Senate File 619 S-3209 Amend Senate File 619 as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < DIVISION I 4 FUTURE TAX CONTINGENCIES 5 Section 1. 2018 Iowa Acts, chapter 1161, section 133, is 6 amended by striking the section and inserting in lieu thereof 7 the following: 8 SEC. 133. EFFECTIVE DATE. This division of this Act takes 9 effect January 1, 2023. 10 DIVISION II 11 CHILD DEPENDENT AND DEVELOPMENT TAX CREDITS 12 Sec. 2. Section 422.12C, subsection 1, paragraphs f and g, 13 Code 2021, are amended to read as follows: 14 f. For a taxpayer with net income of forty thousand dollars 15 or more but less than forty-five ninety thousand dollars, 16 thirty percent. 17 g. For a taxpayer with net income of forty-five ninety 18 thousand dollars or more, zero percent. 19 Sec. 3. Section 422.12C, subsection 2, paragraph a, Code 20 2021, is amended to read as follows: 21 a. The taxes imposed under this subchapter , less the amounts 22 of nonrefundable credits allowed under this subchapter , may 23 be reduced by an early childhood development tax credit equal 24 to twenty-five percent of the first one thousand dollars 25 which the taxpayer has paid to others for each dependent, as 26 defined in the Internal Revenue Code, ages three through five 27 for early childhood development expenses. In determining the 28 amount of early childhood development expenses for the tax year 29 beginning in the 2006 calendar year only, such expenses paid 30 during November and December of the previous tax year shall 31 be considered paid in the tax year for which the tax credit 32 is claimed. This credit is available to a taxpayer whose net 33 income is less than forty-five ninety thousand dollars. If the 34 early childhood development tax credit is claimed for a tax 35 -1- SF 619.2500 (1) 89 jm/jh 1/ 64 #1.

year, the taxpayer and the taxpayer’s spouse shall not claim 1 the child and dependent care credit under subsection 1 . 2 Sec. 4. RETROACTIVE APPLICABILITY. This division of this 3 Act applies retroactively to tax years beginning on or after 4 January 1, 2021. 5 DIVISION III 6 COVID-19 RELATED GRANTS —— TAXATION 7 Sec. 5. Section 422.7, subsection 62, Code 2021, is amended 8 to read as follows: 9 62. a. Subtract, to the extent included, the amount of 10 any financial assistance qualifying COVID-19 grant provided to 11 an eligible small issued to an individual or business by the 12 economic development authority under the Iowa small business 13 relief grant program created during calendar year 2020 to 14 provide financial assistance to eligible small businesses 15 economically impacted by the COVID-19 pandemic , the Iowa 16 finance authority, or the department of agriculture and land 17 stewardship . 18 b. For purposes of this subsection, “qualifying COVID-19 19 grant” includes any grant that was issued between March 17, 20 2020, and December 31, 2021, identified by the department 21 by rule under a grant program created to primarily provide 22 COVID-19 related financial assistance to economically 23 impacted individuals and businesses located in this state, 24 and administered by the economic development authority, Iowa 25 finance authority, or the department of agriculture and land 26 stewardship. 27 c. The economic development authority, Iowa finance 28 authority, or the department of agriculture and land 29 stewardship shall notify the department of any COVID-19 grant 30 program that may qualify under this subsection in the manner 31 and form prescribed by the department. 32 d. This subsection is repealed January 1, 2024, and does not 33 apply to tax years beginning on or after that date. 34 Sec. 6. Section 422.35, subsection 30, Code 2021, is amended 35 -2- SF 619.2500 (1) 89 jm/jh 2/ 64

