Senate File 625 S-3222 Amend Senate File 625 as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < DIVISION I 4 TITLE OF ACT 5 Section 1. TITLE OF ACT. This Act shall be known and may be 6 cited as the “Empower Rural Iowa Act”. 7 DIVISION II 8 BROADBAND 9 Sec. 2. Section 8B.1, Code 2019, is amended by adding the 10 following new subsection: 11 NEW SUBSECTION . 4A. “Facilitate” means a communication 12 service provider’s ability to provide broadband service at 13 or above the download and upload speeds specified in the 14 definition of targeted service area in this section to a home, 15 farm, school, or business within a commercially reasonable 16 time and at a commercially reasonable price upon request by a 17 consumer. 18 Sec. 3. Section 8B.1, subsection 12, Code 2019, is amended 19 to read as follows: 20 12. “Targeted service area” means a United States census 21 bureau census block located in this state, including any crop 22 operation located within the census block, within which no 23 communications service provider offers or facilitates broadband 24 service at or above twenty-five megabits per second of download 25 speed and three megabits per second of upload speed as of 26 July 1, 2015 the download and upload speeds identified by the 27 federal communications commission pursuant to section 706 of 28 the federal Telecommunications Act of 1996, as amended . 29 Sec. 4. Section 8B.1, Code 2019, is amended by adding the 30 following new subsection: 31 NEW SUBSECTION . 12A. “Underserved area” means any portion 32 of a targeted service area within which no communications 33 service provider offers or facilitates broadband service 34 meeting the download and upload speeds specified in the 35 -1- SF625.2344 (2) 88 (amending this SF 625 to CONFORM to HF 772) ko/jh 1/ 17 #1.
definition of targeted service area in this section. 1 Sec. 5. Section 8B.10, subsection 1, Code 2019, is amended 2 to read as follows: 3 1. The determination of whether a communications service 4 provider offers or facilitates broadband service meeting the 5 download or and upload speeds specified in the definition of 6 targeted service area in section 8B.1 shall be determined 7 or ascertained by reference to broadband availability maps 8 or data sources that are widely accepted for accuracy and 9 available for public review and comment and that are identified 10 by the office by rule. The office shall periodically make 11 renewed determinations of whether a communications service 12 provider offers or facilitates broadband service at or above 13 the download and upload speeds specified in the definition of 14 targeted service area in section 8B.1, which shall, to the 15 extent updated maps and data sources are available at the time, 16 include making such determinations prior to each round of grant 17 applications solicited by the office pursuant to section 8B.11. 18 Sec. 6. Section 8B.11, subsection 1, Code 2019, is amended 19 to read as follows: 20 1. The office shall administer a broadband grant program 21 designed to award reduce or eliminate unserved and underserved 22 areas in the state, leveraging federal funds and public and 23 private partnerships where possible, by awarding grants to 24 communications service providers that reduce or eliminate 25 targeted service areas by installing broadband infrastructure 26 that facilitates broadband service in targeted service areas 27 at or above the download and upload speeds specified in 28 the definition of targeted service area in section 8B.1, in 29 accordance with this section. 30 Sec. 7. Section 8B.11, subsection 2, paragraph c, Code 2019, 31 is amended to read as follows: 32 c. Notwithstanding section 8.33 , moneys in the fund 33 that remain unencumbered or unobligated at the close of the 34 fiscal year shall not revert but shall remain available for 35 -2- SF625.2344 (2) 88 (amending this SF 625 to CONFORM to HF 772) ko/jh 2/ 17
