Senate
File
559
H-1353
Amend
Senate
File
559,
as
amended,
passed,
and
reprinted
by
1
the
Senate,
as
follows:
2
1.
Page
25,
after
line
27
by
inserting:
3
<
DIVISION
___
4
NEIGHBORHOOD
HOUSING
RENOVATION
5
Sec.
___.
NEW
SECTION
.
16.230
Neighborhood
housing
6
renovation
grant
program
——
fund.
7
1.
a.
A
neighborhood
housing
renovation
grant
fund
8
is
created
in
the
state
treasury
under
the
control
of
the
9
authority.
Moneys
in
the
fund
are
appropriated
to
the
10
authority
to
award
grants
under
the
neighborhood
housing
11
renovation
grant
program.
12
b.
There
is
appropriated
to
the
authority
for
deposit
in
the
13
neighborhood
housing
renovation
grant
fund
for
the
fiscal
year
14
beginning
July
1,
2023,
from
the
moneys
available
to
the
state
15
pursuant
to
the
federal
American
Rescue
Plan
Act
of
2021,
Pub.
16
L.
No.
117-2,
the
sum
of
five
million
dollars.
17
c.
Notwithstanding
section
12C.7,
subsection
2,
interest
18
or
earnings
on
moneys
in
the
neighborhood
housing
renovation
19
grant
fund
shall
accrue
to
the
authority
and
shall
be
used
for
20
purposes
of
this
section.
Notwithstanding
section
8.33,
moneys
21
in
the
neighborhood
housing
renovation
grant
fund
at
the
end
of
22
each
fiscal
year
shall
not
revert
to
any
other
fund
but
shall
23
remain
in
the
neighborhood
housing
renovation
grant
fund
for
24
expenditure
for
subsequent
fiscal
years.
All
repayments
or
25
recaptures
of
grants
awarded
under
this
section
shall
accrue
to
26
the
authority
and
shall
be
used
for
purposes
of
this
section.
27
d.
The
authority
shall
not
use
more
than
three
percent
of
28
the
moneys
in
the
neighborhood
housing
renovation
grant
fund
at
29
the
beginning
of
the
fiscal
year
for
purposes
of
administrative
30
costs,
marketing,
and
other
program
support.
31
2.
a.
The
authority
shall
establish
and
administer
a
32
neighborhood
housing
renovation
grant
program
for
purposes
of
33
awarding
grants
to
eligible
homeowners
for
qualifying
exterior
34
home
improvements,
repairs,
or
renovations.
35
-1-
SF
559.2168
(2)
90
ko/ns
1/
9
#1.
b.
To
qualify
for
the
neighborhood
housing
renovation
grant
1
program,
a
homeowner’s
household
income
shall
not
exceed
one
2
hundred
nine
thousand
dollars.
3
c.
The
property
at
which
the
qualifying
exterior
home
4
improvements,
repairs,
or
renovations
will
occur
must
be
5
occupied
by
the
homeowner.
6
d.
A
grant
awarded
under
the
neighborhood
housing
renovation
7
grant
program
shall
not
exceed
twenty
thousand
dollars.
8
e.
Exterior
improvements,
repairs,
and
renovations
that
9
qualify
for
the
neighborhood
housing
renovation
grant
program
10
shall
include
all
of
the
following:
11
(1)
Roof
repair
or
replacement.
12
(2)
Foundation
repair.
13
(3)
Exterior
siding
repair
or
replacement.
14
(4)
Exterior
paint.
15
(5)
Window
and
door
repair
or
replacement.
16
(6)
Garage
repair
or
replacement.
17
(7)
Exterior
energy
efficiency-related
repairs
or
upgrades.
18
(8)
Exterior
wheelchair
or
mobility
assistive
device
19
accessibility.
20
(9)
Sidewalk
and
driveway
repair
or
replacement.
21
3.
The
authority
shall
adopt
rules
pursuant
to
chapter
17A
22
to
administer
this
section.
