Text: HF02537 Text: HF02539 Text: HF02500 - HF02599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 HOUSE FILE 2538 1 2 1 3 AN ACT 1 4 RELATING TO ELIGIBLE HOUSING BUSINESSES QUALIFYING FOR 1 5 INCENTIVES AND ASSISTANCE IN ENTERPRISE ZONES, PROVIDING 1 6 ADDITIONAL INCENTIVES AND ASSISTANCE FOR APPROVED ELIGIBLE 1 7 BUSINESSES LOCATED IN AN ENTERPRISE ZONE, AND REQUIRING 1 8 CONSIDERATION OF BUILDING CODES AND ZONING. 1 9 1 10 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 11 1 12 Section 1. NEW SECTION. 15E.193A ELIGIBLE HOUSING 1 13 BUSINESS. 1 14 1. A housing business qualifying under this section is 1 15 eligible to receive incentives and assistance only as provided 1 16 in this section. Sections 15E.193 and 15E.196 do not apply to 1 17 an eligible housing business qualifying under this section. 1 18 2. An eligible housing business under this section 1 19 includes a housing developer or housing contractor that builds 1 20 or rehabilitates a minimum of four single-family homes with a 1 21 value, after completion of the building or rehabilitation, not 1 22 exceeding one hundred twenty thousand dollars for each home 1 23 located in that part of a city or county in which there is a 1 24 designated enterprise zone or one multiple dwelling unit 1 25 building containing three or more individual dwelling units 1 26 with a total value per unit, after completion of the building 1 27 or rehabilitation, not exceeding one hundred twenty thousand 1 28 dollars located in that part of a city or county in which 1 29 there is a designated enterprise zone. 1 30 3. The single-family homes and dwelling units which are 1 31 rehabilitated or constructed by the eligible housing business 1 32 shall be modest homes or units but shall include the necessary 1 33 amenities. When completed and made available for occupancy, 1 34 the single-family homes and dwelling units shall meet the 1 35 United States department of housing and urban development's 2 1 housing quality standards and local safety standards. 2 2 4. The eligible housing business shall complete its 2 3 building or rehabilitation within two years from the time the 2 4 business begins construction on the single-family homes and 2 5 dwelling units. The failure to complete construction or 2 6 rehabilitation within two years shall result in the eligible 2 7 housing business becoming ineligible and subject to the 2 8 repayment requirements and penalties enumerated in subsection 2 9 7. 2 10 5. An eligible housing business shall provide the 2 11 enterprise zone commission with all of the following 2 12 information: 2 13 a. The long-term strategic plan for the housing business 2 14 which shall include labor and infrastructure needs. 2 15 b. Information dealing with the benefits the housing 2 16 business will bring to the area. 2 17 c. Examples of why the housing business should be 2 18 considered or would be considered a good business enterprise. 2 19 d. An affidavit that it has not, within the last five 2 20 years, violated state or federal environmental and worker 2 21 safety statutes, rules, and regulations or if such violation 2 22 has occurred that there were mitigating circumstances or such 2 23 violations did not seriously affect public health or safety or 2 24 the environment. 2 25 6. An eligible housing business which has been approved to 2 26 receive incentives and assistance by the department of 2 27 economic development pursuant to application as provided in 2 28 section 15E.195 shall receive all of the following incentives 2 29 and assistance for a period not to exceed ten years: 2 30 a. An eligible housing business may claim an income tax 2 31 credit up to a maximum of ten percent of the new investment 2 32 which is directly related to the building or rehabilitating of 2 33 a minimum of four single-family homes located in that part of 2 34 a city or county in which there is a designated enterprise 2 35 zone or one multiple dwelling unit building containing three 3 1 or more individual dwelling units located in that part of a 3 2 city or county in which there is a designated enterprise zone. 3 3 Any credit in excess of the tax liability for the tax year may 3 4 be credited to the tax liability for the following seven years 3 5 or until depleted, whichever occurs earlier. If the business 3 6 is a partnership, subchapter S corporation, limited liability 3 7 company, or estate or trust electing to have the income taxed 3 8 directly to the individual, an individual may claim the tax 3 9 credit allowed. The amount claimed by the individual shall be 3 10 based upon the pro rata share of the individual's earnings of 3 11 the partnership, subchapter S corporation, limited liability 3 12 company, or estate or trust. 