expenditure for the purposes designated until the close of 1 the succeeding fiscal year three years following the last 2 day of the fiscal year in which the funds were originally 3 appropriated . 4 Sec. 8. Section 8B.11, subsection 3, Code 2019, is amended 5 to read as follows: 6 3. Communications service providers may apply to the office 7 for a grant pursuant to this section for the installation of 8 broadband infrastructure that facilitates broadband service 9 at or above twenty-five megabits per second of download speed 10 and three megabits per second of upload speed in targeted 11 service areas at or above the download and upload speeds 12 specified in the definition of targeted service area in 13 section 8B.1 . The office may, by rule, increase the minimum 14 download and upload speeds for grant eligibility pursuant to 15 this section. The office shall include representatives from 16 schools, communities, agriculture, industry, and other areas 17 as appropriate to review and recommend grant awards. The 18 office shall conduct an open application review process and 19 include that includes the opportunity for the public to submit 20 factual information as part of a validation process to address 21 claims that a targeted service area is currently served with 22 broadband service at or above the download and upload speeds 23 specified in the definition of targeted service area in section 24 8B.1. Upon completion of the validation process, the office 25 may modify a proposed targeted service area to account for 26 information received during the validation process. The office 27 shall make available a public internet site for identifying all 28 publicly available information contained in the applications, 29 the members of the review committee, a summary of the review 30 committee’s recommended results, and any results of performance 31 testing conducted after the project is completed . 32 Sec. 9. Section 8B.11, subsection 4, Code 2019, is amended 33 to read as follows: 34 4. a. The office shall award grants on a competitive 35 -3- SF625.2344 (2) 88 (amending this SF 625 to CONFORM to HF 772) ko/jh 3/ 17
basis for the installation of broadband infrastructure that 1 facilitates broadband service in targeted service areas at 2 or above the download and upload speeds specified in the 3 definition of targeted service area in section 8B.1, after 4 considering the following: 5 (1) The relative need for broadband infrastructure in the 6 area and the existing broadband service speeds , including 7 whether the project serves a rural area or areas . 8 (2) The applicant’s total proposed budget for the project, 9 including the amount or percentage of local or federal matching 10 funds, if any, any funding obligations shared between public 11 and private entities, and the percentage of funding provided 12 directly from the applicant. 13 (3) The relative download and upload speeds of proposed 14 projects for all applicants. 15 (4) The specific product attributes resulting from the 16 proposed project, including technologies that provide higher 17 qualities of service, such as service levels, latency, and 18 other service attributes as determined by the office. 19 (2) (5) The percentage of the homes, farms, schools, and 20 businesses in the targeted service area that will be provided 21 access to broadband service. 22 (3) (6) The geographic diversity of the project areas of 23 all the applicants. 24 (4) (7) The economic impact of the project to the area. 25 (5) The applicant’s total proposed budget for the project, 26 including the amount or percentage of local match, if any. 27 (6) (8) Other factors the office deems relevant. 28 b. In considering the factors listed in paragraph “a” 29 for awarding grants pursuant to this section, the office 30 shall afford the greatest weight to the factors described in 31 paragraph “a” , subparagraphs (1) through (3). 32 b. c. Except as otherwise provided in this section , the 33 office shall not evaluate applications based on the office’s 34 knowledge of the applicant except for the information provided 35 -4- SF625.2344 (2) 88 (amending this SF 625 to CONFORM to HF 772) ko/jh 4/ 17
in obtained by the office during the application process or 1 period for public comment . 2 Sec. 10. Section 8B.11, subsections 7 and 8, Code 2019, are 3 amended to read as follows: 4 7. The office shall not award a grant pursuant to this 5 section on or after July 1, 2020 2025 . 6 8. The office shall may adopt rules pursuant to chapter 17A 7 interpreting this chapter or necessary for administering this 8 chapter , including but not limited to rules relating to the 9 broadband grant program process, management, and measurements 10 as deemed necessary by the office. 11 Sec. 11. Section 8B.11, Code 2019, is amended by adding the 12 following new subsection: 13 NEW SUBSECTION . 9. The office shall adopt rules 14 establishing procedures to allow aggrieved applicants an 15 opportunity to challenge the office’s award of grants under 16 this section. 