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 authority’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:
“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.
“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 created pursuant to Iowa Code chapter 15, part 13.
“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.
“Project completion assistance” means financial assistance or technical assistance provided to an eligible business in order to facilitate the start-up, location, modernization, or expansion of the business in this state and provided in an expedient manner to ensure the successful completion of the start-up, location, modernization, or expansion project.
“Retail business” means any business engaged in the business of selling tangible personal property or taxable services at retail in this state. Retail business includes a business obligated to collect sales or use tax under Iowa Code chapter 423.
[ARC 7970B, IAB 7/15/09, effective 7/1/09; ARC 8145B, IAB 9/23/09, effective 10/28/09; ARC 0442C, IAB 11/14/12, effective 12/19/12]
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) Relocations and reductions in operations.
	a. 	The business shall not be solely relocating operations from one area of the state while seeking state or local incentives. A project that does not create new jobs or involve a substantial amount of new capital investment shall be presumed to be a relocation. In determining whether a business is solely relocating operations for purposes of this subrule, the authority will consider whether a letter of support for the move has been provided from the affected local community.
	b. 	The business shall not be in the process of reducing operations in one community while simultaneously applying for assistance under the program. For purposes of this subrule, a reduction in operations within 12 months before or after an application for assistance is submitted to the authority will be presumed to be a reduction in operations while simultaneously applying for assistance under the program.
	c. 	This subrule will 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 120 percent of the qualifying wage threshold by the project completion date, and at least 120 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 120 percent of the qualifying wage threshold throughout both the project completion period and the maintenance period.
	d. 	Notwithstanding paragraphs “b” and “c” of this subrule, a business located in an economically distressed area shall demonstrate that the jobs will pay at least 100 percent of the qualifying wage threshold throughout the applicable contract 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 authority after calculating the fiscal impact ratio of the project.
	68.2(7) Violations of law. If the authority 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 authority 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 authority 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 authority 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; ARC 0442C, IAB 11/14/12, effective 12/19/12]
261—68.3(15) Application process and review.
	68.3(1) Application. The authority 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. 	The project shall not be initiated prior to application. The authority will accept applications only for projects proposed to begin after application and board approval.
	b. 	A signature from an official authorized to represent the affected local community is required on the application as an indication that the community is aware of and supports the project. For a project with a qualifying investment of $10 million or more, the application shall include an ordinance or resolution of the community’s governing body approving the project.
	c. 	Each application will be reviewed by the authority. The authority 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 authority 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 authority may negotiate with the business regarding the amount of tax incentives and assistance the business is to receive under the program. All forms of tax incentives and assistance available under the program are subject to negotiations. The authority shall consider all of the following factors in negotiating with the business:
	a. 	Level of need. The following factors will determine the authority’s assessment of need:
	(1)	Whether the business can raise only a portion of the debt and equity necessary to complete the project. The existence of a gap between the financing required and the financing on hand indicates that tax incentives or assistance may be needed to fill the gap.
	(2)	Whether the likely returns of the project are inadequate to motivate a company decision maker to proceed with the project even if sufficient debt or equity can be raised to finance the project. The existence of such a condition indicates that the project’s risks may outweigh its rewards and that tax incentives or assistance may be needed to reduce the project’s risks.
	(3)	Whether the business is deciding between a site in Iowa (“Iowa site”) and a site in another state (“out-of-state site”) for its project and the cost of completing the project at the out-of-state site is demonstrably lower. Such a condition indicates that tax incentives or assistance may be needed to equalize the cost differential between the two sites. The authority will attempt to quantify the cost differential between the sites.
	(4)	Whether the project has already been initiated. Initiation of a project indicates that additional financing is not necessary to complete the project, and the authority will not provide incentives or assistance to a project that has been initiated prior to application.
	b. 	Quality of the jobs. The authority 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 authority 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 authority 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; ARC 0442C, IAB 11/14/12, effective 12/19/12]
261—68.4(15) Tax incentives.
	68.4(1) Sales and use tax refund. Pursuant to Iowa Code section 15.331A, the approved business may claim 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 of revenue 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 of revenue will validate the refund amount and 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 of revenue 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 of revenue 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 of revenue.
	(3)	The department of revenue 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 of revenue 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 of revenue 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 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 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 approved by the authority for businesses under the high quality jobs program and enterprise zone program 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 authority 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 over a five-year period. The annual amounts that may be claimed by the business during that period are subject to negotiations. The final five-year amortization period and the negotiated annual amounts will be specified in a contract entered into with the authority. 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 specified in a contract entered into with the authority, 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.
The approved business shall not claim a tax credit above the amount defined in the final award documentation or the amount specified in a contract entered into with the authority.
	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 authority will, in consultation with the eligible business, define. The five-year amortization period shall be specified in a contract entered into with the authority. 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 specified in a contract entered into with the authority, 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.
The approved business shall not claim a tax credit above the amount defined in the final award documentation or the amount specified in a contract entered into with the authority.
	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 same as defined in Iowa Code section 15.335.
	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 the amount specified in Iowa Code section 15.335.
	68.4(7) Maximum tax incentives available. Tax incentives 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 or a project involving retained jobs.
	(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.
[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; ARC 0442C, IAB 11/14/12, effective 12/19/12]
261—68.5(15) Project completion assistance.
	68.5(1) Statutory authority. In 2012 Iowa Acts, House File 2473, the HQJP was amended to allow for the provision of project completion assistance in addition to the tax incentives already available under the program. Project completion assistance is defined in subrule 68.1(2) and includes loans, forgivable loans, and other forms of direct financial assistance.
	68.5(2) Awards and negotiations. The authority may award project completion assistance to a business that meets the eligibility requirements of the HQJP. All award determinations are subject to the requirements of Iowa Code section 15.335B(3). The board, with the assistance of authority staff, will attempt to determine the amount of project completion assistance that will ensure successful completion of a project, and the board will make a good-faith effort to provide only the amount of incentives and assistance necessary to facilitate the project’s successful completion. The amount, type, and terms of the assistance provided typically vary according to the needs of each project, and each award is subject to negotiation. The board and the authority will attempt to treat similarly situated applicants similarly; however, the amount, type, and terms of project completion assistance most appropriate for a given project are necessarily dependent on many factors, and awards of project completion assistance shall be entirely at the discretion of the board.
	68.5(3) Factors affecting the amount, type, and terms of project completion assistance. When determining an award of project completion assistance, the board, with the assistance of authority staff, typically considers many factors, including the following:
	a. 	The fiscal impact ratio of the project.
	b. 	Whether the amount of assistance to be awarded is appropriate to the number of jobs that will be created.
	c. 	The availability of funding.
	d. 	Whether other forms of assistance, including tax incentives, are available.
	e. 	The project’s level of need, including whether the local community and the private sector are also contributing to the success of the project.
	f. 	The total amount of funds from other sources that can be leveraged.
	g. 	The quality of the project.
[ARC 0442C, IAB 11/14/12, effective 12/19/12]
These rules are intended to implement Iowa Code chapter 15, part 13.
[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]
[Filed ARC 0442C (Notice ARC 0293C, IAB 8/22/12), IAB 11/14/12, effective 12/19/12]