CHAPTER 15
ECONOMIC DEVELOPMENT AUTHORITY

Administration of disaster assistance loan

and credit guarantee program and fund;

2009 Acts, ch 179, §187, 196
For provisions regarding transition of

department of economic development employees to the

economic development authority and limitations on the

Iowa innovation corporation’s employment of former

department employees, see 2011 Acts, ch 118, §19
For provisions regarding continuation of financial assistance

by the economic development authority, transfer of funds under

the control of the department of economic development to the

economic development authority, continuation of licenses, permits,

or contracts by the economic development authority, continuation of

financial assistance awards under the grow Iowa values financial

 assistance program, and availability of federal funds to

employ certain personnel, see 2011 Acts, ch 118, §20, 89
For provisions regarding transfer of funds under the control of

the office of energy independence to the economic development authority,

continuation of licenses, permits, or contracts by the economic

development authority, continued administration of grants

or loans awarded from the Iowa power fund,

continued administration of federal grant funds

by the economic development authority, and employment status of

certain office of energy independence employees,

 see 2011 Acts, ch 118, §51, 89
For provisions regarding continuing validity of

department of economic development administrative rules,

see 2011 Acts, ch 118, §18

SUBCHAPTER I
AUTHORITY — ORGANIZATION

  15.101  Findings and purpose — collaboration described.
  1.  The general assembly finds that economic development is an important public purpose and that both the public and private sectors have a shared interest in fostering the economic vitality of the state. Therefore, it is the purpose of this subchapter to implement economic development policy in the state by means of a collaboration between government and the private sector.
  2.  The collaboration shall involve the economic development authority and the Iowa innovation corporation, both of which shall work together to further economic development policy according to the provisions of this subchapter.
86 Acts, ch 1245, §801; 2011 Acts, ch 118, §1, 89
Referred to in 
Section stricken and rewritten

  15.102  Definitions.
  As used in this chapter, unless the context otherwise requires:
  1.  “Authority” means the economic development authority created in section 15.105.
  2.  “Board” means the members of the authority appointed by the governor and in whom the powers of the authority are vested pursuant to section 15.105.
  3.  “Business enterprise” means a work or improvement located within the state, including but not limited to real property, buildings, equipment, furnishings, and any other real and personal property or any interest therein, financed, refinanced, acquired, owned, constructed, reconstructed, extended, rehabilitated, improved, or equipped, directly or indirectly, in whole or in part, by the authority or through loans made by it and which is designed and intended for the purpose of providing facilities for manufacturing, industrial, processing, warehousing, wholesale or retail commercial, recreational, hotel, office, research, business, or other related purposes, including but not limited to machinery and equipment deemed necessary or desirable for the operation thereof.
  4.  “Chief executive officer” means the chief executive officer of the corporation.
  5.  “Community microenterprise development organization” means a community development, economic development, social service, or nonprofit organization that provides training, access to financing, and technical assistance to microenterprises.
  6.  “Corporation” means the Iowa innovation corporation created pursuant to section 15.107.
  7.  “Director” means the director of the authority, appointed pursuant to section 15.106C, or the director’s designee.
  8.  “Financial assistance” means assistance provided only from the funds, rights, and assets legally available to the authority and includes but is not limited to assistance in the form of grants, loans, forgivable loans, and royalty payments.
  9.  “Microenterprise” means any business with five or fewer employees which generally lacks collateral and has difficulty securing financing from conventional business lending sources. “Microenterprise” includes start-up, home-based, and self-employed businesses.
  10.  “Small business” means any enterprise which is located in this state, which is operated for profit and under a single management, and which has either fewer than twenty employees or an annual gross income of less than four million dollars computed as the average of the three preceding fiscal years. This definition does not apply to any program or activity for which a definition for small business is provided for the program or activity by federal law or regulation or other state law.
  11.  “Targeted industries” means the same as defined in section 15.411, subsection 1.
  12.  a.  “Targeted small business” means a small business which is fifty-one percent or more owned, operated, and actively managed by one or more women, minority persons, or persons with a disability provided the business meets all of the following requirements:
  (1)  Is located in this state.
  (2)  Is operated for profit.
  (3)  Has an annual gross income of less than four million dollars computed as an average of the three preceding fiscal years.
  b.  As used in this subsection:
  (1)  “Disability” means, with respect to an individual, a physical or mental impairment that substantially limits one or more of the major life activities of the individual, a record of physical or mental impairment that substantially limits one or more of the major life activities of the individual, or being regarded as an individual with a physical or mental impairment that substantially limits one or more of the major life activities of the individual. “Disability” does not include any of the following:
  (a)  Homosexuality or bisexuality.
  (b)  Transvestism, transsexualism, pedophilia, exhibitionism, voyeurism, gender identity disorders not resulting from physical impairments, or other sexual behavior disorders.
  (c)  Compulsive gambling, kleptomania, or pyromania.
  (d)  Psychoactive substance abuse disorders resulting from current illegal use of drugs.
  (2)  “Major life activity” includes functions such as caring for one’s self, performing manual tasks, walking, seeing, hearing, speaking, breathing, learning, or working.
  (3)  “Minority person” means an individual who is an African American, Latino, Asian or Pacific Islander, American Indian, or Alaskan Native American.
86 Acts, ch 1245, §802; 90 Acts, ch 1156, §2; 91 Acts, ch 103, §1; 94 Acts, ch 1076, §2; 2007 Acts, ch 207, §3 – 5, 18; 2008 Acts, ch 1178, §1; 2009 Acts, ch 41, §11; 2010 Acts, ch 1070, §1; 2011 Acts, ch 118, §2 – 4, 89
Referred to in 
NEW subsection 1 and former subsection 1 amended and renumbered as 2
NEW subsections 3 and 4 and former subsection 2 renumbered as 5
Former subsection 3 stricken
NEW subsection 6 and former subsection 4 amended and renumbered as 7
NEW subsection 8 and former subsections 5 – 8 renumbered as 9 – 12

  15.103  Economic development board.*
  1.  a.  The Iowa economic development board is created, consisting of fifteen voting members appointed by the governor and seven ex officio, nonvoting members. The ex officio, nonvoting members are four legislative members; one president, or the president’s designee, of the university of northern Iowa, the university of Iowa, or Iowa state university of science and technology designated by the state board of regents on a rotating basis; and one president, or the president’s designee, of a private college or university appointed by the Iowa association of independent colleges and universities; and one superintendent, or the superintendent’s designee, of a community college, appointed by the Iowa association of community college presidents. The legislative members are two state senators, one appointed by the president of the senate after consultation with the majority leader of the senate and one appointed by the minority leader of the senate from their respective parties; and two state representatives, one appointed by the speaker and one appointed by the minority leader of the house of representatives from their respective parties. Not more than eight of the voting members shall be from the same political party. Beginning with the first appointment to the board made after July 1, 2005, at least one voting member shall have been less than thirty years of age at the time of appointment. The governor shall appoint the voting members of the board to staggered terms of four years beginning and ending as provided by section 69.19, subject to confirmation by the senate, and the governor’s appointments shall include persons knowledgeable of the various elements of the authority’s responsibilities.
  b.  Each of the following areas of expertise shall be represented by at least one voting member of the board who has professional experience in that area of expertise:
  (1)  Finance, insurance, or investment banking.
  (2)  Advanced manufacturing.
  (3)  Statewide agriculture.
  (4)  Life sciences.
  (5)  Small business development.
  (6)  Information technology.
  (7)  Economics or alternative and renewable energy including the alternative and renewable energy sectors listed in section 476.42, subsection 1, paragraph “a”, subparagraph (1).
  (8)  Labor.
  (9)  Marketing.
  (10)  Entrepreneurship.
  c.  At least nine of the voting members of the board shall be actively employed in the private, for-profit sector of the economy.
  2.  A vacancy on the board shall be filled in the same manner as regular appointments are made for the unexpired portion of the regular term.
  3.  The board shall meet in May of each year for the purpose of electing one of its voting members as chairperson and one of its voting members as vice chairperson. However, the chairperson and the vice chairperson shall not be from the same political party. The board shall meet at the call of the chairperson or when any eight members of the board file a written request with the chairperson for a meeting. Written notice of the time and place of each meeting shall be given to each member of the board. A majority of the voting members constitutes a quorum.
  4.  Members of the board, the director, and other employees of the authority shall be allowed their actual and necessary expenses incurred in the performance of their duties. All expenses shall be paid from appropriations for those purposes and the authority is subject to the budget requirements of chapter 8. Each member of the board may also be eligible to receive compensation as provided in section 7E.6.
  5.  If a member of the board has an interest, either direct or indirect, in a contract to which the authority is or is to be a party, the interest shall be disclosed to the board in writing and shall be set forth in the minutes of a meeting of the board. The member having the interest shall not participate in action by the board with respect to the contract.
  6.  As part of the organizational structure of the authority, the board shall establish a due diligence committee and a loan and credit guarantee committee composed of members of the board. The committees shall serve in an advisory capacity to the board and shall carry out any duties assigned by the board in relation to programs administered by the authority. The loan and credit guarantee committee shall advise the board on the winding up of loan guarantees made under the loan and credit guarantee program established pursuant to section 15E.224, Code 2009, and on the proper amount of the allocation described in section 15G.111, subsection 4, paragraph “g”.
86 Acts, ch 1245, §803; 88 Acts, ch 1081, §1; 90 Acts, ch 1223, §9; 90 Acts, ch 1253, §121; 2004 Acts, ch 1082, §7; 2005 Acts, ch 150, §4; 2006 Acts, ch 1010, §171, 177; 2006 Acts, ch 1142, §15; 2008 Acts, ch 1156, §16, 58; 2009 Acts, ch 123, §18; 2009 Acts, ch 133, §5, 6; 2010 Acts, ch 1009, §5, 7; 2011 Acts, ch 25, §126; 2011 Acts, ch 118, §87, 89
Referred to in 
Confirmation, see §2.32 
*Repeal of this section may have been intended; corrective legislation is pending; see 2011 Acts, ch 118, §5
For provisions regarding initial members of the economic development authority board, see 2011 Acts, ch 118, §21
Subsection 1, paragraph b, subparagraph (7) amended

  15.104  Duties of the board.
  The board shall:
  1.  Perform duties related to the administration of the economic development fund and economic development financial assistance program as described in chapter 15G.
  2.  Implement the requirements of chapter 73.
  3.  Review and approve or disapprove a life science enterprise plan or amendments to that plan as provided in chapter 10C* and according to rules adopted by the board. A life science plan shall make a reasonable effort to provide for participation by persons who are individuals or family farm entities actively engaged in farming as defined in section 10.1. The persons may participate in the life science enterprise by holding an equity position in the life science enterprise or providing goods or service to the enterprise under contract. The plan must be filed with the board not later than June 30, 2005. The life science enterprise may file an amendment to a plan at any time. A life science enterprise is not eligible to file a plan, unless the life science enterprise files a notice with the board. The notice shall be a simple statement indicating that the life science enterprise may file a plan as provided in this section. The notice must be filed with the board not later than June 1, 2005. The notice, plan, or amendments shall be submitted by a life science enterprise as provided by the board. The board shall consult with the department of agriculture and land stewardship during its review of a life science plan or amendments to that plan. The plan shall include information regarding the life science enterprise as required by rules adopted by the board, including but not limited to all of the following:
  a.  A description of life science products to be developed by the enterprise.
  b.  The time frame required by the enterprise to develop the life science products.
  c.  The amount of capital investment required by the enterprise to develop the life science products.
  d.  The number of acres of land required to produce the life science products.
  e.  The type and extent of participation in the life science enterprise by persons who are individuals or family farm entities. If the plan does not provide for participation or minimal participation, the plan shall include a detailed explanation of the reasonable effort made by the life science enterprise to provide for participation.
  4.  Approve the budget of the authority as prepared by the director.
  5.  Establish guidelines, procedures, and policies for the awarding of grants or contracts administered by the authority.
  6.  Review grants or contracts awarded by the authority, with respect to the authority’s adherence to the guidelines and procedures.
  7.  Adopt all necessary rules recommended by the director or administrators of divisions prior to their adoption pursuant to chapter 17A.
  8.  By January 31 of each year, submit a report to the general assembly and the governor that covers its activities during the preceding fiscal year. The report shall include all of the following:
  a.  Financial assistance.  Data on all assistance provided to eligible businesses under the high quality jobs program described in section 15.326.
  b.  Projects funded through the economic development financial assistance program established in section 15G.112.  For each job creation or retention business finance project receiving moneys from the economic development fund, the following information:
  (1)  The net number of new jobs created as of June 30 of the prior year. For the purposes of this subparagraph, “net number of new jobs” is the number of new or retained jobs as identified in the contract.
  (2)  The number of jobs created, as of June 30 of the prior year, that are at or above the qualifying wage threshold for the project. For the purposes of this subparagraph, “qualifying wage threshold” has the same meaning as defined in section 15G.101.
  (3)  The number of retained jobs, as of June 30 of the prior year. For the purposes of this subparagraph, “retained jobs” means the number of retained jobs as identified in the contract.
  (4)  The total amount expended by a business, as of June 30 of the prior year, toward the total project cost as identified in the contract.
  (5)  The project’s location.
  (6)  The amount, if any, of private and local matching funds, as of June 30 of the prior year.
  (7)  The amount spent on research and development activities, as of June 30 of the prior year.
  c.  Industrial new jobs training Act.  Data on all assistance or benefits provided under the Iowa industrial new jobs training Act established in chapter 260E.
  d.  Workforce development fund.  The proposed allocation of moneys from the workforce development fund to be made for the next fiscal year for the programs and purposes contained in section 15.343, subsection 2.
  (1)  The director shall submit a copy of the proposed allocation to the chairpersons of the joint economic development appropriations subcommittee of the general assembly. Notwithstanding section 8.39, the proposed allocation may provide for increased or decreased funding levels if the demand for a program indicates that the need is greater or less than the allocation for that program.
  (2)  The director shall submit a report each quarter to the board. The report shall include the status of the funds and may include the director’s proposed revisions. The proposed revisions may be approved by the board in January and April of each year.
  (3)  The director shall also provide quarterly reports to the legislative services agency on the status of the funds.
  e.  Employee training and retraining goals and objectives.  Pursuant to section 15.108, subsection 6, the upcoming year’s goals and objectives, including both short-term and long-term methods of improving program performance, creating employment opportunities for residents, and enhancing the delivery of services.
  f.  Accelerated career education programs.  The data related to the accelerated career education programs established in chapter 260G and the activities of those programs during the previous fiscal year.
  g.  Coordination with community colleges and state board of regents.  Pursuant to section 15.108, subsection 3, paragraph “a”, subparagraph (1), an assessment of the degree to which the authority has coordinated with the community colleges and the state board of regents institutions in the avoidance of duplication of economic development efforts, including the degree to which there are future coordination needs. The state board of regents institutions and the community colleges shall be given an opportunity to review and comment on this portion of the authority’s annual report prior to its printing or release.
  h.  Endow Iowa program.  In cooperation with the lead philanthropic entity, as defined in section 15E.303, a summary of the activities conducted under the endow Iowa grant program created in section 15E.304. This portion of the annual report shall include a summary of the endow Iowa tax credits approved by the authority in the prior calendar year, including the number of credits approved, the amount approved, a summary of the benefiting donations by size, and the number of community foundations and affiliate organizations benefiting from the tax credit program.
  i.  Economic development fund expenditures.  Detailed financial data that delineate expenditures made under each component of the economic development fund created in section 15G.111.
  j.  Pilot project cities — withholding agreement, tax credits.  Data on the pilot project cities established pursuant to section 403.19A, including all of the following:
  (1)  The amount each project received from each state economic development and tax credit program.
  (2)  The number of new jobs created as a result of the pilot program.
  (3)  The average wage of the jobs created as a result of the pilot project.
  (4)  An evaluation of the investment made by the state of Iowa in the pilot project cities program, including but not limited to the items described in subparagraphs (1) through (3).
  k.  Targeted industries development — innovation and commercialization.  A report of the expenditures of moneys appropriated and allocated to the authority for certain programs authorized pursuant to sections 15.411 and 15.412 relating to the development and commercialization of businesses in the targeted industry areas of advanced manufacturing, bioscience, and information technology, including a summary of the activities of the technology commercialization committee created pursuant to section 15.116 and the Iowa innovation council established pursuant to section 15.117A and including copies of any documents, reports, or plans produced by the council.
  l.  Targeted small business activities.  A section that is a compilation of the following reports required pursuant to section 15.108, subsection 7, paragraph “c”:
  (1)  A summary of the report filed by December 1 of each year by the department of administrative services with the economic development authority regarding targeted small business procurement activities conducted during the previous fiscal year.
  (2)  A summary of the report filed by December 1 of each year by the department of inspections and appeals with the of economic development authority regarding certifications of targeted small businesses. At a minimum, the summary shall include the number of certified targeted small businesses for the previous year, the increase or decrease in that number during the previous fiscal year compared to the prior fiscal year, and the number of targeted small businesses that have been decertified in the previous fiscal year.
  (3)  A summary of the internal report compiled by December 1 of each year by the economic development authority regarding the targeted small business financial assistance program. At a minimum, the summary shall contain the number of loans, loan guarantees, and grants distributed during the previous fiscal year, the individual amounts provided to targeted small businesses during the previous fiscal year, and how many financial assistance awards to targeted small businesses were the subject of repayment or collection activity during the previous fiscal year.
  (4)  A list of the procurement goals established pursuant to section 73.16, subsection 2, and compiled by the economic development authority’s targeted small business marketing and compliance manager and the performance of each agency in meeting the goals. The performance of each agency shall be based upon the reports required pursuant to section 73.16, subsection 2.
86 Acts, ch 1245, §804; 86 Acts, ch 1238, §43; 87 Acts, ch 17, §2; 2000 Acts, ch 1197, §8, 10; 2001 Acts, ch 11, §1; 2003 Acts, ch 72, §1; 2005 Acts, ch 16, §5, 7; 2005 Acts, ch 150, §5; 2005 Acts, ch 179, §108; 2008 Acts, ch 1122, §5, 6; 2008 Acts, ch 1191, §119; 2009 Acts, ch 82, §11; 2009 Acts, ch 123, §19 – 21; 2010 Acts, ch 1070, §2; 2011 Acts, ch 34, §3; 2011 Acts, ch 113, §41, 56; 2011 Acts, ch 118, §87, 89
Referred to in 
* Chapter 10C repealed by 2011 Acts, ch 118, §35, 89
Code editor directive applied
Subsection 6 amended
Subsection 8, paragraph j stricken and former paragraphs k – m redesignated as j – l

  15.105  Economic development authority.
  1.  The economic development authority is created, and constituted a public instrumentality and agency of the state exercising public and essential governmental functions, to undertake programs which implement economic development policy in the state, and to undertake certain finance programs.
  a.  (1)  The powers of the authority are vested in and shall be exercised by a board of eleven voting members appointed by the governor subject to confirmation by the senate. The voting members shall be comprised of the following:
  (a)  Two members from each United States congressional district in the state.
  (b)  Three members selected at large.
  (2)  Of the voting members appointed pursuant to subparagraph (1), the governor shall appoint the following:
  (a)  One person who is a member of the Iowa innovation council established in section 15.117A.
  (b)  One person who has professional experience in finance, insurance, or investment banking.
  (c)  One person who has professional experience in advanced manufacturing.
  (d)  One person with professional experience in small business development.
  (e)  One person with professional experience representing the interests of organized labor.
  (f)  Six persons who are actively employed in the private, for-profit sector of the economy or who otherwise have substantial expertise in economic development.
  (3)  The governor shall not appoint to the authority board any person who is either the spouse or a relative within the first degree of consanguinity of a serving member of the authority board or the board of directors of the corporation.
  b.  There shall be four ex officio, nonvoting legislative members consisting of the following: 
  (1)  Two state senators, one appointed by the president of the senate after consultation with the majority leader of the senate and one appointed by the minority leader of the senate from their respective parties.
  (2)  Two state representatives, one appointed by the speaker and one appointed by the minority leader of the house of representatives from their respective parties.
  c.  (1)  There shall be three ex officio, nonvoting members consisting of the following:
  (a)  The president of the state board of regents, or the president’s designee.
  (b)  One person, selected by the Iowa association of independent colleges and universities, who is the president of a private college or university in the state, or that person’s designee.
  (c)  One person, selected by the Iowa association of community college presidents, who is the president of a community college, or that person’s designee.
  (2)  A person serving as a designee pursuant to subparagraph (1) shall serve a one-year term as an ex officio member of the authority board.
  2.  Members of the authority shall be appointed for staggered terms of four years beginning and ending as provided in section 69.19. A person appointed to fill a vacancy shall serve only for the unexpired portion of the term. A member is eligible for reappointment. A member of the authority may be removed from office by the governor for misfeasance, malfeasance, or willful neglect of duty or other just cause, after notice and hearing, unless the notice and hearing is expressly waived in writing. Members of the authority board shall not serve as directors of the corporation.
  3.  a.  Seven voting members of the authority constitute a quorum.
  b.  The affirmative vote of a majority of the quorum described in paragraph “a” is necessary for any action taken by the authority. The majority shall not include any member who has a conflict of interest and a statement by a member of a conflict of interest shall be conclusive for this purpose.
  c.  A vacancy in the membership does not impair the right of a quorum to exercise all rights and perform all duties of the authority.
  4.  Members of the authority are entitled to receive a per diem as specified in section 7E.6 for each day spent in performance of duties as members, and shall be reimbursed for all actual and necessary expenses incurred in the performance of duties as members.
  5.  Members of the authority and the director shall give bond as required for public officers in chapter 64.
  6.  Meetings of the authority shall be held at the call of the chairperson or when two members so request.
  7.  Members shall elect a chairperson and vice chairperson annually, and other officers as they determine, but the director shall serve as secretary to the authority.
  8.  a.  The members of the authority shall develop a strategic plan for economic development in the state.
  b.  (1)  The strategic plan shall identify the authority’s goals for the next calendar year and shall include a set of metrics that will be used to gauge and assess the extent to which the authority achieves those goals. Such metrics shall include, but are not limited to:
  (a)  The number of net new jobs created in the state.
  (b)  The average wage and benefit levels for such jobs.
  (c)  The impact to average household income for Iowa families as a result of the jobs created.
  (d)  Such other information as the authority or the director deems relevant.
  (2)  The strategic plan shall be submitted to the general assembly and the governor’s office on or before January 31 of each year.
  9.  The net earnings of the authority, beyond that necessary to implement the public purposes and programs herein authorized, shall not inure to the benefit of any person other than the state. Upon termination of the existence of the authority, title to all property owned by the authority, including any such net earnings of the authority, shall vest in the state. The state reserves the right at any time to alter, amend, repeal, or otherwise change the structure, organization, programs, or activities of the authority, including the power to terminate the authority, except that no law shall impair the obligation of any contract or contracts entered into by the authority to the extent that any such law would contravene Article I, section 21, of the Constitution of the State of Iowa, or Article I, section 10, of the Constitution of the United States.
  10.  Members of the authority, or persons acting on behalf of the authority while acting within the scope of their agency or employment, are not subject to personal liability resulting from carrying out the powers and duties in this chapter.
  11.  The authority shall be the successor entity to the economic development board and the department of economic development which are hereby eliminated. The authority shall assume all duties and responsibilities previously assigned to the economic development board and the department of economic development to the extent that such duties and responsibilities are not otherwise assigned by the provisions of this subchapter.
86 Acts, ch 1245, §805; 2011 Acts, ch 118, §5, 89
Referred to in 
Confirmation, see §2.32 
For provisions regarding initial members of the economic development authority board, see 2011 Acts, ch 118, §21
Section stricken and rewritten