23
DIVISION
___
24
IOWA
HOUSING
TAX
CREDIT
PROGRAM
25
Sec.
___.
NEW
SECTION
.
16.37A
Definitions.
26
For
purposes
of
this
part,
unless
the
context
otherwise
27
requires:
28
1.
“Compliance
period”
means
the
period
of
fifteen
years
29
beginning
with
the
first
taxable
year
of
the
credit
period.
30
2.
“Credit
period”
means
the
period
of
ten
tax
years
31
beginning
with
the
tax
year
in
which
a
qualified
development
32
is
placed
in
service
and
the
Iowa
housing
tax
credit
may
be
33
claimed.
If
a
qualified
development
consists
of
more
than
34
one
building,
the
qualified
development
is
placed
in
service
35
-2-
SF
559.2168
(2)
90
ko/ns
2/
9
in
the
tax
year
in
which
the
last
building
of
the
qualified
1
development
is
placed
in
service.
2
3.
“Department”
means
the
Iowa
department
of
revenue.
3
4.
“Qualified
allocation
plan”
means
the
qualified
4
allocation
plan
adopted
by
the
authority
pursuant
to
section
5
42(m)
of
the
Internal
Revenue
Code.
6
5.
“Qualified
basis”
means
the
qualified
basis
determined
7
under
section
42(c)(1)
of
the
Internal
Revenue
Code.
8
6.
“Qualified
development”
means
a
qualified
low-income
9
housing
project
under
section
42(g)
of
the
Internal
Revenue
10
Code
that
is
financed
with
tax-exempt
bonds,
pursuant
to
11
section
42(i)(2)
of
the
Internal
Revenue
Code,
and
located
in
12
this
state.
13
7.
“Taxpayer”
means
an
individual,
a
person,
firm,
14
corporation,
or
other
entity
that
owns
an
interest,
direct
15
or
indirect,
in
a
qualified
development
and
who
claims
a
tax
16
credit
under
section
16.37C.
17
Sec.
___.
NEW
SECTION
.
16.37B
Application
——
review
——
18
authorization.
19
1.
The
authority
shall
develop
a
system
for
the
application,
20
review,
and
authorization
of
Iowa
housing
tax
credits
awarded
21
pursuant
to
this
part
and
shall
control
the
issuance
of
all
tax
22
credit
certificates
to
taxpayers
pursuant
to
this
part.
23
2.
Applications
for
Iowa
housing
tax
credits
shall
be
24
accepted
during
an
annual
application
period
established
by
the
25
authority.
26
3.
The
authority
may
authorize
the
tax
credit
if
all
of
the
27
following
conditions
are
satisfied:
28
a.
The
tax
credit
certificate
is
issued
to
a
taxpayer
who
29
has
an
ownership
interest
in
the
qualified
development.
30
b.
The
tax
credit
amount
is
allocated
pursuant
to
a
31
qualified
allocation
plan.
32
c.
The
tax
credit
is
necessary
for
the
financial
feasibility
33
of
the
qualified
development.
34
d.
The
amount
of
the
tax
credit
allocated
to
an
owner
35
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SF
559.2168
(2)
90
ko/ns
3/
9
does
not
exceed
thirty
percent
of
the
qualified
basis
of
the
1
qualified
development.
2
e.
The
qualified
development
is
the
subject
of
a
recorded
3
restrictive
covenant
requiring
that,
for
the
compliance
period
4
or
for
a
longer
period
agreed
to
by
the
authority
and
the
5
owner
of
the
qualified
development,
the
development
shall
be
6
maintained
and
operated
as
a
qualified
development
and
shall
be
7
in
compliance
with
Tit.
VIII
of
the
federal
Civil
Rights
Act
of
8
1968,
as
amended.
9
4.
Upon
review
of
an
application,
the
authority
may
approve
10
the
qualified
development
for
the
tax
credit
program
provided
11
in
section
16.37C,
and
issue
a
tax
credit
certificate
stating
12
the
amount
of
the
tax
credit
the
authority
determines
the
13
applicant
is
eligible
to
claim
for
each
year
of
the
credit
14
period.
