House File 772 H-1248 Amend House File 772 as follows: 1 1. Page 14, after line 12 by inserting: 2 < DIVISION ___ 3 RURAL ECONOMIC REVITALIZATION CENTER AND BOARD AND HIGH QUALITY 4 JOBS PROGRAM 5 Sec. ___. Section 15.102, Code 2019, is amended by adding 6 the following new subsection: 7 NEW SUBSECTION . 08. “Rural community” means any city 8 located in this state with a population of thirty thousand 9 or less in a county with a population of fifty thousand or 10 less. A rural community located in more than one county shall 11 be considered to be located in the county having the greatest 12 taxable base within the city. 13 Sec. ___. NEW SECTION . 15.106F Rural economic 14 revitalization center and board. 15 1. a. A rural economic revitalization center is established 16 within the authority. The center shall develop a separate 17 partnership program with a lead council of government in each 18 congressional district as determined under paragraph “b” . 19 b. In order for the partnership program to receive funding 20 from the authority, all councils of governments located within 21 a congressional district shall enter into an agreement under 22 chapter 28E, as authorized pursuant to section 28H.5, that 23 identifies the lead council of government for the partnership 24 program with the center. 25 2. The rural economic revitalization center shall support 26 rural communities by doing all of the following: 27 a. Identify and study successful strategies to attract and 28 grow economic development and the workforce. 29 b. Identify and assist in applications for economic 30 development programs. 31 c. Identify and provide pathways for rural community 32 improvement. 33 d. Assist in and serve as a conduit for rural policy 34 development. 35 -1- HF772.2052 (2) 88 jm/jh 1/ 7 #1.

3. a. A rural economic revitalization board is established 1 and shall serve as the governing body of the rural economic 2 revitalization center. The board is located within the 3 authority for administrative purposes. The members of the 4 board are entitled to receive reimbursement for actual expenses 5 incurred while engaged in the performance of official duties. 6 The director shall budget moneys to cover the expenses of the 7 board. The board shall provide an annual report to the general 8 assembly and the governor relating to rural revitalization 9 issues and efforts by January 15, 2021, and by every January 10 15, thereafter. 11 b. The board shall consist of three voting members from each 12 congressional district appointed by the governor as follows: 13 (1) Each member shall reside or be employed in a rural 14 community. 15 (2) At least one member from each congressional district 16 shall reside or be employed in a rural community where an 17 accredited public or private postsecondary educational 18 institution is located in the rural community. 19 Sec. ___. NEW SECTION . 15.328 Program expenditures by 20 congressional district. 21 Each fiscal year, the authority shall make available in each 22 congressional district at least seven hundred fifty thousand 23 dollars of the moneys appropriated to fund the program for use 24 in a qualifying rural community. 25 Sec. ___. Section 15.329, subsection 3, paragraph a, Code 26 2019, is amended to read as follows: 27 a. The quality of the jobs to be created or retained. In 28 rating the quality of the jobs, the authority shall place 29 greater emphasis on those jobs that have a higher wage scale , ; 30 have a lower turnover rate , ; are full-time or career-type 31 positions , ; provide comprehensive health benefits , ; or have 32 other related factors which could be considered to be higher 33 in quality, than to other jobs , including agricultural-related 34 or retail-related jobs in a rural community . Businesses that 35 -2- HF772.2052 (2) 88 jm/jh 2/ 7

have wage scales substantially below that of existing Iowa 1 businesses in that area should be rated as providing the lowest 2 quality of jobs and should therefore be given the lowest 3 ranking for providing such assistance. 4 Sec. ___. Section 15.329, subsection 3, paragraph c, 5 subparagraph (6), Code 2019, is amended by striking the 6 subparagraph. 7 Sec. ___. Section 15.335A, subsection 1, unnumbered 8 paragraph 1, Code 2019, is amended to read as follows: 9 Tax Except as provided in subsection 1A, tax incentives are 10 available to eligible businesses as provided in this section 11 subsection . The incentives are based upon the number of jobs 12 created or retained that pay at least one hundred twenty 13 percent of the qualifying wage threshold and the amount of the 14 qualifying investment made according to the following schedule: 15 Sec. ___. Section 15.335A, Code 2019, is amended by adding 16 the following new subsection: 17 NEW SUBSECTION . 1A. Tax incentives are available to 18 eligible businesses in rural communities as provided in this 19 subsection. The incentives are based upon the number of 20 jobs created or retained that pay at least one hundred ten 21 percent of the qualifying wage threshold and the amount of the 22 qualifying investment made according to the following schedule: 23 a. The number of jobs is zero and economic activity is 24 furthered by the qualifying investment and the amount of the 25 qualifying investment is one of the following: 26 (1) Less than fifty thousand dollars, then the tax incentive 27 is the investment tax credit of up to two percent. 28 (2) At least fifty thousand dollars but less than two 29 hundred fifty thousand dollars, then the tax incentives are the 30 investment tax credit of up to two percent and the sales tax 31 refund. 32 (3) At least two hundred fifty thousand dollars, then the 33 tax incentives are the investment tax credit of up to two 34 percent, the sales tax refund, and the additional research and 35 -3- HF772.2052 (2) 88 jm/jh 3/ 7