to read as follows: 1 30. a. Subtract, to the extent included, the amount of 2 any financial assistance qualifying COVID-19 grant provided 3 to an eligible small issued to a business by the economic 4 development authority under the Iowa small business relief 5 grant program created during calendar year 2020 to provide 6 financial assistance to eligible small businesses economically 7 impacted by the COVID-19 pandemic , the Iowa finance authority, 8 or the department of agriculture and land stewardship . 9 b. For purposes of this subsection, “qualifying COVID-19 10 grant” means the same as defined in section 422.7, subsection 11 62, paragraph “b” . 12 c. The economic development authority, Iowa finance 13 authority, or the department of agriculture and land 14 stewardship shall notify the department of any COVID-19 grant 15 program that may qualify under this subsection in the manner 16 and form prescribed by the department. 17 d. This subsection is repealed January 1, 2024, and does not 18 apply to tax years beginning on or after that date. 19 Sec. 7. EFFECTIVE DATE. This division of this Act, being 20 deemed of immediate importance, takes effect upon enactment. 21 Sec. 8. RETROACTIVE APPLICABILITY. This division of this 22 Act applies retroactively to March 17, 2020, for tax years 23 ending on or after that date. 24 DIVISION IV 25 FEDERAL PAYCHECK PROTECTION PROGRAM 26 Sec. 9. FEDERAL PAYCHECK PROTECTION PROGRAM. 27 Notwithstanding any other provision of the law to the contrary, 28 for any tax year ending after March 27, 2020, Division N, Tit. 29 II, subtit. B, §276 and §278(a), of the federal Consolidated 30 Appropriations Act, 2021, Pub. L. No. 116-260, applies in 31 computing net income for state tax purposes under section 422.7 32 or 422.35. 33 Sec. 10. EFFECTIVE DATE. This division of this Act, being 34 deemed of immediate importance, takes effect upon enactment. 35 -3- SF 619.2500 (1) 89 jm/jh 3/ 64

DIVISION V 1 STATE INHERITANCE TAX 2 Sec. 11. Section 450.10, Code 2021, is amended by adding the 3 following new subsection: 4 NEW SUBSECTION . 7. a. In lieu of each rate of tax imposed 5 in subsections 1 through 4, for property passing from the 6 estate of a decedent dying on or after January 1, 2021, but 7 before January 1, 2022, there shall be imposed a rate of tax 8 equal to the applicable tax rate in subsections 1 through 9 4, reduced by twenty percent, and rounded to the nearest 10 one-hundredth of one percent. 11 b. In lieu of each rate of tax imposed in subsections 1 12 through 4, for property passing from the estate of a decedent 13 dying on or after January 1, 2022, but before January 1, 2023, 14 there shall be imposed a rate of tax equal to the applicable 15 tax rate in subsections 1 through 4, reduced by forty percent, 16 and rounded to the nearest one-hundredth of one percent. 17 c. In lieu of each rate of tax imposed in subsections 1 18 through 4, for property passing from the estate of a decedent 19 dying on or after January 1, 2023, but before January 1, 2024, 20 there shall be imposed a rate of tax equal to the applicable 21 tax rate in subsections 1 through 4, reduced by sixty percent, 22 and rounded to the nearest one-hundredth of one percent. 23 d. In lieu of each rate of tax imposed in subsections 1 24 through 4, for property passing from the estate of a decedent 25 dying on or after January 1, 2024, but before January 1, 2025, 26 there shall be imposed a rate of tax equal to the applicable 27 tax rate in subsections 1 through 4, reduced by eighty percent, 28 and rounded to the nearest one-hundredth of one percent. 29 Sec. 12. NEW SECTION . 450.98 Tax repealed. 30 Effective January 1, 2025, this chapter shall not apply to 31 property of estates of decedents dying on or after January 1, 32 2025. The inheritance tax shall not be imposed under this 33 chapter in the event the decedent dies on or after January 1, 34 2025, and, to this extent, this chapter is repealed. 35 -4- SF 619.2500 (1) 89 jm/jh 4/ 64

Sec. 13. NEW SECTION . 450B.8 Tax repealed. 1 Effective January 1, 2025, this chapter shall not apply to 2 property of estates of decedents dying on or after January 1, 3 2025. The qualified use inheritance tax shall not be imposed 4 under this chapter in the event the decedent dies on or after 5 January 1, 2025, and, to this extent, this chapter is repealed. 6 Sec. 14. DEPARTMENT OF REVENUE. The department of revenue 7 is directed to review references to Code chapters 450 and 450B 8 and submit proposed corrections to such references in bill form 9 to the general assembly by the 2022 regular session of the 10 eighty-ninth general assembly. 11 Sec. 15. EFFECTIVE DATE. This division of this Act, being 12 deemed of immediate importance, takes effect upon enactment. 13 Sec. 16. RETROACTIVE APPLICABILITY. This division of this 14 Act applies retroactively to the estates of decedents dying on 15 or after January 1, 2021. 16 DIVISION VI 17 HOUSING TRUST FUND 18 Sec. 17. Section 428A.8, subsection 3, Code 2021, is amended 19 to read as follows: 20 3. Notwithstanding subsection 2 , the amount of money that 21 shall be transferred pursuant to this section to the housing 22 trust fund in any one fiscal year shall not exceed three seven 23 million dollars. Any money that otherwise would be transferred 24 pursuant to this section to the housing trust fund in excess 25 of that amount shall be deposited in the general fund of the 26 state. 27 DIVISION VII 28 HIGH QUALITY JOBS PROGRAM —— DAY CARE CENTERS 29 Sec. 18. Section 15.327, Code 2021, is amended by adding the 30 following new subsection: 31 NEW SUBSECTION . 016. “Licensed center” means the same as 32 defined in section 237A.1. 33 Sec. 19. Section 15.329, Code 2021, is amended by adding the 34 following new subsection: 35 -5- SF 619.2500 (1) 89 jm/jh 5/ 64