15
5.
Unless
otherwise
provided
in
this
section
or
the
context
16
clearly
requires
otherwise,
the
authority
shall
determine
17
eligibility
for
a
credit
and
allocate
credits
in
accordance
18
with
the
standards
and
requirements
set
forth
in
section
42
of
19
the
Internal
Revenue
Code.
20
6.
An
applicant
that
is
unsuccessful
in
receiving
a
tax
21
credit
award
during
an
annual
application
period
may
make
22
additional
applications
during
subsequent
annual
application
23
periods.
Such
applicants
shall
be
required
to
submit
a
new
24
application
which
shall
be
reviewed
in
the
same
manner
as
other
25
applications
in
that
annual
application
period.
26
Sec.
___.
NEW
SECTION
.
16.37C
Iowa
housing
tax
credits
——
27
limits.
28
1.
An
Iowa
housing
tax
credit
shall
be
allowed
against
29
the
taxes
imposed
in
chapter
422,
subchapters
II,
III,
and
V,
30
and
in
chapter
432,
and
against
the
moneys
and
credits
tax
31
imposed
in
section
533.329,
in
the
amount
determined
by
the
32
authority
pursuant
to
this
part.
Any
tax
credit
in
excess
of
33
the
taxpayer’s
liability
for
the
tax
year
is
not
refundable
but
34
may
be
credited
to
the
tax
liability
for
the
following
five
35
-4-
SF
559.2168
(2)
90
ko/ns
4/
9
years
or
until
depleted,
whichever
is
earlier.
1
2.
An
individual
may
claim
a
tax
credit
under
this
2
subsection
of
a
partnership,
limited
liability
company,
3
S
corporation,
estate,
or
trust
electing
to
have
income
4
taxed
directly
to
the
individual.
The
amount
claimed
by
the
5
individual
shall
be
based
upon
the
pro
rata
share
of
the
6
individual’s
earnings
from
the
partnership,
limited
liability
7
company,
S
corporation,
estate,
or
trust.
8
3.
In
any
calendar
year,
the
aggregate
amount
of
all
tax
9
credits
allocated
by
the
authority
shall
not
exceed
fifteen
10
million
dollars,
plus
the
sum
of
the
following
amounts:
11
a.
The
total
of
all
unallocated
tax
credits,
if
any,
for
the
12
preceding
calendar
years.
13
b.
The
total
amount
of
all
previously
allocated
tax
credits
14
that
have
been
recaptured,
revoked,
canceled,
or
otherwise
15
recovered
by
the
authority.
16
4.
a.
To
claim
a
tax
credit
under
this
section,
a
taxpayer
17
shall
include
one
or
more
tax
credit
certificates
issued
by
the
18
authority
with
the
taxpayer’s
tax
return.
19
b.
The
tax
credit
certificate
shall
contain
the
taxpayer’s
20
name,
address,
tax
identification
number,
the
amount
of
the
21
credit
including
the
amount
the
authority
determines
the
22
taxpayer
is
eligible
to
claim
for
each
year
of
the
credit
23
period,
the
name
of
the
qualified
development,
any
other
24
information
required
by
the
department
of
revenue,
and
a
place
25
for
the
name
and
tax
identification
number
of
a
transferee
and
26
the
amount
of
the
tax
credit
being
transferred.
27
c.
Tax
credit
certificates
issued
under
this
section
may
28
be
transferred
to
any
person
or
entity.
Within
ninety
days
29
of
transfer,
the
transferee
shall
submit
the
transferred
tax
30
credit
certificate
to
the
authority
along
with
a
statement
31
containing
the
transferee’s
name,
tax
identification
number,
32
and
address,
the
denomination
that
each
replacement
tax
credit
33
certificate
is
to
carry,
and
any
other
information
required
by
34
the
department
of
revenue.
35
-5-
SF
559.2168
(2)
90
ko/ns
5/
9
d.
