CHAPTER 68
HIGH QUALITY JOBS PROGRAM (HQJP)
261—68.1(15) Administrative procedures and definitions.
	68.1(1) Administrative procedures. The HQJP is subject to the requirements of the department’s rules located in 261—Part VII, additional application requirements and procedures, and 261—Part VIII, legal and compliance. Part VII and Part VIII include standard definitions; standard program requirements; wage, benefit and investment requirements; application review and approval procedures; contracting; contract compliance and job counting; and annual reporting requirements.
	68.1(2) Definitions. In addition to the standard definitions located in 261—Chapter 173, the following definitions apply to the HQJP:
“Act” means Iowa Code sections 15.326 to 15.337 as amended by 2009 Iowa Acts, Senate File 344.
“Annual base rent” means the business’s annual lease payment minus taxes, insurance and operating or maintenance expenses.
“Biotechnology-related processes” means the use of cellular and biomolecular processes to solve problems or make products. For purposes of this definition, farming activities shall not be included.
“Community” means a city, county, or other entity established pursuant to Iowa Code chapter 28E.
“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.
“Eligible business” means a business meeting the conditions of Iowa Code section 15.329 as amended by 2009 Iowa Acts, Senate File 344, section 12.
“High quality jobs” means created or retained jobs that meet the wage requirements established in subrule 68.2(4) and subrules 68.2(7) and 68.2(8) when applicable.
“Program” means the high quality jobs program.
“Project” means the activity, or set of activities, proposed in the application by the business which will result in accomplishing the goals of the program and for which the business is requesting tax incentives and assistance. A project shall include the start-up, location, expansion, or modernization of a business.
“Value-added agricultural products” means agricultural products which, through a series of activities or processes, can be sold at a higher price than the original purchase price.
[ARC 7970B, IAB 7/15/09, effective 7/1/09; ARC 8145B, IAB 9/23/09, effective 10/28/09]
261—68.2(15) Eligibility requirements.
	68.2(1) Community approval. If the qualifying investment is $10 million or more, the community in which the business’s project is or will be located shall approve by ordinance or resolution the start-up, location, expansion, or modernization of the business for purposes of receiving tax incentives and assistance under this program.
	68.2(2) Closures or relocations. The business shall not close or substantially reduce operations in one area of this state and relocate substantially the same operations in a community in another area of this state. This subrule shall not be construed to prohibit the business from expanding its operations in a community if existing operations of a similar nature in this state are not closed or substantially reduced.
	68.2(3) No retail or service businesses. The business shall not be a retail or service business. For purposes of this subrule, a service business is a business providing services to a local consumer market which does not have a significant proportion of its sales coming from outside the state.
	68.2(4) Created and retained jobs. The business shall create or retain jobs as part of a project.
	a. 	The business shall pay the qualifying wage threshold for HQJP as established in 261—Chapter 174.
	b. 	If the business is creating jobs, the business shall demonstrate that the jobs will pay at least 100 percent of the qualifying wage threshold at the start of the project completion period, at least 130 percent of the qualifying wage threshold by the project completion date, and at least 130 percent of the qualifying wage threshold until the maintenance period completion date.
	c. 	If the business is retaining jobs, the business shall demonstrate that the jobs retained will pay at least 130 percent of the qualifying wage threshold throughout both the project completion period and the maintenance period.
	68.2(5) Determination of sufficient benefits. The business shall provide a sufficient package of benefits to each employee holding a created or retained job. The business shall offer a sufficient benefits package to its employees as defined in 261—Chapter 173.
	68.2(6) Sufficient fiscal impact. 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 department after calculating the fiscal impact ratio of the project.
	68.2(7) Violations of law. If the department finds that a business has a record of violations of law over a period of time that tends to show a consistent pattern as described in 261—Chapter 172, the business shall not qualify for tax incentives and assistance under this program.
	68.2(8) Competition. The department shall consider the impact of the proposed project on other Iowa businesses in competition with the business that is seeking tax incentives and assistance. The department shall make a good faith effort to identify existing Iowa businesses within an industry in competition with the business that is seeking tax incentives and assistance. The department shall make a good faith effort to determine the probability that the proposed financial assistance will negatively impact other existing Iowa businesses including but not limited to displacing employees of the existing business.