NEW SUBSECTION . 3A. In addition to the factors in 1 subsection 3, in determining the eligibility of a business to 2 participate in the program the authority may consider whether a 3 proposed project will provide a licensed center for use by the 4 business’s employees. 5 DIVISION VIII 6 TELEHEALTH 7 Sec. 20. Section 514C.34, subsection 1, Code 2021, is 8 amended by adding the following new paragraphs: 9 NEW PARAGRAPH . 0a. “Covered person” means the same as 10 defined in section 514J.102. 11 NEW PARAGRAPH . 00a. “Facility” means the same as defined in 12 section 514J.102. 13 NEW PARAGRAPH . 0c. “Health carrier” means the same as 14 defined in section 514J.102. 15 Sec. 21. Section 514C.34, subsection 1, paragraph c, Code 16 2021, is amended to read as follows: 17 c. “Telehealth” means the delivery of health care services 18 through the use of real-time interactive audio and video , or 19 other real-time interactive electronic media, regardless of 20 where the health care professional and the covered person are 21 each located . “Telehealth” does not include the delivery of 22 health care services delivered solely through an audio-only 23 telephone, electronic mail message, or facsimile transmission. 24 Sec. 22. Section 514C.34, Code 2021, is amended by adding 25 the following new subsection: 26 NEW SUBSECTION . 3A. a. A health carrier shall reimburse 27 a health care professional and a facility for health care 28 services provided by telehealth to a covered person for a 29 mental health condition, illness, injury, or disease on the 30 same basis and at the same rate as the health carrier would 31 apply to the same health care services for a mental health 32 condition, illness, injury, or disease provided in person to a 33 covered person by the health care professional or the facility. 34 b. As a condition of reimbursement pursuant to paragraph 35 -6- SF 619.2500 (1) 89 jm/jh 6/ 64

“a” , a health carrier shall not require that an additional 1 health care professional be located in the same room as a 2 covered person while health care services for a mental health 3 condition, illness, injury, or disease are provided via 4 telehealth by another health care professional to the covered 5 person. 6 Sec. 23. EFFECTIVE DATE. This division of this Act, being 7 deemed of immediate importance, takes effect upon enactment. 8 Sec. 24. RETROACTIVE APPLICABILITY. This division of 9 this Act applies to health care services for a mental health 10 condition, illness, injury, or disease provided by a health 11 care professional or a facility to a covered person by 12 telehealth on or after January 1, 2021. 13 DIVISION IX 14 HIGH QUALITY JOBS AND RENEWABLE CHEMICAL PRODUCTION TAX CREDITS 15 Sec. 25. Section 15.119, subsection 2, paragraph a, 16 subparagraphs (2) and (3), Code 2021, are amended to read as 17 follows: 18 (2) In allocating tax credits pursuant to this subsection 19 for each fiscal year of the fiscal period beginning July 1, 20 2016, and ending June 30, 2021 the fiscal year beginning July 21 1, 2021, and for each fiscal year thereafter , the authority 22 shall not allocate more than one hundred five seventy million 23 dollars for purposes of this paragraph. This subparagraph (2) 24 is repealed July 1, 2021. 25 (3) (a) In allocating tax credits pursuant to this 26 subsection for the fiscal year beginning July 1, 2021, and 27 ending June 30, 2022, the authority shall not allocate more 28 than one hundred five million dollars for purposes of this 29 paragraph if the aggregate amount of renewable chemical 30 production tax credits under section 15.319 that were awarded 31 on or after July 1, 2018, but before July 1, 2021, equals or 32 exceeds twenty-seven million dollars. 33 (b) As soon as practicable after June 30, 2021, the 34 authority shall notify the general assembly of the aggregate 35 -7- SF 619.2500 (1) 89 jm/jh 7/ 64