  15.106  Conflicts of interest.
  1.  a.  If a member or employee of the authority has an interest, either direct or indirect, in a contract to which the authority is, or is to be, a party, the interest shall be disclosed to the authority in writing and shall be set forth in the minutes of the authority.
  b.  The member or employee having the interest shall not participate in any action of the authority with respect to that contract. A violation of a provision of this subsection is misconduct in office under section 721.2. However, a resolution of the authority is not invalid because of a vote cast by a member in violation of this subsection or of section 15.105, subsection 3, unless the vote was decisive in the passage of the resolution.
  c.  For the purposes of this subsection, “action of the authority with respect to that contract” means only an action directly affecting a separate contract, and does not include an action which benefits the general public or which affects all or a substantial portion of the contracts included in a program of the authority.
  2.  The director shall not have an interest in a bank or other financial institution in which the funds of the authority are, or are to be, deposited or which is, or is to be, acting as trustee or paying agent under a trust indenture to which the authority is a party. The director shall not receive, in addition to fixed salary or compensation, any money or valuable thing, either directly or indirectly, or through any substantial interest in any other corporation or business unit, for negotiating, procuring, recommending, or aiding in any purchase or sale of property, or loan, made by the authority, nor shall the director be pecuniarily interested, either as principal, coprincipal, agent, or beneficiary, either directly or indirectly, or through any substantial interest in any other corporation or business unit, in any such purchase, sale, or loan.
  3.  Not more than one principal executive, employee, or other representative from a business or its affiliates may serve concurrently on the authority board, the board of directors of the corporation, or any combination thereof. For purposes of this subsection, “affiliate” means the same as defined in section 423.1.
86 Acts, ch 1245, §806; 88 Acts, ch 1158, §1; 2001 Acts, ch 11, §2; 2001 Acts, ch 61, §1; 2003 Acts, ch 145, §137; 2009 Acts, ch 82, §12; 2011 Acts, ch 118, §6, 89
Section stricken and rewritten

  15.106A  General powers of the authority.
  1.  The authority has any and all powers necessary and convenient to carry out its purposes and duties and exercise its specific powers, including but not limited to the power to:
  a.  Sue and be sued in its own name.
  b.  Have and alter a corporate seal.
  c.  Make and alter bylaws for its management consistent with the provisions of this chapter.
  d.  Make and execute agreements, contracts, and other instruments of any and all types on such terms and conditions as the authority may find necessary or convenient to the purposes of the authority, with any public or private entity, including but not limited to contracts for goods and services. All political subdivisions, other public agencies, and state departments and agencies may enter into contracts and otherwise cooperate with the authority.
  e.  Adopt by rule pursuant to chapter 17A procedures relating to competitive bidding, including the identification of those circumstances under which competitive bidding by the authority, either formally or informally, shall be required. In any bidding process, the authority may administer its own bidding and procurement or may utilize the services of the department of administrative services or any other agency. Except when such rules apply, the authority and all contracts made by it in carrying out its public and essential governmental functions with respect to any of its programs shall be exempt from the provisions and requirements of all laws or rules of the state which require competitive bids in connection with the letting of such contracts.
  f.  Acquire, hold, improve, mortgage, lease, and dispose of real and personal property, including but not limited to the power to sell at public or private sale, with or without public bidding, any such property, or other obligation held by it.
  g.  Procure insurance against any loss in connection with its operations and property interests.
  h.  Accept appropriations, gifts, grants, loans, or other aid from public or private entities. A record of all gifts or grants, stating the type, amount, and donor, shall be clearly set out in the authority’s annual report along with the record of other receipts.
  i.  Provide to public and private entities technical assistance and counseling related to the authority’s purposes.
  j.  In cooperation with other local, state, or federal governmental agencies, conduct research studies, develop estimates of unmet economic development needs, gather and compile data useful to facilitating decision making, and enter into agreements to carry out programs within or without the state which the authority finds to be consistent with the goals of the authority.
  k.  Enter into agreements with the federal government, tribes, and other states to undertake economic development activities in the state of Iowa.
  l.  Own or acquire intellectual property rights including but not limited to copyrights, trademarks, service marks, and patents, and enforce the rights of the authority with respect to such intellectual property rights.
  m.  Make, alter, interpret, and repeal rules consistent with the provisions of this chapter, and subject to chapter 17A.
  n.  Form committees or panels as necessary to facilitate the authority’s duties. Committees or panels formed pursuant to this paragraph shall be subject to the provisions of chapters 21 and 22.
  o.  Establish one or more funds within the state treasury under the control of the authority. Notwithstanding section 8.33 or 12C.7, or any other provision to the contrary, moneys invested by the treasurer of state pursuant to this subsection shall not revert to the general fund of the state and interest accrued on the moneys shall be moneys of the authority and shall not be credited to the general fund. The nonreversion of moneys allowed under this paragraph does not apply to moneys appropriated to the authority by the general assembly.
  p.  Select projects to receive assistance by the exercise of diligence and care.
  q.  Exercise generally all powers typically exercised by private enterprises engaged in business pursuits unless the exercise of such a power would violate the terms of this chapter or the Constitution of the State of Iowa.
  r.  Issue negotiable bonds and notes as provided in section 15.106D.
  2.  Notwithstanding any other provision of law, any purchase or lease of real property, other than on a temporary basis, when necessary in order to implement the programs of the authority or protect the investments of the authority, shall require written notice from the authority to the government oversight standing committees of the general assembly and the prior approval of the executive council. 
  3.  The powers enumerated in this section are cumulative of and in addition to those powers enumerated elsewhere in this chapter and such powers do not limit or restrict any other powers of the authority.
2011 Acts, ch 118, §7, 89
NEW section

  15.106B  Specific program powers.
  1.  In addition to the general powers described in section 15.106A, the authority shall have all powers convenient and necessary to carry out its programs.
  2.  For purposes of this section, “powers convenient and necessary” includes but is not limited to the power to:
  a.  Undertake more extensive research and discussion of the strategic plan developed by the members of the authority in order to better formulate and implement state economic development policy.
  b.  Establish a nonprofit corporation pursuant to section 15.107, for the purpose of receiving and disbursing funds from public or private sources to be used to further the overall development and economic well-being of the state. 
  c.  Provide export documentation to Iowa businesses that are exporting goods and services if no other government entity is providing export documentation in a form deemed necessary for international commerce.
  d.  (1)  Pursuant to a contract executed between the authority and the corporation, the authority may delegate to the corporation the performance of the following functions on behalf of the authority:
  (a)  Marketing and promotional activities.
  (b)  Policy research.
  (c)  Economic analysis.
  (d)  Expansion of international markets for Iowa-produced or Iowa-based products.
  (e)  Consulting services.
  (f)  Services related to statewide commercialization development as provided for in section 15.411, subsection 2.
  (2)  A contract executed pursuant to this paragraph “d” shall not delegate an essential government function, including the budgetary or personnel management responsibilities of the authority, and shall not delegate any sovereign power of the state.
  (3)  The terms of a contract executed pursuant to this paragraph “d” may provide for compensation at the fair market value of the services to be provided under the contract.
  (4)  Notwithstanding section 8A.311 and any rules promulgated thereunder by the department of administrative services, the authority may enter into contracts with the corporation for the sole source procurement of services. In entering into such sole source contracts, the authority shall negotiate a fair and reasonable price for the services and shall thoroughly document the circumstances of such sole source procurements.
  (5)  A contract executed pursuant to this paragraph “d” shall be drafted and executed with the assistance and advice of the attorney general.
  3.  The authority may enter into contracts on behalf of the Iowa innovation council established in section 15.117A. Such contracts may delegate the performance of functions to the corporation only if the contracts meet the requirements of subsection 2, paragraph “d”.
  4.  a.  If the authority enters into a contract, including but not limited to a contract executed pursuant to subsection 2, paragraph “d”, with a nonprofit corporation organized under chapter 504 or under the similar laws of another jurisdiction, the authority shall ensure that the terms of the contract shall provide for the disclosure of all gifts, grants, bequests, donations, or other conveyances of financial assistance to the corporation from all private and public sources. Such disclosure shall include information from the corporation’s current fiscal year and its most recent three fiscal years and shall include the name and address of the person or entity making the conveyance and the amount.
  b.  If the authority enters into a contract for the provision of financial assistance to a business, the authority shall ensure that the terms of the contract provide for the disclosure of all donations the business has ever made to the corporation. The authority shall not consider the amount or frequency of such donations when evaluating the merits of the business’s application or when determining the amount of financial assistance to be awarded to the business.
  c.  The authority shall not enter into a contract for services, including a contract executed pursuant to subsection 2, paragraph “d”, that exceeds two years in duration.
2011 Acts, ch 118, §8, 89
NEW section

  15.106C  Director — responsibilities.
  1.  The operations of the authority shall be administered by a director who shall be appointed by the governor, subject to confirmation by the senate, and who shall serve for a four-year term beginning and ending as provided in section 69.19. An appointment by the governor to fill a vacancy in the office of the director shall be for the balance of the unexpired four-year term.
  2.  The director shall not, directly or indirectly, exert influence to induce any other officers or employees of the state to adopt a political view or to favor a political candidate for office. The director shall ensure that the authority is operated free from political influence.
  3.  The director shall advise the authority on matters relating to economic development and act on the authority’s behalf to carry out all directives from the authority board in regard to the operation of the authority.
  4.  The director shall employ personnel as necessary to carry out the duties and responsibilities of the authority. For nonprofessional employees, employment shall be consistent with chapter 8A, subchapter IV. The employment of professional employees shall be exempt from the provisions of chapter 8A, subchapter IV, and chapter 20.
  5.  A person shall not be employed concurrently by both the authority and the corporation.
  6.  A person leaving employment with the authority shall not be employed by the corporation until a period of two years has passed. A person leaving employment with the corporation shall not be employed by the authority until a period of two years has passed.
  7.  a.  The director may create organizational divisions within the authority in the manner the director deems most efficient to carry out the duties and responsibilities of the authority.
  b.  In structuring the authority, the director shall create a small business development division and ensure that the division focuses administrative efforts, program resources, and financial assistance awards on small businesses.
  c.  (1)  On or before September 15, 2011, the authority shall submit a report to the governor and the general assembly assessing the extent to which each of the authority’s programs can be used to provide assistance to small businesses and making recommendations for legislative changes to such programs in order to better and more intensively focus economic development efforts on such small businesses. The report shall also address the extent to which the authority’s programs address local economic development needs and efforts.
  (2)  This paragraph “c” is repealed on June 30, 2012.
2011 Acts, ch 118, §9, 87, 89
Confirmation, see §2.32
NEW section

  15.106D  Private activity bonds and notes.
  1.  The authority may issue its negotiable bonds and notes in principal amounts as, in the opinion of the authority, are necessary to finance the cost of business enterprises, to finance the working capital needs of businesses, to refinance existing indebtedness incurred for any of the foregoing purposes or any combination of the foregoing, the payment of interest on its bonds and notes, the establishment of reserves to secure its bonds and notes, and all other expenditures of the authority incident to and necessary or convenient to carry out the purposes of this section. The bonds and notes shall be deemed to be investment securities and negotiable instruments within the meaning of and for all purposes of the uniform commercial code, chapter 554.
  2.  All bonds issued by the authority shall be limited obligations of the authority. The principal of and interest on such bonds shall be payable solely out of the revenues derived from the business enterprise to be financed by the bonds so issued under the provisions of this section. Bonds and interest coupons issued under authority of this section shall not constitute an indebtedness of the authority within the meaning of any state constitutional provision or statutory limitation, and shall not constitute nor give rise to a pecuniary liability of the authority or a charge against its general credit. Bonds or notes are not an obligation of this state or any political subdivision of this state, other than the authority, within the meaning of any constitutional or statutory debt limitations, but are special obligations of the authority payable solely and only from the sources provided in this section, and the authority may not pledge the credit or taxing power of this state or any political subdivision of this state, other than the authority, or make its debts payable out of any moneys except as provided in this section.
  3.  Bonds and notes must be authorized by a resolution of the authority. However, a resolution authorizing the issuance of bonds or notes may delegate to an officer of the authority the power to negotiate and fix the details of an issue of bonds or notes by an appropriate certificate of such authorized officer.
  4.  Bonds shall:
  a.  State the date and series of the issue, be consecutively numbered, and state on their face that they are payable both as to principal and interest solely out of the revenues derived from the business enterprise to be financed by the bonds so issued under the provisions of this section, constitute special obligations of the authority, and do not constitute an indebtedness of the authority, this state, or any political subdivision of this state within the meaning of any constitutional or statutory debt limit.
  b.  Be either registered, registered as to principal only, or in coupon form, issued in denominations as the authority prescribes, fully negotiable instruments under the laws of this state, signed on behalf of the authority with the manual or facsimile signature of the chairperson or vice chairperson, attested by the manual or facsimile signature of the secretary, have impressed or imprinted thereon the seal of the authority or a facsimile of the seal of the authority, and the coupons attached shall be signed with the facsimile signature of the chairperson or vice chairperson, be payable as to interest at rates and at times as the authority determines, be payable as to principal at times over a period not to exceed fifty years from the date of issuance.
  5.  The authority may issue its bonds for the purpose of refunding any bonds or notes of the authority then outstanding, including the payment of any redemption premiums thereon and any interest accrued or to accrue to the date of redemption of the outstanding bonds or notes. Until the proceeds of bonds issued for the purpose of refunding outstanding bonds or notes are applied to the purchase or retirement of outstanding bonds or notes or the redemption of outstanding bonds or notes, the proceeds may be placed in escrow and be invested and reinvested in accordance with the provisions of this chapter. The interest, income, and profits earned or realized on an investment may also be applied to the payment of the outstanding bonds or notes to be refunded by purchase, retirement, or redemption. After the terms of the escrow have been fully satisfied and carried out, any balance of proceeds and interest earned or realized on the investments may be returned to the authority for use by it in any lawful manner. All refunding bonds shall be issued and secured and subject to the provisions of this section in the same manner and to the same extent as other bonds issued pursuant to this section.
  6.  The authority may issue negotiable bond anticipation notes and may renew them from time to time, but the maximum maturity of the notes, including renewals, shall not exceed ten years from the date of issue of the original notes. Notes are payable solely out of the revenues derived from the business enterprise to be financed by the notes so issued under the provisions of this section, or from the proceeds of the sale of bonds of the authority in anticipation of which the notes were issued. Notes shall be issued in the same manner and for the same purposes as bonds. Notes and the resolutions authorizing them may contain any provisions, conditions, or limitations, not inconsistent with the provisions of this subsection, which the bonds or a bond resolution of the authority may contain. Notes may be sold at public or private sale. In case of default on its notes or violation of any obligations of the authority to the noteholders, the noteholders shall have all the remedies provided in the resolution authorizing their issuance. Notes shall be as fully negotiable as bonds of the authority.
  7.  It is the intent of the general assembly that a pledge made in respect of bonds or notes shall be valid and binding from the time the pledge is made, that the money or property so pledged and received after the pledge by the authority shall immediately be subject to the lien of the pledge without physical delivery or further act, and that the lien of the pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the authority whether or not the parties have notice of the lien. Neither the resolution, trust agreement, nor any other instrument by which a pledge is created needs to be recorded or filed under the Iowa uniform commercial code, chapter 554, to be valid, binding, or effective against the parties.
  8.  Neither the members of the authority nor any person executing its bonds, notes, or other obligations shall be liable personally on the bonds, notes, or other obligations or be subject to any personal liability or accountability by reason of the issuance of the authority’s bonds or notes.
2011 Acts, ch 118, §10, 89
NEW section

  15.106E  Review of authority operations.
  Commencing July 1, 2014, the general assembly shall conduct a review of the authority and its activities and shall issue a report with findings and recommendations by January 1, 2015.
2011 Acts, ch 118, §11, 89
NEW section

  15.107  Iowa innovation corporation.
  1.  The authority shall establish the Iowa innovation corporation as a nonprofit corporation organized under chapter 504 and qualifying under section 501(c)(3) of the Internal Revenue Code as an organization exempt from taxation. Unless otherwise provided in this subchapter, the corporation is subject to the provisions of chapter 504. The corporation shall be established for the purpose of receiving and disbursing funds from public or private sources to be used to further the overall development and economic well-being of the state.
  2.  The corporation shall collaborate with the authority as described in this subchapter, but the corporation shall not be considered, in whole or in part, an agency, department, or administrative unit of the state. 
  a.  The corporation shall not receive appropriations from the general assembly.
  b.  The corporation shall not be required to comply with any requirements that apply to a state agency, department, or administrative unit and shall not exercise any sovereign power of the state.
  c.  The corporation does not have authority to pledge the credit of the state, and the state shall not be liable for the debts or obligations of the corporation. All debts and obligations of the corporation shall be payable solely from the corporation’s funds. 
  3.  a.  The corporation shall be established so that donations and bequests to it qualify as tax deductible under state income tax laws and under section 501(c)(3) of the Internal Revenue Code.
  b.  The corporation shall be established for the purpose of expanding economic development opportunities in the state of Iowa and for Iowa businesses operating in foreign markets in connection with the public purpose of economic development in Iowa. The corporation may effectuate this purpose by performing certain functions delegated to it by the authority pursuant to section 15.106B.
  4.  The articles of the corporation shall provide for its governance and its efficient management. In providing for its governance, the articles of the corporation shall address the following:
  a.  A board of directors to govern the corporation.
  (1)  The board of directors shall initially be comprised of seven members appointed by the governor to concurrent terms of four years. Two of such members shall be subject to confirmation by the senate.
  (2)  For appointments subsequent to the initial appointments pursuant to subparagraph (1), two of the members shall be appointed by the governor, subject to confirmation by the senate, to staggered terms of four years each, and the remaining five members shall be selected by a majority vote of the board of directors of the corporation for terms the length of which shall be provided in the articles of the corporation.
  (3)  The governor and the board of directors of the corporation shall not appoint or select any person who is either the spouse or a relative within the first degree of consanguinity of a serving member of the board of directors or of the authority board.
  b.  The appointment of a chief executive officer by the board to manage the corporation’s daily operations.
  c.  The delegation of such powers and responsibilities to the chief executive officer as may be necessary for the corporation’s efficient operation.
  d.  The employment of personnel necessary for the efficient performance of the duties assigned to the corporation. All such personnel shall be considered employees of a private, nonprofit corporation and shall be exempt from the personnel requirements imposed on state agencies, departments, and administrative units.
  e.  The financial operations of the corporation including the authority to receive and expend funds from public and private sources and to use its property, money, or other resources for the purpose of the corporation.
  5.  The board of directors of the corporation and the chief executive officer shall act to ensure all of the following:
  a.  That the corporation review and, at the board’s direction, implement the applicable portions of the strategic plan developed by members of the authority pursuant to section 15.105.
  b.  That the corporation prepares an annual budget that includes funding levels for the corporation’s activities and that shows sufficient moneys are available to support those activities.
  c.  That the corporation annually completes and files an information return as described in section 422.15 and that the information return is submitted to the general assembly.
86 Acts, ch 1245, §807; 2011 Acts, ch 118, §12, 89
Confirmation, see §2.32
Section stricken and rewritten

  15.107A  Duties and responsibilities of the corporation.
  1.  The corporation’s board of directors and the chief executive officer shall determine the activities and priorities of the corporation within the general parameters of the duties and responsibilities described in this section and in this subchapter.
  2.  The corporation shall, to the extent its articles so provide and within its public purpose, do all of the following with the purpose of increasing innovation in Iowa’s economy and bringing more innovative businesses to the state:
  a.  Consult with the Iowa innovation council in the creation of a comprehensive strategic plan as described in section 15.117A, subsection 6, paragraph “a”.
  b.  Act as an innovation intermediary by aligning local technologies, assets, and resources to work together on advancing innovation.
  c.  Perform any functions delegated by the authority pursuant to section 15.106B, subsection 2, paragraph “d”.
  (1)  In performing such functions, the corporation shall not subcontract the performance of a delegated function except as provided in subparagraph (2).
  (2)  The corporation may subcontract services under the following conditions:
  (a)  The services are necessary to accomplish the functions delegated to the corporation.
  (b)  The contract delegating the function contains a list of the services that may be subcontracted pursuant to this subparagraph (2).
  (c)  The contract delegating the function requires that any agreement to subcontract a service must be approved by the authority prior to the execution of such an agreement by the corporation.
  d.  Encourage, stimulate, and support the development and expansion of the state’s economy.
  e.  Develop and implement effective marketing and promotional programs.
  f.  Provide pertinent information to prospective new businesses.
  g.  Formulate and pursue programs for encouraging the location of new businesses in the state and for retaining and fostering the growth of existing businesses.
  h.  Solicit the involvement of the private sector, including support and funding, for economic development initiatives in the state.
  i.  Coordinate the economic development efforts of other state and local entities in an effort to achieve policy consistency.
  j.  Collect and maintain any economic data and research that is relevant to the formulation and implementation of effective policies.
  k.  Cooperate with and provide information to state agencies, local governments, community colleges, and the board of regents on economic development matters, including the areas of workforce development and job training.
2011 Acts, ch 118, §13, 89
NEW section

  15.107B  Annual reporting requirements.
  1.  On or before January 31 of each year, the director shall submit to the authority board a report that describes the activities of the authority during the preceding fiscal year. The report may include such information as the director deems necessary or as otherwise required by law.
  2.  The report submitted pursuant to subsection 1 shall at a minimum include the following:
  a.  A summary of the report filed by December 1 of each year by the department of administrative services with the authority regarding targeted small business procurement activities conducted during the previous fiscal year.
  b.  A summary of the report filed by December 1 of each year by the department of inspections and appeals with the authority regarding certifications of targeted small businesses. At a minimum, the summary shall include the number of certified targeted small businesses for the previous year, the increase or decrease in that number during the previous fiscal year compared to the prior fiscal year, and the number of targeted small businesses that have been decertified in the previous fiscal year.
  c.  A summary of the internal report compiled by December 1 of each year by the authority regarding the targeted small business financial assistance program. At a minimum, the summary shall contain the number of loans, loan guarantees, and grants distributed during the previous fiscal year, the individual amounts provided to targeted small businesses during the previous fiscal year, and how many financial assistance awards to targeted small businesses were the subject of repayment or collection activity during the previous fiscal year.
  d.  A list of the procurement goals established pursuant to section 73.16, subsection 2, and compiled by the authority’s targeted small business marketing and compliance manager and the performance of each agency in meeting the goals. The performance of each agency shall be determined based upon the reports required pursuant to section 73.16, subsection 2.
  e.  An assessment of economic development efforts in the state as measured by the goals and metrics contained in the strategic plan developed by the members of the authority pursuant to section 15.105.
2011 Acts, ch 118, §14, 89
NEW section

