the
expertise
of
the
8
authority.
The
authority
and
the
authority’s
board
(board)
9
may
negotiate
with
an
eligible
business
regarding
the
terms
10
of,
and
the
aggregate
value
of,
the
incentives
the
eligible
11
business
may
receive
under
the
program.
The
board
may
12
authorize
any
combination
of
incentives
available
under
the
13
program
for
an
eligible
business.
The
board
may
authorize
an
14
exemption
to
restrictions
on
agricultural
land
holdings
for
a
15
foreign
business
that
qualifies
for
the
program
pursuant
to
16
the
requirements
detailed
in
the
bill.
“Foreign
business”
is
17
defined
in
the
bill.
18
The
bill
requires
an
eligible
business
that
is
approved
to
19
participate
in
the
program
to
enter
into
an
agreement
with
20
the
authority
that
specifies
the
criteria
for
the
successful
21
completion
of
all
requirements
of
the
program.
The
agreement
22
shall
contain,
at
a
minimum,
the
provisions
as
detailed
in
23
the
bill.
The
business
shall
satisfy
all
applicable
terms
24
of
the
agreement
by
the
project
completion
date;
however,
25
the
board
may
for
good
cause
extend
the
project
completion
26
date
or
otherwise
amend
the
terms
of
the
agreement.
“Project
27
completion
date”
is
defined
in
the
bill.
The
bill
permits
the
28
authority
to
enforce
the
terms
of
the
agreement
as
necessary
29
and
appropriate.
30
An
eligible
business
that
has
been
issued
a
certificate
31
under
the
program
shall
be
entitled
to
a
refund
of
the
sales
32
and
use
taxes
(refund)
paid
under
Code
chapter
423
for
gas,
33
electricity,
water,
and
sewer
utility
services,
tangible
34
personal
property,
or
on
services
rendered,
furnished,
or
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performed
to
or
for
a
contractor
or
subcontractor
and
used
in
1
the
fulfillment
of
the
contract
relating
to
the
construction
or
2
equipping
of
a
facility
that
is
part
of
the
eligible
business’s
3
project.
Taxes
attributable
to
intangible
property
and
4
furniture
and
furnishings
shall
not
be
refunded.
The
procedure
5
for
the
business
to
receive
the
refund
is
detailed
in
the
bill.
6
The
refund
shall
be
remitted
by
the
department
to
the
eligible
7
business
equally
over
not
fewer
than
three
tax
years,
and
not
8
more
than
five
tax
years,
as
elected
by
the
business
in
its
9
application
to
the
department.
A
contractor
or
subcontractor
10
that
willfully
makes
a
false
report
of
tax
paid
is
guilty
of
11
an
aggravated
misdemeanor,
and
shall
be
liable
for
payment
of
12
the
tax
and
any
applicable
penalty
and
interest.
An
aggravated
13
misdemeanor
is
punishable
by
confinement
for
no
more
than
two
14
years
and
a
fine
of
at
least
$855
but
not
more
than
$8,540.
15
The
authority
may
authorize
a
tax
credit
for
an
eligible
16
business
that
is
up
to
5
percent
of
the
business’s
qualifying
17
investment
in
a
certified
site.
The
eligible
business
shall
18
not
claim
the
tax
credit
until
the
eligible
business’s
project
19
has
been
placed
in
service,
and
at
least
50
percent
of
the
20
created
jobs
the
eligible
business
agreed
to
in
the
agreement
21
the
business
entered
into
with
the
authority
have
been
created.
22
The
department
shall
remit
the
tax
credit
to
the
eligible
23
business
equally
over
five
tax
years.
The
tax
credit
shall
24
be
allowed
against
taxes
imposed
under
Code
chapter
422,
25
subchapter
II,
III,
or
V,
and
against
the
moneys
and
credits
26
tax
imposed
in
Code
section
533.329.
Any
tax
credit
in
excess
27
of
the
eligible
business’s
tax
liability
for
the
tax
year
28
may
be
refunded
or,
at
the
eligible
business’s
election,
29
credited
to
the
eligible
business’s
tax
liability
in
each
of
30
the
following
five
consecutive
tax
years
or
until
depleted,
31
whichever
occurs
first.
A
tax
credit
shall
not
be
carried
back
32
to
a
tax
year
prior
to
the
tax
year
in
which
the
tax
credit
33
is
first
claimed
by
the
eligible
business.