amount of renewable chemical production tax credits awarded 1 under section 15.319 on or after July 1, 2018, but before 2 July 1, 2021, and whether or not the tax credit allocation 3 limitation described in subparagraph division (a) is 4 applicable. 5 (c) This subparagraph (3) is repealed July 1, 2022. 6 Sec. 26. Section 15.119, subsection 2, paragraph h, Code 7 2021, is amended to read as follows: 8 h. The renewable chemical production tax credit program 9 administered pursuant to sections 15.315 through 15.322 . In 10 allocating tax credits pursuant to this subsection for the 11 fiscal year beginning July 1, 2021, and for each fiscal year 12 thereafter , the authority shall not allocate more than ten five 13 million dollars for purposes of this paragraph. This paragraph 14 is repealed July 1, 2030. 15 Sec. 27. EFFECTIVE DATE. This division of this Act, being 16 deemed of immediate importance, takes effect upon enactment. 17 DIVISION X 18 HIGH QUALITY JOBS —— ELIGIBILITY REQUIREMENTS 19 Sec. 28. HIGH QUALITY JOBS —— REDUCTIONS IN OPERATIONS. 20 1. Notwithstanding section 15.329, subsection 1, paragraph 21 “b”, subparagraph (2), the economic development authority shall 22 not presume that a reduction in operations is a reduction in 23 operations while simultaneously applying for assistance with 24 regard to a business that submits an application on or before 25 June 30, 2022, if the business demonstrates to the satisfaction 26 of the authority all of the following: 27 a. That the reduction in operations occurred after March 1, 28 2020. 29 b. That the reduction in operations was caused by the 30 COVID-19 pandemic. 31 2. The economic development authority shall consider 32 whether the benefit of the project proposed by a business 33 under subsection 1 outweighs any negative impact related to 34 the business’s reduction in operations. The business shall 35 -8- SF 619.2500 (1) 89 jm/jh 8/ 64

remain subject to all other eligibility requirements pursuant 1 to section 15.329. 2 3. This section is repealed July 1, 2022. 3 DIVISION XI 4 MANUFACTURING 4.0 5 Sec. 29. NEW SECTION . 15.371 Manufacturing 4.0 technology 6 investment program. 7 1. This section shall be known as and may be cited as the 8 “Manufacturing 4.0 Technology Investment Program” . 9 2. For purposes of this section unless the context otherwise 10 requires: 11 a. “Financial assistance” means the same as defined in 12 section 15.102. 13 b. “Manufacturing 4.0 technology investments” means projects 14 that are intended to lead to the adoption of, and integration 15 of, smart technologies into existing manufacturing operations 16 located in the state by mitigating the risk to the manufacturer 17 of significant technology investments. Projects may include 18 investments in specialized hardware, software, or other 19 equipment intended to assist a manufacturer in increasing the 20 manufacturer’s productivity, efficiency, and competitiveness. 21 3. a. A manufacturing 4.0 technology investment fund 22 is created within the state treasury under the control of 23 the authority for the purpose of financing manufacturing 4.0 24 technology investments as described in this section. 25 b. The fund may be administered as a revolving fund and 26 may consist of any moneys appropriated by the general assembly 27 for purposes of this section and any other moneys that are 28 lawfully available to the authority. Any moneys appropriated 29 to the fund shall be used for purposes of the manufacturing 30 4.0 technology investment program. The authority may use all 31 other moneys in the fund, including interest, earnings, and 32 recaptures, for purposes of this section. 33 c. Notwithstanding section 8.33, moneys appropriated in this 34 section that remain unencumbered or unobligated at the close of 35 -9- SF 619.2500 (1) 89 jm/jh 9/ 64