  15.107C  Oversight of corporation.
  1.  In performing delegated functions pursuant to section 15.107A or when engaged in activities that utilize public funding, the corporation shall comply with the provisions of this section.
  2.  a.  The corporation shall submit an annual report to the governor, general assembly, and the auditor of state by January 15. The report shall include the corporation’s operations and activities during the prior fiscal year to the extent that such operations and activities pertain to the functions delegated to the corporation by the authority, as provided in sections 15.106B and 15.107A.
  b.  The report shall describe how the operations and activities serve the interests of the state and further economic development.
  c.  An annual audit of the corporation performed by a certified public accountant in accordance with generally accepted accounting principles shall be filed with the office of auditor of state and made available to the public.
  3.  The deliberations or meetings of the board of directors of the corporation that pertain to the performance of delegated functions or activities that utilize public funding shall be conducted in accordance with chapter 21.
  4.  All of the following shall be subject to chapter 22:
  a.  Minutes of the meetings conducted in accordance with subsection 3.
  b.  All records pertaining to the performance by the corporation of delegated functions or activities that utilize public funding.
  5.  Notwithstanding other provisions of this section to the contrary, if the corporation receives confidential information from the authority under the process described in section 15.118, the corporation shall comply with the provisions of section 15.118 in the same manner as the authority.
2011 Acts, ch 118, §15, 89
NEW section

  15.108  Primary responsibilities.
  The authority has the following areas of primary responsibility:
  1.  Finance.  To provide for financial assistance to businesses, local governments, and educational institutions through loans and grants of state and federal funds to enable them to promote and achieve economic development within the state. To carry out this responsibility, the authority shall:
  a.  Expend federal funds received as community development block grants as provided in section 8.41.
  b.  Provide staff assistance to the corporation formed under authority of sections 15E.11 to 15E.16 to receive and disburse funds to further the overall development and well-being of the state.
  2.  Marketing.  To coordinate, develop, and make available technical services on the state and local levels in order to aid businesses in their start-up or expansion in the state. To carry out this responsibility, the authority shall:
  a.  Establish within the authority a federal procurement office staffed with individuals experienced in marketing to federal agencies.
  b.  Aid in the marketing and promotion of Iowa products and services. The authority may adopt, subject to the approval of the board, a label or trademark identifying Iowa products and services together with any other appropriate design or inscription and this label or trademark shall be registered in the office of the secretary of state. In authorizing the use of a marketing label or trademark to an applicant, the state, and any state agency, official, or employee involved in the authorization, is immune from a civil suit for damages, including but not limited to a suit based on contract, breach of warranty, negligence, strict liability, or tort. Authorization of the use of a marketing label or trademark by the state, or any state agency, official, or employee, is not an express or implied guarantee or warranty concerning the safety, fitness, merchantability, or use of the applicant’s product or service. This paragraph does not create a duty of care to the applicant or any other person.
  (1)  The authority may register or file the label or trademark under the laws of the United States or any foreign country which permits registration, making the registration as an association or through an individual for the use and benefit of the authority.
  (2)  The authority shall establish guidelines for granting authority to use the label or trademark to persons or firms who make a satisfactory showing to the authority that the product or service meets the guidelines as manufactured, processed, or originating in Iowa. The trademark or label use shall be registered with the authority.
  (3)  A person shall not use the label or trademark or advertise it, or attach it on any promotional literature, manufactured article or agricultural product without the approval of the authority.
  (4)  The authority may deny permission to use the label or trademark if the authority believes that the planned use would adversely affect the use of the label or trademark as a marketing tool for Iowa products or its use would be inconsistent with the marketing objectives of the authority. Notwithstanding chapter 17A, the Iowa administrative procedure Act, the authority may suspend permission to use the label or trademark prior to an evidentiary hearing which shall be held within a reasonable period of time following the denial.
  c.  Promote an import substitution program to encourage the purchase of domestically produced Iowa goods by identifying and inventorying potential purchasers and the firms that can supply them, contacting the suppliers to determine their interest and ability in meeting the potential demand, and making the buyers aware of the potential suppliers.
  d.  Aid in the promotion and development of the agricultural processing industry in the state.
  3.  Local government and service coordination.  To coordinate the development of state and local government economic development-related programs in order to promote efficient and economic use of federal, state, local, and private resources.
  a.  To carry out this responsibility, the authority shall:
  (1)  Provide the mechanisms to promote and facilitate the coordination of management and technical assistance services to Iowa businesses and industries and to communities by the authority, by the community colleges, and by the state board of regents institutions, including the small business development centers, the center for industrial research and service, and extension activities. In order to achieve this goal, the authority may establish periodic meetings with representatives from the community colleges and the state board of regents institutions to develop this coordination. The community colleges and the state board of regents institutions shall cooperate with the authority in seeking to avoid duplication of economic development services through greater coordinating efforts in the utilization of space, personnel, and materials and in the development of referral and outreach networks. The authority shall also establish a registry of applications for federal funds related to management and technical assistance programs.
  (2)  Provide office space and staff assistance to the city development board as provided in section 368.9.
  (3)  Provide technical and financial assistance to local and regional government organizations in Iowa, analyze intergovernmental relations in Iowa, and recommend policies to state agencies, local governments, the governor, and the general assembly as these pertain to economic development.
  (4)  Train field experts in local development and through them provide continuing support to small local organizations.
  (5)  Encourage cities, counties, local and regional government organizations, and local and regional economic development organizations to develop and implement comprehensive community and economic development plans. In evaluating financial assistance applications, the authority shall award supplementary credit to applications submitted by cities, counties, local and regional government organizations, and local and regional economic development organizations that have developed a comprehensive community and economic development plan.
  b.  In addition to the duties specified in paragraph “a”, the authority may:
  (1)  Perform state and interstate comprehensive planning and related activities.
  (2)  Perform planning for metropolitan or regional areas or areas of rapid urbanization including interstate areas.
  (3)  Provide planning assistance to cities, counties, local and regional government organizations, and local and regional economic development organizations. Subject to the availability of funds for this purpose, the authority may provide financial assistance to cities, counties, local and regional government organizations, and local and regional economic development organizations for the purpose of developing community and economic development plans.
  (4)  Assist public or private universities and colleges and urban centers to:
  (a)  Organize, initiate, develop, and expand programs which will provide special training in skills needed for economic and efficient community development.
  (b)  Support state and local research that is needed in connection with community development.
  4.  Exporting.  To promote and aid in the marketing and sale of Iowa industrial and agricultural products and services outside of the state. To carry out this responsibility, the authority shall:
  a.  Perform the duties and activities specified for the agricultural marketing program under sections 15.201 and 15.202.
  b.  To the extent deemed feasible and in coordination with the board of regents and the area community colleges, work to establish a conversational foreign language training program.
  c.  To the extent deemed feasible, promote and assist in the creation of one or more international currency and barter exchanges.
  d.  Seek assistance and advice from the export advisory board appointed by the governor and the Iowa district export council which advises the United States department of commerce. The governor is authorized to appoint an export advisory board.
  e.  To the extent deemed feasible, develop a program in which graduates of Iowa institutions of higher education or former residents of the state who are residing in foreign countries and who are familiar with the language and customs of those countries are utilized as cultural advisors for the authority and for Iowa businesses participating in trade missions and other foreign trade activities, and in which foreign students studying at Iowa institutions of higher education are provided means to establish contact with Iowa businesses engaged in export activities, and in which foreign students returning to their home countries are used as contacts for trading purposes.
  5.  Tourism.  To promote Iowa’s public and private recreation and tourism opportunities to Iowans and out-of-state visitors and aid promotional and development efforts by local governments and the private sector. To carry out this responsibility, the authority shall:
  a.  Build general public consensus and support for Iowa’s public and private recreation, tourism, and leisure opportunities and needs.
  b.  Recommend high quality site management and maintenance standards for all public and private recreation and tourism opportunities.
  c.  Coordinate and develop with the department of transportation, the department of natural resources, the department of cultural affairs, the vision Iowa board, other state agencies, and local and regional entities public interpretation, marketing, and education programs that encourage Iowans and out-of-state visitors to participate in the recreational and leisure opportunities available in Iowa. The authority shall establish and administer a program that helps connect both Iowa residents and residents of other states to new and existing Iowa experiences as a means to enhance the economic, social, and cultural well-being of the state. The program shall include a broad range of new opportunities, both rural and urban, including main street destinations, green space initiatives, and artistic and cultural attractions.
  d.  Coordinate with other divisions of the authority to add Iowa’s recreation, tourism, and leisure resources to the agricultural and other images which characterize the state on a national level.
  e.  Consolidate and coordinate the many existing sources of information about local, regional, statewide, and national opportunities into a comprehensive, state-of-the-art information delivery system for Iowans and out-of-state visitors.
  f.  Formulate and direct marketing and promotion programs to specific out-of-state market populations exhibiting the highest potential for consuming Iowa’s public and private tourism products.
  g.  Provide ongoing long-range planning on a statewide basis for improvements in Iowa’s public and private tourism opportunities.
  h.  Provide the private sector and local communities with advisory services including analysis of existing resources and deficiencies, general development and financial planning, marketing guidance, hospitality training, and others.
  i.  Measure the change in public opinion of Iowans regarding the importance of recreation, tourism, and leisure.
  j.  Provide annual monitoring of tourism visitation by Iowans and out-of-state visitors to Iowa attractions, public and private employment levels, and other economic indicators of the recreation and tourism industry and report predictable trends.
  k.  Identify new business investment opportunities for private enterprise in the recreation and tourism industry.
  l.  Cooperate with and seek assistance from the state department of cultural affairs.
  m.  Seek coordination with and assistance from the state department of natural resources in regard to the Mississippi river parkway under chapter 308 for the purposes of furthering tourism efforts.
  n.  Collect, assemble, and publish a list of farmers who have agreed to host overnight guests, for purposes of promoting agriculture in the state and farm tourism, to the extent that funds are available.
  o.  Establish a revolving fund to receive contributions to be used for cooperative advertising efforts. Fees and royalties obtained as a result of licensing the use of logos and other creative materials for sale by private vendors on selected products may be deposited in the fund. The authority shall adopt by rule a schedule for fees and royalties to be charged.
  p.  Establish, if the authority deems necessary, a revolving fund to receive contributions and funds from the product sales center to be used for start-up or expansion of tourism special events, fairs, and festivals as established by authority rule.
  6.  Employee training and retraining.  To develop employee training and retraining strategies in coordination with the department of education and department of workforce development as tools for business development, business expansion, and enhanced competitiveness of Iowa industry, which will promote economic growth and the creation of new job opportunities and to administer related programs. To carry out this responsibility, the authority shall:
  a.  Coordinate and perform the duties specified under the Iowa industrial new jobs training Act in chapter 260E, the Iowa jobs training Act in chapter 260F, and the workforce development fund in section 15.341.
  b.  In performing the duties set out in paragraph “a”, the authority shall:
  (1)  Work closely with representatives of business and industry, labor organizations, the department of education, the department of workforce development, and educational institutions to determine the employee training needs of Iowa employers, and where possible, provide for the development of industry-specific training programs.
  (2)  Promote Iowa employee training programs to potential and existing Iowa employers and to employer associations.
  (3)  Stimulate the creation of innovative employee training and skills development activities, including business consortium and supplier network training programs, and new employee development training models.
  (4)  Coordinate employee training activities with other economic development finance programs to stimulate job growth.
  (5)  Review workforce development initiatives as they relate to the state’s economic development agenda, recommending action as necessary to meet the needs of Iowa’s communities and businesses.
  (6)  Incorporate workforce development as a component of community-based economic development activities.
  7.  Small business.  To provide assistance to small business, targeted small business, microenterprises, and entrepreneurs creating small businesses to ensure continued viability and growth. To carry out this responsibility, the authority shall:
  a.  Receive and review complaints from individual small businesses that relate to rules or decisions of state agencies, and refer questions and complaints to a governmental agency where appropriate.
  b.  Establish and administer the regulatory information service provided for in section 15E.17.
  c.  Aid for the development and implementation of the Iowa targeted small business procurement Act established in sections 73.15 through 73.21 and the targeted small business financial assistance program established in section 15.247.
  (1)  (a)  By December 1 of each year, the department of administrative services shall file a written report with the economic development authority regarding the Iowa targeted small business procurement Act activities during the previous fiscal year. At a minimum, the report shall include a summary of all activities undertaken by the department of administrative services in an effort to maximize the utilization of the targeted small business procurement Act.
  (b)  By December 1 of each year, the department of inspections and appeals shall file a written report with the economic development authority regarding certifications of targeted small businesses. At a minimum, the report shall include the number of certified targeted small businesses for the previous year and the increase or decrease in that number during the previous fiscal year compared to the prior fiscal year, the number of targeted small businesses that have been decertified over the previous fiscal year, and a summary of all activities undertaken by the department of inspections and appeals regarding targeted small business certification.
  (c)  By December 1 of each year, the economic development authority shall compile an internal report regarding the targeted small business financial assistance program. At a minimum, the report shall contain the number of loans, loan guarantees, and grants distributed during the previous fiscal year, the individual amounts provided to targeted small businesses during the previous fiscal year, and how many financial assistance awards to targeted small businesses were the subject of repayment or collection activity during the previous fiscal year.
  (d)  By December 1 of each year, the targeted small business marketing and compliance manager of the economic development authority shall compile a list of the procurement goals established pursuant to section 73.16, subsection 2, and the performance of each agency in meeting the goals. The compilation of the performance of each agency shall be based upon the reports required to be filed under section 73.16, subsection 2.
  (e)  By January 15 of each year, the economic development authority shall submit to the governor and the general assembly a compilation of reports required under this subparagraph.
  (2)  The director, with cooperation from the other state agencies, shall publicize the procurement goal program established in sections 73.15 through 73.21 to targeted small businesses and to agencies of state government, attempt to locate targeted small businesses able to perform contracts, and encourage program participation. The director may request the cooperation of the department of administrative services, the state department of transportation, the state board of regents, or any other agency of state government in publicizing this program.
  (3)  The director, in conjunction with other state agencies, shall publicize the financial assistance program established in section 15.247 to targeted small businesses.
  (4)  When the director determines, or is notified by the head of another agency of state government, that a targeted small business is unable to perform a procurement contract, the director shall assist the small business in attempting to remedy the causes of the inability to perform. In assisting the small business, the director may use any management or financial assistance programs available through state or governmental agencies or private sources.
  (5)  The economic development authority shall establish targeted small business advocate service providers for purposes of providing mentoring, outreach, and professional development services to targeted small businesses certified pursuant to section 10A.104. Targeted small business advocate service providers shall be established through a request for proposals process. Entities eligible to bid under the request for proposals process shall include but not be limited to a business accelerator, a small business development center, or any organization that provides mentoring, outreach, and professional development services to businesses. A person serving on or staffing a governor’s task force on targeted small businesses during calendar year 2006 shall not be eligible to be part of a bid under the request for proposals process until after July 1, 2009. A person serving on or staffing a governor’s targeted small business advisory council shall not be eligible to be part of a bid under the request for proposals process until three years following the termination of service or staffing the advisory council. The advice and services provided by providers shall extend to all areas of business management in its practical application, including but not limited to accounting, engineering, drafting, grant writing, obtaining financing, locating bond markets, market analysis, and projections of profit and loss.
  d.  If determined necessary by the board, provide training for bank loan officers to increase their level of expertise in regard to business loans.
  e.  To the extent feasible, cooperate with the department of workforce development to establish a program to educate existing employers and new or potential employers on the rates and workings of the state unemployment compensation program and the state workers’ compensation program.
  f.  Study the feasibility of reducing the total number of state licenses, permits, and certificates required to conduct small businesses.
  g.  Encourage and assist small businesses, including small businesses owned and operated by disabled veterans, to obtain state contracts and subcontracts by cooperating with the directors of purchasing in the department of administrative services, the state board of regents, and the state department of transportation in performing the following functions:
  (1)  Developing a uniform small business vendor application form which can be adopted by all agencies and departments of state government to identify small businesses and targeted small businesses which desire to sell goods and services to the state. This form shall also contain information which can be used to determine certification as a targeted small business pursuant to section 10A.104, subsection 8.
  (2)  Compiling and maintaining a comprehensive source list of small businesses.
  (3)  Assuring that responsible small businesses are solicited on each suitable purchase.
  (4)  Assisting small businesses in complying with the procedures for bidding and negotiating for contracts.
  (5)  Simplifying procurement specifications and terms in order to increase the opportunities for small business participation.
  (6)  When economically feasible, dividing total purchases into tasks or quantities to permit maximum small business participation.
  (7)  Preparing timely forecasts of repetitive contracting requirements by dollar volume and types of contracts to enhance the participation of responsible small businesses in the public purchasing process.
  (8)  Developing a mechanism to measure and monitor the amount of participation by small businesses in state procurement.
  8.  Case management.  To provide case management assistance to low-income persons for the purpose of establishing or expanding small business ventures as provided in section 15.246.
  9.  Miscellaneous.  To provide other necessary services, the authority shall:
  a.  Collect and assemble, or cause to have collected and assembled, all pertinent information available regarding the industrial, agricultural, and public and private recreation and tourism opportunities and possibilities of the state of Iowa, including raw materials and products that may be produced from them; power and water resources; transportation facilities; available markets; the banking and financing facilities; the availability of industrial sites; the advantages of the state as a whole, and the particular sections of the state, as industrial locations; the development of a grain alcohol motor fuel industry and its related products; and other fields of research and study as the board deems necessary. This information, as far as possible, shall consider both the encouragement of new industrial enterprises in the state and the expansion of industries now existing within the state, and allied fields to those industries. The information shall also consider the changing composition of the Iowa family and the level of poverty among different age groups and different family structures in Iowa society and their impact on Iowa families.
  b.  Apply for, receive, contract for, and expend federal funds and grants and funds and grants from other sources.
  c.  Except as otherwise provided in sections 8A.110, 260C.14, and 262.9, provide that an inventor whose research is funded in whole or in part by the state shall assign to the state a proportionate part of the inventor’s rights to a letter patent resulting from that research. Royalties or earnings derived from a letter patent shall be paid to the treasurer of state and credited by the treasurer to the general fund of the state. However, the authority in conjunction with other state agencies, including the board of regents, shall provide incentives to inventors whose research is funded in whole or in part by the state for having their products produced in the state. These incentives may include taking a smaller portion of the inventor’s royalties or earnings than would otherwise occur under this paragraph or other provisions of the law.
  d.  Administer or oversee federal rural economic development programs in the state.
  e.  At the director’s discretion, accept payment by credit card of any fees, interest, penalties, subscriptions, registrations, purchases, or other payments, or any portion of such payments, which are due or collected by the authority. The authority may adjust the amount of the payment to reflect the costs of processing the payment as determined by the treasurer of state and the payment by credit card shall include, in addition to all other charges, any discount charged by the credit card issuer.
  f.  Provide technical assistance to individuals who are pursuing the purchase and operation of employee-owned businesses.
  10.  Economic development planning and research activities.  To provide leadership and support for economic and community development activities statewide. To carry out this responsibility, the authority may establish a research center for economic development programs and services whose duties may include but are not limited to the following:
  a.  Implementation of a comprehensive statewide economic development planning process and provision of leadership, coordination, and support to regional and local economic and community planning efforts.
  b.  Coordination of the delivery of economic and community development programs with other local, regional, state, federal, and private sector programs and activities.
  c.  Collection and analysis of data and information, development of databases and performing research to keep abreast of Iowa’s present economic base, changing market demands, and emerging trends, including identification of targeted markets and development of marketing strategies.
  d.  Provision of access to databases to facilitate sales and exports by Iowa businesses.
  e.  Establishment of a database of community and economic information to aid local, regional, and statewide economic development and service delivery efforts.
  11.  Housing development.
  a.  To provide assistance to local governments, housing organizations, economic development groups, and other local entities to increase the development of housing in the state and to improve the quality of existing housing in order to maximize the effects of other economic development efforts.
  b.  To carry out this responsibility, the authority shall:
  (1)  Provide housing needs assessments.
  (2)  Provide a one-stop source, in coordination with other agencies of the state, for housing development assistance.
  (3)  Establish programs which assist communities or local entities in developing housing to meet a range of community needs, including programs to assist homeless shelter operations and programs to assist in the development of housing to enhance economic development opportunities in the community.
86 Acts, ch 1142, §1; 86 Acts, ch 1238, §44; 86 Acts, ch 1245, §808; 87 Acts, ch 101, §2; 87 Acts, ch 106, §1; 88 Acts, ch 1098, §1; 88 Acts, ch 1273, §6 – 8; 89 Acts, ch 196, §1; 89 Acts, ch 209, §1; 89 Acts, ch 258, §12; 90 Acts, ch 1047, §1; 90 Acts, ch 1140, §1; 90 Acts, ch 1156, §3; 90 Acts, ch 1255, §2; 91 Acts, ch 28, §1; 91 Acts, ch 109, §1; 92 Acts, ch 1089, §1; 92 Acts, ch 1244, §11; 93 Acts, ch 167, §9; 93 Acts, ch 180, §34, 35; 94 Acts, ch 1023, §4; 94 Acts, ch 1199, §16; 96 Acts, ch 1186, §1 – 4, 23; 97 Acts, ch 15, §1, 2; 97 Acts, ch 214, §1; 98 Acts, ch 1175, §1, 2; 99 Acts, ch 197, §20, 23; 2001 Acts, ch 61, §2 – 5; 2003 Acts, ch 44, §9; 2003 Acts, ch 71, §1; 2003 Acts, ch 145, §138, 286; 2003 Acts, 1st Ex, ch 1, §76, 133
[2003 Acts, 1st Ex, ch 1, §76, 133, amendment adding new paragraph g to subsection 9, stricken pursuant to Rants v. Vilsack, 684 N.W.2d 193]
2006 Acts, ch 1100, §1; 2007 Acts, ch 126, §5; 2007 Acts, ch 207, §6, 18; 2008 Acts, ch 1122, §4, 7 – 9; 2008 Acts, ch 1178, §2; 2010 Acts, ch 1031, §261; 2010 Acts, ch 1049, §1; 2011 Acts, ch 118, §85, 89; 2011 Acts, ch 122, §11, 14
Referred to in 
See Code editor’s note on simple harmonization
Code editor directive applied
Subsection 5, paragraph c amended

  15.109  Additional duties.
  The economic development authority shall coordinate the development of state and local government programs in order to promote efficient and economic use of federal, state, local, and private resources. The authority shall:
  1.  Provide technical and financial assistance to local and regional government organizations in Iowa, analyze intergovernmental relations in Iowa, and recommend policies to state agencies, local governments, the governor, and the general assembly.
  2.  Apply for, receive, administer, and use federal or other funds available for achieving the purposes of this chapter. For purposes of this subsection, the term “federal funds” includes federal tax credits, grants, or other economic benefits allocated or provided by the United States government to encourage investment in low-income or other specified areas or to otherwise promote economic development. The authority may enter into an agreement pursuant to chapter 28E, or any other agreement, with a person, including for-profit and nonprofit legal entities, in order to directly or indirectly apply for, receive, administer, and use federal funds. As part of such agreements and in furtherance of this public purpose and in addition to powers and duties conferred under other provisions of law, the authority may, including for or on behalf of for-profit or nonprofit legal entities, appoint, remove, and replace board members and advisors; provide oversight; make its personnel and resources available to perform administrative, management, and compliance functions; coordinate investments; and engage in other acts as reasonable and necessary to encourage investment in low-income or other areas or to promote economic development. The authority, including authority officials and employees in their official and personal capacities, are immune from liability for all acts or omissions under this subsection.
  3.  At the time the authority approves assistance for an applicant, provide the person with information regarding the nature and source of other technical assistance available in the state to assist the applicant on design and management matters concerning energy efficiency and waste reduction. The authority shall review the extent to which recommendations made to grantees are in fact implemented by the grantees.
  4.  Establish a sustainable community development initiative. The purpose of the initiative is to improve the sustainability of Iowa communities by ensuring long-term economic growth and fostering environmentally conscious growth and development. In establishing the initiative, the authority shall:
  a.  Create a plan to ensure that all of the authority’s current community growth and development programs, efforts, and initiatives incorporate an environmentally conscious approach and policies that promote sustainability.
  b.  Cooperate with local governments by providing information, technical assistance, and financial incentives to communities pursuing sustainable growth.
[C71, 73, 75, 77, 79, 81, §7A.3, 7A.7; 82 Acts, ch 1210, §5]

86 Acts, ch 1245, §101, 102

90 Acts, ch 1252, §2; 2004 Acts, ch 1175, §318; 2008 Acts, ch 1190, §31; 2011 Acts, ch 118, §85, 89
Code editor directive applied

  15.110  Restrictions relating to councils of governments.
  The authority shall not require a city or county to be a dues paying member of a council of governments.
90 Acts, ch 1262, §23; 2011 Acts, ch 118, §87, 89
Councils of governments; see chapter 28H 
Code editor directive applied
  15.111  Repealed by 2001 Acts, ch 61, §  19. 

