Text: H01729 Text: H01731 Text: H01700 - H01799 Text: H Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Amend the amendment, H-1684, to Senate File 528, as 1 2 passed by the Senate, as follows: 1 3 #1. Page 1, by striking lines 3 through 5, and 1 4 inserting the following: 1 5 "# . Page 8, by inserting after line 10, the 1 6 following: 1 7 "DIVISION ___ 1 8 MOTOR VEHICLE USE TAX REVENUES – DESIGNATED USE 1 9 Sec. 101. Section 15.333, subsection 1, Code 2001, 1 10 is amended to read as follows: 1 11 1. An eligible business may claim a corporate tax 1 12 credit up to a maximum of ten percent of the new 1 13 investment which is directly related to new jobs 1 14 created by the location or expansion of an eligible 1 15 business under the program. Any credit in excess of 1 16 the tax liability for the tax year may be credited to 1 17 the tax liability for the following seven years or 1 18 until depleted, whichever occurs earlier. If the 1 19 business is a partnership, subchapter S corporation, 1 20 limited liability company, cooperative organized under 1 21 chapter 501 and filing as a partnership for federal 1 22 tax purposes, or estate or trust electing to have the 1 23 income taxed directly to the individual, an individual 1 24 may claim the tax credit allowed. The amount claimed 1 25 by the individual shall be based upon the pro rata 1 26 share of the individual's earnings of the partnership, 1 27 subchapter S corporation, limited liability company, 1 28 cooperative organized under chapter 501 and filing as 1 29 a partnership for federal tax purposes, or estate or 1 30 trust. For purposes of this section, "new investment 1 31 directly related to new jobs created by the location 1 32 or expansion of an eligible business under the 1 33 program" means the cost of machinery and equipment, as 1 34 defined in section 427A.1, subsection 1, paragraphs 1 35 "e" and "j", purchased for use in the operation of the 1 36 eligible business, the purchase price of which has 1 37 been depreciated in accordance with generally accepted 1 38 accounting principles, and the cost of improvements 1 39 made to real property which is used in the operation 1 40 of the eligible businessand which receives a partial1 41property tax exemption for the actual value added1 42under section 15.332. 1 43 Sec. 102. Section 15E.193B, subsection 2, Code 1 44 2001, is amended to read as follows: 1 45 2. An eligible housing business under this section 1 46 includes a housing developer, housing contractor, or 1 47 nonprofit organization that builds or rehabilitates a 1 48 minimum of four single-family homeswith a value,1 49after completion of the building or rehabilitation,1 50not exceeding one hundred twenty thousand dollars for2 1each homelocated in that part of a city or county in 2 2 which there is a designated enterprise zone or one 2 3 multiple dwelling unit building containing three or 2 4 more individual dwelling unitswith a total value per2 5unit, after completion of the building or2 6rehabilitation, not exceeding one hundred twenty2 7thousand dollarslocated in that part of a city or 2 8 county in which there is a designated enterprise zone. 2 9 Sec. 103. Section 15E.193B, subsection 6, 2 10 paragraph a, Code 2001, is amended to read as follows: 2 11 a. An eligible housing business may claim a tax 2 12 credit up to a maximum of ten percent of the new 2 13 investment which is directly related to the building 2 14 or rehabilitating of a minimum of four single-family 2 15 homes located in that part of a city or county in 2 16 which there is a designated enterprise zone or one 2 17 multiple dwelling unit building containing three or 2 18 more individual dwelling units located in that part of 2 19 a city or county in which there is a designated 2 20 enterprise zone. The new investment that may be used 2 21 to compute the tax credit shall not exceed the new 2 22 investment used for the first one hundred forty 2 23 thousand dollars of value for each single-family home 2 24 or for each unit of a multiple dwelling unit building 2 25 containing three or more units. The tax credit may be 2 26 used to reduce the tax liability imposed under chapter 2 27 422, division II, III, or V. Any credit in excess of 2 28 the tax liability for the tax year may be credited to 2 29 the tax liability for the following seven years or 2 30 until depleted, whichever occurs earlier. If the 2 31 business is a partnership, S corporation, limited 2 32 liability company, cooperative organized under chapter 2 33 501 and filing as a partnership for federal tax 2 34 purposes, or estate or trust electing to have the 2 35 income taxed directly to the individual, an individual 2 36 may claim the tax credit allowed. The amount claimed 2 37 by the individual shall be based upon the pro rata 2 38 share of the individual's earnings of the partnership, 2 39 S corporation, limited liability company, cooperative 2 40 organized under chapter 501 and filing as a 2 41 partnership for federal tax purposes, or estate or 2 42 trust. 