Within
thirty
days
of
receiving
the
transferred
tax
1
credit
certificate
and
the
transferee’s
statement,
the
2
authority
shall
issue
one
or
more
replacement
tax
credit
3
certificates
to
the
transferee.
Each
replacement
tax
credit
4
certificate
must
contain
the
information
required
for
the
5
original
tax
credit
certificate
and
must
have
the
same
6
expiration
date
that
appeared
in
the
transferred
tax
credit
7
certificate.
Tax
credit
certificate
amounts
of
less
than
8
the
minimum
amount
established
by
rule
of
the
Iowa
finance
9
authority
shall
not
be
transferable.
10
e.
A
tax
credit
shall
not
be
claimed
by
a
transferee
11
under
this
section
until
a
replacement
tax
credit
certificate
12
identifying
the
transferee
as
the
proper
holder
has
been
13
issued.
The
transferee
may
use
the
amount
of
the
tax
credit
14
transferred
against
the
taxes
imposed
in
chapter
422,
15
subchapters
II,
III,
and
V,
and
in
chapter
432,
and
against
the
16
moneys
and
credits
tax
imposed
in
section
533.329,
for
any
tax
17
year
the
original
transferor
could
have
claimed
the
tax
credit.
18
Any
consideration
received
for
the
transfer
of
the
tax
credit
19
shall
not
be
included
as
income
under
chapter
422,
subchapters
20
II,
III,
and
V.
Any
consideration
paid
for
the
transfer
of
the
21
tax
credit
shall
not
be
deducted
from
income
under
chapter
422,
22
subchapters
II,
III,
and
V.
23
Sec.
___.
NEW
SECTION
.
16.37D
Recapture.
24
1.
As
of
the
last
day
of
any
tax
year
during
the
compliance
25
period,
if
the
amount
of
the
qualified
basis
of
a
qualified
26
development
owned
by
a
taxpayer
claiming
the
credit
is
less
27
than
the
amount
of
the
qualified
basis
as
of
the
last
day
of
the
28
immediately
preceding
tax
year,
the
amount
of
the
taxpayer’s
29
liability
under
this
part
shall
be
increased
by
the
recapture
30
amount
determined
using
the
method
under
section
42(j)
of
the
31
Internal
Revenue
Code.
32
2.
If
a
recapture
event
occurs,
the
taxpayer
shall
include
33
the
recaptured
proportion
of
the
credit
on
the
return
submitted
34
for
the
tax
year
in
which
the
recapture
event
is
identified.
35
-6-
SF
559.2168
(2)
90
ko/ns
6/
9
Sec.
___.
NEW
SECTION
.
16.37E
Compliance
monitoring.
1
The
authority
shall
monitor
and
oversee
compliance
with
2
sections
16.37A
through
16.37D
and
shall
report
specific
3
occurrences
of
noncompliance
to
the
department.
4
Sec.
___.
NEW
SECTION
.
16.37F
Report
to
the
general
5
assembly.
6
On
or
before
January
31
of
each
year,
the
authority
shall
7
submit
to
the
general
assembly
a
report
that
includes
all
of
8
the
following:
9
1.
A
statement
of
the
number
of
qualified
developments
for
10
which
the
authority
issued
tax
certificates
that
year.
11
2.
A
description
of
each
qualified
development
for
which
12
the
authority
issued
a
tax
certificate
that
year,
including
the
13
geographic
location
of
the
development,
the
household
type
and
14
any
specific
demographic
information
available
concerning
the
15
residents
intended
to
be
served
by
the
development,
the
income
16
levels
of
residents
intended
to
be
served
by
the
development,
17
and
the
rents
or
set-asides
authorized
for
each
development.
18
3.
An
analysis
of
housing
market
and
demographic
19
information
that
shows
how
the
qualified
developments
for
20
which
the
authority
has
issued
tax
certificates
at
any
time
21
are
addressing
the
need
for
affordable
housing
within
the
22
communities
those
developments
are
intended
to
serve,
and
an
23
analysis
of
any
remaining
disparities
in
the
affordability
of
24
housing
within
those
communities.