  15.112  Farmworks matching funds.
  If the federal government funds the “farmworks” national demonstration project for distressed family farmers, the authority shall allocate to the project from the rural enterprise fund or another fund, an amount equal to four percent of the federal funding each year for a three-year period on a dollar-for-dollar matching basis with local or private contributions.
93 Acts, ch 180, §38; 2011 Acts, ch 118, §87, 89
Code editor directive applied
  15.113  Economic development assistance — report.  Repealed by 2008 Acts, ch 1122, §  16.  See §  15.104(8). 

  15.114  Microenterprise development advisory committee.  Repealed by 2010 Acts, ch 1031, §  263.

  15.115  Technology commercialization specialist.
  The authority shall ensure that businesses in the state are well informed about the technology patents, licenses, and options available to them from colleges and universities in the state and to ensure the authority’s business development and marketing efforts are conducted in a way that maximizes the advantage to the state of research and technology commercialization efforts at colleges and universities in the state. The authority shall establish a technology commercialization specialist position which shall be responsible for the obligations imposed by this section and for performance of all of the following activities:
  1.  Establishing and maintaining communication with personnel in charge of intellectual property management and technology at colleges and universities in the state.
  2.  Meeting at least quarterly with personnel in charge of intellectual property management and technology commercialization regarding new technology disclosures and technology patents, licenses, or options available to Iowa businesses at colleges and universities in the state.
  3.  Being knowledgeable regarding intellectual property, patent, license, and option policies of colleges and universities in the state as well as applicable federal law.
  4.  Establishing and maintaining an internet website to link other internet websites which provide electronic access to information regarding available patents, licenses, or options for technology at colleges and universities in the state.
  5.  Establishing and maintaining communications with business and development organizations in the state regarding available technology patents, licenses, and options.
  6.  Cooperating with colleges and universities in the state in establishing technology fairs or other public events designed to make businesses in the state aware of available technology patents, licenses, or options available to businesses in the state.
2005 Acts, ch 150, §27; 2011 Acts, ch 118, §85, 89
Referred to in 
Code editor directive applied

  15.116  Technology commercialization committee.
  To evaluate and make recommendations to the authority on appropriate funding for the projects and programs applying for financial assistance from the innovation and commercialization development fund created in section 15.412, the economic development authority shall create a technology commercialization committee composed of members with expertise in the areas of biosciences, engineering, manufacturing, pharmaceuticals, materials, information solutions, software, and energy. At least one member of the technology commercialization committee shall be a member of the economic development authority. An organization designated by the authority, composed of members from both the public and private sectors and composed of subunits or subcommittees in the areas of already identified bioscience platforms, education and workforce development, commercialization, communication, policy and governance, and finance, shall provide funding recommendations to the technology commercialization committee.
2005 Acts, ch 150, §28; 2009 Acts, ch 123, §22, 33; 2011 Acts, ch 118, §84, 87, 89
Referred to in 
Code editor directives applied

  15.117  Chief technology officer.
  The governor shall appoint a chief technology officer for the state. The chief technology officer shall serve a two-year term and shall have national or international stature as a senior executive at a technology business in one of the targeted industries.
2005 Acts, ch 150, §29; 2010 Acts, ch 1070, §3

  15.117A  Iowa innovation council.
  1.  An Iowa innovation council is established within the authority. The authority shall provide the council with staff and administrative support. The authority may expend moneys allocated to the innovation and commercialization division in order to provide such support. The authority may adopt rules for the implementation of this section.
  2.  The council shall consist of the following members:
  a.  Twenty-nine voting members as follows:
  (1)  Twenty members selected by the board to serve staggered, two-year terms beginning and ending as provided in section 69.19. Of the members selected by the board, seven shall be representatives from businesses in the targeted industries and thirteen shall be individuals who serve on the technology commercialization committee created in section 15.116, or other committees of the board, and who have expertise with the targeted industries. At least ten of the members selected pursuant to this subparagraph shall be executives actively engaged in the management of a business in a targeted industry. The members selected pursuant to this paragraph shall reflect the size and diversity of businesses in the targeted industries and of the various geographic areas of the state.
  (2)  One member, selected by the governor, who also serves on the Iowa capital investment board created in section 15E.63.
  (3)  The director of the authority, or the director’s designee.
  (4)  The chief technology officer appointed pursuant to section 15.117.
  (5)  The person appointed as the chief information officer pursuant to section 8A.201A, or, if no person has been so appointed, the director of the department of administrative services, or the director’s designee.
  (6)  The president of the state university of Iowa, or the president’s designee.
  (7)  The president of Iowa state university of science and technology, or the president’s designee.
  (8)  The president of the university of northern Iowa, or the president’s designee.
  (9)  Two community college presidents from geographically diverse areas of the state, selected by the Iowa association of community college trustees.
  b.  Four members of the general assembly serving two-year terms in a nonvoting, ex officio capacity, with two from the senate and two from the house of representatives and not more than one member from each chamber being from the same political party. The two senators shall be designated one member each by the president of the senate after consultation with the majority leader of the senate, and by the minority leader of the senate. The two representatives shall be designated one member each by the speaker of the house of representatives after consultation with the majority leader of the house of representatives, and by the minority leader of the house of representatives.
  3.  To be eligible to serve as a designee pursuant to subsection 2, a person must have sufficient authority to make decisions on behalf of the organization being represented. A person named as a designee pursuant to subsection 2 shall not name a designee nor permit a substitute to attend council meetings.
  4.  The chief technology officer appointed pursuant to section 15.117 shall be the chairperson of the council and shall be responsible for convening meetings of the council and coordinating its activities and shall convene the council at least annually. The council shall annually elect one of the voting members to serve as vice chairperson. A majority of the members of the council constitutes a quorum. However, the chief technology officer shall not convene a meeting of the council unless the director of the authority, or the director’s designee, is present at the meeting.
  5.  The purpose of the council is to advise the authority on the development and implementation of public policies that enhance innovation and entrepreneurship in the targeted industries, with a particular focus on the information, technology, and skills that increasingly dominate the twenty-first century economy. Such advice may include evaluating Iowa’s competitive position in the global economy, reviewing the technology typically utilized in the state’s manufacturing sector, assessing the state’s overall scientific research capacity, keeping abreast of the latest scientific research and technological breakthroughs and offering guidance as to their impact on public policy, recommending strategies that foster innovation, increase new business formation, and otherwise promote economic growth in the targeted industries, and offering guidance about future developments in the targeted industries.
  6.  The council shall do all of the following:
  a.  Create a comprehensive strategic plan for implementing specific policies that further the purpose of the council as described in subsection 5. In creating the plan and implementing such policies, the council may consult with the corporation established pursuant to section 15.107.
  b.  Review annually all the economic development programs administered by the authority and the board that relate to the targeted industries and make recommendations for adjustments that enhance efficiency and effectiveness. In reviewing the programs, the council shall, to the greatest extent possible, utilize economic development data and research in order to make objective, fact-based recommendations.
  c.  Act as a forum where issues affecting the research community, the targeted industries, and policymakers can be discussed and addressed and where collaborative relationships can be formed.
  d.  Coordinate state government applications for federal funds relating to research and economic development affecting the targeted industries.
  e.  Conduct industry research and draft documents that provide background information for use in decision making by the general assembly, the governor, the authority, and other policymaking bodies within state government.
2010 Acts, ch 1070, §4; 2011 Acts, ch 34, §4; 2011 Acts, ch 118, §16, 85, 89
Code editor directive applied
Subsection 2, paragraph a, subparagraph (5) amended
Subsection 6, paragraph a amended

  15.118  Confidentiality of information in financial assistance applications.
  1.  The board and the authority shall give due regard to the confidentiality of certain information disclosed by applicants for financial assistance during the application process, the contract administration process, and the period following closeout of a contract in the manner described in this section.
  2.  All information contained in an application for financial assistance submitted to the authority shall remain confidential while the authority is reviewing the application, processing requests for confidentiality, negotiating with the applicant, and preparing the application for consideration by the director or the board. The authority may release certain information in an application for financial assistance to a third party for technical review. If the authority releases such information to a third party, the authority shall ensure that the third party protects such information from public disclosure. After the authority has considered a request for confidentiality, any information not deemed confidential shall be made publicly available. Any information deemed confidential by the authority shall also be kept confidential during and following administration of a contract executed pursuant to a successful application.
  3.  The authority shall consider the written request of an applicant or award recipient to keep confidential certain details of an application, a contract, or the materials submitted in support of an application or a contract. If the request includes a sufficient explanation as to why the public disclosure of such details would give an unfair advantage to competitors, the authority shall keep certain details confidential. If the authority elects to keep certain details confidential, the authority shall release only the nonconfidential details in response to a request for records pursuant to chapter 22. If confidential details are withheld from a request for records pursuant to chapter 22, the authority shall release an explanation of why the information was deemed confidential and a summary of the nature of the information withheld and the reasons for withholding it. In considering requests for confidential treatment, the authority shall narrowly construe the provisions of this section in order to appropriately balance an applicant’s need for confidentiality against the public’s right to information about the authority’s activities.
  4.  If a request for confidentiality is denied by the authority, an applicant may withdraw the application and any supporting materials, and the authority shall not retain any copies of the application or supporting materials. Upon notice that an application has been withdrawn, the authority shall not release a copy in response to a request for records pursuant to chapter 22.
  5.  The authority shall adopt by rule a process for considering requests to keep information confidential pursuant to this section. The authority may adopt emergency rules pursuant to chapter 17A to implement this section. The rules shall include criteria for guiding the authority’s decisions about the confidential treatment of applicant information. The criteria may include but are not limited to the following:
  a.  The nature and extent of competition in the applicant’s industry sector.
  b.  The likelihood of adverse financial impact to the applicant if the information were to be released.
  c.  The risk that the applicant will locate in another state if the request is denied.
  d.  Any other factor the authority reasonably considers relevant.
2008 Acts, ch 1149, §1; 2011 Acts, ch 118, §87, 89
Code editor directive applied

  15.119  Aggregate tax credit limit for certain economic development programs.
  1.  a.  Notwithstanding any provision to the contrary in any of the programs listed in subsection 2, the authority, except as provided in paragraph “b”, shall not authorize for any one fiscal year an amount of tax credits for the programs specified in subsection 2 that is in excess of one hundred twenty million dollars.
  b.  The authority may authorize an amount of tax credits during a fiscal year that is in excess of the amount specified in paragraph “a”, but the amount of such excess shall be counted against the total amount of tax credits that may be authorized for the next fiscal year.
  2.  The authority, with the approval of the board, shall adopt by rule a procedure for allocating the aggregate tax credit limit established in this section among the following programs:
  a.  The high quality job creation program administered pursuant to sections 15.326 through 15.336.
  b.  The film, television, and video project promotion program administered pursuant to sections 15.391 through 15.393.
  c.  The corporate tax research credit under the quality jobs enterprise zone program pursuant to section 15A.9, subsection 8.
  d.  The enterprise zones program administered pursuant to sections 15E.191 through 15E.197.
  e.  The assistive device tax credit program administered pursuant to section 422.33, subsection 9.
  f.  The tax credits for investments in qualifying businesses and community-based seed capital funds issued pursuant to section 15E.43. In allocating tax credits pursuant to this subsection, the authority shall allocate two million dollars for purposes of this paragraph.
  g.  The tax credits for investments in an innovation fund pursuant to section 15E.52. In allocating tax credits pursuant to this subsection, the authority shall allocate eight million dollars for purposes of this paragraph.
  h.  The redevelopment tax credit program for brownfields and grayfields administered pursuant to sections 15.293A and 15.293B.
  3.  In allocating the amount of tax credits authorized pursuant to subsection 1 among the programs specified in subsection 2, the authority shall not allocate more than five million dollars for purposes of subsection 2, paragraph “h”.
  4.  The authority shall submit to the department of revenue on or before August 15 of each year a report on the tax credits allocated pursuant to this section and the tax credits awarded under each of the programs described in subsection 2.
2009 Acts, ch 135, §1, 3; 2010 Acts, ch 1138, §4; 2011 Acts, ch 34, §5; 2011 Acts, ch 116, §1, 2; 2011 Acts, ch 118, §87, 89; 2011 Acts, ch 130, §36, 47, 71
2011 amendment to subsection 2, by 2011 Acts, ch 130, §36, applies retroactively to January 1, 2011, for tax years beginning and investments made on or after that date; 2011 Acts, ch 130, §47
See Code editor’s note on simple harmonization
Code editor directive applied
Subsection 2 amended
NEW subsection 3 and former subsection 3 renumbered as 4
15.120 through 15.200Reserved.
SUBCHAPTER II
ACTIVITIES
PART 1

  15.201  Agricultural marketing program.
  The authority shall operate an agricultural marketing program designed to lead to more advantageous marketing of Iowa agricultural products. The authority may develop and carry out activities to implement this program, and shall:
  1.  Investigate the subject of marketing agricultural products and recommend efficient and economical methods of marketing.
  2.  Promote the sales, distribution, and merchandising of agricultural products.
  3.  Furnish information and assistance to the public concerning the marketing of agricultural products.
  4.  Cooperate with the division of agriculture of the Iowa state university of science and technology in farm marketing education and research and avoid unnecessary duplications.
  5.  Gather and diffuse useful information concerning all phases of the marketing of Iowa farm products in cooperation with other public or private agencies.
  6.  Ascertain sources of supply of Iowa agricultural products, and prepare and publish from time to time lists of names and addresses of producers and consignors and furnish the lists to persons applying for them.
  7.  Aid in the promotion and development of the agricultural processing industry in the state.
86 Acts, ch 1245, §809; 2011 Acts, ch 118, §87, 89
Referred to in 
Code editor directive applied

  15.202  Grants and gifts.
  The authority may, with the approval of the director, accept grants and allotments of funds from the federal government and enter into cooperative agreements with the secretary of agriculture of the United States for projects to effectuate any of the purposes of the agricultural marketing program; and may accept grants, gifts, or allotments of funds from any person for the purpose of carrying out the agricultural marketing program. The authority shall make an itemized accounting of such funds to the director at the end of each fiscal year.
86 Acts, ch 1245, §810; 2011 Acts, ch 118, §87, 89
Referred to in 
Code editor directive applied

  15.203  Agricultural products advisory council — duties.  Repealed by 2010 Acts, ch 1031, §  264.

  15.204  Value-added agricultural linked investment loan program — eligibility requirements.  Repealed by 2006 Acts, ch 1165, §  8. 

15.205 through 15.220Reserved.
PART 2
15.221 through 15.225Repealed by 2008 Acts, ch 1031, §  70. 
15.226 through 15.230Repealed by 96 Acts, ch 1186, §  26.  See §  84A.7. 
PART 3
  15.231  Industrial and business export trade plan.  Repealed by 2006 Acts, ch 1100, §  7. 

  15.232  Repealed by 91 Acts, ch 267, §  319. 

15.233 through 15.239Reserved.
PART 4

  15.240  Community microenterprise development organization grant program.
  1.  The authority shall award grants to community microenterprise development organizations. A grant shall not be awarded to a community microenterprise development organization unless the community microenterprise development organization can match at least twenty percent of the funds to be awarded. The matching funds may be from private foundations, federal or local government funds, financial institutions, or individuals.
  2.  In awarding grants to community microenterprise development organizations, the authority shall consider all of the following:
  a.  The overall geographic diversity of the applicants for grants, including both urban and rural communities.
  b.  The ability of a community microenterprise development organization to provide services to low-income and moderate-income individuals and underserved communities. In determining the ability to provide services, all of the following shall be considered:
  (1)  The ability to identify potential microentrepreneurs within a community.
  (2)  The capacity to perform client assessment and screening.
  (3)  The ability to provide business training and technical assistance, including information about access to markets, business management, and financial literacy.
  (4)  The capacity to provide assistance in securing financing.
  c.  The scope of services offered and the efficient delivery of such services, especially to low-income, moderate-income, and minority individuals.
  d.  The ability to monitor the progress of clients and to identify those clients in need of additional technical and financial assistance.
  e.  The ability to build relationships and coordinate resources with other entities supporting microentrepreneurs. These entities may include but are not limited to community colleges, cooperative extension services, small business development centers, chambers of commerce, community economic development organizations, workforce centers, and community nonprofit service providers that serve low-income and moderate-income individuals.
  f.  The ability to coordinate activities with any targeted small business advocate services operating in the community.
  g.  The amount and sufficiency of operating funds available.
  h.  Any other criteria the authority deems reasonable.
2008 Acts, ch 1178, §3; 2011 Acts, ch 118, §87, 89
Code editor directive applied
  15.241  Iowa “self-employment loan program”.  Repealed by 2003 Acts, ch 71, §  6. 

15.242 through 15.245Reserved.

  15.246  Case management program.
  1.  The authority shall establish and administer a case management program, contingent upon the availability of funds authorized for the program, and conducted in coordination with other state or federal programs providing financial or technical assistance administered by the authority. The case management program shall assist in furnishing information about available assistance to clients seeking to establish or expand small business ventures, furnishing information about available financial or technical assistance, evaluating small business venture proposals, completing viable business start-up or expansion plans, and completing applications for financial or technical assistance under the programs administered by the authority.
  2.  In administering the program, the authority may contract with service providers to deliver case management assistance under this section. A service provider may be any entity which the authority determines is qualified to deliver case management assistance, including a state agency, a private for-profit or not-for-profit corporation, or other association or organization. The authority shall establish rules necessary to carry out this section, including schedules for providing contract payments to service providers, based on the number of hours of case management assistance provided to a client.
88 Acts, ch 1098, §2; 2001 Acts, ch 61, §6; 2003 Acts, ch 71, §2; 2011 Acts, ch 118, §87, 89
Referred to in 
Code editor directive applied

  15.247  Targeted small business financial assistance program.
  1.  As used in this section, “small business” and “targeted small business” mean the same as defined in section 15.102, subsections 10 and 12.
  2.  A “targeted small business financial assistance program” is established within the authority. A targeted small business financial assistance program account is established within the strategic investment fund created in section 15.313, to allow the authority to provide for loans, loan guarantees, or grants to eligible targeted small businesses.
  a.  A targeted small business in any year shall receive under this program not more than fifty thousand dollars in a loan, grant, or guarantee, or a combination of loans, grants, or guarantees. A grant shall only be awarded when additional financing is secured by the applicant. In order to receive a grant, the applicant must demonstrate a minimum of ten percent cash investment in the project. A targeted small business shall not receive a grant, loan, or guarantee, or a combination of grants, loans, or guarantees under the program that provide more than ninety percent funding of a project.
  b.  The program shall provide guarantees not to exceed eighty percent for loans of up to seven years made by qualified lenders. The authority shall establish a financial assistance reserve account from funds allocated to the program account, from which any default on a guaranteed loan under this section shall be paid. In administering the program the authority shall not guarantee loan values in excess of the amount credited to the reserve account and only moneys set aside in the loan reserve account may be used for the payment of a default.
  c.  The authority shall maintain records of all financial assistance approved pursuant to this section and information regarding the effectiveness of the financial assistance in establishing or expanding small business ventures.
  3.  a.  All moneys designated for the targeted small business financial assistance program shall be credited to the program account. The authority shall determine the actuarially sound reserve requirement for the amount of guaranteed loans outstanding.
  b.  Of the moneys credited to the program account, the authority may allocate an amount necessary for marketing and compliance and an amount for the provision of the mentoring services required under subsection 7.
  4.  The authority shall adopt rules as necessary for the administration of the financial assistance program under this section.
  5.  The general assembly is not obligated to appropriate moneys to pay for any defaults or to appropriate moneys to be credited to the loan reserve account. The loan guarantee program does not obligate the state except to the extent provided in this section, and the authority in administering the program shall not give or lend the credit of the state of Iowa.
  6.  Payments of interest, recaptures of awards, and repayments of moneys loaned under this program shall be deposited into the strategic investment fund.
  7.  In order to receive financial assistance under this section a targeted small business shall participate in mentoring services from a targeted small business advocate service provider.
  8.  a.  In order to receive financial assistance under this section, an application for financial assistance submitted on or after July 1, 2007, must be approved by the targeted small business financial assistance board created in this subsection.
  b.  The targeted small business financial assistance board shall consist of seven members appointed by the director representing backgrounds in the areas of finance, insurance, or banking. The members shall be successful business owners in the private, for-profit sector. At least one member shall be a member of the economic development authority appointed by the economic development authority. All of the following populations shall be represented separately by at least one member:
  (1)  Latino.
  (2)  African American.
  (3)  Asian or Pacific Islander.
  (4)  Caucasian woman.
  (5)  Native American.
  (6)  A person with a disability as defined in section 15.102.
  c.  A person within the third degree of consanguinity of an employee of the authority, a person within the third degree of consanguinity of a member of the targeted small business financial assistance board or member’s relative, or a business with any financial ties to a member shall not be eligible for financial assistance under the program during the employee’s employment or the member’s tenure on the board, as applicable. Members shall serve two year terms and may be reappointed. A member shall not serve more than two terms.
  d.  The targeted small business financial assistance board shall consider all applications for financial assistance under the program submitted on or after July 1, 2007.
88 Acts, ch 1273, §9; 89 Acts, ch 83, §6; 90 Acts, ch 1156, §4; 92 Acts, ch 1244, §14, 15; 2003 Acts, ch 71, §3; 2007 Acts, ch 207, §7, 8, 18; 2009 Acts, ch 41, §12; 2009 Acts, ch 133, §7; 2010 Acts, ch 1184, §29; 2011 Acts, ch 118, §84, 85, 89
Referred to in 
Code editor directives applied
15.248 through 15.250Reserved.
PART 5

  15.251  Industrial new job training program certificates — fee.
  The authority may charge, within thirty days following the sale of certificates under chapter 260E, the board of directors of the merged area a fee of up to one percent of the gross sale amount of the certificates issued. The amount of this fee shall be deposited and allowed to accumulate in a job training fund created in the authority. At the end of each fiscal year, all funds deposited under this subsection into the job training fund during the fiscal year shall be transferred to the workforce development fund account established in section 15.342A.
86 Acts, ch 1245, §816; 89 Acts, ch 270, §1; 90 Acts, ch 1255, §3; 93 Acts, ch 180, §40; 94 Acts, ch 1199, §17; 99 Acts, ch 183, §1; 2001 Acts, ch 61, §7; 2011 Acts, ch 118, §87, 89
Referred to in 
See annual Iowa Acts for temporary exceptions, changes, or other noncodified enactments modifying the funding provided for in this section 
Code editor directive applied

  15.252  Rules.
  The authority shall adopt rules pursuant to chapter 17A to implement this part.
86 Acts, ch 1238, §45; 86 Acts, ch 1245, §817; 89 Acts, ch 270, §2; 2011 Acts, ch 118, §87, 89
Code editor directive applied
15.253 through 15.256Repealed by 89 Acts, ch 270, §  3.   See §  15.251. 
  15.257  Repealed by 89 Acts, ch 83, §  87; 89 Acts, ch 270, §  3. 