	68.2(9) Other benefits. A business may seek benefits and assistance for its project from other applicable federal, state, and local programs in addition to those provided in this program. However, a business which has received assistance for its project from the wage-benefit tax credit program or the enterprise zone program shall not be eligible for tax incentives and assistance under this program. A business which has received assistance for its project from the new jobs and income program or the new capital investment program shall not be eligible for tax incentives and assistance under this program for the same project. However, the business may receive tax incentives and assistance under this program for subsequent projects.
	68.2(10) Ineligibility—no high quality jobs created or retained. If a project is creating or retaining jobs, but none are high quality jobs, then the project is not eligible to receive benefits and assistance under this program.
[ARC 7557B, IAB 2/11/09, effective 3/18/09; ARC 7970B, IAB 7/15/09, effective 7/1/09; ARC 8145B, IAB 9/23/09, effective 10/28/09]
261—68.3(15) Application process and review.
	68.3(1) Application. The department shall develop a standardized application and make it available to a business applying for tax incentives and assistance. The application procedures are as follows:
	a. 	An application will not be accepted after project initiation.
	b. 	A signature from the appropriate community official shall be required on the application as indication that the community is aware of and supports the project. For a project with a qualifying investment of $10 million or more, the community ordinance or resolution approving the project shall accompany the application.
	c. 	Each application will be reviewed by the department. The department may request additional information from the business that is applying for tax incentives and assistance or may use other resources to obtain the needed information.
	d. 	If the business meets the eligibility requirements, the department staff will prepare a report which includes a summary of the project and a recommendation on the amount of tax incentives and assistance to be offered to the business.
	68.3(2) Wage waiver. Rescinded IAB 7/4/07, effective 6/15/07.
	68.3(3) Benefit values. Rescinded IAB 7/4/07, effective 6/15/07.
	68.3(4) Negotiations. The department reserves the right to enter into negotiations with the business regarding the amount of tax incentives and assistance the business shall receive. All forms of tax incentives and assistance available under the program may be subject to negotiations. The department shall consider all of the following factors with respect to entering into negotiations with the business:
	a. 	Level of need. The three general justifiable reasons for assistance are as follows:
	(1)	The business can raise only a portion of the debt and equity necessary to complete the project. A gap between sources and uses exists and state or federal funds or both are needed to fill the gap.
	(2)	The business can raise sufficient debt and equity to complete the project, but the returns are inadequate to motivate a company decision maker to proceed with the project. Project risks outweigh the rewards.
	(3)	The business is deciding between a site in Iowa (site A) and a site in another state (site B) for its project. The business argues that the project will cost less at site B and will require a subsidy to equalize costs in order to locate at site A. The objective is to quantify the cost differential between site A and site B.
Projects that have already been initiated will not be considered for funding.
	b. 	Quality of the jobs. The department shall place greater emphasis on projects involving created or retained jobs that:
	(1)	Have a higher wage scale. Businesses that have wage scales substantially higher than those of existing Iowa businesses in that industry shall be considered as providing the highest quality of jobs.
	(2)	Have a lower turnover rate.
	(3)	Are full-time or career-type positions.
	c. 	Percentage of created jobs defined as high quality jobs. The department will consider the number of high quality jobs to be created versus the total number of created jobs in determining what amount of tax incentives and assistance to offer the business.
	d. 	Economic impact. In measuring the economic impact to this state, the department shall place greater emphasis on projects which demonstrate the following:
	(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.
[ARC 7970B, IAB 7/15/09, effective 7/1/09; ARC 8145B, IAB 9/23/09, effective 10/28/09]
261—68.4(15) Tax incentives and assistance.
	68.4(1) Sales and use tax refund. Pursuant to Iowa Code section 15.331A, the approved business may be entitled to a refund of the sales and use taxes paid under Iowa Code 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 approved business. Taxes attributable to intangible property and furniture and furnishings shall not be refunded.
	a. 	Filing a claim. To receive the refund, the approved business shall file a claim with the department of revenue as follows:
	(1)	The contractor or subcontractor shall state under oath, on forms provided by the department of revenue, the amount of sales or 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 approved business before final settlement is made.
	(2)	The approved business shall, not more than 12 months following project completion, make application to the department of revenue for any refund of the amount of the sales and use taxes paid pursuant to Iowa Code chapter 423 upon any goods, wares, or merchandise, or services rendered, furnished, or performed, including water, sewer, gas, and electric utility services.