17 Sec. 12. Section 427.1, subsection 40, paragraphs a and b, 18 Code 2019, are amended to read as follows: 19 a. The owner of broadband infrastructure shall be entitled 20 to an exemption from taxation to the extent provided in this 21 subsection for assessment years beginning before January 1, 22 2022 2027 . For the purposes of Unless the context otherwise 23 requires, the words and phrases used in this subsection , 24 “broadband infrastructure” and “targeted service area” mean the 25 same as shall have the same meaning as the words and phrases 26 used in chapter 8B, including but not limited to the words and 27 phrases defined in section 8B.1 . 28 b. The exemption shall apply to the installation of 29 broadband infrastructure that facilitates broadband service 30 at or above twenty-five megabits per second of download speed 31 and three megabits per second of upload speed the download 32 and upload speeds specified in the definition of targeted 33 service area in section 8B.1 commenced and completed on or 34 after July 1, 2015, and before July 1, 2020 2025 , in a targeted 35 -5- SF625.2344 (2) 88 (amending this SF 625 to CONFORM to HF 772) ko/jh 5/ 17
service area, and used to deliver internet services to the 1 public. A person claiming an exemption under this subsection 2 shall certify to the local assessor prior to commencement of 3 the installation that the broadband installation of broadband 4 infrastructure will take place facilitate broadband service 5 at or above the download and upload speeds specified in the 6 definition of targeted service area in section 8B.1 within a 7 targeted service area and shall specify the current number of 8 homes, farms, schools, and businesses in the targeted service 9 area that were offered broadband service and the download and 10 upload speeds available prior to the broadband infrastructure 11 installation for which the exemption is claimed and the number 12 of homes, farms, schools, and businesses in the targeted 13 service area that will be offered broadband service and the 14 download and upload speeds that will be available as a result 15 of installation of the broadband infrastructure for which the 16 exemption is claimed. 17 Sec. 13. Section 427.1, subsection 40, paragraph f, 18 subparagraph (1), subparagraph division (d), Code 2019, is 19 amended to read as follows: 20 (d) Certification from the office of the chief information 21 officer pursuant to section 8B.10 that the installation is 22 being performed or was completed will facilitate broadband 23 service at or above the download and upload speeds specified 24 in the definition of targeted service area in section 8B.1 in 25 a targeted service area. Certification from the office of 26 the chief information officer that broadband infrastructure 27 installed in a targeted service area facilitates broadband 28 service at or above twenty-five megabits per second of download 29 speed and three megabits per second of upload speed. 30 Sec. 14. Section 427.1, subsection 40, paragraph i, Code 31 2019, is amended to read as follows: 32 i. This subsection is repealed July 1, 2024 2030 . 33 DIVISION III 34 WORKFORCE HOUSING TAX INCENTIVE PROGRAM 35 -6- SF625.2344 (2) 88 (amending this SF 625 to CONFORM to HF 772) ko/jh 6/ 17
Sec. 15. Section 15.119, subsection 2, paragraph g, Code 1 2019, is amended to read as follows: 2 g. The workforce housing tax incentives program administered 3 pursuant to sections 15.351 through 15.356 . In allocating 4 tax credits pursuant to this subsection , the authority shall 5 not allocate more than twenty twenty-five million dollars for 6 purposes of this paragraph. Of the moneys allocated under 7 this paragraph, five ten million dollars shall be reserved for 8 allocation to qualified housing projects in small cities, as 9 defined in section 15.352 , that are registered on or after July 10 1, 2017. 11 Sec. 16. Section 15.119, Code 2019, is amended by adding the 12 following new subsection: 13 NEW SUBSECTION . 5. Notwithstanding subsection 1, and 14 in addition to amounts allocated pursuant to subsection 2, 15 paragraph “g” , the authority shall allocate ten million dollars 16 to the workforce housing tax incentives program administered 17 pursuant to sections 15.351 through 15.356, for qualified 18 housing projects located in a county that has been declared 19 a major disaster by the president of the United States on 20 or after March 12, 2019, and that is also a county in which 21 individuals are eligible for federal individual assistance. 