3 13 b. Sales, services, and use tax refund, as provided in 3 14 section 15.331A. 3 15 7. If a business has received incentives or assistance 3 16 under this section and fails to maintain the requirements of 3 17 this section to be an eligible housing business, the business 3 18 is subject to repayment of all or a portion of the incentives 3 19 and assistance that it has received. The department of 3 20 revenue and finance shall have the authority to recover the 3 21 value of state taxes or incentives provided under this 3 22 section. The value of state incentives provided under this 3 23 section includes applicable interest and penalties. The 3 24 department of economic development and the city and county, as 3 25 applicable, shall enter into agreement with the business 3 26 specifying the method for determining the amount of incentives 3 27 or assistance paid which will be repaid in the event of 3 28 failure to maintain the requirements of this section. In 3 29 addition, a business that fails to maintain the requirements 3 30 of this section shall not receive incentives or assistance for 3 31 each year during which the business is not in compliance. 3 32 8. The department of economic development and the 3 33 department of revenue and finance shall each adopt rules to 3 34 jointly administer this section. 3 35 Sec. 2. Section 15E.195, Code Supplement 1997, is amended 4 1 to read as follows: 4 2 15E.195 ENTERPRISE ZONE COMMISSION. 4 3 1. A county in which an eligible enterprise zone is 4 4 certified shall establish an enterprise zone commission to 4 5 review applications from qualified businesses located within 4 6 or requesting to locate within an enterprise zone to receive 4 7 incentives or assistance as provided in section 15E.196. The 4 8 enterprise zone commission shall also review applications from 4 9 qualified housing businesses requesting to receive incentives 4 10 or assistance as provided in section 15E.193A. The commission 4 11 shall consist of nine members. Five of these members shall 4 12 consist of one representative of the board of supervisors, one 4 13 member with economic development expertise chosen by the 4 14 department of economic development, one representative of the 4 15 county zoning board, one member of the local community college 4 16 board of directors, and one representative of the local 4 17 workforce development center. These five members shall select 4 18 the remaining four members. If the enterprise zone consists 4 19 of an area meeting the requirements for eligibility for an 4 20 urban or rural enterprise community under Title XIII of the 4 21 federal Omnibus Budget Reconciliation Act of 1993, one of the 4 22 remaining four members shall be a representative of that zone. 4 23 However, if the enterprise zone qualifies under the city 4 24 criteria, one of the four members shall be a representative of 4 25 an international labor organization and if an enterprise zone 4 26 is located wholly or partially in any city, a representative, 4 27 chosen by the city council, of each such citymayshall be a 4 28 member of the commission. The size of the commission shall be 4 29 expanded by the number of members necessary to accommodate the 4 30 appointment of a representative of each city. A county shall 4 31 have only one enterprise zone commission. 4 32 2. The commission may adopt more stringent requirements, 4 33 including requirements related to compensation and benefits, 4 34 for a business to be eligible for incentives or assistance 4 35 than provided insectionsections 15E.193 and 15E.193A. The 5 1 commission may develop as an additional requirement that 5 2 preference in hiring be given to individuals who live within 5 3 the enterprise zone. The commission shall work with the local 5 4 workforce development center to determine the labor 5 5 availability in the area. The commission shall examine and 5 6 evaluate building codes and zoning in the enterprise zone and 5 7 make recommendations to the appropriate governing body in an 5 8 effort to promote more affordable housing development. 5 9 3. If the enterprise zone commission determines that a 5 10 business qualifiesfor inclusion in an enterprise zoneand is 5 11 eligible to receive incentives or assistance as provided in 5 12 either section 15E.193A or section 15E.196, the commission 5 13 shall submit an application for incentives or assistance to 5 14 the department of economic development. The department may 5 15 approve, defer, or deny the application. 5 16 4. In making its decision, the commission or department 5 17 shall consider the impact of the eligible business on other 5 18 businesses in competition with it and compare the compensation 5 19 package of businesses in competition with the business being 5 20 considered for incentives or assistance. The commission or 5 21 department shall make a good faith effort to identify existing 5 22 Iowa businesses within an industry in competition with the 5 23 business being considered for incentives or assistance. The 5 24 commission or department shall also make a good faith effort 5 25 to determine the probability that the proposed incentives or 5 26 assistance will displace employees of existing businesses. In 5 27 determining the impact on businesses in competition with the 5 28 business seeking incentives or assistance, jobs created as a 5 29 result of other jobs being displaced elsewhere in the state 5 30 shall not be considered direct jobs created. 