2 43 Sec. 104. NEW SECTION. 15E.193C ELIGIBLE 2 44 DEVELOPMENT BUSINESS. 2 45 1. A development business qualifying under this 2 46 section is eligible to receive incentives and 2 47 assistance only as provided in this section. Sections 2 48 15E.193, 15E.193B, and 15E.196 do not apply to an 2 49 eligible development business qualifying under this 2 50 section. 3 1 2. An eligible development business includes a 3 2 developer or development contractor that constructs, 3 3 expands, or rehabilitates a building space with a 3 4 minimum capital investment of at least five hundred 3 5 thousand dollars in that part of a city or county in 3 6 which there is a designated enterprise zone. An 3 7 eligible development business is eligible for one, but 3 8 not both, of the following exemptions to the capital 3 9 investment requirements: 3 10 a. For an eligible development business purchasing 3 11 a vacant building suitable for industrial use, the 3 12 fair market value of the building and land, not to 3 13 exceed two hundred fifty thousand dollars, as 3 14 determined by the local enterprise zone commission, 3 15 shall be deducted from the capital investment 3 16 requirement. 3 17 b. For an eligible development business that 3 18 rehabilitates a building space that has been in an 3 19 enterprise zone for at least five years, the fair 3 20 market value as established by an appraisal of the 3 21 building, not to exceed two hundred fifty thousand 3 22 dollars, shall be deducted from the capital investment 3 23 requirement. 3 24 3. Upon completion of the construction, expansion, 3 25 or rehabilitation project by the eligible development 3 26 business, the building space shall not be occupied by 3 27 a retail business. 3 28 4. An eligible development business shall complete 3 29 its construction, expansion, or rehabilitation within 3 30 three years from the time the eligible development 3 31 business receives approval from the department. The 3 32 failure to complete construction, expansion, or 3 33 rehabilitation within three years shall result in the 3 34 eligible development business becoming ineligible and 3 35 subject to the repayment requirements and penalties 3 36 provided in subsection 8. 3 37 5. Prior to applying for assistance under this 3 38 section, an eligible development business shall enter 3 39 into an agreement with at least one business for 3 40 purposes of locating the business in all or a portion 3 41 of the building space for a period of at least five 3 42 years. 3 43 6. An eligible development business shall provide 3 44 the enterprise zone commission with all of the 3 45 following information: 3 46 a. The long-term strategic plan for the 3 47 development business which shall include 3 48 infrastructure needs and a copy of any agreement 3 49 entered into by the eligible development business as 3 50 required under subsection 5. 4 1 b. Information relating to the benefits the 4 2 development business will bring to the area. 4 3 c. Examples of why the development business should 4 4 be considered or would be considered a good business 4 5 enterprise. 4 6 d. An affidavit that the development business has 4 7 not, within the last five years, violated state or 4 8 federal environmental and worker safety statutes, 4 9 rules, and regulations or if such violation has 4 10 occurred that there were mitigating circumstances or 4 11 the violations did not seriously affect public health 4 12 or safety or the environment. 4 13 7. An eligible development business, which has 4 14 been approved to receive incentives and assistance by 4 15 the department of economic development pursuant to 4 16 section 15E.195, shall be eligible to receive all of 4 17 the following incentives and assistance for a period 4 18 not to exceed ten years: 4 19 a. An eligible development business may claim a 4 20 tax credit up to a maximum of ten percent of the new 4 21 investment that is directly related to the 4 22 construction, expansion, or rehabilitation of building 4 23 space to be used for manufacturing, processing, cold 4 24 storage, distribution, or office facilities. For 4 25 purposes of this section, "new investment" includes 4 26 the purchase price of land and the cost of 4 27 improvements made to real property. The tax credit 4 28 may be claimed by an eligible development business for 4 29 the tax year in which the construction, expansion, or 4 30 rehabilitation is completed. The tax credit may be 4 31 used to reduce the tax liability imposed under chapter 4 32 422, division II, III, or V or chapter 432. Any 4 33 credit in excess of the tax liability for the tax year 4 34 may be credited to the tax liability for the following 4 35 seven years or until depleted, whichever occurs 4 36 earlier. If the business is a partnership, S 4 37 corporation, limited liability company, cooperative 4 38 organized under chapter 501 and filing as a 4 39 partnership for federal tax purposes, or estate or 4 40 trust electing to have the income taxed directly to 4 41 the individual, an individual may claim the tax credit 4 42 allowed. The amount claimed by the individual shall 4 43 be based upon the pro rata share of the individual's 4 44 earnings of the partnership, S corporation, limited 4 45 liability company, cooperative organized under chapter 4 46 501 and filing as a partnership for federal tax 4 47 purposes, or estate or trust. 