22 In allocating tax credits pursuant to this subsection for the 23 period beginning July 1, 2019, and ending June 30, 2024, the 24 authority shall not allocate more than ten million dollars for 25 purposes of this subsection. This subsection is repealed July 26 1, 2024. 27 Sec. 17. Section 15.352, subsection 10, Code 2019, is 28 amended to read as follows: 29 10. “Small city” means any city or township located in this 30 state, except those located wholly within one or more of the 31 eleven most populous counties in the state, as determined by 32 the most recent federal decennial census population estimates 33 issued by the United States bureau of census . For the purposes 34 of this part, a small city that is located in more than one 35 -7- SF625.2344 (2) 88 (amending this SF 625 to CONFORM to HF 772) ko/jh 7/ 17
county shall be considered to be located in the county having 1 the greatest taxable base within the small city. 2 Sec. 18. Section 15.353, subsection 2, Code 2019, is amended 3 by adding the following new paragraph: 4 NEW PARAGRAPH . f. For a housing project located in any 5 county that has been declared a major disaster by the president 6 of the United States on or after March 12, 2019, and that is 7 also a county in which individuals are eligible for federal 8 individual assistance, development at a greenfield site. 9 Sec. 19. Section 15.354, subsection 1, paragraph a, Code 10 2019, is amended to read as follows: 11 a. A housing business seeking workforce housing tax 12 incentives provided in section 15.355 shall make application to 13 the authority in the manner prescribed by the authority. The 14 authority may accept applications on a continuous basis during 15 one or more annual application periods to be determined by the 16 authority by rule . 17 Sec. 20. Section 15.354, subsection 1, Code 2019, is amended 18 by adding the following new paragraph: 19 NEW PARAGRAPH . c. In addition to complying with all 20 applicable requirements in paragraph “b” , a housing business 21 that chooses to be considered as an applicant for tax credits 22 reserved pursuant to section 15.119, subsection 5, shall also 23 submit a certification that the applicant’s housing project is 24 located in a county that has been declared a major disaster by 25 the president of the United States on or after March 12, 2019, 26 and is also a county in which individuals are eligible for 27 federal individual assistance. The housing business must also 28 submit documentation that provides evidence that the qualified 29 housing project is needed due to impact of the disaster that is 30 the subject of the presidential major disaster declaration. 31 Sec. 21. Section 15.354, subsection 2, Code 2019, is amended 32 to read as follows: 33 2. Registration. Application review —— tax incentive award. 34 a. All completed applications shall be reviewed and scored 35 -8- SF625.2344 (2) 88 (amending this SF 625 to CONFORM to HF 772) ko/jh 8/ 17
on a competitive basis by the authority pursuant to rules 1 adopted by the authority. 2 a. b. Upon review of the application, the authority 3 may register the housing project under the program. If the 4 authority registers the housing project, the authority shall 5 make a preliminary determination as to the amount of tax 6 incentives for which the housing project qualifies and scoring 7 of all applications received during an application period, the 8 authority may make a tax incentive award to a housing project, 9 which tax incentive award shall represent the maximum amount of 10 tax incentives the housing project may qualify for under the 11 program . In determining a tax incentive award, the authority 12 shall not use an amount of project costs that exceeds the 13 amount included in the application of the housing business. 14 Tax incentive awards shall be approved by the director of the 15 authority. 16 b. c. After registering the housing project making a 17 tax incentive award , the authority shall notify the housing 18 business of successful registration under the program its tax 19 incentive award . The notification shall include the amount 20 of tax incentives under section 15.355 for which the housing 21 business has received preliminary approval an award and a 22 statement that the amount is a preliminary determination only 23 housing business has no right to receive a tax incentive 24 certificate or claim a tax incentive until all requirements 25 of the program, including all requirements imposed by the 26 agreement entered into pursuant to subsection 3, are satisfied . 