the fiscal year shall not revert but shall remain available for 1 expenditure for the purposes designated until the close of the 2 succeeding fiscal year. 3 d. Notwithstanding any law to the contrary, the authority 4 may transfer any unobligated and unencumbered moneys in the 5 fund, except for moneys appropriated for purposes of this 6 section, to any fund created pursuant to section 15.106A, 7 subsection 1, paragraph “o” . 8 4. The authority shall establish and administer a 9 manufacturing 4.0 technology investment program and shall use 10 moneys in the fund to award financial assistance to eligible 11 manufacturers for manufacturing 4.0 technology investments. 12 5. To be eligible for a financial assistance award under the 13 manufacturing 4.0 technology investment program, a manufacturer 14 must do all of the following: 15 a. Manufacture goods at a facility located in this state. 16 b. Have a North American industry classification system 17 number within the manufacturing sector range of 31-33. 18 c. Have been an established business for a minimum of three 19 years prior to the date of application to the program. 20 d. Derive a minimum of fifty-one percent of the 21 manufacturer’s gross revenue from the sale of manufactured 22 goods. 23 e. Employ a minimum of three full-time employees and no 24 more than seventy-five full-time employees across all of the 25 manufacturer’s locations. 26 f. Have an assessment of the manufacturer’s proposed 27 manufacturing 4.0 technology investment completed by the center 28 for industrial research and service at Iowa state university of 29 science and technology. 30 g. Demonstrate the ability to provide matching financial 31 support for the manufacturer’s manufacturing 4.0 technology 32 investment on a one-to-one basis. The matching financial 33 support must be obtained from private sources. 34 6. Eligible manufacturers shall submit applications to the 35 -10- SF 619.2500 (1) 89 jm/jh 10/ 64

manufacturing 4.0 technology investment program in the manner 1 prescribed by the authority by rule. 2 7. a. The authority may accept applications during one 3 or more application periods each fiscal year as determined by 4 the authority. All completed applications shall be reviewed 5 and scored on a competitive basis pursuant to rules adopted by 6 the authority. The authority may engage an outside technical 7 review panel to complete technical reviews of applications. 8 The board shall review the recommendations of the authority 9 and of the technical review panel, if applicable, and shall 10 approve, defer, or deny each application. 11 b. In making recommendations to the board, the authority and 12 the technical review panel, if applicable, shall consider all 13 of the following: 14 (1) The completeness of the manufacturer’s application. 15 (2) Whether the board should approve or deny an application. 16 (3) If the board approves an application, the type and 17 amount of financial assistance that should to be awarded to the 18 applicant. 19 (4) The percentage of the manufacturer’s gross revenue 20 that is derived from the sale of manufactured goods pursuant 21 to subsection 5, paragraph “d” . 22 (5) Whether the manufacturer’s proposed manufacturing 23 4.0 technology investment is consistent with the assessment 24 completed by the center for industrial research and service at 25 Iowa state university of science and technology pursuant to 26 subsection 5, paragraph “f” . 27 c. The board shall not approve an application for financial 28 assistance for a manufacturing 4.0 technology investment that 29 was made prior to the date of the application. 30 8. From moneys appropriated to the manufacturing 4.0 31 technology investment fund from the general fund of the state 32 and any other state moneys lawfully available to the authority 33 for the manufacturing 4.0 technology investment program, the 34 maximum amount of financial assistance awarded from such moneys 35 -11- SF 619.2500 (1) 89 jm/jh 11/ 64

to an eligible manufacturer shall not exceed seventy-five 1 thousand dollars. 2 9. The authority shall adopt rules pursuant to chapter 17A 3 necessary to implement and administer this section. 4 DIVISION XII 5 ENERGY INFRASTRUCTURE REVOLVING LOAN PROGRAM 6 Sec. 30. Section 476.10A, subsection 2, Code 2021, is 7 amended to read as follows: 8 2. Notwithstanding section 8.33 , any unexpended moneys 9 remitted to the treasurer of state under this section shall be 10 retained for the purposes designated. Notwithstanding section 11 12C.7, subsection 2 , interest or earnings on investments or 12 time deposits of the moneys remitted under this section shall 13 be retained and used for the purposes designated, pursuant to 14 section 476.46 . 15 Sec. 31. Section 476.46, subsection 2, paragraph e, 16 subparagraph (3), Code 2021, is amended to read as follows: 17 (3) Interest on the fund shall be deposited in the fund. 18 A portion of the interest on the fund, not to exceed fifty 19 percent of the total interest accrued, shall be used for 20 promotion and administration of the fund. 21 Sec. 32. Section 476.46, Code 2021, is amended by adding the 22 following new subsections: 23 NEW SUBSECTION . 3. The Iowa energy center shall not 24 initiate any new loans under this section after June 30, 2021. 25 NEW SUBSECTION . 4. Loan payments received under this 26 section on or after July 1, 2021, and any other moneys in the 27 fund on or after July 1, 2021, shall be deposited in the energy 28 infrastructure revolving loan fund created in section 476.46A. 29 Sec. 33. NEW SECTION . 476.46A Energy infrastructure 30 revolving loan program. 31 1. a. An energy infrastructure revolving loan fund is 32 created in the office of the treasurer of state and shall be 33 administered by the Iowa energy center established in section 34 15.120. 35 -12- SF 619.2500 (1) 89 jm/jh 12/ 64