4 48 b. Sales, services, and use tax refund, as 4 49 provided in section 15.331A. 4 50 c. The county or city for which an eligible 5 1 enterprise zone is certified may exempt from all 5 2 property taxation all or a portion of the value added 5 3 to the property upon which an eligible development 5 4 business constructs, expands, or rehabilitates 5 5 property in an enterprise zone. The amount of value 5 6 added for purposes of this shall be the amount of the 5 7 increase in assessed valuation of the property 5 8 following the construction, expansion, or 5 9 rehabilitation by the development business in the 5 10 enterprise zone. If an exemption provided pursuant to 5 11 this is made applicable to only a portion of the 5 12 property within an enterprise zone, the definition of 5 13 that subset of eligible property must be by uniform 5 14 criteria that further some planning objective 5 15 established by the city or county enterprise zone 5 16 commission and approved by the city or county. The 5 17 exemption may be allowed for a period not to exceed 5 18 ten years beginning the year the eligible development 5 19 business enters into an agreement with the county or 5 20 city to construct, expand, or rehabilitate property in 5 21 an enterprise zone. 5 22 8. If a development business has received 5 23 incentives or assistance under this section and fails 5 24 to maintain the requirements of this section to be an 5 25 eligible development business, the business is subject 5 26 to repayment of all or a portion of the incentives and 5 27 assistance that it has received. The department of 5 28 revenue and finance shall have the authority to 5 29 recover the value of state taxes or incentives 5 30 provided under this section. The value of state 5 31 incentives provided under this section includes 5 32 applicable interest and penalties. The department of 5 33 economic development and the city and county, as 5 34 applicable, shall enter into an agreement with the 5 35 business specifying the method for determining the 5 36 amount of incentives or assistance paid which will be 5 37 repaid in the event of failure to maintain the 5 38 requirements of this section. In addition, a business 5 39 that fails to maintain the requirements of this 5 40 section shall not receive incentives or assistance for 5 41 each year during which the business is not in 5 42 compliance. 5 43 9. The department of economic development and the 5 44 department of revenue and finance shall each adopt 5 45 rules pursuant to chapter 17A to jointly administer 5 46 this section. 5 47 10. An eligible business under section 15E.193 is 5 48 not eligible for incentives and assistance listed in 5 49 section 15E.196 if the property is owned, or was 5 50 previously owned, by an approved development business 6 1 that has received incentives and assistance under this 6 2 section 15E.193C. 6 3 11. If, within five years of the completion of a 6 4 construction, expansion, or rehabilitation project, 6 5 the development business, or its successor, sells or 6 6 leases any space to any retail business, the 6 7 development business shall proportionally refund any 6 8 tax credits, refunds, or exemptions which were claimed 6 9 under this section. 6 10 Sec. 105. Section 15E.194, subsection 4, Code 6 11 2001, is amended to read as follows: 6 12 4. A city of any size or any county may designate 6 13 an enterprise zone at any time prior to July 1, 2010, 6 14 when a business closure occurs involving the loss of 6 15 full-time employees, not including retail employees, 6 16 at one place of business totaling at least one 6 17 thousand employees or four percent or more of the 6 18 county's resident labor force based on the most recent 6 19 annual resident labor force statistics from the 6 20 department of workforce development, whichever is 6 21 lower. The enterprise zone may be established on the 6 22 property of the place of business that has closed and 6 23 the enterprise zone may include an area up to an 6 24 additionalone milefive miles adjacent to the 6 25 property. The area meeting the requirements for 6 26 enterprise zone eligibility under this subsection 6 27 shall not be included for the purpose of determining 6 28 the area limitation pursuant to section 15E.192, 6 29 subsection 4. The area included in an enterprise zone 6 30 designated under this subsection on or after June 1, 6 31 2000, may be amended to change the boundaries of the 6 32 enterprise zone. Such an amendment must be approved 6 33 by the department within three years of the date the 6 34 enterprise zone was certified. 