	(3)	The eligible business shall inform the department of revenue in writing within two weeks of project completion.
	b. 	Racks, shelving, and conveyor equipment. If the project is the location, expansion, or modernization of a warehouse or distribution center, the approved business may be entitled to a refund of sales and use taxes attributable to racks, shelving, and conveyor equipment. The approved business shall, not more than 12 months following project completion, make written application to the department for a refund. The application must include the refund amount being requested and documentation such as invoices or contracts which substantiate the requested amount. The department, in consultation with the department of revenue, will validate the refund amount and instruct the department of revenue to issue the refund.
The aggregate combined total amount of refunds and tax credits attributable to sales and use taxes on racks, shelving, and conveyor equipment issued by the department to businesses approved for high quality jobs program and enterprise zone program benefits shall not exceed $500,000 during a fiscal year. Tax refunds and tax credits will be issued on a first-come, first-served basis. If an approved business’s application does not receive a refund or tax credits due to the $500,000 fiscal year limitation, the approved business’s application shall be considered in the succeeding fiscal year.
	68.4(2) Corporate tax credit for certain sales taxes paid by third-party developer. Pursuant to Iowa Code section 15.331C, the approved business may claim a corporate tax credit up to an amount equal to the sales and use taxes paid by a third-party developer under Iowa Code 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 approved business. Taxes attributable to intangible property and furniture and furnishings shall not be refunded.
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 earlier. An approved business may elect to receive a refund of all or a portion of an unused tax credit.
	a. 	Filing a claim. To receive the tax credit, the approved business shall file a claim with the department as follows:
	(1)	The third-party developer shall state under oath, on forms provided by the department of revenue, the amount of sales and use taxes paid and submit the forms to the approved business.
	(2)	The approved business shall, not more than 12 months following project completion, submit the completed forms to the department.
	(3)	In consultation with the department of revenue, the department shall issue a tax credit certificate in an amount equal to all or a portion of the sales and use taxes paid by a third-party developer under Iowa Code 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 approved business.
	(4)	The approved business shall not claim the tax credit provided in this subrule unless a tax credit certificate issued by the department is attached to the approved business’s tax return for the tax year in which the tax credit is claimed. A tax credit certificate shall contain the approved business’s name, address, tax identification number, the amount of the tax credit, and other information required by the department of revenue.
	b. 	Racks, shelving, and conveyor equipment. If the project is the location, expansion, or modernization of a warehouse or distribution center, the approved business may claim a corporate tax credit up to the amount of sales and use taxes paid by a third-party developer and attributable to racks, shelving, and conveyor equipment. The approved business shall, not more than 12 months following project completion, make written application to the department for a tax credit. The application must include the tax credit amount being requested and documentation from the third-party developer such as invoices or contracts which substantiate the requested amount. The department, in consultation with the department of revenue, will confirm the tax credit amount and issue a tax credit certificate in an amount equal to all or a portion of the sales and use taxes attributable to racks, shelving, and conveyor equipment. The approved business shall not claim the tax credit provided in this subrule unless a tax credit certificate issued by the department is attached to the approved business’s tax return for the tax year in which the tax credit is claimed. A tax credit certificate shall contain the approved business’s name, address, tax identification number, the amount of the tax credit, and other information required by the department of revenue. 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 earlier. An approved business may elect to receive a refund of all or a portion of an unused tax credit.
The aggregate combined total amount of refunds and tax credits attributable to sales and use taxes on racks, shelving, and conveyor equipment issued by the department to businesses approved for high quality jobs program and enterprise zone program benefits shall not exceed $500,000 during a fiscal year. Tax refunds and tax credits will be issued on a first-come, first-served basis. If an approved business’s application does not receive a refund or tax credits due to the $500,000 fiscal year limitation, the approved business’s application shall be considered in the succeeding fiscal year.
	68.4(3) Value-added property tax exemption. Pursuant to Iowa Code section 15.332, the community may exempt from taxation all or a portion of the actual value added by improvements to real property directly related to jobs created or retained by the location or expansion of the approved business and used in the operations of the approved business. The exemption may be allowed for a period not to exceed 20 years beginning the year the improvements are first assessed for taxation. For purposes of this subrule, improvements include 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. The community shall provide the department and the local assessor with a copy of the resolution adopted by its governing body which indicates the estimated value and duration of the authorized exemption.