b. The fund may be administered as a revolving fund and may 1 consist of any moneys appropriated by the general assembly for 2 purposes of this section and any other moneys that are lawfully 3 directed to the fund. 4 c. Moneys in the fund shall be used to provide financial 5 assistance for the development and construction of energy 6 infrastructure, including projects that support electric or gas 7 generation transmission, storage, or distribution; electric 8 grid modernization; energy-sector workforce development; 9 emergency preparedness for rural and underserved areas; the 10 expansion of biomass, biogas, and renewable natural gas; 11 innovative technologies; and the development of infrastructure 12 for alternative fuel vehicles. 13 d. Notwithstanding section 8.33, moneys appropriated in this 14 section that remain unencumbered or unobligated at the close of 15 the fiscal year shall not revert but shall remain available for 16 expenditure for the purposes designated until the close of the 17 succeeding fiscal year. 18 e. Notwithstanding section 12C.7, subsection 2, interest or 19 earnings on moneys in the fund shall be credited to the fund. 20 2. a. The Iowa energy center shall establish and administer 21 an energy infrastructure revolving loan program to encourage 22 the development of energy infrastructure within the state. 23 b. An individual, business, rural electric cooperative, or 24 municipal utility located and operating in this state shall be 25 eligible for financial assistance under the program. With the 26 approval of the Iowa energy center governing board established 27 under section 15.120, subsection 2, the economic development 28 authority shall determine the amount and the terms of all 29 financial assistance awarded to an individual, business, rural 30 electric cooperative, or municipal utility under the program. 31 All agreements and administrative authority sha11 be vested in 32 the Iowa energy center governing board. 33 c. The economic development authority may use not more than 34 five percent of the moneys in the fund at the beginning of each 35 -13- SF 619.2500 (1) 89 jm/jh 13/ 64

fiscal year for purposes of administrative costs, marketing, 1 technical assistance, and other program support. 2 3. For the purposes of this section: 3 a. “Energy infrastructure” means land, buildings, physical 4 plant and equipment, and services directly related to the 5 development of projects used for, or useful for, electricity or 6 gas generation, transmission, storage, or distribution. 7 b. “Financial assistance” means the same as defined in 8 section 15.102. 9 Sec. 34. ALTERNATE ENERGY REVOLVING LOAN FUND —— MONEYS 10 TRANSFERRED AND APPROPRIATED. Any unencumbered or unobligated 11 moneys remaining after June 30, 2021, in the alternate energy 12 revolving loan fund created pursuant to section 476.46, are 13 transferred and appropriated to the energy infrastructure 14 revolving loan fund created pursuant to section 476.46A, to be 15 used for purposes of the energy infrastructure revolving loan 16 program. 17 DIVISION XIII 18 WORKFORCE HOUSING TAX INCENTIVES 19 Sec. 35. Section 15.119, subsection 2, paragraph g, Code 20 2021, is amended to read as follows: 21 g. (1) The workforce housing tax incentives program 22 administered pursuant to sections 15.351 through 15.356 . 23 In allocating tax credits pursuant to this subsection , the 24 authority shall not allocate more than twenty-five thirty-five 25 million dollars for purposes of this paragraph. Of the moneys 26 allocated under this paragraph, ten seventeen million five 27 hundred thousand dollars shall be reserved for allocation to 28 qualified housing projects in small cities, as defined in 29 section 15.352 , that are registered on or after July 1, 2017. 30 (2) (a) Notwithstanding subparagraph (1), in allocating 31 tax credits pursuant to this subsection for the fiscal year 32 beginning July 1, 2021, and ending June 30, 2022, the authority 33 shall not allocate more than forty million dollars for the 34 purposes of this paragraph. Of the moneys allocated under 35 -14- SF 619.2500 (1) 89 jm/jh 14/ 64