15.258 through 15.260Reserved.
PART 6
15.261 through 15.268Repealed by 2001 Acts, ch 61, §19. 
  15.269  Cogeneration pilot program.  Repealed by its own terms; 2003 Acts, ch 159, §  1. 

  15.270  Reserved.

PART 7

  15.271  Statement of purpose — intent.
  1.  The general assembly finds that:
  a.  Highway travelers have special needs for information and travel services.
  b.  Highway travelers have a significant positive influence on the state’s economy.
  c.  A principal goal of economic development in this state is to increase the influence which travel and hospitality services, tourism, and recreation opportunities have on the state’s economic expansion.
  d.  Facilities and programs are needed where travelers can obtain information about travel and hospitality services, tourism attractions, parks and recreation opportunities, cultural and natural resources, and the state in general.
  e.  A program shall be established to plan, acquire, develop, promote, operate, and maintain a variety of welcome centers at strategic locations to meet the needs of travelers in the state. The program is intended to be accomplished by 1992.
  2.  The primary goals of a statewide program for welcome centers are to provide to travelers the following:
  a.  High quality, accurate, and interesting information about travel in the state; national, statewide, and local attractions of all types; lodging, medical service, food service, vehicle service, and other kinds of necessities; and general information about the state.
  b.  Needed and convenient services, including but not limited to, restrooms; lodging information and event reservation services; vehicle services; and others. Services shall also include the distribution and sale of souvenirs, crafts, arts, and food products originating in the state; food and beverages; fishing, hunting, and other permits and licenses needed for recreation activities; and other products normally desired by travelers.
  c.  Settings that will convey a sense of being welcomed to the state through hospitable attitudes of personnel; high quality of site landscape architecture, architectural theme, and interior design of the buildings; special events that occur at the centers; and high levels of maintenance.
87 Acts, ch 178, §1

  15.272  Statewide welcome center program — objectives and agency responsibilities — pilot projects.
  The state agencies, as indicated in this section, shall undertake certain specific functions to implement the goals of a statewide program, including the pilot projects, for welcome centers.
  1.  a.  The department* and the state department of transportation shall jointly establish a statewide long-range plan for developing and operating welcome centers throughout the state. The plan shall be submitted to the general assembly by January 15, 1988. The plan shall address, but not be limited to, the following:
  (1)  Integrating state, regional, and local tourism and recreation marketing and promotion plans.
  (2)  Recommending a wide range of centers, including state-developed and state-operated to privately managed facilities.
  (3)  Establishing design, service, and maintenance quality standards which all welcome centers will maintain. Included in the standards shall be a provision requiring that space or facilities be available for purposes of displaying and offering for sale Iowa-made products, crafts, and arts. The space or facilities may be operated by the department* or leased to and operated by other persons.
  (4)  Making projections of increased tourist spending, indirect economic benefits, and direct revenue production which are estimated to occur as a result of implementing a statewide welcome center program.
  (5)  Projecting estimated acquisition, construction, exhibit, staffing, and maintenance costs.
  (6)  Integrating electronic data telecommunications systems.
  (7)  Identifying sites for maintaining existing centers as well as locations for new centers.
  b.  The departments may enter into contracts for the preparation of the long-range plan. The departments shall involve the department of natural resources and the department of cultural affairs in the preparation of the plan. The recommendations and comments of organizations representing hospitality and tourism services, including but not limited to, the regional tourism councils, convention and visitors bureaus, and the Iowa travel council, and others with interests in this program will be considered for incorporation in the plan. Prior to submission of the plan to the general assembly, the plan shall be submitted to the regional tourism councils, the convention and visitors bureaus, and the Iowa travel council for their comments and criticisms which shall be submitted by the department* along with the plan to the general assembly.
  2.  The responsibilities of the authority include the following:
  a.  Seeing to the acquisition of property and the construction of all new welcome centers including the pilot projects selected by the department* pursuant to paragraph “e”. In carrying out this responsibility the authority may, but is not limited to, the following:
  (1)  Arrange for the state department of transportation to acquire title to land and buildings for use as and undertake construction of state-owned welcome centers. In acquiring property and constructing the welcome centers, including any pilot projects, the state department of transportation may use any funds available to it, including but not limited to, the RISE fund, matching funds from local units of government or organizations, the primary road fund, federal grants, and moneys specifically appropriated for these purposes.
  (2)  Contract with other state agencies, local units of government, or private groups, organizations, or entities for the use of land, buildings, or facilities as state welcome centers or in connection with state welcome centers, whether or not the property is actually owned by the state. If the local match required for pilot projects or which may be required for other welcome centers is met by providing land, buildings, or facilities, the entity providing the local match shall enter into an agreement with the authority to either transfer title of the property to the state or to dedicate the use of the property under the conditions and period of time set by the authority.
  b.  Providing for the operations, management, and maintenance of the state-owned and state-operated welcome centers, including the collection and distribution of tourism literature, telecommunication services, and other travel-related services, and the display and offering for sale of Iowa-made products, crafts, and arts.
  c.  Providing, at the discretion of the authority, financial assistance in the form of loans and grants to privately operated information centers to the extent the centers are consistent with the long-range plan.
  d.  Developing a common theme or graphic logo which will be identified with all welcome centers which meet the standards of operations established for those centers.
  e.  Selecting the sites for the pilot projects. In selecting the pilot project sites, the following apply:
  (1)  Up to three sites may be located in proximity to the interstates and up to three sites may be located in proximity to the other primary roads. The department* shall select at least one site which is in proximity to a primary road which is not an interstate.
  (2)  Proposals for the sites must be submitted prior to September 1, 1987 and shall contain a commitment of at least a one-dollar-per-dollar match of state financial assistance. The local match may be in terms of land, buildings, or other noncash items which are acceptable by the department*.
  (3)  Priority shall be given to proposals that have the best local match, that are to be located where there is a very high number of travelers passing, and for which the department*, after consultation with the departments of transportation, natural resources, and cultural affairs, considers the chances of success to be nearly perfect.
  (4)  The department* shall select the sites by September 15, 1987.
87 Acts, ch 178, §2; 2008 Acts, ch 1032, §201; 2011 Acts, ch 118, §87, 89
RISE fund, see chapter 315
*Reference to “department of economic development” probably intended; corrective legislation is pending
Code editor directive applied

  15.273  Cooperative tourism program.
  The authority shall assist the department of natural resources in promoting the state parks, state recreation areas, lakes, rivers, and streams under the jurisdiction of the natural resource commission for tourism purposes. The department of natural resources shall provide the authority with brochures and other printed information concerning hunting and fishing opportunities, recreational opportunities in state parks and recreation areas, and other natural and historic information of interest to tourists.
  The authority shall disseminate the brochures and other information provided by the department of natural resources through the welcome centers, sports and vacation shows, direct information requests, and other programs implemented by the authority to promote tourism and related forms of economic development in this state.
89 Acts, ch 236, §9; 2011 Acts, ch 118, §85, 89
Code editor directive applied

  15.274  Promotional program for national historic landmarks and cultural and entertainment districts.
  The economic development authority, in cooperation with the state department of transportation and the department of cultural affairs, shall establish and administer a program designed to promote knowledge of and access to buildings, sites, districts, structures, and objects located in this state that have been designated by the secretary of the interior of the United States as a national historic landmark, unless the national historic landmark is protected under section 22.7, subsection 20, and certified cultural and entertainment districts, as established pursuant to section 303.3B. The program shall be designed to maximize the visibility and visitation of national historic landmarks in this state and buildings, sites, structures, and objects located in certified cultural and entertainment districts, as established pursuant to section 303.3B. Methods used to maximize the visibility and visitation of such locations may include the use of tourism literature, signage on highways, maps of the state and cities, and internet websites. For purposes of this section, “highway” means the same as defined in section 325A.1.
2005 Acts, ch 109, §1; 2006 Acts, ch 1010, §7; 2011 Acts, ch 118, §85, 89
Code editor directive applied
15.275 through 15.280Reserved.
PART 8
15.281 through 15.288Repealed by 2001 Acts, ch 61, §  19. 
15.289 and 15.290Reserved.
PART 9

  15.291  Definitions.
  As used in this part, unless the context otherwise requires:
  1.  “Brownfield site” means an abandoned, idled, or underutilized industrial or commercial facility where expansion or redevelopment is complicated by real or perceived environmental contamination. A brownfield site includes property contiguous with the property on which the individual or commercial facility is located. A brownfield site does not include property which has been placed, or is proposed for placement, on the national priorities list established pursuant to the federal Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. §  9601 et seq.
  2.  “Council” means the brownfield redevelopment advisory council established in section 15.294.
  3.  “Grayfield site” means an industrial or commercial property meeting all of the following requirements:
  a.  The property has been developed and has infrastructure in place but the property’s current use is outdated or prevents a better or more efficient use of the property. Such property includes vacant, blighted, obsolete, or otherwise underutilized property.
  b.  The property’s improvements and infrastructure are at least twenty-five years old and one or more of the following conditions exists:
  (1)  Thirty percent or more of a building located on the property that is available for occupancy has been vacant or unoccupied for a period of twelve months or more.
  (2)  The assessed value of the improvements on the property has decreased by twenty-five percent or more.
  (3)  The property is currently being used as a parking lot.
  (4)  The improvements on the property no longer exist.
  4.  “Green development” means development which meets or exceeds the sustainable design standards established by the state building code commissioner pursuant to section 103A.8B.
  5.  “Qualifying investment” means costs that are directly related to a qualifying redevelopment project and that are incurred after the project has been registered and approved by the board. “Qualifying investment” only includes the purchase price, the cleanup costs, and the redevelopment costs.
  6.  “Qualifying redevelopment project” means a brownfield or a grayfield site being redeveloped or improved by the property owner. “Qualifying redevelopment project” does not include a previously remediated or redeveloped brownfield site.
  7.  “Sponsorship” means an agreement between a city or county and an applicant for assistance under the brownfield redevelopment program where the city or county agrees to offer assistance or guidance to the applicant.
2000 Acts, ch 1101, §1; 2008 Acts, ch 1173, §1; 2011 Acts, ch 116, §3, 12
Referred to in 
2011 amendment to subsection 5 applies retroactively to January 1, 2011, for tax years beginning on or after that date; 2011 Acts, ch 116, §12
Subsection 5 amended

  15.292  Brownfield redevelopment program.
  1.  The authority shall establish and administer a brownfield redevelopment program for purposes of providing financial and technical assistance for the acquisition, remediation, or redevelopment of brownfield sites. Financial assistance under the program shall be provided from the brownfield redevelopment fund created in section 15.293. The authority may provide information on alternative forms of assistance.
  2.  A person owning a site may apply for assistance under the program if the site for which assistance is sought meets the definition of a brownfield site and the applicant has secured sponsorship prior to applying. Sponsorship is not required if the applicant is a city or county.
  3.  a.  A person who is not an owner of a site may apply for financial assistance under the program if the site for which financial assistance is sought meets the definition of a brownfield site and the applicant has secured sponsorship prior to applying. Sponsorship is not required if the applicant is a city or county.
  b.  Prior to applying for financial assistance under this subsection, an applicant shall enter into an agreement with the owner of the brownfield site for which financial assistance is sought. The agreement shall be submitted with an application for financial assistance and shall include, at a minimum, the following:
  (1)  An agreement regarding the estimated total cost for remediating the brownfield site.
  (2)  An agreement that the owner shall transfer title of the property to the applicant upon completion of the remediation of the property.
  (3)  An agreement that, upon the subsequent sale of the property by the applicant to a person other than the original owner, the original owner shall receive not more than seventy-five percent of the estimated total cost of remediation.
  c.  An applicant shall not receive financial assistance of more than twenty-five percent of the agreed-upon estimated total cost of remediation.
  d.  Upon the subsequent sale of the property by the applicant to a person other than the original owner, the applicant shall repay the authority for financial assistance received by the applicant. The repayment shall be in an amount equal to the sales price less the amount paid to the original owner pursuant to the agreement between the applicant and the original owner. The repayment amount shall not exceed the amount of financial assistance received by the applicant.
  4.  An application for assistance under the program shall include any information required by the authority, including the following:
  a.  A business plan which includes a remediation plan.
  b.  A budget for remediating or redeveloping the site.
  c.  A statement of purpose describing the intended use of and proposed repayment schedule for any financial assistance received by the applicant.
  d.  Evidence of sponsorship.
  e.  Other information the authority deems necessary in order to process and review the application.
  5.  In reviewing an application for financial assistance, the authority and the brownfield redevelopment advisory council established in section 15.294 shall consider all of the following:
  a.  Whether the brownfield site meets the definition of a brownfield site.
  b.  Whether other alternative forms of assistance exist for which the applicant may be eligible.
  6.  The board may approve, deny, or defer each application for financial assistance from the brownfield redevelopment fund created in section 15.293.
2000 Acts, ch 1101, §2; 2011 Acts, ch 116, §4; 2011 Acts, ch 118, §87, 89
Referred to in 
Code editor directive applied
Subsections 1 and 4 amended

  15.293  Brownfield redevelopment fund.
  1.  A brownfield redevelopment fund is created in the state treasury under the control of the authority and consisting of any moneys appropriated by the general assembly and any other moneys available to and obtained or accepted by the authority for placement in the fund.
  2.  Payments of interest, repayments of moneys loaned pursuant to this part, and recaptures of loans shall be deposited in the fund.
  3.  The fund shall be used to provide grants, loans, forgivable loans, loan guarantees, and other forms of assistance under the brownfield redevelopment program established in section 15.292.
  4.  Moneys in the fund are not subject to section 8.33. Notwithstanding section 12C.7, interest or earnings on moneys in the fund shall be credited to the fund.
2000 Acts, ch 1101, §3; 2011 Acts, ch 118, §87, 89
Referred to in 
Code editor directive applied

  15.293A  Redevelopment tax credits.
  1.  a.  A redevelopment tax credit shall be allowed against the taxes imposed in chapter 422, divisions II, III, and V, and in chapter 432, and against the moneys and credits tax imposed in section 533.329, for a portion of a taxpayer’s equity investment, as provided in subsection 3, in a qualifying redevelopment project.
  b.  An individual may claim a tax credit under this subsection of a partnership, limited liability company, S corporation, estate, or trust electing to have income taxed directly to the individual. The amount claimed by the individual shall be based upon the pro rata share of the individual’s earnings from the partnership, limited liability company, S corporation, estate, or trust.
  c.  Any tax credit in excess of the taxpayer’s liability for the tax year is not refundable but may be credited to the tax liability for the following five years or until depleted, whichever is earlier. A tax credit shall not be carried back to a tax year prior to the tax year in which the taxpayer first receives the tax credit.
  2.  a.  (1)  The authority shall accept and, in conjunction with the council and the board, review applications for tax credits pursuant to this section.
  (2)  Upon review of an application, the authority may register the project under the program. If the authority registers the project, the authority shall, in conjunction with the council and the board, make a preliminary determination as to the amount of tax credit for which the investor qualifies.
  (3)  After registering the project, the authority shall issue a letter notifying the investor of successful registration under the program. The letter shall include the amount of tax credit for which the investor has received preliminary approval. The letter shall state that the amount is a preliminary determination only. The amount of tax credit included on a certificate issued pursuant to this section shall be contingent upon completion of the requirements of subparagraphs (4) and (5).
  (4)  Upon completion of a registered project, an audit of the project, completed by an independent certified public accountant licensed in this state, shall be submitted to the authority.
  (5)  Upon review of the audit and verification of the amount of the investment, the authority may issue a certificate to the investor stating the amount of tax credit the investor may claim.
  b.  (1)  To claim a redevelopment tax credit under this section, a taxpayer must attach one or more tax credit certificates to the taxpayer’s tax return. A tax credit certificate shall not be used or attached to a return filed for a taxable year beginning prior to July 1, 2009.
  (2)   The tax credit certificate shall contain the taxpayer’s name, address, tax identification number, the amount of the credit, the name of the qualifying investor, any other information required by the department of revenue, and a place for the name and tax identification number of a transferee and the amount of the tax credit being transferred.
  (3)  The tax credit certificate, unless rescinded by the authority, shall be accepted by the department of revenue as payment for taxes imposed pursuant to chapter 422, divisions II, III, and V, and in chapter 432, and for the moneys and credits tax imposed in section 533.329, subject to any conditions or restrictions placed by the authority upon the face of the tax credit certificate and subject to the limitations of this section.
  (4)  Tax credit certificates issued under this section may be transferred to any person or entity. Within ninety days of transfer, the transferee shall submit the transferred tax credit certificate to the department of revenue along with a statement containing the transferee’s name, tax identification number, and address, the denomination that each replacement tax credit certificate is to carry, and any other information required by the department of revenue.
  (5)  Within thirty days of receiving the transferred tax credit certificate and the transferee’s statement, the department of revenue shall issue one or more replacement tax credit certificates to the transferee. Each replacement tax credit certificate must contain the information required for the original tax credit certificate and must have the same expiration date that appeared in the transferred tax credit certificate. Tax credit certificate amounts of less than the minimum amount established by rule of the economic development authority shall not be transferable.
  (6)  A tax credit shall not be claimed by a transferee under this section until a replacement tax credit certificate identifying the transferee as the proper holder has been issued. The transferee may use the amount of the tax credit transferred against the taxes imposed in chapter 422, divisions II, III, and V, and in chapter 432, and against the moneys and credits tax imposed in section 533.329, for any tax year the original transferor could have claimed the tax credit. Any consideration received for the transfer of the tax credit shall not be included as income under chapter 422, divisions II, III, and V, under chapter 432, or against the moneys and credits tax imposed in section 533.329. Any consideration paid for the transfer of the tax credit shall not be deducted from income under chapter 422, divisions II, III, and V, under chapter 432, or against the moneys and credits tax imposed in section 533.329.
  3.  The amount of the tax credit shall equal one of the following:
  a.  Twelve percent of the taxpayer’s qualifying investment in a grayfield site.
  b.  Fifteen percent of the taxpayer’s qualifying investment in a grayfield site if the qualifying redevelopment project meets the requirements of a green development.
  c.  Twenty-four percent of the taxpayer’s qualifying investment in a brownfield site.
  d.  Thirty percent of the taxpayer’s qualifying investment in a brownfield site if the qualifying redevelopment project meets the requirements of a green development.
  4.  For purposes of individual and corporate income taxes and the franchise tax, the increase in the basis of the redeveloped property that would otherwise result from the qualified redevelopment costs shall be reduced by the amount of the credit computed under this part.
  5.  The maximum amount of a tax credit for a qualifying investment in any one qualifying redevelopment project shall not exceed ten percent of the maximum amount of tax credits available in any one fiscal year pursuant to subsection 6.
  6.  For the fiscal year beginning July 1, 2009, the maximum amount of tax credits issued by the authority shall not exceed one million dollars. For each subsequent fiscal year, the amount of tax credits that may be issued by the authority shall be subject to the limitation in section 15.119.
  7.  An investment shall be deemed to have been made on the date the qualifying redevelopment project is completed.
  8.  A registered project shall be completed within thirty months of the project’s approval unless the authority, with the approval of the board, provides additional time to complete the project. A project shall not be provided more than twelve months of additional time. If the registered project is not completed within the time required, the project is not eligible to claim a tax credit pursuant to this section.
  9.  The authority shall develop a system for registration and authorization of projects receiving tax credits pursuant to this part and shall control distribution of all tax credits distributed to investors pursuant to this part. In developing the system, the authority shall provide for a list of applicants for the tax credit and maintain it from year to year so that if the maximum aggregate amount of tax credits available under the program is reached in one year, an applicant can be given priority consideration for the credit in an ensuing year.
  10.  The authority shall develop rules for the qualification of qualifying redevelopment projects and qualifying investments. The department of revenue shall adopt these criteria as administrative rules and shall adopt any other rules pursuant to chapter 17A necessary for the administration of this part.
  11.  The authority may cooperate with the department of natural resources and local governments in an effort to disseminate information regarding the availability of tax credits for investments in qualifying redevelopment projects under this part.
  12.  If the recipient of a tax credit issued pursuant to this section has also applied to the authority, the board, or any other agency of state government for additional financial assistance, the authority, the board, or agency of state government shall not consider the receipt of a tax credit issued pursuant to this section when considering the application for additional financial assistance.
  13.  This section is repealed on June 30, 2021.
2008 Acts, ch 1173, §2; 2011 Acts, ch 116, §5 – 7, 12; 2011 Acts, ch 118, §84, 85, 89
Referred to in 
2011 amendments by 2011 Acts, ch 116, §5 – 7, apply retroactively to January 1, 2011, for tax years beginning on or after that date; 2011 Acts, ch 116, §12
See Code editor’s note
Code editor directive applied
Subsections 2, 6 – 9 amended
Subsection 12 stricken and former subsection 13 renumbered as 12
NEW subsection 13

