Text: HF02249 Text: HF02251 Text: HF02200 - HF02299 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. NEW SECTION. 15E.193A ELIGIBLE HOUSING 1 2 BUSINESS. 1 3 1. A housing business qualifying under this section is 1 4 eligible to receive incentives and assistance only as provided 1 5 in this section. Sections 15E.193 and 15E.196 do not apply to 1 6 an eligible housing business qualifying under this section. 1 7 2. An eligible housing business under this section 1 8 includes, but is not limited to, a housing developer or 1 9 housing contractor that builds or rehabilitates a minimum of 1 10 four single-family homes with a value not exceeding one 1 11 hundred twenty thousand dollars for each home located in a 1 12 city in which there is a designated enterprise zone or one 1 13 multiple dwelling unit building containing three or more 1 14 individual dwelling units with a total value per unit not 1 15 exceeding one hundred twenty thousand dollars located in a 1 16 city in which there is a designated enterprise zone. 1 17 3. An eligible housing business shall provide the 1 18 enterprise zone commission with all of the following 1 19 information: 1 20 a. The long-term strategic plan for the housing business 1 21 which shall include labor and infrastructure needs. 1 22 b. Information dealing with the benefits the housing 1 23 business will bring to the area. 1 24 c. Examples of why the housing business should be 1 25 considered or would be considered a good business enterprise. 1 26 d. An affidavit that it has not, within the last five 1 27 years, violated state or federal environmental and worker 1 28 safety statutes, rules, and regulations or if such violation 1 29 has occurred that there were mitigating circumstances or such 1 30 violations did not seriously affect public health or safety or 1 31 the environment. 1 32 4. An eligible housing business which has been approved to 1 33 receive incentives and assistance by the department of 1 34 economic development pursuant to application as provided in 1 35 section 15E.195 shall receive all of the following incentives 2 1 and assistance for a period not to exceed ten years: 2 2 a. An eligible business may claim an income tax credit up 2 3 to a maximum of ten percent of the new investment which is 2 4 directly related to the building or rehabilitating of a 2 5 minimum of four single-family homes located in a designated 2 6 enterprise zone or one multiple dwelling unit building 2 7 containing four or more individual dwelling units located in a 2 8 designated enterprise zone. Any credit in excess of the tax 2 9 liability for the tax year may be credited to the tax 2 10 liability for the following seven years or until depleted, 2 11 whichever occurs earlier. If the business is a partnership, 2 12 subchapter S corporation, limited liability company, or estate 2 13 or trust electing to have the income taxed directly to the 2 14 individual, an individual may claim the tax credit allowed. 2 15 The amount claimed by the individual shall be based upon the 2 16 pro rata share of the individual's earnings of the 2 17 partnership, subchapter S corporation, limited liability 2 18 company, or estate or trust. 2 19 b. Sales, services, and use tax refund, as provided in 2 20 section 15.331A. 2 21 5. If a business has received incentives or assistance 2 22 under this section and fails to maintain the requirements of 2 23 this section to be an eligible housing business, the business 2 24 is subject to repayment of all or a portion of the incentives 2 25 and assistance that it has received. The department of 2 26 revenue and finance shall have the authority to recover the 2 27 value of state taxes or incentives provided under this 2 28 section. The value of state incentives provided under this 2 29 section includes applicable interest and penalties. The 2 30 department of economic development and the city and county, as 2 31 applicable, shall enter into agreement with the business 2 32 specifying the method for determining the amount of incentives 2 33 or assistance paid which will be repaid in the event of 2 34 failure to maintain the requirements of this section. In 2 35 addition, a business that fails to maintain the requirements 3 1 of this section shall not receive incentives or assistance for 3 2 each year during which the business is not in compliance. 3 3 Sec. 2. Section 15E.195, Code Supplement 1997, is amended 3 4 to read as follows: 3 5 15E.195 ENTERPRISE ZONE COMMISSION. 