this paragraph for the fiscal year beginning July 1, 2021, and 1 ending June 30, 2022, twelve million dollars shall be reserved 2 for allocation to qualified housing projects in small cities, 3 as defined in section 15.352, that are registered on or after 4 July 1, 2017. 5 (b) This subparagraph is repealed July 1, 2022. 6 Sec. 36. Section 15.354, subsection 3, paragraph d, Code 7 2021, is amended to read as follows: 8 d. Upon completion of a housing project, an a housing 9 business shall submit all of the following to the authority: 10 (1) An examination of the project in accordance with the 11 American institute of certified public accountants’ statements 12 on standards for attestation engagements, completed by a 13 certified public accountant authorized to practice in this 14 state , shall be submitted to the authority . 15 (2) A statement of the final amount of qualifying new 16 investment for the housing project. 17 (3) Any information the authority deems necessary to ensure 18 compliance with the agreement signed by the housing business 19 pursuant to paragraph “a” , the requirements of this part, 20 and rules the authority and the department of revenue adopt 21 pursuant to section 15.356. 22 Sec. 37. Section 15.354, subsection 3, paragraph e, 23 subparagraph (1), Code 2021, is amended to read as follows: 24 (1) Upon review of the examination , and verification of 25 the amount of the qualifying new investment, and review of 26 any other information submitted pursuant to paragraph “d” , 27 subparagraph (3), the authority may notify the housing business 28 of the amount that the housing business may claim as a refund 29 of the sales and use tax under section 15.355, subsection 2 , 30 and may issue a tax credit certificate to the housing business 31 stating the amount of workforce housing investment tax credits 32 under section 15.355 , subsection 3 , the eligible housing 33 business may claim. The sum of the amount that the housing 34 business may claim as a refund of the sales and use tax and 35 -15- SF 619.2500 (1) 89 jm/jh 15/ 64

the amount of the tax credit certificate shall not exceed the 1 amount of the tax incentive award. 2 Sec. 38. Section 15.354, subsection 6, paragraphs b and c, 3 Code 2021, are amended to read as follows: 4 b. Notwithstanding subsection 1 , the authority may accept 5 applications for disaster recovery housing projects on a 6 continuous basis establish a disaster recovery application 7 period following the declaration of a major disaster by the 8 president of the United States for a county in Iowa . 9 c. Notwithstanding subsection 2 , paragraphs “a” , “b” , and 10 “d” , upon Upon review of a housing business’s application , 11 and scoring of all applications received during a disaster 12 recovery application period, the authority may make a tax 13 incentive award to a disaster recovery housing project. The 14 tax incentive award shall represent the maximum amount of tax 15 incentives that the disaster recovery housing project may 16 qualify for under the program. In determining a tax incentive 17 award, the authority shall not use an amount of project costs 18 that exceeds the amount included in the application of the 19 housing business. Tax incentive awards shall be approved by 20 the director of the authority. 21 Sec. 39. Section 15.355, subsection 2, Code 2021, is amended 22 to read as follows: 23 2. A housing business may claim a refund of the sales and 24 use taxes paid under chapter 423 that are directly related to 25 a housing project and specified in the agreement. The refund 26 available pursuant to this subsection shall be as provided in 27 section 15.331A , excluding subsection 2 , paragraph “c” , of 28 that section. For purposes of the program, the term “project 29 completion” , as used in section 15.331A , shall mean the date 30 on which the authority notifies the department of revenue that 31 all applicable requirements of an the agreement entered into 32 pursuant to section 15.354 , subsection 3, paragraph “a” , and 33 all applicable requirements of this part, including the rules 34 the authority and the department of revenue adopted pursuant to 35 -16- SF 619.2500 (1) 89 jm/jh 16/ 64