27 The amount of tax credits included on a tax credit certificate 28 issued pursuant to this section , or a claim for refund of sales 29 and use taxes, shall be contingent upon completion of the all 30 requirements in subsection 3 . 31 d. An applicant that does not receive a tax incentive award 32 during an application period may make additional applications 33 during subsequent application periods. Such applicant shall be 34 required to submit a new application and shall be competitively 35 -9- SF625.2344 (2) 88 (amending this SF 625 to CONFORM to HF 772) ko/jh 9/ 17
reviewed and scored in the same manner as other applicants in 1 that application period. 2 Sec. 22. Section 15.354, subsection 3, paragraphs a and e, 3 Code 2019, are amended to read as follows: 4 a. Upon successful registration of receipt of a tax 5 incentive award by the housing project, the housing business 6 shall enter into an agreement with the authority for the 7 successful completion of all requirements of the program. The 8 agreement shall identify the tax incentive award amount, the 9 tax incentive award date, the project completion deadline, and 10 the total costs of the housing project. 11 e. (1) Upon review of the examination and verification 12 of the amount of the qualifying new investment, the authority 13 may notify the housing business of the amount that the housing 14 business may claim as a refund of the sales and use tax under 15 section 15.355, subsection 2, and may issue a tax credit 16 certificate to the housing business stating the amount of 17 workforce housing investment tax credits under section 15.355 , 18 subsection 3, the eligible housing business may claim. The 19 sum of the amount that the housing business may claim as a 20 refund of the sales and use tax and the amount of the tax credit 21 certificate shall not exceed the amount of the tax incentive 22 award. 23 (2) If upon review of the examination in subparagraph 24 (1) the authority determines that a housing project has 25 incurred project costs in excess of the amount submitted in the 26 application made pursuant to subsection 1 and identified in the 27 agreement , the authority shall do one of the following: 28 (a) If the project costs do not cause the housing project’s 29 average dwelling unit cost to exceed the applicable maximum 30 amount authorized in section 15.353, subsection 3 , the 31 authority may consider the agreement fulfilled and may issue a 32 tax credit certificate. 33 (b) If the project costs cause the housing project’s 34 average dwelling unit cost to exceed the applicable maximum 35 -10- SF625.2344 (2) 88 (amending this SF 625 to CONFORM to HF 772) ko/jh 10/ 17
amount authorized in section 15.353, subsection 3 , but does not 1 cause the average dwelling unit cost to exceed one hundred ten 2 percent of such applicable maximum amount, the authority may 3 consider the agreement fulfilled and may issue a tax credit 4 certificate. In such case, the authority shall reduce the tax 5 incentive award and the corresponding amount of tax incentives 6 the eligible housing project may claim under section 15.355, 7 subsections 2 and 3 , by the same percentage that the housing 8 project’s average dwelling unit cost exceeds the applicable 9 maximum amount under section 15.353, subsection 3 , and such 10 tax incentive reduction shall be reflected on the tax credit 11 certificate. If the authority issues a certificate pursuant 12 to this subparagraph division, the department of revenue 13 shall accept the certificate notwithstanding that the housing 14 project’s average dwelling unit costs exceeds the maximum 15 amount specified in section 15.353, subsection 3 . 16 (c) If the project costs cause the housing project’s 17 average dwelling unit cost to exceed one hundred ten percent 18 of the applicable maximum amount authorized in section 15.353, 19 subsection 3 , the authority shall determine the eligible 20 housing business to be in default under the agreement , shall 21 revoke the tax incentive award, and shall not issue a tax 22 credit certificate. The housing business shall not be allowed 23 a refund of sales and use tax under section 15.355, subsection 24 2. 