  15.293B  Approval — requirements — repayment.
  1.  The authority shall accept and review applications for tax credits pursuant to section 15.293A and, with the approval of the council, make recommendations regarding the applications to the board.
  2.  An investor applying for a tax credit shall provide the authority with all of the following:
  a.  Information showing the total costs of the qualifying redevelopment project, including the costs of land acquisition, cleanup, and redevelopment.
  b.  Information about the financing sources of the investment which are directly related to the qualifying redevelopment project for which the taxpayer is seeking approval for a tax credit, as provided in section 15.293A.
  3.  If a taxpayer receives a tax credit pursuant to section 15.293A, but fails to comply with any of the requirements, the taxpayer loses any right to the tax credit, and the department of revenue shall seek recovery of the value of the credit received.
  4.  This section is repealed on June 30, 2021.
2008 Acts, ch 1173, §3; 2011 Acts, ch 116, §8 – 10; 2011 Acts, ch 118, §87, 89
Referred to in 
Code editor directive applied
Subsection 1 stricken and rewritten
Subsection 2, unnumbered paragraph 1 amended
NEW subsection 4

  15.294  Brownfield redevelopment advisory council.
  1.  The authority shall establish a brownfield redevelopment advisory council consisting of five members. The advisory council shall be composed of all of the following:
  a.  The director of the economic development authority, or the director’s designee.
  b.  The director of the department of natural resources, or the director’s designee.
  c.  The director of transportation, or the director’s designee.
  d.  One person selected by the board of directors of the Iowa league of cities.
  e.  One member of the economic development authority selected by the authority.
  2.  The director of the economic development authority, or the director’s designee, shall serve as the chairperson of the advisory council.
  3.  The advisory council shall review each application received by the economic development authority for assistance under the brownfield redevelopment program and make recommendations to the authority regarding all of the following:
  a.  The completeness of the application.
  b.  Suggestions for alternative forms of assistance for which the applicant may be eligible. The alternative forms of assistance may include assistance programs available through other departments.
  c.  Whether the applicant should receive financial assistance from the brownfield redevelopment fund created in section 15.293.
  4.  The council, in conjunction with the authority, shall consider applications for redevelopment tax credits as described in sections 15.293A and 15.293B, and may recommend to the board which applications to approve and the amount of such tax credits that each project is eligible to receive.
2000 Acts, ch 1101, §4; 2008 Acts, ch 1173, §4; 2011 Acts, ch 116, §11; 2011 Acts, ch 118, §84, 85, 89
Referred to in 
See Code editor’s note
Code editor directives applied
Subsection 4 amended

  15.295  Rules.
  The authority, in consultation with the department of natural resources, shall adopt rules pursuant to chapter 17A as necessary to administer this part.
2000 Acts, ch 1101, §5; 2011 Acts, ch 118, §85, 89
Code editor directive applied
15.296 through 15.298Repealed by 92 Acts, ch 1042, §  11.  See chapter 260F. 
  15.299  Reserved.

PART 10

  15.300  Findings and intent.
  1.  The general assembly finds all of the following:
  a.  That entrepreneurs and small businesses often have difficulty obtaining conventional loan financing, limiting their ability to expand, retain, and create additional jobs.
  b.  That a source of capital provided by the state could greatly assist entrepreneurs and small businesses in their efforts to upgrade or modernize equipment, realize additional efficiencies in their supply chains, improve their distribution and transportation margins, reduce facility costs through increased energy efficiency, and leverage other sources of business financing.
  2.  The purpose of the save our small businesses fund created in section 15.301 is to promote the creation and retention of jobs in the state’s economy and to assist businesses to be more competitive by addressing the needs identified in subsection 1.
2010 Acts, ch 1184, §41, 44

  15.301  Save our small businesses fund and program.
  1.  a.  A save our small businesses fund is created in the state treasury under the control of the authority and consisting of any moneys appropriated to the fund by the general assembly and any other moneys available and obtained or accepted by the authority for placement in the fund.
  b.  Payments of interest, repayments of moneys loaned pursuant to this section, and recaptures of loans shall be deposited in the fund. The fund shall be used to provide financial assistance in the form of low-interest loans as provided under the program created in this section.
  c.  (1)  If, on March 31, 2011, there are unobligated moneys in the fund, such unobligated moneys shall revert to the general fund of the state.
  (2)  For each quarter, beginning with the first quarter after the reversion of moneys pursuant to subparagraph (1) and ending with the last quarter prior to the reversion of moneys pursuant to subparagraph (3), the authority shall, on the last day of the quarter, transfer to the general fund of the state the balance of unencumbered moneys in the fund.
  (3)  On March 31, 2016, all moneys in the fund shall revert to the general fund of the state.
  2.  a.  The authority shall establish and administer a program for purposes of providing financial assistance to eligible small businesses. For purposes of this section, “financial assistance” means loans at an interest rate not to exceed three and nine-tenths percent per annum and “eligible small business” means a small business meeting the requirements of subsection 3.
  b.  (1)  The authority may designate an organization to administer the provisions of this section on the authority’s behalf.
  (2)  In order to be designated, an organization must be a nonprofit organization exempt from taxation under section 501(c)(3) of the Internal Revenue Code and must be designated by the United States small business administration as a statewide microloan program provider.
  (3)  If the authority elects to designate an organization pursuant to subparagraph (1), the authority shall enter into an agreement with the organization for purposes of ensuring that the program is administered pursuant to the requirements of this section.
  (4)  An organization designated pursuant to subparagraph (1) may accept, evaluate, and approve applications for financial assistance from eligible small businesses pursuant to the requirements of this section and may monitor the compliance of eligible businesses with the terms of an agreement entered into with the authority. 
  (5)  All disbursements of moneys to recipients of financial assistance approved by an organization designated pursuant to subparagraph (1) shall be made by the authority.
  (6)  All repayments of principal and interest on financial assistance provided under the program shall be remitted to the authority and deposited in the fund.
  (7)  The authority, with the assistance of an organization designated pursuant to subparagraph (1), may seek the recapture of financial assistance provided pursuant to this section as provided in subsection 4.
  c.  Financial assistance under the program shall be provided from the fund created in subsection 1.
  d.  Financial assistance to a small business shall be at least two thousand five hundred dollars, but shall not exceed fifty thousand dollars.
  e.  The department*, under the terms of an agreement with the organization designated pursuant to paragraph “b”, shall begin to provide financial assistance from the fund not later than August 1, 2010, and shall to the extent practicable obligate all available moneys in the fund prior to March 31, 2011.
  f.  A loan made to a small business under the program may be for any period of time, but the terms of such loan shall provide for the repayment of principal and interest prior to the date the moneys in the fund revert pursuant to subsection 1, paragraph “c”, subparagraph (3).
  3.  A business is eligible to apply for financial assistance under the program if the business meets all of the following criteria at the time of application:
  a.  The business has thirty-five or fewer full-time equivalent employees.
  b.  The business is located in Iowa.
  c.  The business is owned, operated, and actively managed by a resident of Iowa.
  d.  The business has a business plan and has received assistance in the development stage or the expansion stage from a small business development center or from a qualified public or nonprofit small business consultant as defined by the authority.
  e.  If a business has been a going concern for two years or more, the business has not been found to be in violation of any environmental or worker safety laws, rules, or regulations.
  f.  The business only employs individuals legally authorized to work in this state.
  g.  The business does not engage in the production, depiction, or distribution of obscene material. For purposes of this paragraph, “obscene material” means the same as defined in section 728.1.
  h.  The business is not in bankruptcy and is not imminently contemplating filing for bankruptcy.
  4.  Upon approval of the application for financial assistance by the authority or an organization designated pursuant to subsection 2, paragraph “b”, the eligible business shall enter into an agreement with the authority which shall include but not be limited to all of the following provisions:
  a.  If an eligible business, after receiving financial assistance, does not continue to meet one or more of the criteria for eligibility under subsection 3, except for subsection 3, paragraph “a”, all or a portion of the financial assistance received is subject to disallowance, recapture, or immediate repayment.
  b.  If, after receiving financial assistance, an eligible business ceases operations within the state or removes a significant portion of its operations to a location outside of the state, all or a portion of the financial assistance received is subject to disallowance, recapture, or immediate repayment.
  5.  a.  An eligible business shall not receive more than one award of financial assistance under this section.
  b.  An eligible business that receives financial assistance under this section may subsequently apply for financial assistance under other programs administered by the authority.
  c.  An eligible business that receives financial assistance under this section shall not use such financial assistance for purposes of meeting payroll obligations to employees.
  6.  a.  The small business development centers shall track the number of referrals for assistance made to the authority for assistance under this section and shall include that number in the small business development center’s annual report to the general assembly.
  b.  The authority in conjunction with an organization designated pursuant to subsection 2, paragraph “b”, shall by January 15 of each year submit a report on the program administered pursuant to this section to the general assembly. The report shall include information on the number of businesses that receive loans under the program and any other information the authority deems relevant to assessing the success of the program.
  7.  The authority shall adopt rules pursuant to chapter 17A as necessary to administer the program. The authority may adopt emergency rules under section 17A.4, subsection 3, and section 17A.5, subsection 2, paragraph “b”, as necessary for the administration of this section.
2010 Acts, ch 1184, §42, 44; 2011 Acts, ch 118, §87, 89
*Reference to “department of economic development” probably intended; corrective legislation is pending
Code editor directive applied
15.302 through 15.307Repealed by 92 Acts, ch 1244, §  51. 
  15.308  Repealed by 98 Acts, ch 1175, §  14. 

15.309 and 15.310Reserved.
PART 11

  15.311  Title.
  This part shall be known as the “Iowa Strategic Investment Fund” program.
92 Acts, ch 1244, §16

  15.312  Purpose.
  The purpose of this part shall be to provide a mechanism for the funding of programs which meet the descriptions provided in section 15.313, subsection 2.
92 Acts, ch 1244, §17; 2002 Acts, ch 1041, §1

  15.313  Strategic investment fund.
  1.  a.  An Iowa strategic investment fund is created as a revolving fund consisting of any money appropriated by the general assembly for that purpose and any other moneys available to and obtained or accepted by the authority from the federal government or private sources for placement in the fund.
  b.  Notwithstanding section 8.33, moneys in the strategic investment fund at the end of each fiscal year shall not revert to any other fund but shall remain in the strategic investment fund for expenditure for subsequent fiscal years.
  2.  The assets of the fund shall be used by the authority to assist in relocation or expansion projects for existing businesses as well as entrepreneurial start-up and expansion projects. Moneys in the fund shall be used for projects designed to meet any of the following purposes:
  a.  To assist communities in the state by providing financial assistance for small business gap financing, new business opportunities, and new product and entrepreneurial development.
  b.  To provide financial and technical assistance to early-stage industry companies and entrepreneurs.
  c.  To provide financial and technical assistance to targeted small businesses as defined in section 15.102.
  d.  To provide comprehensive management assistance for applicants or recipients of assistance from the fund.
  e.  To access federal funds available under any federal microloan demonstration program.
  f.  To provide technical and financial assistance to help persons with disabilities become self-sufficient by establishing or expanding business ventures.
  g.  To assist businesses in retooling or upgrading production equipment to meet contemporary technology standards.
  3.  At the beginning of each fiscal year, the board shall establish goals for the strategic investment fund relating to the intended strategic focus for the fiscal year. The director shall report on a monthly basis to the board on the status of the fund. Unobligated and unencumbered moneys remaining in the strategic investment fund or any of its accounts on June 30 of each year shall be considered part of the fund for purposes of the next year’s allocation.
92 Acts, ch 1244, §18; 94 Acts, ch 1119, §2, 3; 96 Acts, ch 1219, §95; 99 Acts, ch 197, §21; 2000 Acts, ch 1230, §14; 2002 Acts, ch 1041, §2; 2003 Acts, ch 71, §4; 2004 Acts, ch 1101, §12; 2008 Acts, ch 1032, §122; 2009 Acts, ch 123, §24; 2011 Acts, ch 118, §85, 89
Referred to in 
Code editor directive applied
  15.314  Reserved.

PART 12
15.315 through 15.320Repealed by 2009 Acts, ch 123, §  8. 
15.321 through 15.324Reserved.
  15.325  Negotiations — state and local officials — restrictions.  Repealed by 2009 Acts, ch 123, §  8. 

PART 13

  15.326  Short title.
  This part shall be known and may be cited as the “High Quality Jobs Program”.
94 Acts, ch 1008, §4; 2005 Acts, ch 150, §42, 68, 69; 2009 Acts, ch 123, §10
Referred to in 

  15.327  Definitions.
  As used in this part, unless the context otherwise requires:
  1.  “Authority” means the economic development authority created in section 15.105.
  2.  “Benefit” has the same meaning as defined in section 15G.101.
  3.  “Community” means a city, county, or entity established pursuant to chapter 28E.
  4.  “Contractor or subcontractor” means a person who contracts with the eligible business or subcontracts with a contractor for the provision of property, materials, or services for the construction or equipping of a facility of the eligible business.
  5.  “Created job” has the same meaning as defined in section 15G.101.
  6.  “Eligible business” means a business meeting the conditions of section 15.329.
  7.  “Fiscal impact ratio” has the same meaning as defined in section 15G.101.
  8.  “Maintenance period completion date” has the same meaning as defined in section 15G.101.
  9.  “Program” means the high quality jobs program.
  10.  “Project completion date” has the same meaning as defined in section 15G.101.
  11.  “Qualifying investment” means a capital investment in real property including the purchase price of land and existing buildings and structures, site preparation, improvements to the real property, building construction, and long-term lease costs. “Qualifying investment” also means a capital investment in depreciable assets.
  12.  “Qualifying wage threshold” has the same meaning as defined in section 15G.101.
  13.  “Retained job” has the same meaning as defined in section 15G.101.
94 Acts, ch 1008, §5; 96 Acts, ch 1185, §1; 96 Acts, ch 1199, §1; 98 Acts, ch 1175, §5; 2003 Acts, ch 145, §286; 2005 Acts, ch 150, §43, 68, 69; 2009 Acts, ch 123, §11; 2011 Acts, ch 118, §55, 56, 89
Referred to in 
NEW subsection 1 and former subsections 1 – 4 renumbered as 2 – 5
Former subsection 5 stricken
  15.328  Reserved.

  15.329  Eligible business.
  1.  To be eligible to receive incentives under this part, a business shall meet all of the following requirements:
  a.  If the qualifying investment is ten million dollars or more, the community has approved by ordinance or resolution the start-up, location, or expansion of the business for the purpose of receiving the benefits of this part.
  b.  The business has not closed or substantially reduced operations in one area of this state and relocated substantially the same operations in a community in another area of this state. This paragraph shall not be construed to prohibit a business from expanding its operation in a community if existing operations of a similar nature in this state are not closed or substantially reduced.
  c.  The business shall create or retain jobs as part of a project, and the jobs created or retained shall meet one of the following qualifying wage thresholds:
  (1)  If the business is creating jobs, the business shall demonstrate that the jobs will pay at least one hundred percent of the qualifying wage threshold at the start of the project completion period, at least one hundred thirty percent of the qualifying wage threshold by the project completion date, and at least one hundred thirty percent of the qualifying wage threshold until the maintenance period completion date.
  (2)  If the business is retaining jobs, the business shall demonstrate that the jobs retained will pay at least one hundred thirty percent of the qualifying wage threshold throughout both the project completion period and the maintenance period.
  d.  The business shall provide a sufficient package of benefits to each employee holding a created or retained job. The board, at the recommendation of the authority, shall adopt rules determining what constitutes a sufficient package of benefits.
  e.  The business shall demonstrate that the jobs created or retained will have a sufficient impact on state and local government revenues as determined by the authority after calculating the fiscal impact ratio of the project.
  f.  The business shall not be a retail business or a business where entrance is limited by a cover charge or membership requirement.
  g.  Notwithstanding the qualifying wage threshold requirements in paragraph “c”, if a business is also the recipient of financial assistance under another program administered by the authority, and the other program requires the payment of higher wages than the wages required under this subsection, the business shall be required to pay the higher wages.
  2.  A business providing a sufficient package of benefits to each employee holding a created or retained job shall qualify for a credit against the qualifying wage threshold requirements described in subsection 1, paragraph “c”. The credit shall be calculated in the manner described in section 15G.112, subsection 4, paragraph “b”.
  3.  Any business located in a quality jobs enterprise zone is ineligible to receive the economic development incentives under the program.
  4.  If the authority finds that a business has a record of violations of the law, including but not limited to environmental and worker safety statutes, rules, and regulations, over a period of time that tends to show a consistent pattern, the business shall not qualify for economic development assistance under this part, unless the authority finds that the violations did not seriously affect public health or safety, or the environment, or if it did, that there were mitigating circumstances. In making the findings and determinations regarding violations, mitigating circumstances, and whether the business is disqualified for economic development assistance under this part, the authority shall be exempt from chapter 17A.
  5.  The authority shall also consider a variety of factors including but not limited to the following in determining the eligibility of a business to participate in the program:
  a.  The quality of the jobs to be created or retained. In rating the quality of the jobs, the authority shall place greater emphasis on those jobs that have a higher wage scale, have a lower turnover rate, are full-time or career-type positions, provide comprehensive health benefits, or have other related factors which could be considered to be higher in quality, than to other jobs. Businesses that have wage scales substantially below that of existing Iowa businesses in that area should be rated as providing the lowest quality of jobs and should therefore be given the lowest ranking for providing such assistance.
  b.  The impact of the proposed project on other businesses in competition with the business being considered for assistance. The authority shall make a good-faith effort to identify existing Iowa businesses within an industry in competition with the business being considered for assistance. The authority shall make a good-faith effort to determine the probability that the proposed financial assistance will displace employees of the existing businesses. In determining the impact on businesses in competition with the business being considered for assistance, jobs created or retained as a result of other jobs being displaced elsewhere in the state shall not be considered direct jobs created or retained.
  c.  The economic impact to this state of the proposed project. In measuring the economic impact, the authority shall place greater emphasis on projects which can demonstrate the existence of one or more of the following conditions:
  (1)  A business with a greater percentage of sales out-of-state or of import substitution.
  (2)  A business with a higher proportion of in-state suppliers.
  (3)  A project which would provide greater diversification of the state economy.
  (4)  A business with fewer in-state competitors.
  (5)  A potential for future job growth.
  (6)  A project which is not a retail operation.
  6.  The authority may waive any of the requirements of this section for good cause shown.
94 Acts, ch 1008, §6; 99 Acts, ch 192, §33; 2005 Acts, ch 150, §44, 68, 69; 2008 Acts, ch 1032, §201; 2009 Acts, ch 82, §14; 2009 Acts, ch 123, §12; 2009 Acts, ch 184, §32; 2011 Acts, ch 118, §87, 89
Referred to in 
For aggregate limitations on amount of tax credits, see §15.119 
Code editor directive applied

  15.330  Agreement.
  A business shall enter into an agreement with the authority specifying the requirements that must be met to confirm eligibility pursuant to this part. The authority shall consult with the community during negotiations relating to the agreement. The agreement shall contain, at a minimum, the following provisions:
  1.  A business that is approved to receive incentives shall, for the length of the agreement, certify annually to the authority the compliance of the business with the requirements of the agreement. If the business receives a local property tax exemption, the business shall also certify annually to the community the compliance of the business with the requirements of the agreement.
  2.  The repayment of incentives by the business if the business does not meet any of the requirements of this part or the resulting agreement.
  3.  If a business that is approved to receive incentives under this part experiences a layoff within the state or closes any of its facilities within the state, the authority shall have the discretion to reduce or eliminate some or all of the incentives. If a business has received incentives under this part and experiences a layoff within the state or closes any of its facilities within the state, the business may be subject to repayment of all or a portion of the incentives that it has received.
  4.  A project completion date, a maintenance period completion date, the number of jobs to be created or retained, or certain other terms and obligations described in section 15G.112, subsection 1, paragraph “d”, as the authority deems necessary in order to make the requirements in project agreements uniform. The authority, with the approval of the board, may adopt rules as necessary for making such requirements uniform. Such rules shall be in compliance with the provisions of this part and with the provisions of chapter 15G.
94 Acts, ch 1008, §7; 2004 Acts, ch 1003, §1, 12; 2005 Acts, ch 150, §45, 68, 69; 2009 Acts, ch 123, §13; 2011 Acts, ch 118, §87, 89
Referred to in 
For aggregate limitations on amount of tax credits, see §15.119 
Code editor directive applied
  15.331  New jobs credit from withholding.  Repealed by 2005 Acts, ch 150, §  67 – 69.  See §  15E.197. 

