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CHAPTER 76AGGREGATE TAX CREDIT LIMIT FORCERTAIN ECONOMIC DEVELOPMENT PROGRAMS261—76.1(15) Authority. The authority for establishing rules governing the aggregate tax credit limit for certain economic development programs under this chapter is Iowa Code sections 15.106A and 15.119.Related ARC(s): 7954B, 8146B, 1573C261—76.2(15) Purpose. The purpose of the aggregate tax credit limit for certain economic development programs is to limit the amount of tax credits awarded during a fiscal year.Related ARC(s): 7954B, 8146B, 1573C261—76.3(15) Definitions.
"Authority" means the economic development authority.
"Board" means the members of the board in whom the powers of the authority are vested pursuant to Iowa Code chapter 15.
Related ARC(s): 7954B, 8146B, 1573C261—76.4(15) Tax credit cap—exceeding the cap—reallocation of declinations. 76.4(1) Maximum aggregate limit on tax credits. Except as provided in subrule 76.4(2), the authority shall not authorize for any one fiscal year an amount of tax credits that is in excess of $170 million. 76.4(2) Exceeding the cap. The authority may authorize an amount of tax credits during a fiscal year that is in excess of the amount specified in subrule 76.4(1), but the amount of such excess will not exceed 20 percent of the amount specified in subrule 76.4(1) and will be counted against the total amount of tax credits that may be authorized for the next fiscal year. 76.4(3) Reallocation of declinations. Any amount of tax credits authorized and awarded during a fiscal year for a program specified in Iowa Code section 15.119(2) which is irrevocably declined by the awarded business on or before June 30 of the next fiscal year may be reallocated, authorized, and awarded during the fiscal year in which the declination occurs. Tax credits authorized pursuant to this subrule will not be considered for purposes of subrule 76.4(2).Related ARC(s): 7954B, 8146B, 1573C, 6189C261—76.5(15) Allocating the tax credit cap. 76.5(1) Procedure for allocations. At a scheduled meeting of the board prior to the start of a fiscal year, the board will allocate a portion of the tax credits available under the cap to the applicable programs. The board is not required to allocate a portion of the cap to every program listed. The board may allocate a portion of the cap to be shared by programs with a common purpose. Throughout the fiscal year, the board may review the allocation as necessary but shall review the allocation at least one time during the fiscal year. Based on its review, the board may make adjustments to the allocation as deemed necessary. 76.5(2) Required suballocations. Iowa Code section 15.119 requires the authority to make certain suballocations to the programs subject to the cap. In some cases, there is a minimum required suballocation and in others a maximum suballocation. The authority will make the required suballocations and count them against the maximum aggregate cap before making any discretionary allocations.Related ARC(s): 7954B, 8146B, 1573C, 6189C261—76.6(15) Reporting to the department of revenue. The authority shall submit an initial report to the department of revenue by August 15 of each year, which shows the initial allocation of the maximum aggregate tax credit cap. At the start of each subsequent fiscal year, the authority shall prepare a report to summarize the final allocation for the fiscal year that just ended, the total amount of awards made under each program subject to the cap during that fiscal year, and the initial allocation for the subsequent fiscal year.Related ARC(s): 7954B, 8146B, 1573C, 6189CThese rules are intended to implement Iowa Code section 15.119.Related ARC(s): 7954B, 8146B, 1573C, 6189C