	68.4(4) Investment tax credit.
	a. 	Claiming the investment tax credit. Pursuant to Iowa Code section 15.333, the approved business may claim an investment tax credit equal to a percentage of the new investment directly related to jobs created or retained by the start-up, location, expansion, or modernization of the approved business under the program. The tax credit shall be earned when the qualifying asset is placed in service.
	(1)	Five-year amortization period. The tax credit shall be amortized equally over a five-year period which the department will, in consultation with the approved business, define. The five-year amortization period will be specified in the agreement referenced in subrule 68.5(1). The tax credit shall be allowed against taxes imposed under Iowa Code chapter 422, division II, III, or V and against the moneys and credits tax imposed in Iowa Code section 533.24.
	(2)	Flow-through of tax credits. If the business is a partnership, S corporation, limited liability company, cooperative organized under Iowa Code chapter 501 or 501A 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 Iowa Code chapter 501 or 501A and filing as a partnership for federal tax purposes, or estate or trust.
	(3)	Seven-year carryforward. 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.
	b. 	Investment qualifying for the tax credit. For purposes of this subrule, new investment directly related to jobs created or retained by the start-up, location, expansion or modernization of the approved business under the program means all of the following:
	(1)	The cost of machinery and equipment, as defined in Iowa Code section 427A.1, subsection 1, paragraphs “e” and “j,” purchased for use in the operation of the approved business.
	(2)	The purchase price of real property and any buildings and structures located on the real property.
	(3)	The cost of improvements made to real property which is used in the operation of the approved business.
	(4)	The annual base rent paid to a third-party developer by an approved business for a period equal to the term of the lease agreement but not to exceed the maximum term of the agreement referenced in subrule 68.5(1), 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 approved business. Annual base rent shall be considered only when the project includes the construction of a new building or the major renovation of an existing building. The approved business shall enter into a lease agreement with the third-party developer for a minimum of five years.
Pursuant to subrule 68.4(9), the approved business shall not claim a tax credit above the amount defined in the final award documentation.
	c. 	Refunds.
	(1)	Refund of unused tax credit. Subject to prior approval by the department, in consultation with the department of revenue, an approved business whose project primarily involves the production of value-added agricultural products or uses biotechnology-related processes may elect to receive a refund of all or a portion of an unused tax credit.
	(2)	IRS Section 521. For purposes of this paragraph, an approved business includes a cooperative, described in Section 521 of the Internal Revenue Code, that is not required to file an Iowa corporate income tax return and whose project primarily involves the production of ethanol.
	(3)	Refund of unused tax credit procedures. For application to receive a refund of all or a portion of an unused tax credit, the following procedures apply:
	1.	Department approval required. The department will determine whether an approved business’s project primarily involves the production of value-added agricultural products or uses biotechnology-related processes.
	2.	Application for a tax credit certificate. The approved business shall apply for a tax credit certificate using the form provided by the department. Requests for tax credit certificates will be accepted between May 1 and May 15 of each fiscal year. Only those approved businesses that have been issued final award documentation pursuant to subrule 68.4(9) before the May 1 filing date may apply for a tax credit certificate.
The department shall require the cooperative, as described in Section 521 of the Internal Revenue Code, to submit a list of members whom the cooperative wishes to receive a tax credit certificate for their prorated share of ownership. The cooperative shall submit its list in a computerized electronic format that is compatible with the system used or designated by the department. For each cooperative member approved for a tax credit certificate, the computerized list shall, at a minimum, include the name, address, social security number or taxpayer identification number, business telephone number and ownership percentage, carried out to six decimal places. The cooperative shall also submit a total dollar amount of the unused investment tax credit for which the cooperative’s members are requesting a tax credit certificate.
	(4)	Issuance of tax credit certificates. The department shall not issue tax credit certificates to approved businesses in the high quality jobs program and the enterprise zone program which total more than $4 million during a fiscal year. If the department receives applications for tax credit certificates in excess of $4 million, the applicants shall receive certificates for a prorated amount. In such a case, the tax credit requested by an approved business will be prorated based upon the total dollar amount of requested tax credit certificates received during the fiscal year. This proportion will be applied to the amount requested by each approved business to determine the amount of the tax credit certificate that will be distributed to each business for the fiscal year. For example, if an approved business submits a request in the amount of $1 million and the total amount of requested tax credit certificates equals $8 million, the business will be issued a tax credit certificate in the amount of $500,000 ($4 million / $8 million = 50% × $1 million = $500,000). The department will issue tax credit certificates within a reasonable period of time following the May 15 application deadline.