25 Sec. 23. Section 15.354, subsection 4, Code 2019, is amended 26 by striking the subsection and inserting in lieu thereof the 27 following: 28 4. Maximum tax incentives amount. 29 a. (1) For fiscal years beginning on or after July 1, 2019, 30 the authority shall not award in any fiscal year an amount of 31 tax incentives for housing projects located in small cities, or 32 for other housing projects, in excess of the amounts allocated 33 for each category in section 15.119, subsection 2, paragraph 34 “g” . This paragraph “a” applies to housing projects awarded tax 35 -11- SF625.2344 (2) 88 (amending this SF 625 to CONFORM to HF 772) ko/jh 11/ 17
incentives pursuant to subsection 2 on or after July 1, 2019, 1 and to housing projects registered prior to July 1, 2019, under 2 section 15.354, subsection 2, Code 2019. 3 (2) Notwithstanding subparagraph (1), and section 15.119, 4 subsection 2, paragraph “g” , if the sum of the amount of tax 5 incentives applied for in valid applications submitted in a 6 given fiscal year beginning on or after July 1, 2019, for 7 housing projects located in small cities, plus the amount 8 of tax incentives eligible for issuance to housing projects 9 located in small cities that were registered prior to July 10 1, 2019, under section 15.354, subsection 2, Code 2019, does 11 not exceed the amount reserved for housing projects located 12 in small cities pursuant to section 15.119, subsection 2, 13 paragraph “g” , the authority may award the remaining amount of 14 tax incentives reserved for housing projects located in small 15 cities to other housing projects during that same fiscal year. 16 (3) Notwithstanding subparagraph (1), and section 15.119, 17 subsection 2, paragraph “g” , the authority may award during a 18 fiscal year an aggregate amount of tax incentives to housing 19 projects located in small cities that is less than the amount 20 reserved for allocation to small cities under section 15.119, 21 subsection 2, paragraph “g” , provided the difference between 22 the amount of the small city reservation and the aggregate 23 amount actually awarded to small cities during that fiscal year 24 is awarded during that same fiscal year to housing projects 25 registered prior to July 1, 2018. 26 b. With regard to a housing project registered prior to 27 July 1, 2019, a tax incentive shall be considered awarded for 28 purposes of paragraph “a” when the authority enters into an 29 agreement with the housing business for that housing project 30 as provided under section 15.354, subsection 3, Code 2019. 31 Notwithstanding any provision of law to the contrary, a housing 32 business shall have no right to enter into an agreement with 33 the authority for a housing project registered prior to July 1, 34 2019, until the authority allocates an amount of tax incentives 35 -12- SF625.2344 (2) 88 (amending this SF 625 to CONFORM to HF 772) ko/jh 12/ 17
to the housing project and notifies the housing business 1 that the authority is prepared to execute the agreement 2 and make a tax incentive award for the housing project. A 3 housing business shall have no right to receive a tax credit 4 certificate or claim a tax incentive for a housing project 5 registered prior to July 1, 2019, until the housing business 6 enters into an agreement with the authority. 7 c. In making tax incentive awards during any fiscal year 8 in which there are housing projects registered prior to July 9 1, 2019, which are eligible to receive tax incentives under 10 the program, the authority shall give priority in making tax 11 incentive awards to housing projects registered prior to July 12 1, 2019. The authority shall create and maintain a wait list 13 of housing projects registered prior to July 1, 2019, and such 14 housing projects shall be placed on the wait list in the order 15 the housing projects were registered. 16 d. The maximum aggregate amount of tax incentives that 17 may be awarded and issued under section 15.355 to a housing 18 business for a housing project shall not exceed one million 19 dollars. 20 e. If a housing business qualifies for a higher amount 21 of tax incentives under section 15.355 than is allowed by 22 the limitation imposed in paragraph “d” , the authority and 23 the housing business may negotiate an apportionment of the 24 reduction in tax incentives between the sales tax refund 25 provided in section 15.355, subsection 2, and the workforce 26 housing investment tax credits provided in section 15.355, 27 subsection 3, provided the total aggregate amount of tax 28 incentives after the apportioned reduction does not exceed the 29 amount in paragraph “d” . 30 f. The authority shall issue tax incentives under the 31 program on a first-come, first-served basis until the maximum 32 amount of tax incentives allocated under section 15.119, 33 subsection 2, paragraph “g” , is reached. The authority shall 34 maintain a list of housing projects registered prior to July 35 -13- SF625.2344 (2) 88 (amending this SF 625 to CONFORM to HF 772) ko/jh 13/ 17
