House File 2687 - Enrolled

PAG LIN



  1  1                                             HOUSE FILE 2687
  1  2
  1  3                             AN ACT
  1  4 RELATING TO CERTAIN ECONOMIC DEVELOPMENT PROGRAMS BY PROVID-
  1  5    ING TAX CREDITS FOR THE REDEVELOPMENT OF UNDERUTILIZED
  1  6    PROPERTIES.
  1  7
  1  8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  1  9
  1 10    Section 1.  Section 15.291, Code 2007, is amended to read
  1 11 as follows:
  1 12    15.291  DEFINITIONS.
  1 13    As used in this part, unless the context otherwise
  1 14 requires:
  1 15    1.  "Brownfield site" means an abandoned, idled, or
  1 16 underutilized industrial or commercial facility where
  1 17 expansion or redevelopment is complicated by real or perceived
  1 18 environmental contamination.  A brownfield site includes
  1 19 property contiguous with the property on which the individual
  1 20 or commercial facility is located.  A brownfield site shall
  1 21 does not include property which has been placed, or is
  1 22 proposed to be included for placement, on the national
  1 23 priorities list established pursuant to the federal
  1 24 Comprehensive Environmental Response, Compensation, and
  1 25 Liability Act, 42 U.S.C. } 9601 et seq.
  1 26    2.  "Council" means the brownfield redevelopment advisory
  1 27 council established in section 15.294.
  1 28    3.  "Grayfield site" means an industrial or commercial
  1 29 property meeting all of the following requirements:
  1 30    a.  The property has been developed and has infrastructure
  1 31 in place but the property's current use is outdated or
  1 32 prevents a better or more efficient use of the property.  Such
  1 33 property includes vacant, blighted, obsolete, or otherwise
  1 34 underutilized property.
  1 35    b.  The property's improvements and infrastructure are at
  2  1 least twenty=five years old and one or more of the following
  2  2 conditions exists:
  2  3    (1)  Thirty percent or more of a building located on the
  2  4 property that is available for occupancy has been vacant or
  2  5 unoccupied for a period of twelve months or more.
  2  6    (2)  The assessed value of the improvements on the property
  2  7 has decreased by twenty=five percent or more.
  2  8    (3)  The property is currently being used as a parking lot.
  2  9    (4)  The improvements on the property no longer exist.
  2 10    4.  "Green development" means development which meets or
  2 11 exceeds the sustainable design standards established by the
  2 12 state building code commissioner pursuant to section 103A.8B.
  2 13    5.  "Qualifying investment" means the purchase price, the
  2 14 cleanup costs, and the redevelopment costs directly related to
  2 15 a qualifying redevelopment project.
  2 16    6.  "Qualifying redevelopment project" means a brownfield
  2 17 or a grayfield site being redeveloped or improved by the
  2 18 property owner.  Qualifying redevelopment project does not
  2 19 include a previously remediated or redeveloped brownfield
  2 20 site.
  2 21    2.  7.  "Sponsorship" means an agreement between a city or
  2 22 county and an applicant for assistance under the brownfield
  2 23 redevelopment program where the city or county agrees to offer
  2 24 assistance or guidance to the applicant.
  2 25    Sec. 2.  NEW SECTION.  15.293A  REDEVELOPMENT TAX CREDITS.
  2 26    1.  a.  A redevelopment tax credit shall be allowed against
  2 27 the taxes imposed in chapter 422, divisions II, III, and V,
  2 28 and in chapter 432, and against the moneys and credits tax
  2 29 imposed in section 533.329, for a portion of a taxpayer's
  2 30 equity investment, as provided in subsection 2, in a
  2 31 qualifying redevelopment project.
  2 32    b.  An individual may claim a tax credit under this
  2 33 subsection of a partnership, limited liability company, S
  2 34 corporation, estate, or trust electing to have income taxed
  2 35 directly to the individual.  The amount claimed by the
  3  1 individual shall be based upon the pro rata share of the
  3  2 individual's earnings from the partnership, limited liability
  3  3 company, S corporation, estate, or trust.
  3  4    c.  Any tax credit in excess of the taxpayer's liability
  3  5 for the tax year is not refundable but may be credited to the
  3  6 tax liability for the following five years or until depleted,
  3  7 whichever is earlier.  A tax credit shall not be carried back
  3  8 to a tax year prior to the tax year in which the taxpayer
  3  9 first receives the tax credit.