5 31 However, if the commission or department finds that an 5 32 eligible business has a record of violations of the law, 5 33 including but not limited to environmental and worker safety 5 34 statutes, rules, and regulations, over a period of time that 5 35 tends to show a consistent pattern, the eligible business 6 1 shall not qualify for incentives or assistance under section 6 2 15E.193A or section 15E.196, unless the commission or 6 3 department finds that the violations did not seriously affect 6 4 public health or safety or the environment, or if it did that 6 5 there were mitigating circumstances. In making the findings 6 6 and determinations regarding violations, mitigating 6 7 circumstances, and whether an eligible business is eligible 6 8 for incentives or assistance under section 15E.193A or section 6 9 15E.196, the commission or department shall be exempt from 6 10 chapter 17A. If requested by the commission or department, 6 11 the business shall provide copies of materials documenting the 6 12 type of violation, any fees or penalties assessed, court 6 13 filings, final disposition of any findings and any other 6 14 information which would assist the commission or department in 6 15 assessing the nature of any violation. 6 16 5. A business that is approved to receive incentives or 6 17 assistance shall, for the length of its designation as an 6 18 enterprise zone business, certify annually to the county or 6 19 city, as applicable, and the department of economic 6 20 development its compliance with the requirements of either 6 21 section 15E.193 or section 15E.193A. 6 22 Sec. 3. Section 15E.196, subsection 1, Code Supplement 6 23 1997, is amended to read as follows: 6 24 1. a. New jobs credit from withholding, as provided in 6 25 section 15.331. 6 26 b. (1) As an alternative to paragraph "a", a business may 6 27 provide a housing assistance program in the form of down 6 28 payment assistance or rental assistance for employees in new 6 29 jobs, as defined in section 260E.2, who buy or rent housing 6 30 located within any certified enterprise zone. A business 6 31 establishing a housing assistance program shall fund this 6 32 program through a credit from withholding based on the wages 6 33 paid to the employees participating in the housing assistance 6 34 program. An amount equal to one and one-half percent of the 6 35 gross wages paid by the employer to each employee 7 1 participating in the housing assistance program shall be 7 2 credited from the payment made by an employer pursuant to 7 3 section 422.16. If the amount of the withholding by the 7 4 employer is less than one and one-half percent of the gross 7 5 wages paid to the employees, then the employer shall receive a 7 6 credit against other withholding taxes due by the employer. 7 7 The employer shall deposit the amount of the credit quarterly 7 8 into a housing assistance fund created by the business out of 7 9 which the business shall provide employees enrolled in the 7 10 housing assistance program with down payment assistance or 7 11 rental assistance. 7 12 (2) A business may enter into an agreement with the county 7 13 or city designating the enterprise zone pursuant to section 7 14 15E.194 to borrow initial moneys to fund a housing assistance 7 15 program. The county or city may appropriate from the general 7 16 fund of the county or city for the assistance program an 7 17 amount not to exceed an amount estimated by the department of 7 18 revenue and finance to be equal to the total amount of credit 7 19 from withholding for employees determined by the business to 7 20 be enrolled in the program during the first two years. The 7 21 business shall pay the principal and interest on the loan out 7 22 of moneys received from the credit from withholding provided 7 23 for in subparagraph (1). The terms of the loan agreement 7 24 shall include the principal amount, the interest rate, the 7 25 terms of repayment, and the term of the loan. The terms of 7 26 the loan agreement shall not extend beyond the period during 7 27 which the enterprise zone is certified. 7 28 (3) The employer shall certify to the department of 7 29 revenue and finance that the credit from withholding is in 7 30 accordance with an agreement and shall provide other 7 31 information the department may require. 7 32 (4) An employee participating in the housing assistance 7 33 program will receive full credit for the amount withheld as 7 34 provided in section 422.16. 7 35 8 1 8 2 8 3 RON J. CORBETT 8 4 Speaker of the House 8 5 8 6 8 7 8 8 MARY E. KRAMER 8 9 President of the Senate 8 10 8 11 I hereby certify that this bill originated in the House and 8 12 is known as House File 2538, Seventy-seventh General Assembly. 8 13 8 14 8 15 8 16 ELIZABETH ISAACSON 8 17 Chief Clerk of the House 8 18 Approved , 1998 8 19 8 20 8 21 8 22 TERRY E. BRANSTAD 8 23 Governor
Text: HF02537 Text: HF02539 Text: HF02500 - HF02599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
© 1998 Cornell College and League of Women Voters of Iowa
Comments about this site or page?
webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.
Last update: Mon Jun 29 13:43:15 CDT 1998
URL: /DOCS/GA/77GA/Legislation/HF/02500/HF02538/980422.html
jhf