	(5)	Claiming the tax credit certificate. Tax credit certificates shall not be valid until the tax year following the date the final award documentation was issued. The tax credit certificates shall not be transferred except in the case of a cooperative as described in Section 521 of the Internal Revenue Code whose approved project primarily involves the production of ethanol. For such cooperative, the individual members of the cooperative are approved to receive the tax credit certificates. The approved business may not claim a tax credit refund unless a tax credit certificate issued by the department is attached to the taxpayer’s tax return for the tax year in which the tax credit refund is claimed.
	(6)	Carryforward. An approved business may apply for a tax credit certificate once each year for up to seven years after the final award documentation is issued or until the approved business’s unused tax credit is depleted, whichever occurs first. For example, an approved business which receives its final award documentation in October 2005 and has an investment tax credit of $1 million may apply for a tax credit certificate in May 2006. If, because of proration of the $4 million of available refundable credits for the fiscal year, the business is awarded a tax credit certificate in the amount of $300,000, the business may claim the $300,000 refund and carry forward the unused investment tax credit of $700,000 up to seven years or until the credit is depleted, whichever occurs first.
	68.4(5) Insurance premium tax credit. Pursuant to Iowa Code section 15.333A, the approved business may claim an insurance premium tax credit equal to a percentage of the new investment directly related to jobs created or retained by the start-up, location, expansion, or modernization of the approved business under the program.
	a. 	Claiming the tax credit. The tax credit shall be earned when the qualifying asset is placed in service. The tax credit shall be amortized equally over a five-year period which the department will, in consultation with the eligible business, define. The five-year amortization period shall be specified in the agreement referenced in subrule 68.5(1). The tax credit shall be allowed against taxes imposed under Iowa Code 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.
	b. 	Investment qualifying for the tax credit. For purposes of this subrule, new investment directly related to jobs created or retained by the start-up, location, expansion or modernization of the approved business under the program means all of the following:
	(1)	The cost of machinery and equipment, as defined in Iowa Code section 427A.1, subsection 1, paragraphs “e” and “j,” purchased for use in the operation of the approved business.
	(2)	The purchase price of real property and any buildings and structures located on the real property.
	(3)	The cost of improvements made to real property which is used in the operation of the approved business.
	(4)	The annual base rent paid to a third-party developer by an approved business for a period equal to the term of the lease agreement but not to exceed the maximum term of the agreement referenced in subrule 68.5(1), 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 approved business. Annual base rent shall be considered only when the project includes the construction of a new building or the major renovation of an existing building. The approved business shall enter into a lease agreement with the third-party developer for a minimum of five years.
Pursuant to subrule 68.4(9), the approved business shall not claim a tax credit above the amount defined in the final award documentation.
	68.4(6) Research activities credit. Pursuant to Iowa Code section 15.335, the approved business may claim a corporate tax credit for increasing research activities in Iowa during the period the approved business is participating in the program.
	a. 	Calculation. The credit equals the sum of the following:
	(1)	Six and one-half 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)	Six and one-half 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.
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.
	b. 	Alternate calculation. In lieu of the credit amount computed in subparagraph 68.4(6)“a”(1), the approved business may elect to compute the credit amount for qualified research expenses incurred in Iowa in a manner consistent with the alternative incremental credit described in Section 41(c)(4) 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 subrule 68.4(6) is for the tax year and the taxpayer may use either the method outlined in paragraph “a” or in this paragraph for any subsequent year.
For purposes of this alternate credit computation method, the credit percentages applicable to the qualified research expenses described in clauses (i), (ii), and (iii) of Section 41(c)(4)(A) of the Internal Revenue Code are 1.65 percent, 2.20 percent, and 2.75 percent, respectively.
	c. 	Additional research activities credit. The credit allowed in this subrule is in addition to the credit authorized in Iowa Code sections 422.10 and 422.33(5). However, if the alternative credit computation method is used in Iowa Code section 422.10 or 422.33(5), the credit allowed in this subrule shall also be computed using that method.
	d. 	Flow-through of tax credits. 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 from the partnership, S corporation, limited liability company, or estate or trust.
	e. 	Definitions. For purposes of this subrule, “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 incremental credit, such amounts are for research conducted within Iowa. For purposes of this subrule, “Internal Revenue Code” means the Internal Revenue Code in effect on January 31, 2005.
	f. 	Refunds. Any credit in excess of the tax liability for the taxable year shall be refunded with interest computed under Iowa Code 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.
	g. 	Renewable energy generation components. For purposes of this subrule, “research activities” includes the development and deployment of innovative renewable energy generation components manufactured or assembled in Iowa. A renewable energy generation component will no longer be considered innovative when more than 200 megawatts of installed effective nameplate capacity has been achieved. Research activities credits awarded under this program and the enterprise zone program for innovative renewable energy generation components shall not exceed $1 million.