If
within
five
34
years
of
the
date
the
authority
issues
an
eligible
business
a
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qualifying
investment
tax
credit
the
eligible
business
sells,
1
disposes
of,
razes,
or
otherwise
renders
unusable
all
or
a
part
2
of
the
land,
buildings,
or
other
structures
for
which
the
tax
3
credit
was
claimed,
the
tax
liability
of
the
eligible
business
4
for
the
year
in
which
all
or
part
of
the
land,
buildings,
or
5
other
existing
structures
are
sold,
disposed
of,
razed,
or
6
otherwise
rendered
unusable
shall
be
increased
by
an
amount
as
7
detailed
in
the
bill.
8
From
the
remittance
due
to
the
department
of
revenue
9
pursuant
to
Code
section
422.16(2),
an
eligible
business
may
10
withhold
an
amount
not
to
exceed
3
percent
of
the
gross
wages
11
paid
to
each
employee
in
a
created
job
that
pays
at
least
12
the
qualifying
wage
threshold
specified
in
the
agreement
the
13
business
entered
into
with
the
authority.
“Created
job”
and
14
“qualifying
wage
threshold”
are
defined
in
the
bill.
If
the
15
amount
withheld
is
less
than
3
percent
of
the
gross
wages
16
paid
to
each
employee
in
a
created
job,
the
eligible
business
17
shall
receive
a
credit
against
the
remaining
withholding
18
taxes
due
from
the
business,
or
the
business
may
carry
the
19
credit
forward
up
to
five
consecutive
tax
years
or
until
20
depleted,
whichever
is
earlier.
In
any
tax
year,
the
aggregate
21
amount
of
withholding
tax
credit
under
this
program,
and
any
22
other
program
for
which
an
eligible
business
is
receiving
23
a
withholding
tax
credit,
shall
not
exceed
the
amount
the
24
eligible
business
is
required
to
deduct
and
remit
to
the
25
department
of
revenue
under
Code
section
422.16(2)
for
that
tax
26
year.
27
If
a
foreign
business’s
proposed
project
is
located
on
a
28
mega
site
that
includes
agricultural
land,
the
requirements
as
29
detailed
in
the
bill
must
be
satisfied
for
the
foreign
business
30
to
be
eligible
for
the
program.
“Mega
site”
is
defined
in
the
31
bill
as
a
certified
site
greater
than
1,000
acres.
A
foreign
32
business
that
is
approved
by
the
authority
to
participate
in
33
the
program
shall
enter
into
an
agreement
with
the
authority
34
that
includes
a
provision
that
requires
the
foreign
business
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to
comply
with
Code
chapter
9I,
and
specifies
that
failure
to
1
do
so
may
result
in
revocation
of
incentives
issued
by
the
2
authority
to
the
foreign
business.
The
authority
may
grant
the
3
foreign
business
one
or
more
one-year
extensions
in
which
the
4
foreign
business
must
come
into
compliance
with
Code
section
5
9I.4.
The
authority
shall
not
grant
a
business
more
than
five
6
one-year
extensions.
The
community
in
which
the
agricultural
7
land
is
located
must
approve
each
extension
by
ordinance
or
8
resolution
prior
to
the
authority
granting
each
extension.
9
Except
for
the
high
quality
jobs
program,
and
the
targeted
10
jobs
withholding
credit,
an
eligible
business
may
apply
11
for
and
be
eligible
to
receive
other
federal,
state,
and
12
local
incentives
in
addition
to
the
incentives
the
authority
13
issues
to
the
business
under
the
program.
The
authority,
in
14
its
discretion,
may
prohibit
an
eligible
business
that
has
15
been
issued
incentives
under
the
program
from
receiving
any
16
additional
tax
incentive,
tax
credit,
grant,
loan,
or
other
17
financial
assistance
under
any
program
administered
by
the
18
authority.
19
The
bill
allows
a
community
in
which
an
eligible
business’s
20
project
is
located
to
grant
the
eligible
business
a
property
21
tax
exemption
(exemption)
for
all
of,
or
a
portion
of,
the
22
actual
value
added
by
improvements
to
real
property
directly
23
related
to
the
eligible
business’s
created
jobs.
The
community
24
may
allow
an
exemption
for
a
period
not
to
exceed
20
years
25
beginning
the
year
that
the
improvements
are
first
assessed
26
for
taxation.
“Improvements”
is
defined
as
new
construction,
27
and
rehabilitation
of
and
additions
to
existing
structures.
28
An
exemption
granted
by
a
community
shall
apply
to
all
taxing
29
districts,
except
for
school
districts,
in
which
the
real
30
property
is
located.
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