  15.331A  Sales and use tax refund.
  1.  The eligible business shall be entitled to a refund of the sales and use taxes paid under chapter 423 for gas, electricity, water, or sewer utility services, goods, wares, or merchandise, or on services rendered, furnished, or performed to or for a contractor or subcontractor and used in the fulfillment of a written contract relating to the construction or equipping of a facility of the eligible business. Taxes attributable to intangible property and furniture and furnishings shall not be refunded. However, an eligible business shall be entitled to a refund for taxes attributable to racks, shelving, and conveyor equipment to be used in a warehouse or distribution center subject to section 15.331C.
  2.  To receive the refund, a claim shall be filed by the eligible business with the department of revenue as follows:
  a.  The contractor or subcontractor shall state under oath, on forms provided by the department, the amount of the sales of goods, wares, or merchandise or services rendered, furnished, or performed including water, sewer, gas, and electric utility services upon which sales or use tax has been paid prior to the project completion, and shall file the forms with the eligible business before final settlement is made.
  b.  The eligible business shall, not more than one year after project completion, make application to the department for any refund of the amount of the sales and use taxes paid pursuant to chapter 423 upon any goods, wares, or merchandise, or services rendered, furnished, or performed, including water, sewer, gas, and electric utility services. The application shall be made in the manner and upon forms to be provided by the department, and the department shall audit the claim and, if approved, issue a warrant to the eligible business in the amount of the sales or use tax which has been paid to the state of Iowa under a contract. A claim filed by the eligible business in accordance with this section shall not be denied by reason of a limitation provision set forth in chapter 421 or 423.
  c.  The eligible business shall inform the department of revenue in writing within two weeks of project completion. For purposes of this section, “project completion” means the first date upon which the average annualized production of finished product for the preceding ninety-day period at the manufacturing facility operated by the eligible business is at least fifty percent of the initial design capacity of the facility.
  3.  A contractor or subcontractor who willfully makes a false report of tax paid under the provisions of this section is guilty of a simple misdemeanor and in addition is liable for the payment of the tax and any applicable penalty and interest.
96 Acts, ch 1199, §2; 2001 Acts, ch 116, §1; 2003 Acts, ch 145, §286; 2003 Acts, 1st Ex, ch 2, §152, 205; 2004 Acts, ch 1003, §2, 12; 2005 Acts, ch 150, §46, 68, 69; 2008 Acts, ch 1031, §79; 2008 Acts, ch 1032, §123; 2009 Acts, ch 123, §14
Referred to in 
For aggregate limitations on amount of tax credits, see §15.119 
  15.331B  Exemption from land ownership restrictions for nonresident aliens.  Repealed by 2005 Acts, ch 150, §  67 – 69. 

  15.331C  Corporate tax credit for certain sales taxes paid by third-party developer.
  1.  An eligible business may claim a corporate tax credit in an amount equal to the sales and use taxes paid by a third-party developer under chapter 423 for gas, electricity, water, or sewer utility services, goods, wares, or merchandise, or on services rendered, furnished, or performed to or for a contractor or subcontractor and used in the fulfillment of a written contract relating to the construction or equipping of a facility of the eligible business. Taxes attributable to intangible property and furniture and furnishings shall not be included, but taxes attributable to racks, shelving, and conveyor equipment to be used in a warehouse or distribution center shall be included. Any credit in excess of the tax liability for the tax year may be credited to the tax liability for the following seven years or until depleted, whichever occurs earlier. An eligible business may elect to receive a refund of all or a portion of an unused tax credit.
  2.  A third-party developer shall state under oath, on forms provided by the department of revenue, the amount of taxes paid as described in subsection 1 and shall submit such forms to the department of revenue. The taxes paid shall be itemized to allow identification of the taxes attributable to racks, shelving, and conveyor equipment to be used in a warehouse or distribution center. After receiving the form from the third-party developer, the department of revenue shall issue a tax credit certificate to the eligible business equal to the sales and use taxes paid by a third-party developer under chapter 423 for gas, electricity, water, or sewer utility services, goods, wares, or merchandise, or on services rendered, furnished, or performed to or for a contractor or subcontractor and used in the fulfillment of a written contract relating to the construction or equipping of a facility. The department of revenue shall also issue a tax credit certificate to the eligible business equal to the taxes paid and attributable to racks, shelving, and conveyor equipment to be used in a warehouse or distribution center. The aggregate combined total amount of tax refunds under section 15.331A for taxes attributable to racks, shelving, and conveyor equipment to be used in a warehouse or distribution center and of tax credit certificates issued by the department of revenue for the taxes paid and attributable to racks, shelving, and conveyor equipment to be used in a warehouse or distribution center shall not exceed five hundred thousand dollars in a fiscal year. If an applicant for a tax credit certificate does not receive a certificate for the taxes paid and attributable to racks, shelving, and conveyor equipment to be used in a warehouse or distribution center, the application shall be considered in succeeding fiscal years. The eligible business shall not claim a tax credit under this section unless a tax credit certificate issued by the department of revenue is attached to the taxpayer’s tax return for the tax year for which the tax credit is claimed. A tax credit certificate shall contain the eligible business’s name, address, tax identification number, the amount of the tax credit, and other information deemed necessary by the department of revenue.
2004 Acts, ch 1003, §3, 12; 2005 Acts, ch 19, §14; 2005 Acts, ch 150, §47, 68, 69; 2009 Acts, ch 82, §4
Referred to in 
For aggregate limitations on amount of tax credits, see §15.119 

  15.332  Value-added property tax exemption.
  1.  The community may exempt from taxation all or a portion of the actual value added by improvements to real property directly related to new jobs created by the location or expansion of an eligible business under the program and used in the operations of the eligible business. The exemption may be allowed for a period not to exceed twenty years beginning the year the improvements are first assessed for taxation.
  2.  For purposes of this section, “improvements” includes new construction and rehabilitation of and additions to existing structures. The exemption shall apply to all taxing districts in which the real property is located.
94 Acts, ch 1008, §9; 94 Acts, ch 1165, §43
Referred to in 

  15.333  Investment tax credit.
  1.  An eligible business may claim a tax credit equal to a percentage of the new investment directly related to new jobs created or retained by the location or expansion of an eligible business under the program. The tax credit shall be amortized equally over five calendar years. The tax credit shall be allowed against taxes imposed under chapter 422, division II, III, or V, and against the moneys and credits tax imposed in section 533.329. If the business is a partnership, S corporation, limited liability company, cooperative organized under chapter 501 and filing as a partnership for federal tax purposes, or estate or trust electing to have the income taxed directly to the individual, an individual may claim the tax credit allowed. The amount claimed by the individual shall be based upon the pro rata share of the individual’s earnings of the partnership, S corporation, limited liability company, cooperative organized under chapter 501 and filing as a partnership for federal tax purposes, or estate or trust. The percentage shall be determined as provided in section 15.335A. Any tax credit in excess of the tax liability for the tax year may be credited to the tax liability for the following seven years or until depleted, whichever occurs first.
  2.  For purposes of this subsection, “new investment directly related to new jobs created by the location or expansion of an eligible business under the program” means the cost of machinery and equipment, as defined in section 427A.1, subsection 1, paragraphs “e” and “j”, purchased for use in the operation of the eligible business, the purchase price of which has been depreciated in accordance with generally accepted accounting principles, the purchase price of real property and any buildings and structures located on the real property, and the cost of improvements made to real property which is used in the operation of the eligible business. “New investment directly related to new jobs created by the location or expansion of an eligible business under the program” also means the annual base rent paid to a third-party developer by an eligible business for a period not to exceed ten years, provided the cumulative cost of the base rent payments for that period does not exceed the cost of the land and the third-party developer’s costs to build or renovate the building for the eligible business. The eligible business shall enter into a lease agreement with the third-party developer for a minimum of five years. If, however, within five years of purchase, the eligible business sells, disposes of, razes, or otherwise renders unusable all or a part of the land, buildings, or other existing structures for which tax credit was claimed under this section, the tax liability of the eligible business for the year in which all or part of the property is sold, disposed of, razed, or otherwise rendered unusable shall be increased by one of the following amounts:
  a.  One hundred percent of the tax credit claimed under this section if the property ceases to be eligible for the tax credit within one full year after being placed in service.
  b.  Eighty percent of the tax credit claimed under this section if the property ceases to be eligible for the tax credit within two full years after being placed in service.
  c.  Sixty percent of the tax credit claimed under this section if the property ceases to be eligible for the tax credit within three full years after being placed in service.
  d.  Forty percent of the tax credit claimed under this section if the property ceases to be eligible for the tax credit within four full years after being placed in service.
  e.  Twenty percent of the tax credit claimed under this section if the property ceases to be eligible for the tax credit within five full years after being placed in service.
94 Acts, ch 1008, §10; 99 Acts, ch 172, §1; 2000 Acts, ch 1213, §1, 10; 2001 Acts, ch 123, §1; 2001 Acts, ch 141, §1, 8; 2002 Acts, ch 1119, §5; 2002 Acts, 2nd Ex, ch 1001, §47, 49, 52; 2003 Acts, ch 125, §8; 2003 Acts, ch 145, §286; 2003 Acts, ch 150, §1 – 3; 2004 Acts, ch 1003, §4, 12; 2005 Acts, ch 135, §103; 2005 Acts, ch 150, §48, 68, 69; 2007 Acts, ch 174, §82; 2009 Acts, ch 123, §15; 2010 Acts, ch 1138, §27, 28; 2011 Acts, ch 34, §6; 2011 Acts, ch 118, §85, 89
Referred to in 
For aggregate limitations on amount of tax credits, see §15.119 
See Code editor's note on simple harmonization
Subsection 1, paragraph b stricken and former paragraph a redesignated as an unnumbered paragraph

  15.333A  Insurance premium tax credits.
  1.  An eligible business may claim an insurance premium tax credit equal to a percentage of the new investment directly related to new jobs created by the location or expansion of an eligible business under the program. The tax credit shall be amortized equally over a five-year period. The tax credit shall be allowed against taxes imposed in chapter 432. A tax credit in excess of the tax liability for the tax year may be credited to the tax liability for the following seven years or until depleted, whichever occurs first. The percentage shall be determined as provided in section 15.335A.
  2.  For purposes of this section, “new investment directly related to new jobs created by the location or expansion of an eligible business under the program” means the cost of machinery and equipment, as defined in section 427A.1, subsection 1, paragraphs “e” and “j”, purchased for use in the operation of the eligible business, the purchase price of which has been depreciated in accordance with generally accepted accounting principles, the purchase price of real property and any buildings and structures located on the real property, and the cost of improvements made to real property which is used in the operation of the eligible business. “New investment directly related to new jobs created by the location or expansion of an eligible business under the program” also means the annual base rent paid to a third-party developer by an eligible business for a period not to exceed ten years, provided the cumulative cost of the base rent payments for that period does not exceed the cost of the land and the third-party developer’s costs to build or renovate the building for the eligible business. The eligible business shall enter into a lease agreement with the third-party developer for a minimum of five years. If, however, within five years of purchase, the eligible business sells, disposes of, razes, or otherwise renders unusable all or a part of the land, buildings, or other existing structures for which tax credit was claimed under this section, the tax liability of the eligible business for the year in which all or part of the property is sold, disposed of, razed, or otherwise rendered unusable shall be increased by one of the following amounts:
  a.  One hundred percent of the tax credit claimed under this section if the property ceases to be eligible for the tax credit within one full year after being placed in service.
  b.  Eighty percent of the tax credit claimed under this section if the property ceases to be eligible for the tax credit within two full years after being placed in service.
  c.  Sixty percent of the tax credit claimed under this section if the property ceases to be eligible for the tax credit within three full years after being placed in service.
  d.  Forty percent of the tax credit claimed under this section if the property ceases to be eligible for the tax credit within four full years after being placed in service.
  e.  Twenty percent of the tax credit claimed under this section if the property ceases to be eligible for the tax credit within five full years after being placed in service.
98 Acts, ch 1084, §1; 2000 Acts, ch 1213, §2, 10; 2004 Acts, ch 1003, §5, 12; 2005 Acts, ch 150, §49, 68, 69
Referred to in 
For aggregate limitations on amount of tax credits, see §15.119 
2005 amendments to this section apply to tax years ending on or after July 1, 2005; continuation of contracts under new jobs and income program; 2005 Acts, ch 150, §68, 69 
  15.334  Exemption from taxation for machinery, equipment, and computers.  Repealed by 2005 Acts, ch 150, §  67 – 69. 

  15.334A  Sales and use tax exemption.  Repealed by 2005 Acts, ch 150, §  67 – 69. 

  15.335  Research activities credit.
  1.  a.  An eligible business may claim a corporate tax credit for increasing research activities in this state during the period the eligible business is participating in the program.
  b.  For purposes of this section, “research activities” includes the development and deployment of innovative renewable energy generation components manufactured or assembled in this state. For purposes of this section, “innovative renewable energy generation components” does not include a component with more than two hundred megawatts of installed effective nameplate capacity.
  c.  The tax credits for innovative renewable energy generation components shall not exceed two million dollars.
  2.  a.   In the case of an eligible business whose gross revenues do not exceed twenty million dollars per year, the credit equals the sum of the following:
  (1)   Ten percent of the excess of qualified research expenses during the tax year over the base amount for the tax year based upon the state’s apportioned share of the qualifying expenditures for increasing research activities.
  (2)   Ten percent of the basic research payments determined under section 41(e)(1)(A) of the Internal Revenue Code during the tax year based upon the state’s apportioned share of the qualifying expenditures for increasing research activities.
  b.  In the case of an eligible business whose gross revenues exceed twenty million dollars per year, the credit equals the sum of the following:
  (1)  Three percent of the excess of qualified research expenses during the tax year over the base amount for the tax year based upon the state’s apportioned share of the qualifying expenditures for increasing research activities.
  (2)  Three percent of the basic research payments determined under section 41(e)(1)(A) of the Internal Revenue Code during the tax year based upon the state’s apportioned share of the qualifying expenditures for increasing research activities.
  3.   For purposes of subsection 2, the state’s apportioned share of the qualifying expenditures for increasing research activities is a percent equal to the ratio of qualified research expenditures in this state to total qualified research expenditures.
  4.  a.  In lieu of the credit amount computed in subsection 2, an eligible business may elect to compute the credit amount for qualified research expenses incurred in this state in a manner consistent with the alternative simplified credit described in section 41(c)(5) of the Internal Revenue Code. The taxpayer may make this election regardless of the method used for the taxpayer’s federal income tax. The election made under this paragraph is for the tax year and the taxpayer may use another or the same method for any subsequent year.
  b.  For purposes of the alternate credit computation method in paragraph  “a”, the credit percentages applicable to qualified research expenses described in section 41(c)(5)(A) and clause (ii) of section 41(c)(5)(B) of the Internal Revenue Code are as follows:
  (1)  In the case of an eligible business whose gross revenues do not exceed twenty million dollars per year, the credit percentages are seven percent and three percent, respectively.
  (2)  In the case of an eligible business whose gross revenues exceed twenty million dollars per year, the credit percentages are two and one-tenth percent and nine-tenths percent, respectively.
  5.  The credit allowed in this section is in addition to the credit authorized in section 422.10 and section 422.33, subsection 5. However, if the alternative credit computation method is used in section 422.10 or section 422.33, subsection 5, the credit allowed in this section shall also be computed using that method.
  6.  If the eligible business is a partnership, S corporation, limited liability company, or estate or trust electing to have the income taxed directly to the individual, an individual may claim the tax credit allowed. The amount claimed by the individual shall be based upon the pro rata share of the individual’s earnings of the partnership, S corporation, limited liability company, or estate or trust.
  7.  a.  For purposes of this section, “base amount”, “basic research payment”, and “qualified research expense” mean the same as defined for the federal credit for increasing research activities under section 41 of the Internal Revenue Code, except that for the alternative simplified credit such amounts are for research conducted within this state.
  b.  For purposes of this section, “Internal Revenue Code” means the Internal Revenue Code in effect on January 1, 2011.
  8.  Any credit in excess of the tax liability for the taxable year shall be refunded with interest computed under section 422.25. In lieu of claiming a refund, a taxpayer may elect to have the overpayment shown on its final, completed return credited to the tax liability for the following year.
  9.  The department of revenue shall by February 15 of each year issue an annual report to the general assembly containing the total amount of all claims made by employers under this section, and the portion of the claims issued as refunds, for all claims processed during the previous calendar year. The report shall contain the name of each claimant for whom a tax credit in excess of five hundred thousand dollars was issued and the amount of the credit received.
94 Acts, ch 1008, §12; 94 Acts, ch 1165, §44; 96 Acts, ch 1199, §4; 97 Acts, ch 135, §1, 9; 98 Acts, ch 1078, §1, 10, 14; 99 Acts, ch 95, §1, 12, 13; 2000 Acts, ch 1146, §1, 9, 11; 2000 Acts, ch 1194, §1, 21; 2001 Acts, ch 127, §1, 9, 10; 2002 Acts, ch 1069, §1, 10, 14; 2003 Acts, ch 139, §1, 11, 12; 2004 Acts, ch 1073, §1; 2005 Acts, ch 24, §1, 10, 11; 2005 Acts, ch 150, §70; 2006 Acts, ch 1140, §1, 10, 11; 2007 Acts, ch 12, §1, 7, 8; 2008 Acts, ch 1011, §1, 9; 2008 Acts, ch 1032, §201; 2009 Acts, ch 171, §1; 2009 Acts, ch 179, §102, 153, 232; 2010 Acts, ch 1138, §7, 8; 2011 Acts, ch 41, §8, 9, 14 – 16
Referred to in 
Internal Revenue Code definition is updated regularly; for applicable definition in a prior tax year, refer to Iowa Acts and Code for that year 
For aggregate limitations on amount of tax credits, see §15.119 
2010 amendment applies to tax credits awarded on or after July 1, 2010; 2010 Acts, ch 1138, § 8
2011 amendment to subsection 4 takes effect April 12, 2011, and applies retroactively to July 1, 2010, for tax credits awarded on or after that date; 2011 Acts, ch 41, §14, 15
2011 amendment to subsection 7 takes effect April 12, 2011, and applies retroactively to January 1, 2010, for tax years beginning on or after that date; 2011 Acts, ch 41, §14, 16
Subsections 4 and 7 amended

  15.335A  Tax incentives.
  1.  Tax incentives are available to eligible businesses as provided in this section. The incentives are based upon the number of jobs created or retained that pay at least one hundred thirty percent of the qualifying wage threshold as computed pursuant to section 15G.112, subsection 4, and the amount of the qualifying investment made according to the following schedule:
  a.  The number of jobs is zero and economic activity is furthered by the qualifying investment and the amount of the qualifying investment is one of the following:
  (1)  Less than one hundred thousand dollars, then the tax incentive is the investment tax credit of up to one percent.
  (2)  At least one hundred thousand dollars but less than five hundred thousand dollars, then the tax incentives are the investment tax credit of up to one percent and the sales tax refund.
  (3)  At least five hundred thousand dollars, then the tax incentives are the investment tax credit of up to one percent, the sales tax refund, and the additional research and development tax credit.
  b.  The number of jobs is one but not more than five and the amount of the qualifying investment is one of the following:
  (1)  Less than one hundred thousand dollars, then the tax incentive is the investment tax credit of up to two percent.
  (2)  At least one hundred thousand dollars but less than five hundred thousand dollars, then the tax incentives are the investment tax credit of up to two percent and the sales tax refund.
  (3)  At least five hundred thousand dollars, then the tax incentives are the investment tax credit of up to two percent, the sales tax refund, and the additional research and development tax credit.
  c.  The number of jobs is six but not more than ten and the amount of the qualifying investment is one of the following:
  (1)  Less than one hundred thousand dollars, then the tax incentive is the investment tax credit of up to three percent.
  (2)  At least one hundred thousand dollars but less than five hundred thousand dollars, then the tax incentives are the investment tax credit of up to three percent and the sales tax refund.
  (3)  At least five hundred thousand dollars, then the tax incentives are the investment tax credit of up to three percent, the sales tax refund, and the additional research and development tax credit.
  d.  The number of jobs is eleven but not more than fifteen and the amount of the qualifying investment is one of the following:
  (1)  Less than one hundred thousand dollars, then the tax incentive is the investment tax credit of up to four percent.
  (2)  At least one hundred thousand dollars but less than five hundred thousand dollars, then the tax incentives are the investment tax credit of up to four percent and the sales tax refund.
  (3)  At least five hundred thousand dollars, then the tax incentives are the investment tax credit of up to four percent, the sales tax refund, and the additional research and development tax credit.
  e.  The number of jobs is sixteen or more and the amount of the qualifying investment is one of the following:
  (1)  Less than one hundred thousand dollars, then the tax incentive is the investment tax credit of up to five percent.
  (2)  At least one hundred thousand dollars but less than five hundred thousand dollars, then the tax incentives are the investment tax credit of up to five percent and the sales tax refund.
  (3)  At least five hundred thousand dollars, then the tax incentives are the investment tax credit of up to five percent, the sales tax refund, and the additional research and development tax credit.
  f.  The number of jobs is thirty-one but not more than forty and the amount of the qualifying investment is at least ten million dollars, then the tax incentives are the local property tax exemption, the investment tax credit of up to six percent, the sales tax refund, and the additional research and development tax credit.
  g.  The number of jobs is forty-one but not more than sixty and the amount of the qualifying investment is at least ten million dollars, then the tax incentives are the local property tax exemption, the investment tax credit of up to seven percent, the sales tax refund, and the additional research and development tax credit.
  h.  The number of jobs is sixty-one but not more than eighty and the amount of the qualifying investment is at least ten million dollars, then the tax incentives are the local property tax exemption, the investment tax credit of up to eight percent, the sales tax refund, and the additional research and development tax credit.
  i.  The number of jobs is eighty-one but not more than one hundred and the amount of the qualifying investment is at least ten million dollars, then the tax incentives are the local property tax exemption, the investment tax credit of up to nine percent, the sales tax refund, and the additional research and development tax credit.
  j.  The number of jobs is at least one hundred one and the amount of the qualifying investment is at least ten million dollars, then the tax incentives are the local property tax exemption, the investment tax credit of up to ten percent, the sales tax refund, and the additional research and development tax credit.
  2.  For purposes of this section:
  a.  “Additional research and development tax credit” means the research activities credit as provided under section 15.335.
  b.  “Benefits” means the same as defined in section 15G.101.
  c.  “County wage” means the same as defined in section 15G.101.
  d.  “Investment tax credit” means the investment tax credit or the insurance premium tax credit as provided under section 15.333 or 15.333A, respectively.
  e.  “Local property tax exemption” means the property tax exemption as provided under section 15.332.
  f.  “Qualifying wage threshold” means the same as defined in section 15G.101.
  g.  “Regional wage” means the same as defined in section 15G.101.
  h.  “Sales tax refund” means the sales and use tax refund as provided under section 15.331A or the corporate tax credit for certain sales taxes paid by third-party developers as provided under section 15.331C.
  3.  A community may apply to the economic development authority for a project-specific waiver from the qualifying wage threshold requirement provided in subsection 1 in order to seek tax incentives for an eligible business. The authority may grant a project-specific waiver from the qualifying wage threshold requirement in subsection 1 for the remainder of a calendar year, based on county wage or regional wage calculations brought forth by the applicant county including but not limited to any of the following:
  a.  The county wage calculated without wage data from the business in the county employing the greatest number of full-time employees.
  b.  The regional wage calculated without wage data from up to two adjacent counties.
  c.  The county wage calculated without wage data from the largest city in the county.
  d.  A qualifying wage guideline for a specific project based upon unusual economic circumstances present in the city or county.
  e.  The annualized, average hourly wage paid by all businesses in the county located outside the largest city of the county.
  f.  The annualized, average hourly wage paid by all businesses other than the largest employer in the entire county.
  4.  Each calendar year, the authority shall not approve more than three million six hundred thousand dollars worth of investment tax credits for projects with qualifying investments of less than one million dollars.
  5.  The authority shall negotiate the amount of tax incentives provided to an applicant under the program in accordance with this section and section 15G.112, as applicable.
2005 Acts, ch 150, §50, 69; 2008 Acts, ch 1191, §160; 2009 Acts, ch 123, §16; 2010 Acts, ch 1009, §1, 4; 2011 Acts, ch 118, §84, 85, 89
Referred to in 
For aggregate limitations on amount of tax credits, see §15.119 
Code editor directives applied

  15.336  Other incentives.
  An eligible business may receive other applicable federal, state, and local incentives and credits in addition to those provided in this part.
94 Acts, ch 1008, §13; 2005 Acts, ch 150, §51, 68, 69; 2008 Acts, ch 1191, §161
Referred to in 
  15.337  Waiver of program qualification requirements.  Repealed by 2005 Acts, ch 150, §  67 – 69. 

