Text: HF02193 Text: HF02195 Text: HF02100 - HF02199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. NEW SECTION. 15E.193C ALTERNATIVE ELIGIBLE
1 2 HOUSING 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 The housing business must meet all of the following criteria:
1 8 a. Be located in a city with a population between eight
1 9 thousand and twenty-four thousand as determined by population
1 10 estimates by the United States bureau of the census for the
1 11 year 1995.
1 12 b. Be located in a city which is not more than thirty-five
1 13 miles from an existing enterprise zone in this state or an
1 14 equivalent zone in an adjacent state.
1 15 c. Receive approval by ordinance or resolution from the
1 16 city in which the housing business is located. Before
1 17 providing approval, the city shall consider the information
1 18 required in subsection 5.
1 19 2. An eligible housing business under this section
1 20 includes a housing developer or housing contractor that builds
1 21 or rehabilitates a minimum of four single-family homes with a
1 22 value, after completion of the building or rehabilitation, not
1 23 exceeding one hundred twenty thousand dollars for each home
1 24 located in a city meeting the criteria in subsection 1 or one
1 25 multiple-dwelling unit building containing three or more
1 26 individual dwelling units with a total value per unit, after
1 27 completion of the building or rehabilitation, not exceeding
1 28 one hundred twenty thousand dollars located in a city meeting
1 29 the criteria in subsection 1.
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. An eligible housing business shall complete building or
2 3 rehabilitation within two years from the time the housing
2 4 business begins construction on the single-family homes or
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 city
2 11 council with all of the following information:
2 12 a. The long-term strategic plan for the housing business
2 13 which shall include labor and infrastructure needs.
2 14 b. Information dealing with the benefits the housing
2 15 business will bring to the area.
2 16 c. Examples of why the housing business should be
2 17 considered or would be considered a good business enterprise.
2 18 d. An affidavit that the housing business has not, within
2 19 the last five years, violated state or federal environmental
2 20 and worker safety statutes, rules, and regulations or if such
2 21 violation has occurred that there were mitigating
2 22 circumstances or such violations did not seriously affect
2 23 public health or safety or the environment.
2 24 6. After a housing business receives approval from the
2 25 city, the city shall submit an application for incentives and
2 26 assistance to the department of economic development. As part
2 27 of the application, the city shall submit information relating
2 28 to requirements of subsections 1, 2, 3, and 5. The department
2 29 shall approve, defer, or deny the application. An eligible
2 30 housing business which has been approved to receive incentives
2 31 and assistance by the department shall receive all of the
2 32 following incentives and assistance for a period not to exceed
2 33 ten years:
2 34 a. An eligible housing business may claim an income tax
2 35 credit up to a maximum of ten percent of the new investment
3 1 which is directly related to the building or rehabilitation of
3 2 a minimum of four single-family homes located in a city
3 3 meeting the criteria in subsection 1 or one multiple-dwelling
3 4 unit building containing three or more individual dwelling
3 5 units located in a city meeting the criteria in subsection 1.
3 6 Any credit in excess of the tax liability for the tax year may
3 7 be credited to the tax liability for the following seven years
3 8 or until depleted, whichever occurs earlier. If the business
3 9 is a partnership, subchapter S corporation, limited liability
3 10 company, or estate or trust electing to have the income taxed
3 11 directly to the individual, an individual may claim the tax
3 12 credit allowed. The amount claimed by the individual shall be
3 13 based upon the pro rata share of the individual's earnings of
3 14 the partnership, subchapter S corporation, limited liability
3 15 company, or estate or trust.
3 16 b. Sales, services, and use tax refund, as provided in
3 17 section 15.331A.
3 18 7. If a housing business has received incentives or
3 19 assistance under this section and fails to continue to fulfil
3 20 the requirements of this section to be an eligible housing
3 21 business, the business is subject to repayment of all or a
3 22 portion of the incentives and assistance that it has received.
3 23 The department of revenue and finance shall have the authority
3 24 to recover the value of state taxes or incentives provided
3 25 under this section. The value of state incentives provided
3 26 under this section includes applicable interest and penalties.
3 27 The department of economic development and the city shall
3 28 enter into agreement with the business specifying the method
3 29 for determining the amount of incentives or assistance paid
3 30 which will be repaid in the event of failure to continue to
3 31 fulfil the requirements of this section. In addition, a
3 32 business that fails to continue to fulfil the requirements of
3 33 this section shall not receive incentives or assistance for
3 34 each year during which the business is not in compliance.
3 35 8. The department of economic development and the
4 1 department of revenue and finance shall each adopt rules to
4 2 jointly administer this section.
4 3 EXPLANATION
4 4 This bill creates a new type of eligible business under the
4 5 enterprise zone program administered by the department of
4 6 economic development.
4 7 The bill allows a housing business which is not located in
4 8 an enterprise zone to receive incentives and assistance under
4 9 the program provided that certain criteria are met. The
4 10 business must be located in a city with a population between
4 11 8,000 and 24,000 which is not more than 35 miles from an
4 12 existing enterprise zone in this state or an equivalent zone
4 13 in an adjacent state. The city must approve the housing
4 14 business after consideration of information submitted by the
4 15 housing business.
4 16 The bill provides that an eligible housing business
4 17 includes a housing developer or housing contractor that builds
4 18 or rehabilitates a minimum of four single-family homes with a
4 19 value, after completion of the building or rehabilitation, not
4 20 exceeding $120,000 for each home or one multiple-dwelling unit
4 21 building containing three or more individual dwelling units
4 22 with a total value per unit, after completion of the building
4 23 or rehabilitation, not exceeding $120,000. The bill provides
4 24 that the single-family homes and dwelling units must meet
4 25 certain minimum quality standards. The bill requires that
4 26 building or rehabilitation must be completed within two years
4 27 from the time construction began, with the failure to do so
4 28 resulting in repayment requirements and penalties.
4 29 The bill provides that after approval by the city, the city
4 30 shall submit an application for incentives and assistance to
4 31 the department of economic development. The bill provides
4 32 that incentives and assistance a housing business may be
4 33 eligible for are the same as those provided in Code section
4 34 15E.193B for a housing business located in an enterprise zone.
4 35 These incentives and assistance include a tax credit of up to
5 1 a maximum of 10 percent of the new investment which directly
5 2 related to building or rehabilitation and a sales, services,
5 3 and use tax refund as provided under the new jobs and income
5 4 program.
5 5 The bill provides that the failure to meet the requirements
5 6 of the bill results in certain repayment requirements and
5 7 penalties.
5 8 LSB 5692YH 78
5 9 tm/gg/8
Text: HF02193 Text: HF02195 Text: HF02100 - HF02199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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