6 35 Sec. 106. Section 15E.195, Code 2001, is amended 6 36 to read as follows: 6 37 15E.195 ENTERPRISE ZONE COMMISSION. 6 38 1. A county which designates an enterprise zone 6 39 pursuant to section 15E.194, subsection 1, and in 6 40 which an eligible enterprise zone is certified shall 6 41 establish an enterprise zone commission to review 6 42 applications from qualified businesses located within 6 43 or requesting to locate within an enterprise zone 6 44 designated pursuant to section 15E.194, subsection 1, 6 45 to receive incentives or assistance as provided in 6 46 section 15E.196. The enterprise zone commission shall 6 47 also review applications from qualified housing 6 48 businesses requesting to receive incentives or 6 49 assistance as provided in section 15E.193B. The 6 50 enterprise zone commission shall also review 7 1 applications from qualified development businesses 7 2 requesting to receive incentives or assistance as 7 3 provided in section 15E.193C. The commission shall 7 4 consist of nine members. Five of these members shall 7 5 consist of one representative of the board of 7 6 supervisors, one member with economic development 7 7 expertise chosen by the department of economic 7 8 development, one representative of the county zoning 7 9 board, one member of the local community college board 7 10 of directors, and one representative of the local 7 11 workforce development center. These five members 7 12 shall select the remaining four members. If the 7 13 enterprise zone consists of an area meeting the 7 14 requirements for eligibility for an urban or rural 7 15 enterprise community under Title XIII of the federal 7 16 Omnibus Budget Reconciliation Act of 1993, one of the 7 17 remaining four members shall be a representative of 7 18 that community. A county shall have only one 7 19 enterprise zone commission to review applications for 7 20 incentives and assistance for businesses located 7 21 within or requesting to locate within a certified 7 22 enterprise zone designated pursuant to section 7 23 15E.194, subsection 1. 7 24 2. A city with a population of twenty-four 7 25 thousand or more which designates an enterprise zone 7 26 pursuant to section 15E.194, subsection 2, and in 7 27 which an eligible enterprise zone is certified shall 7 28 establish an enterprise zone commission to review 7 29 applications from qualified businesses located within 7 30 or requesting to locate within an enterprise zone to 7 31 receive incentives or assistance as provided in 7 32 section 15E.196. The enterprise zone commission shall 7 33 review applications from qualified housing businesses 7 34 requesting to receive incentives or assistance as 7 35 provided in section 15E.193B. The enterprise zone 7 36 commission shall also review applications from 7 37 qualified development businesses requesting to receive 7 38 incentives or assistance as provided in section 7 39 15E.193C. The commission shall consist of nine 7 40 members. Six of these members shall consist of one 7 41 representative of an international labor organization, 7 42 one member with economic development expertise chosen 7 43 by the department of economic development, one 7 44 representative of the city council, one member of the 7 45 local community college board of directors, one member 7 46 of the city planning and zoning commission, and one 7 47 representative of the local workforce development 7 48 center. These six members shall select the remaining 7 49 three members. If the enterprise zone consists of an 7 50 area meeting the requirements for eligibility for an 8 1 urban enterprise community under Title XIII of the 8 2 federal Omnibus Budget Reconciliation Act of 1993, one 8 3 of the remaining three members shall be a 8 4 representative of that community. If a city 8 5 contiguous to the city designating the enterprise zone 8 6 is included in an enterprise zone, a representative of 8 7 the contiguous city, chosen by the city council, shall 8 8 be a member of the commission. A city in which an 8 9 eligible enterprise zone is certified shall have only 8 10 one enterprise zone commission. If a city has 8 11 established an enterprise zone commission prior to the 8 12 effective date of this Act, the city may petition to 8 13 the department of economic development to change the 8 14 structure of the existing commission. 8 15 3. The commission may adopt more stringent 8 16 requirements, including requirements related to 8 17 compensation and benefits, for a business to be 8 18 eligible for incentives or assistance than provided in 8 19 sections 15E.193,and15E.193B, and 15E.193C. The 8 20 commission may develop as an additional requirement 8 21 that preference in hiring be given to individuals who 8 22 live within the enterprise zone. The commission shall 8 23 work with the local workforce development center to 8 24 determine the labor availability in the area. The 8 25 commission shall examine and evaluate building codes 8 26 and zoning in the enterprise zone and make 8 27 recommendations to the appropriate governing body in 8 28 an effort to promote more affordable housing 8 29 development. 