25
Sec.
___.
NEW
SECTION
.
16.37G
Rules.
26
The
authority
and
the
department
shall
adopt
rules
pursuant
27
to
chapter
17A
as
necessary
for
the
implementation
and
28
administration
of
this
part.
29
Sec.
___.
NEW
SECTION
.
422.10C
Iowa
housing
tax
credit.
30
The
taxes
imposed
under
this
subchapter,
less
the
credits
31
allowed
under
section
422.12,
shall
be
reduced
by
an
Iowa
32
housing
tax
credit
allowed
under
section
16.37C.
33
Sec.
___.
Section
422.33,
Code
2023,
is
amended
by
adding
34
the
following
new
subsection:
35
-7-
SF
559.2168
(2)
90
ko/ns
7/
9
NEW
SUBSECTION
.
17.
The
taxes
imposed
under
this
subchapter
1
shall
be
reduced
by
an
Iowa
housing
tax
credit
as
allowed
under
2
section
16.37C.
3
Sec.
___.
Section
422.60,
Code
2023,
is
amended
by
adding
4
the
following
new
subsection:
5
NEW
SUBSECTION
.
16.
The
taxes
imposed
under
this
subchapter
6
shall
be
reduced
by
an
Iowa
housing
tax
credit
as
allowed
under
7
section
16.37C.
8
Sec.
___.
NEW
SECTION
.
432.12P
Iowa
housing
tax
credit.
9
The
taxes
imposed
under
this
chapter
shall
be
reduced
by
an
10
Iowa
housing
tax
credit
allowed
under
section
16.37C.
11
Sec.
___.
Section
533.329,
subsection
2,
Code
2023,
is
12
amended
by
adding
the
following
new
paragraph:
13
NEW
PARAGRAPH
.
n.
The
moneys
and
credits
tax
imposed
under
14
this
section
shall
be
reduced
by
an
Iowa
housing
tax
credit
15
allowed
under
section
16.37C.
16
Sec.
___.
CODE
EDITOR
DIRECTIVE.
The
Code
editor
shall
17
designate
sections
16.37A
through
16.37G,
as
enacted
by
18
this
division
of
this
Act,
as
a
new
part
within
chapter
16,
19
subchapter
VII,
and
may
redesignate
the
new
and
preexisting
20
parts,
replace
references
to
sections
16.37A
through
16.37G
21
with
references
to
the
new
part,
and
correct
internal
22
references
as
necessary,
including
references
in
subchapter
or
23
part
headnotes.
24
Sec.
___.
EFFECTIVE
DATE.
This
division
of
this
Act
takes
25
effect
January
1,
2024.
26
Sec.
___.
APPLICABILITY.
This
division
of
this
Act
applies
27
to
tax
years
beginning
on
or
after
January
1,
2024.
28
DIVISION
___
29
FIRST-TIME
HOMEBUYER
SAVINGS
ACCOUNTS
30
Sec.
___.
Section
422.7,
subsection
27,
paragraph
a,
31
subparagraph
(1),
subparagraph
division
(a),
subparagraph
32
subdivisions
(i)
and
(ii),
Code
2023,
are
amended
to
read
as
33
follows:
34
(i)
For
married
taxpayers
who
file
a
joint
return
and
35
-8-
SF
559.2168
(2)
90
ko/ns
8/
9
maintain
a
joint
first-time
homebuyer
savings
account,
four
ten
1
thousand
dollars.
2
(ii)
For
any
other
account
holder,
two
five
thousand
3
dollars.
>
4
2.
Title
page,
by
striking
line
9
and
inserting
<
program,
5
new
job
training
agreements,
and
first-time
homebuyer
accounts,
6
and
creating
the
neighborhood
housing
renovation
grant
and
Iowa
7
housing
tax
credit
programs.
>
8
3.
By
renumbering
as
necessary.
9
______________________________
MATSON
of
Polk
-9-
SF
559.2168
(2)
90
ko/ns
9/
9
#2.
#3.