3 6 1. A county in which an eligible enterprise zone is 3 7 certified shall establish an enterprise zone commission to 3 8 review applications from qualified businesses located within 3 9 or requesting to locate within an enterprise zone to receive 3 10 incentives or assistance as provided in section 15E.196. The 3 11 enterprise zone commission shall also review applications from 3 12 qualified housing businesses requesting to receive incentives 3 13 or assistance as provided in section 15E.193A. The commission 3 14 shall consist of nine members. Five of these members shall 3 15 consist of one representative of the board of supervisors, one 3 16 member with economic development expertise chosen by the 3 17 department of economic development, one representative of the 3 18 county zoning board, one member of the local community college 3 19 board of directors, and one representative of the local 3 20 workforce development center. These five members shall select 3 21 the remaining four members. If the enterprise zone consists 3 22 of an area meeting the requirements for eligibility for an 3 23 urban or rural enterprise community under Title XIII of the 3 24 federal Omnibus Budget Reconciliation Act of 1993, one of the 3 25 remaining four members shall be a representative of that zone. 3 26 However, if the enterprise zone qualifies under the city 3 27 criteria, one of the four members shall be a representative of 3 28 an international labor organization and if an enterprise zone 3 29 is located in any city, a representative, chosen by the city 3 30 council, of each such city may be a member of the commission. 3 31 A county shall have only one enterprise zone commission. 3 32 2. The commission may adopt more stringent requirements, 3 33 including requirements related to compensation and benefits, 3 34 for a business to be eligible for incentives or assistance 3 35 than provided in
sectionsections 15E.193 and 15E.193A. The 4 1 commission may develop as an additional requirement that 4 2 preference in hiring be given to individuals who live within 4 3 the enterprise zone. The commission shall work with the local 4 4 workforce development center to determine the labor 4 5 availability in the area. The commission shall examine and 4 6 evaluate building codes and zoning in the enterprise zone and 4 7 made recommendations to the appropriate governing body in an 4 8 effort to promote more affordable housing development. 4 9 3. If the enterprise zone commission determines that a 4 10 business qualifies for inclusion in an enterprise zoneand is 4 11 eligible to receive incentives or assistance as provided in 4 12 either section 15E.193A or section 15E.196, the commission 4 13 shall submit an application for incentives or assistance to 4 14 the department of economic development. The department may 4 15 approve, defer, or deny the application. 4 16 4. In making its decision, the commission or department 4 17 shall consider the impact of the eligible business on other 4 18 businesses in competition with it and compare the compensation 4 19 package of businesses in competition with the business being 4 20 considered for incentives or assistance. The commission or 4 21 department shall make a good faith effort to identify existing 4 22 Iowa businesses within an industry in competition with the 4 23 business being considered for incentives or assistance. The 4 24 commission or department shall also make a good faith effort 4 25 to determine the probability that the proposed incentives or 4 26 assistance will displace employees of existing businesses. In 4 27 determining the impact on businesses in competition with the 4 28 business seeking incentives or assistance, jobs created as a 4 29 result of other jobs being displaced elsewhere in the state 4 30 shall not be considered direct jobs created. 4 31 However, if the commission or department finds that an 4 32 eligible business has a record of violations of the law, 4 33 including but not limited to environmental and worker safety 4 34 statutes, rules, and regulations, over a period of time that 4 35 tends to show a consistent pattern, the eligible business 5 1 shall not qualify for incentives or assistance under section 5 2 15E.193A or section 15E.196, unless the commission or 5 3 department finds that the violations did not seriously affect 5 4 public health or safety or the environment, or if it did that 5 5 there were mitigating circumstances. In making the findings 5 6 and determinations regarding violations, mitigating 5 7 circumstances, and whether an eligible business is eligible 5 8 for incentives or assistance under section 15E.193A or section 5 9 15E.196, the commission or department shall be exempt from 5 10 chapter 17A. If requested by the commission or department, 5 11 the business shall provide copies of materials documenting the 5 12 type of violation, any fees or penalties assessed, court 5 13 filings, final disposition of any findings and any other 5 14 information which would assist the commission or department in 5 15 assessing the nature of any violation. 5 16 5. A business that is approved to receive incentives or 5 17 assistance shall, for the length of its designation as an 5 18 enterprise zone business, certify annually to the county or 5 19 city, as applicable, and the department of economic 5 20 development its compliance with the requirements of either 5 21 section 15E.193 or section 15E.193A. 5 22 Sec. 3. Section 15E.196, subsection 1, Code Supplement 5 23 1997, is amended to read as follows: 5 24 1. a. New jobs credit from withholding, as provided in 5 25 section 15.331. 