	68.4(7) Maximum tax incentives available. Tax incentives and assistance awarded under this program are based upon the number of jobs created or retained that pay the qualifying wage threshold for HQJP as established in 261—Chapter 174 and as defined in 261—Chapter 173 and the amount of qualifying investment. The maximum possible award is based on the following schedule:
	a. 	No high quality jobs are created or retained but economic activity is furthered by the qualifying investment. For purposes of this paragraph, “economic activity” means a modernization project which will result in increased skills and wages for the current employees; a project involving retained jobs; or a project that involves a waiver, granted by the board pursuant to rule 261—174.6(15E,15G,83GA,SF344), of the qualifying wage threshold calculation if the reason for the waiver is that damages were sustained as a result of a natural disaster in a presidentially declared disaster area.
	(1)	Less than $100,000 in qualifying investment.
	1.	Investment tax credit or insurance premium tax credit of up to 1 percent.
	2.	Reserved.
	(2)	$100,000 to $499,999 in qualifying investment.
	1.	Investment tax credit or insurance premium tax credit of up to 1 percent.
	2.	Sales and use tax refund or corporate tax credit for certain sales taxes paid by third-party developer, or both, if applicable.
	(3)	$500,000 or more in qualifying investment.
	1.	Investment tax credit or insurance premium tax credit of up to 1 percent.
	2.	Sales and use tax refund or corporate tax credit for certain sales taxes paid by third-party developer, or both, if applicable.
	3.	Research activities credit.
	b. 	1 to 5 high quality jobs are created or retained.
	(1)	Less than $100,000 in qualifying investment.
	1.	Investment tax credit or insurance premium tax credit of up to 2 percent.
	2.	Reserved.
	(2)	$100,000 to $499,999 in qualifying investment.
	1.	Investment tax credit or insurance premium tax credit of up to 2 percent.
	2.	Sales and use tax refund or corporate tax credit for certain sales taxes paid by third-party developer, or both, if applicable.
	(3)	$500,000 or more in qualifying investment.
	1.	Investment tax credit or insurance premium tax credit of up to 2 percent.
	2.	Sales and use tax refund or corporate tax credit for certain sales taxes paid by third-party developer, or both, if applicable.
	3.	Research activities credit.
	c. 	6 to 10 high quality jobs are created or retained.
	(1)	Less than $100,000 in qualifying investment.
	1.	Investment tax credit or insurance premium tax credit of up to 3 percent.
	2.	Reserved.
	(2)	$100,000 to $499,999 in qualifying investment.
	1.	Investment tax credit or insurance premium tax credit of up to 3 percent.
	2.	Sales and use tax refund or corporate tax credit for certain sales taxes paid by third-party developer, or both, if applicable.
	(3)	$500,000 or more in qualifying investment.
	1.	Investment tax credit or insurance premium tax credit of up to 3 percent.
	2.	Sales and use tax refund or corporate tax credit for certain sales taxes paid by third-party developer, or both, if applicable.
	3.	Research activities credit.
	d. 	11 to 15 high quality jobs are created or retained.
	(1)	Less than $100,000 in qualifying investment.
	1.	Investment tax credit or insurance premium tax credit of up to 4 percent.
	2.	Reserved.
	(2)	$100,000 to $499,999 in qualifying investment.
	1.	Investment tax credit or insurance premium tax credit of up to 4 percent.
	2.	Sales and use tax refund or corporate tax credit for certain sales taxes paid by third-party developer, or both, if applicable.
	(3)	$500,000 or more in qualifying investment.
	1.	Investment tax credit or insurance premium tax credit of up to 4 percent.
	2.	Sales and use tax refund or corporate tax credit for certain sales taxes paid by third-party developer, or both, if applicable.
	3.	Research activities credit.
	e. 	16 to 30 high quality jobs are created or retained.
	(1)	Less than $100,000 in qualifying investment.