  3 10    1A.  a.  To claim a redevelopment tax credit under this
  3 11 section, a taxpayer must attach one or more tax credit
  3 12 certificates to the taxpayer's tax return.  A tax credit
  3 13 certificate shall not be used or attached to a return filed
  3 14 for a taxable year beginning prior to July 1, 2009.  The tax
  3 15 credit certificate or certificates attached to the taxpayer's
  3 16 tax return shall be issued in the taxpayer's name, expire on
  3 17 or after the last day of the taxable year for which the
  3 18 taxpayer is claiming the tax credit, and show a tax credit
  3 19 amount equal to or greater than the tax credit claimed on the
  3 20 taxpayer's tax return.
  3 21    b.  After verifying the eligibility of a qualifying
  3 22 investor for a tax credit pursuant to this section, the
  3 23 department of economic development shall issue a redevelopment
  3 24 tax credit certificate to be attached to the investor's tax
  3 25 return.  The tax credit certificate shall contain the
  3 26 taxpayer's name, address, tax identification number, the
  3 27 amount of the credit, the name of the qualifying investor, any
  3 28 other information required by the department of revenue, and a
  3 29 place for the name and tax identification number of a
  3 30 transferee and the amount of the tax credit being transferred.
  3 31    c.  The tax credit certificate, unless rescinded by the
  3 32 board, shall be accepted by the department of revenue as
  3 33 payment for taxes imposed pursuant to chapter 422, divisions
  3 34 II, III, and V, and in chapter 432, and for the moneys and
  3 35 credits tax imposed in section 533.329, subject to any
  4  1 conditions or restrictions placed by the board upon the face
  4  2 of the tax credit certificate and subject to the limitations
  4  3 of this section.
  4  4    d.  Tax credit certificates issued under this section may
  4  5 be transferred to any person or entity.  Within ninety days of
  4  6 transfer, the transferee shall submit the transferred tax
  4  7 credit certificate to the department of revenue along with a
  4  8 statement containing the transferee's name, tax identification
  4  9 number, and address, the denomination that each replacement
  4 10 tax credit certificate is to carry, and any other information
  4 11 required by the department of revenue.
  4 12    e.  Within thirty days of receiving the transferred tax
  4 13 credit certificate and the transferee's statement, the
  4 14 department of revenue shall issue one or more replacement tax
  4 15 credit certificates to the transferee.  Each replacement tax
  4 16 credit certificate must contain the information required for
  4 17 the original tax credit certificate and must have the same
  4 18 expiration date that appeared in the transferred tax credit
  4 19 certificate.  Tax credit certificate amounts of less than the
  4 20 minimum amount established by rule of the department of
  4 21 economic development shall not be transferable.
  4 22    f.  A tax credit shall not be claimed by a transferee under
  4 23 this section until a replacement tax credit certificate
  4 24 identifying the transferee as the proper holder has been
  4 25 issued.  The transferee may use the amount of the tax credit
  4 26 transferred against the taxes imposed in chapter 422,
  4 27 divisions II, III, and V, and in chapter 432, and against the
  4 28 moneys and credits tax imposed in section 533.329, for any tax
  4 29 year the original transferor could have claimed the tax
  4 30 credit.  Any consideration received for the transfer of the
  4 31 tax credit shall not be included as income under chapter 422,
  4 32 divisions II, III, and V, under chapter 432, or against the
  4 33 moneys and credits tax imposed in section 533.329.  Any
  4 34 consideration paid for the transfer of the tax credit shall
  4 35 not be deducted from income under chapter 422, divisions II,
  5  1 III, and V, under chapter 432, or against the moneys and
  5  2 credits tax imposed in section 533.329.
  5  3    2.  The amount of the tax credit shall equal one of the
  5  4 following:
  5  5    a.  Twelve percent of the taxpayer's qualifying investment
  5  6 in a grayfield site.
  5  7    b.  Fifteen percent of the taxpayer's qualifying investment
  5  8 in a grayfield site if the qualifying redevelopment project
  5  9 meets the requirements of a green development.
  5 10    c.  Twenty=four percent of the taxpayer's qualifying
  5 11 investment in a brownfield site.
  5 12    d.  Thirty percent of the taxpayer's qualifying investment
  5 13 in a brownfield site if the qualifying redevelopment project
  5 14 meets the requirements of a green development.
