Senate File 304 - Enrolled




                                             SENATE FILE 304

                             AN ACT
 RELATING TO WITHHOLDING AGREEMENTS AND LOCAL MATCH
    REQUIREMENTS OF THE TARGETED JOBS WITHHOLDING TAX
    CREDIT PROGRAM.

 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 403.19A, subsection 3, paragraph c,
 Code 2009, is amended to read as follows:
    c.  (1)  The pilot project city shall enter into a
 withholding agreement with each employer concerning the
 targeted jobs withholding credit.  The withholding agreement
 shall provide for the total amount of withholding tax credits
 awarded.  An agreement shall not provide for an amount of
 withholding credits that exceeds the amount of the qualifying
 investment made in the project.  However, an An agreement
 shall not be entered into by a pilot project city with a
 business currently located in this state unless the business
 either creates ten new jobs or makes a qualifying investment
 of at least five hundred thousand dollars within the urban
 renewal area.  The withholding agreement may have a term of up
 to ten years.  An employer shall not be obligated to enter
 into a withholding agreement.  An agreement shall not be
 entered into with an employer not already located in a pilot
 project city when another Iowa community is competing for the
 same project and both the pilot project city and the other
 Iowa community are seeking assistance from the department.
    (2)  The pilot project city shall not enter into a
 withholding agreement after June 30, 2010 2013.
    (3)  The pilot project city shall provide on an annual
 basis to the department of economic development information
 documenting the total amount of payments and receipts under a
 withholding agreement, including all agreements with an
 employer to suspend, abate, exempt, rebate, refund, or
 reimburse property taxes, to provide a grant for property
 taxes paid or a grant not related to property taxes, or to
 make a direct payment of taxes, with moneys in the special
 fund.  The department of economic development shall verify the
 information provided by the pilot project city.
    (4)  The department shall have the authority to approve or
 deny a withholding agreement and shall only deny an agreement
 if the agreement fails to meet the requirements of this
 paragraph "c" or the local match requirements in paragraph
 "j", or if an employer is not in good standing as to prior or
 existing agreements with the department of economic
 development.  The department may suggest changes to an
 agreement.
    Sec. 2.  Section 403.19A, subsection 3, paragraph j, Code
 2009, is amended by striking the paragraph and inserting in
 lieu thereof the following:
    j.  (1)  A pilot project city entering into a withholding
 agreement shall arrange for matching local financial support
 for the project.  The local match required under this
 paragraph "j" shall be in an amount equal to one dollar for
 every dollar of withholding credit received by the pilot
 project city.
    (2)  For purposes of this paragraph "j", "local financial
 support" means cash or in=kind contributions to the project
 from a private donor, a business, or the pilot project city.
    (3)  If the project, when completed, will increase the
 amount of an employer's taxable capital investment by an
 amount equal to at least ten percent of the amount of
 withholding credit dollars received by the pilot project city,
 then the pilot project city shall itself contribute at least
 ten percent of the local match amount computed under
 subparagraph (1).
    (4)  If the project, when completed, will not increase the
 amount of an employer's taxable capital investment by an
 amount at least equal to ten percent of the amount of
 withholding credit dollars received by the pilot project city,
 then the pilot project city shall not be required to make a
 contribution to the local match.
    (5)  A pilot project city's contribution, if any, to the
 local match may include the dollar value of any tax abatement
 provided by the city to the business for new construction.


                                                             
                               JOHN P. KIBBIE
                               President of the Senate


                                                             
                               PATRICK J. MURPHY
                               Speaker of the House

    I hereby certify that this bill originated in the Senate and
 is known as Senate File 304, Eighty=third General Assembly.


                                                             
                               MICHAEL E. MARSHALL
                               Secretary of the Senate
 Approved                , 2009


                                
 CHESTER J. CULVER
 Governor

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