5 26 b. (1) As an alternative to paragraph "a", a business may 5 27 provide a housing assistance program in the form of down 5 28 payment assistance or rental assistance for employees in new 5 29 jobs, as defined in section 260E.2, who buy or rent housing 5 30 located within the enterprise zone. A business establishing a 5 31 housing assistance program shall fund this program through a 5 32 credit from withholding based on the wages paid to the 5 33 employees participating in the housing assistance program. An 5 34 amount equal to one and one-half percent of the gross wages 5 35 paid by the employer to each employee participating in the 6 1 housing assistance program shall be credited from the payment 6 2 made by an employer pursuant to section 422.16. If the amount 6 3 of the withholding by the employer is less than one and one- 6 4 half percent of the gross wages paid to the employees, then 6 5 the employer shall receive a credit against other withholding 6 6 taxes due by the employer. The employer shall deposit the 6 7 amount of the credit quarterly into a housing assistance fund 6 8 created by the business out of which the business shall 6 9 provide employees enrolled in the housing assistance program 6 10 with down payment assistance or rental assistance. 6 11 (2) A business may enter into an agreement with the county 6 12 or city designating the enterprise zone pursuant to section 6 13 15E.194 to borrow initial moneys to fund a housing assistance 6 14 program. The county or city may appropriate from the general 6 15 fund of the county or city for the assistance program an 6 16 amount not to exceed an amount estimated by the department of 6 17 revenue and finance to be equal to the total amount of credit 6 18 from withholding for employees determined by the business to 6 19 be enrolled in the program during the first two years. The 6 20 business shall pay the principal and interest on the loan out 6 21 of moneys received from the credit from withholding provided 6 22 for in subparagraph (1). The terms of the loan agreement 6 23 shall include the principal amount, the interest rate, the 6 24 terms of repayment, and the term of the loan. The terms of 6 25 the loan agreement shall not extend beyond the period during 6 26 which the enterprise zone is certified. 6 27 (3) The employer shall certify to the department of 6 28 revenue and finance that the credit from withholding is in 6 29 accordance with an agreement and shall provide other 6 30 information the department may require. 6 31 (4) An employee participating in the housing assistance 6 32 program will receive full credit for the amount withheld as 6 33 provided in section 422.16. 6 34 EXPLANATION 6 35 This bill makes amendments to the economic development 7 1 enterprise zone legislation enacted during the 1997 7 2 legislative session. 7 3 The bill creates a new type of eligible business. A 7 4 housing business that builds or rehabilitates a minimum of 7 5 four single-family homes or a multiple dwelling unit building 7 6 containing three or more individual dwelling units located in 7 7 a designated enterprise zone shall be considered an eligible 7 8 housing business. In order to receive incentives and 7 9 assistance under the program, an eligible housing business 7 10 must apply to the applicable enterprise zone commission for 7 11 consideration and must have an application approved by the 7 12 department of economic development. An approved eligible 7 13 housing business shall receive a sales, services, and use tax 7 14 refund and a 10 percent new investment income tax credit. The 7 15 bill requires the business to repay all or a portion of the 7 16 incentives and assistance received if the business fails to 7 17 maintain the requirements. The bill requires all enterprise 7 18 zone commissions to examine and evaluate building codes and 7 19 zoning in the enterprise zone in an effort to promote more 7 20 affordable housing development. 7 21 The bill amends one of the incentives provided to eligible 7 22 businesses that are not housing businesses under the 7 23 enterprise zone program. As an alternative to using a new 7 24 jobs credit from withholding, a business may establish a 7 25 housing assistance program in the form of down payment 7 26 assistance and rental assistance for employees in new jobs who 7 27 buy or rent housing located within the enterprise zone. The 7 28 program shall be funded through a credit from withholding 7 29 based on the wages paid to the employees participating in the 7 30 housing program. The amount of the credit shall equal 1.5 7 31 percent of the gross wages paid by the employer to each 7 32 employee participating in the program. A business may enter 7 33 into a loan agreement with the county or city designating the 7 34 enterprise zone for initial moneys to fund the program. The 7 35 business shall pay the principal and interest on the loan out 8 1 of moneys received from the credit from withholding. An 8 2 employee participating in the housing assistance program shall 8 3 receive full credit for the amount withheld. 8 4 LSB 3611HH 77 8 5 tm/jl/8
Text: HF02249 Text: HF02251 Text: HF02200 - HF02299 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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