1, 2019, and of housing projects awarded tax incentives on or 1 after July 1, 2019, so that if the maximum aggregate amount 2 of tax incentives is reached in a given fiscal year, such 3 registered housing projects that were completed but for which 4 tax incentives were not issued, and such housing projects that 5 were completed and are awarded tax incentives but for which tax 6 incentives have not been issued, shall be placed on a wait list 7 in the order the housing projects were registered or awarded 8 tax incentives and shall be given priority for receiving tax 9 incentives in succeeding fiscal years. 10 Sec. 24. Section 15.354, subsection 5, Code 2019, is amended 11 to read as follows: 12 5. Termination and repayment. The failure by a housing 13 business in completing a housing project to comply with any 14 requirement of this program or any of the terms and obligations 15 of an agreement entered into pursuant to this section may 16 result in the revocation, reduction, termination, or rescission 17 of the tax incentive award or the approved tax incentives and 18 may subject the housing business to the repayment or recapture 19 of tax incentives claimed under section 15.355 . The repayment 20 or recapture of tax incentives pursuant to this section shall 21 be accomplished in the same manner as provided in section 22 15.330, subsection 2 . 23 Sec. 25. Section 15.354, Code 2019, is amended by adding the 24 following new subsection: 25 NEW SUBSECTION . 6. Disaster recovery housing projects. 26 a. For purposes of this subsection, “disaster recovery 27 housing project” means a qualified housing project located in a 28 county that has been declared a major disaster by the president 29 of the United States on or after March 12, 2019, and that is 30 also a county in which individuals are eligible for federal 31 individual assistance. 32 b. Notwithstanding subsection 1, the authority may accept 33 applications for disaster recovery housing projects on a 34 continuous basis. 35 -14- SF625.2344 (2) 88 (amending this SF 625 to CONFORM to HF 772) ko/jh 14/ 17
c. Notwithstanding subsection 2, paragraphs “a” , “b” , and 1 “d” , upon review of a housing business’s application, the 2 authority may make a tax incentive award to a disaster recovery 3 housing project. The tax incentive award shall represent the 4 maximum amount of tax incentives that the disaster recovery 5 housing project may qualify for under the program. In 6 determining a tax incentive award, the authority shall not use 7 an amount of project costs that exceeds the amount included in 8 the application of the housing business. Tax incentive awards 9 shall be approved by the director of the authority. 10 d. The authority shall administer tax credit allocations 11 for disaster recovery housing projects separately from the 12 general allocation and separately from the allocation reserved 13 for small cities in section 15.119, subsection 2, paragraph 14 “g” . The authority shall issue tax incentives under the 15 program for disaster recovery housing projects on a first-come, 16 first-served basis until the maximum amount of tax incentives 17 allocated under section 15.119, subsection 5, is reached. The 18 authority shall maintain a list of disaster recovery housing 19 projects awarded tax incentives under the program, so that if 20 the maximum aggregate amount of tax incentives allocated for 21 disaster recovery housing projects under the program is reached 22 in a given fiscal year, such disaster recovery housing projects 23 that were completed but for which tax incentives were not 24 issued shall be placed on a wait list in the order the disaster 25 recovery housing projects were awarded tax incentives pursuant 26 to paragraph “c” , and shall be given priority for receiving tax 27 incentives in succeeding fiscal years. 28 Sec. 26. Section 15.355, subsection 2, Code 2019, is amended 29 to read as follows: 30 2. A housing business may claim a refund of the sales and 31 use taxes paid under chapter 423 that are directly related to 32 a housing project and specified in the agreement . The refund 33 available pursuant to this subsection shall be as provided in 34 section 15.331A , excluding subsection 2 , paragraph “c” , of 35 -15- SF625.2344 (2) 88 (amending this SF 625 to CONFORM to HF 772) ko/jh 15/ 17