PART 14
15.338 and 15.339Repealed by 2009 Acts, ch 123, §  8.  See §  15G.112(6). 
  15.340  Reserved.

PART 15

  15.341  Workforce development fund program.
  This part shall be known as the “Workforce Development Fund” program.
95 Acts, ch 184, §1
Referred to in 

  15.342  Purpose.
  The purpose of this part shall be to provide a mechanism for funding workforce development programs listed in section 15.343, subsection 2, in order to more efficiently meet the needs identified within those individual programs.
95 Acts, ch 184, §2

  15.342A  Workforce development fund account.
  A workforce development fund account is established in the office of the treasurer of state under the control of the authority. The account shall receive funds pursuant to section 422.16A up to a maximum of four million dollars per year. The account shall also receive funds pursuant to section 15.251 with no dollar limitation.
96 Acts, ch 1180, §1; 99 Acts, ch 183, §2; 2000 Acts, ch 1196, §1, 10; 2000 Acts, ch 1230, §15, 35; 2001 Acts, ch 188, §21; 2011 Acts, ch 118, §87, 89
Referred to in 
Code editor directive applied

  15.343  Workforce development fund.
  1.  a.  A workforce development fund is created as a revolving fund in the state treasury under the control of the authority consisting of any moneys appropriated by the general assembly for that purpose and any other moneys available to and obtained or accepted by the authority from the federal government or private sources for placement in the fund. The fund shall also include moneys appropriated to the fund from the workforce development fund account established in section 15.342A.
  b.  Notwithstanding section 8.33, moneys in the workforce development fund at the end of each fiscal year shall not revert to any other fund but shall remain in the workforce development fund for expenditure for subsequent fiscal years.
  2.  The assets of the fund shall be used by the authority for the following programs and purposes:
  a.  Training and retraining programs for targeted industries.
  b.  Projects under chapter 260F. The authority shall require a match from all businesses participating in a training project under chapter 260F.
  c.  Apprenticeship programs under section 260C.44, including new or statewide building trades apprenticeship programs.
  d.  Innovative skill development activities.
  e.  To cover the costs of the administration of workforce development programs and services available through the authority. A portion of these funds may be used to support efforts by the community colleges to provide workforce services to Iowa employers.
  3.  Moneys in the workforce development fund shall be allocated as follows:
  a.  Three million dollars shall be used for purposes provided in section 260F.6.
  b.  One million dollars shall be used for purposes provided in section 260F.6B.
95 Acts, ch 184, §3; 96 Acts, ch 1180, §2, 4 – 6; 96 Acts, ch 1186, §5 – 7; 99 Acts, ch 183, §3; 2000 Acts, ch 1230, §16; 2001 Acts, ch 188, §22; 2003 Acts, ch 35, §45, 49; 2008 Acts, ch 1032, §201; 2008 Acts, ch 1122, §10, 11; 2011 Acts, ch 118, §87, 89
Referred to in 
Code editor directive applied

  15.344  Common system — assessment and tracking.
  The authority shall use information from the customer tracking system administered by the department of workforce development under section 84A.5 to determine the economic impact of the programs. To the extent possible, the authority shall track individuals and businesses who have received assistance or services through the fund to determine whether the assistance or services have resulted in increased wages paid to the individuals or paid by the businesses.
96 Acts, ch 1180, §7; 2011 Acts, ch 118, §87, 89
Code editor directive applied
15.345 and 15.346Repealed by 96 Acts, ch 1180, §  20. 
15.347 and 15.348Repealed by 96 Acts, ch 1186, §  26.  See §  84A.8. 
PART 16

  15.349  Shelter assistance fund.  Repealed by 2010 Acts, ch 1031, §  267. See § 16.41.

  15.350  Reserved.

PART 17
15.351 through 15.354Repealed by 2008 Acts, ch 1097, §  4. 
15.355 through 15.360Reserved.
PART 18
15.361 through 15.367Repealed by 98 Acts, ch 1225, §  21, 40. 

  15.368  World food prize award and support.
  1.  Commencing with the fiscal year beginning July 1, 2009, there is annually appropriated from the general fund of the state to the authority one million dollars for the support of the world food prize award.
  2.  The Iowa state capitol is designated as the primary location for the annual ceremony to award the world food prize.
2008 Acts, ch 1191, §30; 2011 Acts, ch 118, §87, 89
Appropriation of $650,000 for fiscal year beginning July 1, 2010; 2010 Acts, ch 1188, §3
Appropriation of $500,000 for fiscal year beginning July 1, 2011; 2011 Acts, ch 130, §3, 71
Appropriation of $250,000 for fiscal year beginning July 1, 2012; 2011 Acts, ch 130, §50, 71
Code editor directive applied
15.369 and 15.370Reserved.
PART 19
15.371 through 15.373Repealed by 2000 Acts, ch 1174, §  30.  See chapter 15F. 
15.374 through 15.380Reserved.
PART 20
15.381 through 15.387Repealed by 2005 Acts, ch 150, §  67 – 69.  See §  15.326 through 15.336. 
15.388 through 15.390Reserved.
PART 21

  15.391  Short title.
  This part shall be known as the “Film, Television, and Video Project Promotion Program”.
2007 Acts, ch 162, §1, 13
Referred to in 

  15.392  Purpose.
  The purpose of the film, television, and video project promotion program is to assist legitimate film, television, and video producers in the production of film, television, and video projects in the state and to increase the fiscal impact on the state’s economy of film, television, and video projects produced in the state. The program includes assistance in the production of advertising projects in a film, television, or video medium.
2007 Acts, ch 162, §2, 13
Referred to in 

  15.393  Film, television, and video project promotion program — tax credits and income exclusion.
  1.  The authority shall establish and administer a film, television, and video project promotion program that provides for the registration of projects to be shot on location in the state. A project that is registered under the program is entitled to the assistance provided in subsection 2. A fee may be charged for registering. The amount of the fee charged for registering shall be determined by the authority by rule. Registration fees collected by the authority under this section shall be used to administer the program. The authority shall not register a project unless the authority determines that all of the following criteria are met:
  a.  The project is a legitimate effort to produce an entire film, television, or video episode or a film, television, or video segment in the state.
  b.  The project will include expenditures of at least one hundred thousand dollars in the state and have an economic impact on the economy of the state or locality sufficient to justify assistance under the program.
  c.  The project will further tourism, economic development, and population retention or growth in the state or locality.
  d.  Other criteria established by rule relating to the economic impact and promotional aspects of the project on the state or locality.
  2.  A project registered with the authority under the program is eligible for the following assistance:
  a.  (1)  For tax years beginning on or after January 1, 2007, a qualified expenditure tax credit shall be allowed against the taxes imposed in chapter 422, divisions II, III, and V, and in chapter 432, and against the moneys and credits tax imposed in section 533.329, for a portion of a taxpayer’s qualified expenditures in a project registered under the program. The tax credit shall equal an amount not to exceed twenty-five percent of the qualified expenditures on a project. The authority may negotiate the amount of the tax credit. An individual may claim a tax credit under this paragraph “a” of a partnership, limited liability company, S corporation, estate, or trust electing to have income taxed directly to the individual. The amount claimed by the individual shall be based upon the pro rata share of the individual’s earnings from the partnership, limited liability company, S corporation, estate, or trust. Any tax credit in excess of the taxpayer’s liability for the tax year may be credited to the tax liability for the following five years or until depleted, whichever is earlier. A tax credit shall not be carried back to a tax year prior to the tax year in which the taxpayer claims the tax credit.
  (2)  A qualified expenditure by a taxpayer is a payment to an Iowa resident or an Iowa-based business for the sale, rental, or furnishing of tangible personal property or for services directly related to the registered project including but not limited to aircraft, vehicles, equipment, materials, supplies, accounting, animals and animal care, artistic and design services, graphics, construction, data and information services, delivery and pickup services, labor and personnel, lighting, makeup and hairdressing, film, music, photography, sound, video and related services, printing, research, site fees and rental, travel related to Iowa distant locations, trash removal and cleanup, and wardrobe.
  (a)  For purposes of this subparagraph, “labor and personnel” includes compensation paid to the principal producer, principal director, and principal cast members if the principal producer, principal director, or principal cast member is an Iowa resident or an Iowa-based business, and if the compensation paid meets one of the following conditions:
  (i)  If the qualified expenditures are at least ten million dollars but less than twenty million dollars, the compensation paid to each principal producer, principal director, and principal cast member does not exceed two hundred fifty thousand dollars each.
  (ii)  If the qualified expenditures are at least twenty million dollars, the compensation paid to each principal producer, principal director, and principal cast member does not exceed one million dollars each.
  (b)  For purposes of this subparagraph, “labor and personnel” includes compensation paid to personnel other than the principal producer, principal director, or principal cast members if the compensation paid meets one of the following conditions:
  (i)  If the qualified expenditures are less than ten million dollars, the compensation paid to labor and personnel other than the principal producer, the principal director, and principal cast members, does not exceed one hundred fifty thousand dollars each.
  (ii)  If the qualified expenditures are at least ten million dollars but less than twenty million dollars, the compensation paid to labor and personnel other than the principal producer, the principal director, and the principal cast members, does not exceed two hundred thousand dollars each.
  (iii)  If the qualified expenditures are at least twenty million dollars, the compensation paid to labor and personnel other than the principal producer, the principal director, and the principal cast members, does not exceed three hundred thousand dollars each.
  (c)  The department of revenue, in consultation with the economic development authority, shall by rule establish a list of eligible and negotiable expenditures.
  (3)  After verifying the eligibility for a tax credit under this paragraph “a”, the economic development authority shall issue a film, television, and video project promotion program tax credit certificate to be attached to the person’s tax return. The tax credit certificate shall contain the taxpayer’s name, address, tax identification number, the date of project completion, the amount of credit, other information required by the department of revenue, and a place for the name and tax identification number of a transferee and the amount of the tax credit being transferred. Tax credit certificates issued under this paragraph “a” may be transferred to any person or entity. Within ninety days of transfer, the transferee shall submit the transferred tax credit certificate to the department of revenue along with a statement containing the transferee’s name, tax identification number, and address, and the denomination that each replacement tax credit certificate is to carry and any other information required by the department of revenue. Within thirty days of receiving the transferred tax credit certificate and the transferee’s statement, the department of revenue shall issue one or more replacement tax credit certificates to the transferee. Each replacement tax credit certificate must contain the information required for the original tax credit certificate and must have the same expiration date that appeared in the transferred tax credit certificate. Tax credit certificate amounts of less than the minimum amount established by rule of the economic development authority shall not be transferable. A tax credit shall not be claimed by a transferee under this paragraph “a” until a replacement tax credit certificate identifying the transferee as the proper holder has been issued. The transferee may use the amount of the tax credit transferred against the taxes imposed in chapter 422, divisions II, III, and V, and in chapter 432, and against the moneys and credits tax imposed in section 533.329, for any tax year the original transferor could have claimed the tax credit. Any consideration received for the transfer of the tax credit shall not be included as income under chapter 422, divisions II, III, and V, under chapter 432, or against the moneys and credits tax imposed in section 533.329. Any consideration paid for the transfer of the tax credit shall not be deducted from income under chapter 422, divisions II, III, and V, under chapter 432, or against the moneys and credits tax imposed in section 533.329.
  (4)  A taxpayer claiming a tax credit under this paragraph “a”, a business in which such taxpayer has an equity interest, and a business in which such taxpayer participates in its management is not eligible to receive the adjusted gross income reduction under paragraph “c”.
  b.  (1)  For tax years beginning on or after January 1, 2007, an investment tax credit shall be allowed against the taxes imposed in chapter 422, divisions II, III, and V, and in chapter 432, and against the moneys and credits tax imposed in section 533.329, for a portion of a taxpayer’s investment in a project registered under the program. The tax credit shall equal an amount not to exceed twenty-five percent of the qualified expenditures on the project. The authority may negotiate the amount of the tax credit. An individual may claim a tax credit under this paragraph of a partnership, limited liability company, S corporation, estate, or trust electing to have income taxed directly to the individual. The amount claimed by the individual shall be based upon the pro rata share of the individual’s earnings from the partnership, limited liability company, S corporation, estate, or trust. Any tax credit in excess of the taxpayer’s liability for the tax year may be credited to the tax liability for the following five years or until depleted, whichever is earlier. A tax credit shall not be carried back to a tax year prior to the tax year in which the taxpayer claims the tax credit. A taxpayer shall not claim a tax credit under this paragraph “b” for qualified expenditures for which a tax credit is claimed under paragraph “a”.
  (2)  After verifying the eligibility for a tax credit under this paragraph “b”, the economic development authority shall issue a film, television, and video project promotion program tax credit certificate to be attached to the person’s tax return. The tax credit certificate shall contain the taxpayer’s name, address, tax identification number, the date of project completion, the amount of credit, other information required by the department of revenue, and a place for the name and tax identification number of a transferee and the amount of the tax credit being transferred. Tax credit certificates issued under this paragraph “b” may be transferred to any person or entity. Within ninety days of transfer, the transferee shall submit the transferred tax credit certificate to the department of revenue along with a statement containing the transferee’s name, tax identification number, and address, and the denomination that each replacement tax credit certificate is to carry and any other information required by the department of revenue. Within thirty days of receiving the transferred tax credit certificate and the transferee’s statement, the department of revenue shall issue one or more replacement tax credit certificates to the transferee. Each replacement tax credit certificate must contain the information required for the original tax credit certificate and must have the same expiration date that appeared in the transferred tax credit certificate. Tax credit certificate amounts of less than the minimum amount established by rule of the economic development authority shall not be transferable. A tax credit shall not be claimed by a transferee under this paragraph “b” until a replacement tax credit certificate identifying the transferee as the proper holder has been issued. The transferee may use the amount of the tax credit transferred against the taxes imposed in chapter 422, divisions II, III, and V, and in chapter 432, and against the moneys and credits tax imposed in section 533.329, for any tax year the original transferor could have claimed the tax credit. Any consideration received for the transfer of the tax credit shall not be included as income under chapter 422, divisions II, III, and V, under chapter 432, or against the moneys and credits tax imposed in section 533.329. Any consideration paid for the transfer of the tax credit shall not be deducted from income under chapter 422, divisions II, III, and V, under chapter 432, or against the moneys and credits tax imposed in section 533.329.
  c.  For the tax year in which a qualified expenditure occurred, and for the ensuing three tax years, a taxpayer may claim a reduction in adjusted gross income not to exceed in a tax year twenty-five percent of the amount of the qualified expenditure for purposes of taxes imposed in chapter 422, divisions II and III, for payments received from the sale, rental, or furnishing of tangible personal property or services directly related to the production of a project registered under this section which meets the criteria of a qualified expenditure under paragraph “a”, subparagraph (2).
  3.  The authority shall promote the program and the assistance available under the program on an internet website.
  4.  A project that depicts or describes any obscene material, as defined in section 728.1, shall not be eligible to receive assistance under this section.
  5.  The authority shall not register a new project pursuant to this section until July 1, 2013.
2007 Acts, ch 162, §3, 13; 2007 Acts, ch 174, §99; 2008 Acts, ch 1032, §4, 5; 2008 Acts, ch 1122, §3; 2009 Acts, ch 109, §1 – 6; 2010 Acts, ch 1138, §5, 6; 2011 Acts, ch 118, §85, 89
Referred to in 
For aggregate limitations on amount of tax credits, see §15.119 
2009 amendments to this section apply to projects registered on or after July 1, 2009; 2009 Acts, ch 109, §6 
Code editor directive applied
15.394 through 15.400Reserved.
PART 22

  15.401  Renewable fuels.  Repealed by 2008 Acts, ch 1169, §  26, 30.  See § 159A.14.
Section not amended; internal reference change applied
15.402 through 15.410Reserved.
PART 23

  15.411  Targeted industries development — financial assistance.
  1.  As used in this part, unless the context otherwise requires:
  a.  “Internship” means temporary employment of a student that focuses on providing the student with work experience in the student’s field of study.
  b.  “Targeted industries” means the industries of advanced manufacturing, biosciences, and information technology.
  2.  The authority shall, upon board approval, contract with service providers on a case-by-case basis for services related to statewide commercialization development in the targeted industries. Services provided shall include all of the following:
  a.  Assistance provided directly to businesses by experienced serial entrepreneurs for all of the following activities:
  (1)  Business plan development.
  (2)  Due diligence.
  (3)  Market assessments.
  (4)  Technology assessments.
  (5)  Other planning activities.
  b.  Operation and coordination of various available competitive seed and prototype development funds.
  c.  Connecting businesses to private angel investors and the venture capital community.
  d.  Assistance in obtaining access to an experienced pool of managers and operations talent that can staff, mentor, or advise start-up enterprises.
  e.  Support and advice for accessing sources of early stage financing.
  3.  The authority shall establish and administer a program to provide financial and technical assistance to encourage prototype and concept development activities that have a clear potential to lead to commercially viable products or services within a reasonable period of time in the targeted industries. Financial assistance shall be awarded on a per project basis upon board approval. The amount of financial assistance available for a single project shall not exceed one hundred fifty thousand dollars. In order to receive financial assistance, an applicant must demonstrate the ability to secure one dollar of nonstate moneys for every two dollars received from the authority.
  4.  The authority shall, upon board approval, establish and administer a program to provide financial assistance for projects designed to encourage collaboration between commercial users and developers of information technology in the state for the purpose of commercializing existing software and applications technologies. Financial assistance shall not exceed one hundred thousand dollars per project. In order to receive financial assistance, an applicant must demonstrate the ability to secure two dollars of nonstate moneys for every one dollar received from the authority. Financial assistance shall be awarded to projects that will result in technologies being developed as commercial products for sale by Iowa companies rather than as custom applications for proprietary use by a participating firm.
  5.  The authority shall, upon board approval, establish and administer a program to provide financial assistance to businesses or departments of businesses engaged in the delivery of information technology services in the state for the purpose of upgrading the high-level technical skills of existing employees. The amount of financial assistance shall not exceed twenty-five thousand dollars for any business site. In order to receive financial assistance, an applicant must demonstrate the ability to secure two dollars of nonstate moneys for every one dollar received from the authority.
  6.  The authority shall, upon board approval, establish and administer a targeted industries internship program for Iowa students. For purposes of this subsection, “Iowa student” means a student of an Iowa community college, private college, or institution of higher learning under the control of the state board of regents, or a student who graduated from high school in Iowa but now attends an institution of higher learning outside the state of Iowa. The purpose of the program is to link Iowa students to small and medium sized Iowa firms in the targeted industries through internship opportunities. An Iowa employer may receive financial assistance in an amount of one dollar for every two dollars paid by the employer to an intern. The amount of financial assistance shall not exceed three thousand one hundred dollars for any single internship, or nine thousand three hundred dollars for any single employer. In order to be eligible to receive financial assistance under this subsection, the employer must have five hundred or fewer employees and must be engaged in a targeted industry. The authority shall encourage youth who reside in economically distressed areas, youth adjudicated to have committed a delinquent act, and youth transitioning out of foster care to participate in the targeted industries internship program.
  7.  The economic development authority shall work with the department of workforce development to create a statewide supplier capacity and product database to assist the economic development authority in linking suppliers to Iowa-based companies. The economic development authority may procure technical assistance for the creation of the database from a third party through a request for proposals process.
  8.  The technology commercialization committee created pursuant to section 15.116 shall review all applications for financial assistance and requests for proposals pursuant to this section and make recommendations to the board.
  9.  In each fiscal year, the authority may transfer additional moneys that become available to the authority from sources such as loan repayments or recaptures of awards from federal economic stimulus funds to the innovation and commercialization development fund created in section 15.412, provided the authority spends those moneys for the implementation of the recommendations included in the separate consultant reports on bioscience, advanced manufacturing, information technology, and entrepreneurship submitted to the department* in calendar years 2004, 2005, and 2006.
  10.  The board shall adopt rules pursuant to chapter 17A necessary for the administration of this section.
2007 Acts, ch 122, §1; 2008 Acts, ch 1122, §17 – 19; 2009 Acts, ch 82, §1; 2010 Acts, ch 1009, §2, 4; 2011 Acts, ch 118, §85, 89
Referred to in 
*“Department of economic development” probably intended; corrective legislation is pending
Code editor directive applied

  15.412  Innovation and commercialization development fund.
  1.  a.  An innovation and commercialization development fund is created in the state treasury under the control of the authority. The fund shall consist of moneys appropriated to the authority and any other moneys available to, obtained, or accepted by the authority for placement in the fund.
  b.  Payments of interest, repayments of moneys loaned pursuant to this section, and recaptures of financial assistance shall be credited to the fund. Moneys in the fund are not subject to section 8.33. Notwithstanding section 12C.7, interest or earnings on moneys in the fund shall be credited to the fund.
  2.  Moneys in the fund are appropriated to the authority and, with the approval of the board, shall be used to facilitate agreements, enhance commercialization in the targeted industries, and increase the availability of skilled workers within the targeted industries.
  3.  Moneys in the fund, with the approval of the board, may also be used for the following purposes:
  a.  For assistance to entities providing student internship opportunities.
  b.  For increasing career awareness training.
  c.  For recruiting management talent.
  d.  For assistance to entities engaged in prototype and concept development activities.
  e.  For developing a statewide commercialization network.
  f.  For deploying and maintaining an Iowa entrepreneur website.
  g.  For funding asset mapping and supply chain initiatives, including for identifying methods of supporting lean manufacturing practices or processes.
  h.  For information technology training.
  i.  For networking events to facilitate the transfer of technology among researchers and industries.
  j.  For funding student competition programs.
  k.  For the purchase of advanced equipment and software at Iowa community colleges in order to support training and coursework related to the targeted industries.
2009 Acts, ch 82, §2; 2011 Acts, ch 118, §87, 89
Referred to in 
Code editor directive applied
15.413 through 15.420Reserved.
PART 24

  15.421  Generation Iowa commission.  Repealed by 2011 Acts, ch 122, §  13, 14.
With respect to proposed amendments to this section by 2011 Acts, ch 118, § 85, 89, see Code editor’s note on simple harmonization