  5 15    3.  For purposes of individual and corporate income taxes
  5 16 and the franchise tax, the increase in the basis of the
  5 17 redeveloped property that would otherwise result from the
  5 18 qualified redevelopment costs shall be reduced by the amount
  5 19 of the credit computed under this part.
  5 20    4.  The maximum amount of a tax credit for a qualifying
  5 21 investment in any one qualifying redevelopment project shall
  5 22 not exceed ten percent of the maximum amount of tax credits
  5 23 available in any one fiscal year pursuant to subsection 5.
  5 24    5.  For the fiscal year beginning July 1, 2009, the maximum
  5 25 amount of tax credits issued by the department shall not
  5 26 exceed one million dollars.  The department shall not issue
  5 27 tax credits pursuant to this section in subsequent fiscal
  5 28 years unless authorized pursuant to this subsection.
  5 29    6.  An investment shall be deemed to have been made on the
  5 30 date the qualifying redevelopment project is completed.  An
  5 31 investment made prior to January 1, 2009, or after June 30,
  5 32 2010, shall not qualify for a tax credit under this part.
  5 33    6A.  A qualifying redevelopment project that is not
  5 34 completed within thirty months after issuance of an approval
  5 35 for the project by the board shall cease to be eligible for a
  6  1 tax credit pursuant to this section, however, the board in its
  6  2 discretion may provide for an additional twelve=month period
  6  3 in which to complete a project.
  6  4    7.  The department shall develop a system for registration
  6  5 and authorization of tax credits authorized pursuant to this
  6  6 part and shall control distribution of all tax credits
  6  7 distributed to investors pursuant to this part.  In developing
  6  8 the system, the department shall provide for a list of
  6  9 applicants for the tax credit and maintain it from year to
  6 10 year so that if the maximum aggregate amount of tax credits is
  6 11 reached in one year, an applicant can be given priority
  6 12 consideration for the credit in an ensuing year.
  6 13    8.  The department shall develop rules for the
  6 14 qualification of qualifying redevelopment projects and
  6 15 qualifying investments.  The department of revenue shall adopt
  6 16 these criteria as administrative rules and shall adopt any
  6 17 other rules pursuant to chapter 17A necessary for the
  6 18 administration of this part.
  6 19    9.  The department may cooperate with the department of
  6 20 natural resources and local governments in an effort to
  6 21 disseminate information regarding the availability of tax
  6 22 credits for investments in qualifying redevelopment projects
  6 23 under this part.
  6 24    10.  If the maximum amount of tax credits available has not
  6 25 been issued at the end of a fiscal year, the remaining tax
  6 26 credit amount may be carried over to a subsequent fiscal year
  6 27 or may be issued in advance to qualifying redevelopment
  6 28 projects for a subsequent fiscal year.  Whenever the council
  6 29 approves a tax credit which has not been allocated at the end
  6 30 of a fiscal year, the department may prorate the remaining
  6 31 credit amount to more than one eligible applicant.
  6 32    11.  If the recipient of a tax credit issued pursuant to
  6 33 this section has also applied to the department, the board, or
  6 34 any other agency of state government for additional financial
  6 35 assistance, the department, the board, or agency of state
  7  1 government shall not consider the receipt of a tax credit
  7  2 issued pursuant to this section when considering the
  7  3 application for additional financial assistance.
  7  4    Sec. 3.  NEW SECTION.  15.293B  APPROVAL == REQUIREMENTS ==
  7  5 REPAYMENT.
  7  6    1.  An investor seeking to claim a tax credit pursuant to
  7  7 section 15.293A shall apply to the council which shall have
  7  8 the power to approve the amount of tax credit available for
  7  9 each qualifying redevelopment project.
  7 10    2.  An investor applying for a tax credit shall provide the
  7 11 council with all of the following:
  7 12    a.  Information showing the total costs of the qualifying
  7 13 redevelopment project, including the costs of land
  7 14 acquisition, cleanup, and redevelopment.
  7 15    b.  Information about the financing sources of the
  7 16 investment which are directly related to the qualifying
  7 17 redevelopment project for which the taxpayer is seeking
  7 18 approval for a tax credit, as provided in section 15.293A.