8 30 4. If the enterprise zone commission determines 8 31 that a business qualifies and is eligible to receive 8 32 incentives or assistance as provided ineithersection 8 33 15E.193Bor section, 15E.193C, or 15E.196, the 8 34 commission shall submit an application for incentives 8 35 or assistance to the department of economic 8 36 development. The department may approve, defer, or 8 37 deny the application. 8 38 5. In making its decision, the commission or 8 39 department shall consider the impact of the eligible 8 40 business on other businesses in competition with it 8 41 and compare the compensation package of businesses in 8 42 competition with the business being considered for 8 43 incentives or assistance. The commission or 8 44 department shall make a good faith effort to identify 8 45 existing Iowa businesses within an industry in 8 46 competition with the business being considered for 8 47 incentives or assistance. The commission or 8 48 department shall also make a good faith effort to 8 49 determine the probability that the proposed incentives 8 50 or assistance will displace employees of existing 9 1 businesses. In determining the impact on businesses 9 2 in competition with the business seeking incentives or 9 3 assistance, jobs created as a result of other jobs 9 4 being displaced elsewhere in the state shall not be 9 5 considered direct jobs created. 9 6 However, if the commission or department finds that 9 7 an eligible business has a record of violations of the 9 8 law, including but not limited to environmental and 9 9 worker safety statutes, rules, and regulations, over a 9 10 period of time that tends to show a consistent 9 11 pattern, the eligible business shall not qualify for 9 12 incentives or assistance under section 15E.193B, 9 13 15E.193C, orsection15E.196, unless the commission or 9 14 department finds that the violations did not seriously 9 15 affect public health or safety or the environment, or 9 16 if it did that there were mitigating circumstances. 9 17 In making the findings and determinations regarding 9 18 violations, mitigating circumstances, and whether an 9 19 eligible business is eligible for incentives or 9 20 assistance under section 15E.193B, 15E.193C, or 9 21section15E.196, the commission or department shall be 9 22 exempt from chapter 17A. If requested by the 9 23 commission or department, the business shall provide 9 24 copies of materials documenting the type of violation, 9 25 any fees or penalties assessed, court filings, final 9 26 disposition of any findings and any other information 9 27 which would assist the commission or department in 9 28 assessing the nature of any violation. 9 29 6. A business that is approved to receive 9 30 incentives or assistance shall, for the length of its 9 31 designation as an enterprise zone business, certify 9 32 annually to the county or city, as applicable, and the 9 33 department of economic development its compliance with 9 34 the requirements ofeithersection 15E.193,or section9 35 15E.193B, or 15E.193C. 9 36 Sec. 107. Section 15E.196, Code 2001, is amended 9 37 by adding the following new subsection: 9 38 NEW SUBSECTION. 7. A business eligible to receive 9 39 incentives and assistance described in this section 9 40 and located in a building for which incentives and 9 41 assistance are or have been claimed by an approved 9 42 development business under section 15E.193C is not 9 43 eligible to receive the following incentives and 9 44 assistance: 9 45 a. An investment tax credit under subsection 3 for 9 46 the portion of the investment tax credit that is 9 47 claimed on the purchase price of land or improvements 9 48 to real property by an approved development business 9 49 pursuant to section 15E.193C, subsection 7, paragraph 9 50 "a". 10 1 b. Sales, services, and use tax refund under 10 2 subsection 2 that is made pursuant to section 10 3 15E.193C, subsection 7, paragraph "b". 10 4 c. A property tax exemption under subsection 5 for 10 5 improvements to real property that are exempted from 10 6 property taxation pursuant to section 15E.193C, 10 7 subsection 7, paragraph "c"." 10 8 #2. Page 1, by striking line 16, and inserting the 10 9 following: "state, with eight million seven hundred 10 10 thousand dollars of this amount allocated annually for 10 11 the implementation and funding of sections 101 through 10 12 107 of this division of this Act and seven million 10 13 seven hundred thousand dollars of this amount 10 14 allocated annually for providing budget guarantees to 10 15 school districts in the manner provided in section 10 16 257.14, subsection 1, for the appropriate budget 10 17 years."" 10 18 #3. By renumbering as necessary. 10 19 10 20 10 21 10 22 QUIRK of Chickasaw 10 23 SF 528.312 79 10 24 nh/cf
Text: H01729 Text: H01731 Text: H01700 - H01799 Text: H Index Bills and Amendments: General Index Bill History: General Index
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