that section. For purposes of the program, the term “project 1 completion” , as used in section 15.331A , shall mean the date on 2 which the authority notifies the department of revenue that all 3 applicable requirements of an agreement entered into pursuant 4 to section 15.354 are satisfied. 5 Sec. 27. Section 15.355, subsection 3, paragraph a, 6 subparagraphs (1) and (2), Code 2019, are amended to read as 7 follows: 8 (1) For a housing project not located in a small city, ten 9 percent of the qualifying new investment of a housing project 10 specified in the agreement . 11 (2) For a housing project located in a small city, twenty 12 percent of the qualifying new investment of a housing project 13 specified in the agreement . 14 Sec. 28. Section 15.355, subsection 3, paragraph a, Code 15 2019, is amended by adding the following new subparagraph: 16 NEW SUBPARAGRAPH . (3) For a housing project located in a 17 county that has been declared a major disaster by the president 18 of the United States on or after March 12, 2019, and that is 19 also a county in which individuals are eligible for federal 20 individual assistance, twenty percent of the qualifying new 21 investment of a housing project. 22 Sec. 29. WORKFORCE HOUSING TAX INCENTIVES PROGRAM —— FISCAL 23 YEAR 2019-2020. Notwithstanding section 15.119, subsection 2, 24 paragraph “g”, for the fiscal year beginning July 1, 2019, and 25 ending June 30, 2020, all moneys allocated pursuant to section 26 15.119, subsection 2, paragraph “g”, shall be allocated by the 27 economic development authority to qualified housing projects 28 in small cities, as defined in section 15.352, that were 29 registered prior to July 1, 2019. If the sum of the amount of 30 tax incentives allocated in the fiscal year beginning July 1, 31 2019, and ending June 30, 2020, for housing projects located in 32 small cities that were registered prior to July 1, 2019, does 33 not exceed the moneys that may be allocated pursuant to section 34 15.119, subsection 2, paragraph “g”, the authority may allocate 35 -16- SF625.2344 (2) 88 (amending this SF 625 to CONFORM to HF 772) ko/jh 16/ 17
the remaining moneys to other qualified housing projects that 1 were registered prior to July 1, 2019. 2 Sec. 30. EMERGENCY RULES. The economic development 3 authority may adopt emergency rules under section 17A.4, 4 subsection 3, and section 17A.5, subsection 2, paragraph “b”, 5 to implement the provisions of this division of this Act and 6 the rules shall be effective immediately upon filing unless 7 a later date is specified in the rules. Any rules adopted 8 in accordance with this section shall also be published as a 9 notice of intended action as provided in section 17A.4. 10 Sec. 31. EFFECTIVE DATE. This division of this Act, being 11 deemed of immediate importance, takes effect upon enactment. 12 Sec. 32. APPLICABILITY. 13 1. Except as provided in subsection 2, this division of 14 this Act applies to housing projects awarded tax incentives by 15 the authority under the program on or after July 1, 2019, and 16 housing projects registered by the authority under the program 17 prior to July 1, 2019, shall be governed by sections 15.352, 18 15.354, and 15.355, Code 2019. 19 2. The provision of this division of this Act amending 20 section 15.354, subsection 4, applies to housing projects 21 registered by the authority under the program prior to July 1, 22 2019, and to housing projects awarded tax incentives by the 23 authority under the program on or after July 1, 2019. > 24 2. Title page, by striking lines 1 and 2 and inserting < An 25 Act creating an empower rural Iowa Act to provide incentives 26 for broadband and workforce housing, and including effective 27 date and applicability provisions. > 28 ______________________________ RANDY FEENSTRA -17- SF625.2344 (2) 88 (amending this SF 625 to CONFORM to HF 772) ko/jh 17/ 17 #2.