  7 19    3.  If a taxpayer receives a tax credit pursuant to section
  7 20 15.293A, but fails to comply with any of the requirements, the
  7 21 taxpayer loses any right to the tax credit, and the department
  7 22 of revenue shall seek recovery of the value of the credit
  7 23 received.
  7 24    Sec. 4.  Section 15.294, Code 2007, is amended by adding
  7 25 the following new subsection:
  7 26    NEW SUBSECTION.  4.  The council shall consider
  7 27 applications for redevelopment tax credits as described in
  7 28 sections 15.293A and 15.293B, and the council may approve the
  7 29 amount of such tax credits for qualifying investments in
  7 30 qualifying redevelopment projects.
  7 31    Sec. 5.  Section 103A.3, Code 2007, is amended by adding
  7 32 the following new subsection:
  7 33    NEW SUBSECTION.  23.  "Sustainable design" means
  7 34 construction design intended to minimize negative
  7 35 environmental impacts and to promote the health and comfort of
  8  1 building occupants including but not limited to measures to
  8  2 reduce consumption of nonrenewable resources, minimize waste,
  8  3 and create healthy, productive environments.
  8  4    Sec. 6.  Section 103A.7, Code 2007, is amended by adding
  8  5 the following new subsection:
  8  6    NEW SUBSECTION.  7.  Standards for sustainable design, also
  8  7 known and referred to as green building standards.
  8  8    Sec. 7.  NEW SECTION.  103A.8B  SUSTAINABLE DESIGN OR GREEN
  8  9 BUILDING STANDARDS.
  8 10    The commissioner, after consulting with and receiving
  8 11 recommendations from the department of natural resources and
  8 12 the office of energy independence, shall adopt rules pursuant
  8 13 to chapter 17A specifying standards and requirements for
  8 14 sustainable design and construction based upon or
  8 15 incorporating nationally recognized ratings, certifications,
  8 16 or classification systems, and procedures relating to
  8 17 documentation of compliance.  The standards and requirements
  8 18 shall be incorporated into the state building code established
  8 19 in section 103A.7, but in lieu of general applicability shall
  8 20 apply to construction projects only if such applicability is
  8 21 expressly authorized by statute, or as established by another
  8 22 state agency by rule.
  8 23    Sec. 8.  NEW SECTION.  422.11V  REDEVELOPMENT TAX CREDIT.
  8 24    The taxes imposed under this division, less the credits
  8 25 allowed under section 422.12, shall be reduced by a
  8 26 redevelopment tax credit allowed under chapter 15, part 9.
  8 27    Sec. 9.  Section 422.33, Code Supplement 2007, is amended
  8 28 by adding the following new subsection:
  8 29    NEW SUBSECTION.  25.  The taxes imposed under this division
  8 30 shall be reduced by a redevelopment tax credit allowed under
  8 31 chapter 15, part 9.
  8 32    Sec. 10.  Section 422.60, Code Supplement 2007, is amended
  8 33 by adding the following new subsection:
  8 34    NEW SUBSECTION.  15.  The taxes imposed under this division
  8 35 shall be reduced by a redevelopment tax credit allowed under
  9  1 chapter 15, part 9.
  9  2    Sec. 11.  NEW SECTION.  432.12L  REDEVELOPMENT TAX CREDIT.
  9  3    The taxes imposed under this chapter shall be reduced by a
  9  4 redevelopment tax credit allowed under chapter 15, part 9.
  9  5    Sec. 12.  Section 533.329, subsection 2, Code Supplement
  9  6 2007, is amended by adding the following new paragraph:
  9  7    NEW PARAGRAPH.  n.  The moneys and credits tax imposed
  9  8 under this section shall be reduced by a redevelopment tax
  9  9 credit allowed under chapter 15, part 9.
  9 10
  9 11
  9 12                                                             
  9 13                               PATRICK J. MURPHY
  9 14                               Speaker of the House
  9 15
  9 16
  9 17                                                             
  9 18                               JOHN P. KIBBIE
  9 19                               President of the Senate
  9 20
  9 21    I hereby certify that this bill originated in the House and
  9 22 is known as House File 2687, Eighty=second General Assembly.
  9 23
  9 24
  9 25                                                             
  9 26                               MARK BRANDSGARD
  9 27                               Chief Clerk of the House
  9 28 Approved                , 2008
  9 29
  9 30
  9 31                            
  9 32 CHESTER J. CULVER
  9 33 Governor