	1.	Investment tax credit or insurance premium tax credit of up to 5 percent.
	2.	Reserved.
	(2)	$100,000 to $499,999 in qualifying investment.
	1.	Investment tax credit or insurance premium tax credit of up to 5 percent.
	2.	Sales and use tax refund or corporate tax credit for certain sales taxes paid by third-party developer, or both, if applicable.
	(3)	$500,000 or more in qualifying investment.
	1.	Investment tax credit or insurance premium tax credit of up to 4 percent.
	2.	Sales and use tax refund or corporate tax credit for certain sales taxes paid by third-party developer, or both, if applicable.
	3.	Research activities credit.
	f. 	31 to 40 high quality jobs are created or retained.
	(1)	$10 million or more in qualifying investment.
	1.	Investment tax credit or insurance premium tax credit of up to 6 percent.
	2.	Sales and use tax refund or corporate tax credit for certain sales taxes paid by third-party developer, or both, if applicable.
	3.	Research activities credit.
	4.	Value-added property tax exemption.
	(2)	Reserved.
	g. 	41 to 60 high quality jobs are created or retained.
	(1)	$10 million or more in qualifying investment.
	1.	Investment tax credit or insurance premium tax credit of up to 7 percent.
	2.	Sales and use tax refund or corporate tax credit for certain sales taxes paid by third-party developer, or both, if applicable.
	3.	Research activities credit.
	4.	Value-added property tax exemption.
	(2)	Reserved.
	h. 	61 to 80 high quality jobs are created or retained.
	(1)	$10 million or more in qualifying investment.
	1.	Investment tax credit or insurance premium tax credit of up to 8 percent.
	2.	Sales and use tax refund or corporate tax credit for certain sales taxes paid by third-party developer, or both, if applicable.
	3.	Research activities credit.
	4.	Value-added property tax exemption.
	(2)	Reserved.
	i. 	81 to 100 high quality jobs are created or retained.
	(1)	$10 million or more in qualifying investment.
	1.	Investment tax credit or insurance premium tax credit of up to 9 percent.
	2.	Sales and use tax refund or corporate tax credit for certain sales taxes paid by third-party developer, or both, if applicable.
	3.	Research activities credit.
	4.	Value-added property tax exemption.
	(2)	Reserved.
	j. 	101 or more high quality jobs are created or retained.
	(1)	$10 million or more in qualifying investment.
	1.	Investment tax credit or insurance premium tax credit of up to 10 percent.
	2.	Sales and use tax refund or corporate tax credit for certain sales taxes paid by third-party developer, or both, if applicable.
	3.	Research activities credit.
	4.	Value-added property tax exemption.
	(2)	Reserved.
	68.4(8) Award limitations. Each calendar year, the department shall not approve more than $3.6 million worth of investment tax credits and insurance premium tax credits for projects with qualifying investments of less than $1 million. Tax credits subject to this limitation will be awarded on a first-come, first-served basis.
	68.4(9) Final award amounts. Rescinded IAB 7/15/09, effective 7/1/09.
[ARC 7557B, IAB 2/11/09, effective 3/18/09; ARC 7970B, IAB 7/15/09, effective 7/1/09; ARC 8145B, IAB 9/23/09, effective 10/28/09]
261—68.5(81GA,HF868) Agreement, compliance and repayment provisions. Rescinded IAB 7/4/07, effective 6/15/07.
These rules are intended to implement Iowa Code sections 15.326 to 15.336 as amended by 2009 Iowa Acts, Senate File 344.
[Filed emergency 7/7/05—published 8/3/05, effective 7/7/05]
[Filed 10/21/05, Notice 8/3/05—published 11/9/05, effective 12/14/05]
[Filed emergency 7/19/06—published 8/16/06, effective 7/19/06]
[Filed 9/22/06, Notice 8/16/06—published 10/11/066, effective 11/15/06]
[Filed emergency 6/15/07—published 7/4/07, effective 6/15/07]
[Filed 8/22/07, Notice 7/4/07—published 9/26/07, effective 10/31/07]
[Filed emergency 10/16/08—published 11/5/08, effective 10/16/08]
[Filed ARC 7557B (Notice ARC 7315B, IAB 11/5/08), IAB 2/11/09, effective 3/18/09]
[Filed Emergency ARC 7970B, IAB 7/15/09, effective 7/1/09]
[Filed ARC 8145B (Notice ARC 7971B, IAB 7/15/09), IAB 9/23/09, effective 10/28/09]