section 15.356, are satisfied. 1 DIVISION XIV 2 BROWNFIELDS AND GRAYFIELDS 3 Sec. 40. Section 15.119, subsection 3, Code 2021, is amended 4 to read as follows: 5 3. In allocating the amount of tax credits authorized 6 pursuant to subsection 1 among the programs specified in 7 subsection 2 , the authority shall not allocate more than ten 8 fifteen million dollars for purposes of subsection 2 , paragraph 9 “f” . 10 Sec. 41. Section 15.293A, subsection 8, Code 2021, is 11 amended to read as follows: 12 8. This section is repealed on June 30, 2021 2031 . 13 Sec. 42. Section 15.293B, Code 2021, is amended by adding 14 the following new subsection: 15 NEW SUBSECTION . 5A. a. Tax credits revoked under 16 subsection 3 including tax credits revoked up to five years 17 prior to the effective date of this division of this Act, and 18 tax credits not awarded under subsection 4 or 5, may be awarded 19 in the next annual application period established in subsection 20 1, paragraph “c” . 21 b. Tax credits awarded pursuant to paragraph “a” shall not 22 be counted against the limit under section 15.119, subsection 23 3. 24 Sec. 43. Section 15.293B, subsection 7, Code 2021, is 25 amended to read as follows: 26 7. This section is repealed on June 30, 2021 2031 . 27 Sec. 44. EFFECTIVE DATE. The following, being deemed of 28 immediate importance, take effect upon enactment: 29 1. The section of this division of this Act amending section 30 15.293A, subsection 8. 31 2. The section of this division of this Act amending section 32 15.293B, subsection 7. 33 DIVISION XV 34 DOWNTOWN LOAN GUARANTEE PROGRAM 35 -17- SF 619.2500 (1) 89 jm/jh 17/ 64

Sec. 45. NEW SECTION . 15.431 Downtown loan guarantee 1 program. 2 1. The economic development authority, in partnership with 3 the Iowa finance authority, shall establish and administer a 4 downtown loan guarantee program to encourage Iowa downtown 5 businesses and banks to reinvest and reopen following the 6 COVID-19 pandemic. 7 2. In order for a loan to be guaranteed, all of the 8 following conditions must be true: 9 a. The loan finances an eligible downtown resource center 10 community catalyst building remediation grant project or main 11 street Iowa challenge grant within a designated district. 12 b. The loan finances a rehabilitation project, or finances 13 acquisition or refinancing costs associated with the project. 14 c. At least twenty-five percent of the project costs are 15 used for construction on the project or renovation. 16 d. The project includes a housing component. 17 e. The loan is used for construction of the project, 18 permanent financing of the project, or both. 19 f. A federally insured financial lending institution issued 20 the loan. 21 g. The loan does not reimburse the borrower for working 22 capital, operations, or similar expenses. 23 h. The project meets downtown resource center and main 24 street Iowa design review. 25 3. a. For a loan amount less than or equal to five hundred 26 thousand dollars, the economic development authority may 27 guarantee up to fifty percent of the loan amount. 28 b. For a loan amount greater than five hundred thousand 29 dollars, the economic development authority may provide a 30 maximum loan guarantee of up to two hundred fifty thousand 31 dollars. 32 4. A project loan must be secured by a mortgage against the 33 project property. 34 5. The economic development authority may guarantee loans 35 -18- SF 619.2500 (1) 89 jm/jh 18/ 64

for up to five years. The economic development authority 1 may extend the loan guarantee for an additional five years 2 if an underwriting review finds that an extension would be 3 beneficial. 4 6. The lender shall pay an annual loan guarantee fee as set 5 forth by rule. 6 7. The economic development authority reserves the right 7 to deny a loan guarantee for unreasonable bank loan fees or 8 interest rate. 9 8. The loan must not be insured or guaranteed by another 10 local, state, or federal guarantee program. 11 9. The loan guarantee is not transferable if the loan or the 12 project is sold or transferred. 13 10. In the event of a loss due to default, the loan 14 guarantee proportionally pays the guarantee percentage of the 15 loss to the lender. 16 11. Moneys for the program may consist of any moneys 17 appropriated by the general assembly for purposes of this 18 section, and any other moneys that are lawfully available 19 to the economic development authority, including moneys 20 transferred or deposited from other funds created pursuant to 21 section 15.106A, subsection 1, paragraph “o” . 22 DIVISION XVI 23 DISASTER RECOVERY HOUSING ASSISTANCE 24 Sec. 46. NEW SECTION . 16.57A Transfer of unobligated or 25 unencumbered funds —— report. 26 1. Notwithstanding any other provision of law to the 27 contrary, the authority may transfer any unobligated and 28 unencumbered moneys in any revolving loan program fund created 29 pursuant to section 16.46, 16.47, 16.48, or 16.49, for deposit 30 in the disaster recovery housing assistance fund created in 31 section 16.57B. 32 2. Notwithstanding section 8.39, and any other law to 33 the contrary, with the prior written consent and approval of 34 the governor, the executive director of the authority may 35 -19- SF 619.2500 (1) 89 jm/jh 19/ 64