House File 339 H-1310 Amend House File 339 as follows: 1 1. Page 1, before line 1 by inserting: 2 < Section 1. Section 15.102, Code 2019, is amended by adding 3 the following new subsection: 4 NEW SUBSECTION . 08. “Rural community” means any city 5 located in this state with a population of thirty thousand 6 or less in a county with a population of fifty thousand or 7 less. A rural community located in more than one county shall 8 be considered to be located in the county having the greatest 9 taxable base within the city. > 10 2. Page 1, after line 24 by inserting: 11 < Sec. ___. Section 15.335A, subsection 1, unnumbered 12 paragraph 1, Code 2019, is amended to read as follows: 13 Tax Except as provided in subsection 1A, tax incentives are 14 available to eligible businesses as provided in this section 15 subsection . The incentives are based upon the number of jobs 16 created or retained that pay at least one hundred twenty 17 percent of the qualifying wage threshold and the amount of the 18 qualifying investment made according to the following schedule: 19 Sec. ___. Section 15.335A, Code 2019, is amended by adding 20 the following new subsection: 21 NEW SUBSECTION . 1A. Tax incentives are available to 22 eligible businesses in rural communities as provided in this 23 subsection. The incentives are based upon the number of 24 jobs created or retained that pay at least one hundred ten 25 percent of the qualifying wage threshold and the amount of the 26 qualifying investment made according to the following schedule: 27 a. The number of jobs is zero and economic activity is 28 furthered by the qualifying investment and the amount of the 29 qualifying investment is one of the following: 30 (1) Less than fifty thousand dollars, then the tax incentive 31 is the investment tax credit of up to two percent. 32 (2) At least fifty thousand dollars but less than two 33 hundred fifty thousand dollars, then the tax incentives are the 34 investment tax credit of up to two percent and the sales tax 35 -1- HF339.2435 (2) 88 ko/jh 1/ 5 #1. #2.

refund. 1 (3) At least two hundred fifty thousand dollars, then the 2 tax incentives are the investment tax credit of up to two 3 percent, the sales tax refund, and the additional research and 4 development tax credit. 5 b. The number of jobs is one but not more than five and the 6 amount of the qualifying investment is one of the following: 7 (1) Less than fifty thousand dollars, then the tax incentive 8 is the investment tax credit of up to three percent. 9 (2) At least fifty thousand dollars but less than two 10 hundred fifty thousand dollars, then the tax incentives are the 11 investment tax credit of up to three percent and the sales tax 12 refund. 13 (3) At least two hundred fifty thousand dollars, then the 14 tax incentives are the investment tax credit of up to three 15 percent, the sales tax refund, and the additional research and 16 development tax credit. 17 c. The number of jobs is six but not more than ten and the 18 amount of the qualifying investment is one of the following: 19 (1) Less than fifty thousand dollars, then the tax incentive 20 is the investment tax credit of up to four percent. 21 (2) At least fifty thousand dollars but less than two 22 hundred fifty thousand dollars, then the tax incentives are the 23 investment tax credit of up to four percent and the sales tax 24 refund. 25 (3) At least two hundred fifty thousand dollars, then the 26 tax incentives are the investment tax credit of up to four 27 percent, the sales tax refund, and the additional research and 28 development tax credit. 29 d. The number of jobs is eleven but not more than fifteen 30 and the amount of the qualifying investment is one of the 31 following: 32 (1) Less than fifty thousand dollars, then the tax incentive 33 is the investment tax credit of up to five percent. 34 (2) At least fifty thousand dollars but less than two 35 -2- HF339.2435 (2) 88 ko/jh 2/ 5

hundred fifty thousand dollars, then the tax incentives are the 1 investment tax credit of up to five percent and the sales tax 2 refund. 3 (3) At least two hundred fifty thousand dollars, then the 4 tax incentives are the investment tax credit of up to five 5 percent, the sales tax refund, and the additional research and 6 development tax credit. 7 e. The number of jobs is sixteen or more and the amount of 8 the qualifying investment is one of the following: 9 (1) Less than fifty thousand dollars, then the tax incentive 10 is the investment tax credit of up to six percent. 11 (2) At least fifty thousand dollars but less than two 12 hundred fifty thousand dollars, then the tax incentives are the 13 investment tax credit of up to six percent and the sales tax 14 refund. 15 (3) At least two hundred fifty thousand dollars, then the 16 tax incentives are the investment tax credit of up to six 17 percent, the sales tax refund, and the additional research and 18 development tax credit. 19 f. The number of jobs is thirty-one but not more than forty 20 and the amount of the qualifying investment is at least five 21 million dollars, then the tax incentives are the local property 22 tax exemption, the investment tax credit of up to seven 23 percent, the sales tax refund, and the additional research and 24 development tax credit. 25 g. The number of jobs is forty-one but not more than sixty 26 and the amount of the qualifying investment is at least five 27 million dollars, then the tax incentives are the local property 28 tax exemption, the investment tax credit of up to eight 29 percent, the sales tax refund, and the additional research and 30 development tax credit. 31 h. The number of jobs is sixty-one but not more than 32 eighty and the amount of the qualifying investment is at least 33 five million dollars, then the tax incentives are the local 34 property tax exemption, the investment tax credit of up to nine 35 -3- HF339.2435 (2) 88 ko/jh 3/ 5

percent, the sales tax refund, and the additional research and 1 development tax credit. 2 i. The number of jobs is eighty-one but not more than one 3 hundred and the amount of the qualifying investment is at least 4 five million dollars, then the tax incentives are the local 5 property tax exemption, the investment tax credit of up to ten 6 percent, the sales tax refund, and the additional research and 7 development tax credit. 8 j. The number of jobs is at least one hundred one and the 9 amount of the qualifying investment is at least ten million 10 dollars, then the tax incentives are the local property 11 tax exemption, the investment tax credit of up to eleven 12 percent, the sales tax refund, and the additional research and 13 development tax credit. 14 Sec. ___. Section 15.335B, subsection 3, paragraph c, Code 15 2019, is amended to read as follows: 16 c. (1) Consider the amount and type of the local community 17 match . as follows: 18 (a) In a community with a population of less than five 19 thousand, a community match shall not be required. 20 (b) In a community with a population equal to or greater 21 than five thousand but less than fifteen thousand, a community 22 match of at least five percent of the projected funds to be 23 expended shall be required. 24 (c) In a community with a population equal to or greater 25 than fifteen thousand but less than thirty thousand, a 26 community match of at least ten percent of the projected funds 27 to be expended shall be required. 28 (d) In a community with a population equal to or greater 29 than thirty thousand, a community match of at least twenty 30 percent of the projected funds to be expended shall be 31 required. 32 (2) The Notwithstanding subparagraph (1), the authority may 33 provide assistance to an early-stage business in a high-growth 34 industry regardless of the amount of local match involved. > 35 -4- HF339.2435 (2) 88 ko/jh 4/ 5

3. Title page, by striking lines 1 through 4 and inserting 1 < An Act relating to programs administered by the economic 2 development authority, including tax credits for equity 3 investments in qualifying businesses or innovation funds, tax 4 incentives for eligible businesses in rural communities, and 5 including effective date provisions. > 6 4. By renumbering as necessary. 7 ______________________________ GRASSLEY of Butler -5- HF339.2435 (2) 88 ko/jh 5/ 5 #3. #4.