development tax credit. 1 b. The number of jobs is one but not more than five and the 2 amount of the qualifying investment is one of the following: 3 (1) Less than fifty thousand dollars, then the tax incentive 4 is the investment tax credit of up to three percent. 5 (2) At least fifty thousand dollars but less than two 6 hundred fifty thousand dollars, then the tax incentives are the 7 investment tax credit of up to three percent and the sales tax 8 refund. 9 (3) At least two hundred fifty thousand dollars, then the 10 tax incentives are the investment tax credit of up to three 11 percent, the sales tax refund, and the additional research and 12 development tax credit. 13 c. The number of jobs is six but not more than ten and the 14 amount of the qualifying investment is one of the following: 15 (1) Less than fifty thousand dollars, then the tax incentive 16 is the investment tax credit of up to four percent. 17 (2) At least fifty thousand dollars but less than two 18 hundred fifty thousand dollars, then the tax incentives are the 19 investment tax credit of up to four percent and the sales tax 20 refund. 21 (3) At least two hundred fifty thousand dollars, then the 22 tax incentives are the investment tax credit of up to four 23 percent, the sales tax refund, and the additional research and 24 development tax credit. 25 d. The number of jobs is eleven but not more than fifteen 26 and the amount of the qualifying investment is one of the 27 following: 28 (1) Less than fifty thousand dollars, then the tax incentive 29 is the investment tax credit of up to five percent. 30 (2) At least fifty thousand dollars but less than two 31 hundred fifty thousand dollars, then the tax incentives are the 32 investment tax credit of up to five percent and the sales tax 33 refund. 34 (3) At least two hundred fifty thousand dollars, then the 35 -4- HF772.2052 (2) 88 jm/jh 4/ 7

tax incentives are the investment tax credit of up to five 1 percent, the sales tax refund, and the additional research and 2 development tax credit. 3 e. The number of jobs is sixteen or more and the amount of 4 the qualifying investment is one of the following: 5 (1) Less than fifty thousand dollars, then the tax incentive 6 is the investment tax credit of up to six percent. 7 (2) At least fifty thousand dollars but less than two 8 hundred fifty thousand dollars, then the tax incentives are the 9 investment tax credit of up to six percent and the sales tax 10 refund. 11 (3) At least two hundred fifty thousand dollars, then the 12 tax incentives are the investment tax credit of up to six 13 percent, the sales tax refund, and the additional research and 14 development tax credit. 15 f. The number of jobs is thirty-one but not more than forty 16 and the amount of the qualifying investment is at least two 17 million dollars, then the tax incentives are the local property 18 tax exemption, the investment tax credit of up to seven 19 percent, the sales tax refund, and the additional research and 20 development tax credit. 21 g. The number of jobs is forty-one but not more than sixty 22 and the amount of the qualifying investment is at least five 23 million dollars, then the tax incentives are the local property 24 tax exemption, the investment tax credit of up to eight 25 percent, the sales tax refund, and the additional research and 26 development tax credit. 27 h. The number of jobs is sixty-one but not more than 28 eighty and the amount of the qualifying investment is at least 29 five million dollars, then the tax incentives are the local 30 property tax exemption, the investment tax credit of up to nine 31 percent, the sales tax refund, and the additional research and 32 development tax credit. 33 i. The number of jobs is eighty-one but not more than one 34 hundred and the amount of the qualifying investment is at least 35 -5- HF772.2052 (2) 88 jm/jh 5/ 7

five million dollars, then the tax incentives are the local 1 property tax exemption, the investment tax credit of up to ten 2 percent, the sales tax refund, and the additional research and 3 development tax credit. 4 j. The number of jobs is at least one hundred one and the 5 amount of the qualifying investment is at least ten million 6 dollars, then the tax incentives are the local property 7 tax exemption, the investment tax credit of up to eleven 8 percent, the sales tax refund, and the additional research and 9 development tax credit. 10 Sec. ___. Section 15.335B, subsection 3, paragraph c, Code 11 2019, is amended to read as follows: 12 c. (1) Consider the amount and type of the local community 13 match . as follows: 14 (a) In a community with a population of less than five 15 thousand, a community match shall not be required. 16 (b) In a community with a population equal to or greater 17 than five thousand but less than fifteen thousand, a community 18 match of at least five percent of the projected funds to be 19 expended shall be required. 20 (c) In a community with a population equal to or greater 21 than fifteen thousand but less than thirty thousand, a 22 community match of at least ten percent of the projected funds 23 to be expended shall be required. 24 (d) In a community with a population equal to or greater 25 than thirty thousand, a community match of at least twenty 26 percent of the projected funds to be expended shall be 27 required. 28 (2) The Notwithstanding subparagraph (1), the authority may 29 provide assistance to an early-stage business in a high-growth 30 industry regardless of the amount of local match involved. 31 Sec. ___. Section 28H.3, Code 2019, is amended by adding the 32 following new subsection: 33 NEW SUBSECTION . 5. Coordinate with the economic 34 development authority and other councils of government as 35 -6- HF772.2052 (2) 88 jm/jh 6/ 7