House
File
2801
-
Enrolled
House
File
2801
AN
ACT
MODIFYING
THE
MAJOR
ECONOMIC
GROWTH
ATTRACTION
PROGRAM,
AND
INCLUDING
EFFECTIVE
DATE
PROVISIONS.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
Section
1.
Section
15.491,
Code
2026,
is
amended
by
adding
the
following
new
subsections:
NEW
SUBSECTION
.
1A.
“Affiliate”
means
the
same
as
defined
in
section
423.1.
NEW
SUBSECTION
.
24A.
“Rural
county”
means
a
county
in
this
state
with
a
population
of
fifty
thousand
persons
or
less
based
on
the
most
recent
decennial
census
released
by
the
United
States
bureau
of
census.
Sec.
2.
Section
15.492,
subsection
1,
paragraph
a,
Code
2026,
is
amended
by
striking
the
paragraph
and
inserting
in
lieu
thereof
the
following:
a.
(1)
(a)
For
a
business’s
proposed
project
receiving
tax
credits
under
section
15.496,
subsection
1,
paragraph
“a”
,
subparagraph
(1),
the
project
must
be
located
on
a
site
where
the
business
has
a
controlling
interest
in
or
located
on
a
certified
site
greater
than
two
hundred
fifty
acres.
(b)
For
a
business’s
proposed
project
receiving
tax
credits
under
section
15.496,
subsection
1,
paragraph
“a”
,
subparagraph
(2),
the
business’s
proposed
project
must
be
located
on
a
site
where
the
business
has
a
controlling
interest
in
or
a
certified
site
greater
than
two
hundred
fifty
acres
or
the
business
must
House
File
2801,
p.
2
document
to
the
authority
that
the
business
has
completed
a
site
evaluation
commensurate
with
a
certified
site.
(2)
The
authority
determines
that
the
site
is
suitable
for
the
project.
Sec.
3.
Section
15.494,
subsection
1,
paragraph
b,
Code
2026,
is
amended
to
read
as
follows:
b.
If
the
eligible
business
fails
to
comply
with
any
requirements
of
the
program
or
the
agreement
as
determined
by
the
authority,
the
eligible
business
may
be
required
to
repay
any
tax
incentives
the
authority
issued
to
the
eligible
business.
After
a
final
determination,
the
authority
shall
notify
the
department
of
revenue
of
any
required
repayment
of
a
tax
incentive.
Any
repayment
,
including
repayment
for
which
an
affiliate
of
the
eligible
business
is
liable,
shall
be
considered
a
tax
payment
due
and
payable
to
the
department
of
revenue
by
any
taxpayer
that
claimed
the
tax
incentive,
and
the
failure
to
make
the
repayment
may
be
treated
by
the
department
of
revenue
in
the
same
manner
as
a
failure
to
pay
the
tax
shown
due,
or
required
to
be
shown
due,
with
the
filing
of
a
return
or
deposit
form.
In
addition,
the
county
shall
have
the
authority
to
take
action
to
recover
the
value
of
property
taxes
not
collected
as
a
result
of
the
exemption
provided
to
the
business
under
this
part
.
Sec.
4.
Section
15.496,
Code
2026,
is
amended
to
read
as
follows:
15.496
Qualifying
investment
tax
credit.
1.
a.
The
authority
may
authorize
a
either,
but
not
both,
of
the
following:
(1)
A
tax
credit
for
an
up
to
two
eligible
business
businesses
that
is
up
to
five
percent
of
the
each
eligible
business’s
qualifying
investment.
The
authority
shall
not
issue
a
tax
credit
certificate
to
the
eligible
business
until
the
eligible
business’s
project
has
been
placed
in
service
or
until
a
designated
portion
of
the
project
has
been
placed
in
service
,
and
at
least
fifty
percent
of
the
created
jobs
the
eligible
business
agreed
to
in
associated
with
the
project
or
a
designated
portion
of
the
project
pursuant
to
the
agreement
under
section
15.494
have
been
added
to
the
eligible
business’s
payroll
,
and
that
the
jobs
pay
at
least
one
hundred
forty
House
File
2801,
p.
3
percent
of
the
qualifying
wage
threshold
,
have
been
added
to
the
eligible
business’s
payroll
.
The
department
of
revenue
shall
remit
the
tax
credit
to
the
eligible
business
under
this
subparagraph
equally
over
five
tax
years.
(2)
(a)
A
tax
credit
for
one
eligible
business
that
is
up
to
ten
percent
of
the
eligible
business’s
qualifying
investment
that
is
located
in
a
rural
county.
The
authority
shall
not
issue
a
tax
credit
certificate
to
the
eligible
business
until
the
eligible
business’s
project
has
been
placed
in
service
or
until
a
designated
portion
of
the
eligible
business’s
project
has
been
placed
in
service,
and
at
least
fifty
percent
of
the
created
jobs
associated
with
the
project
or
a
designated
portion
of
the
project
pursuant
to
the
agreement
under
section
15.494
have
been
added
to
the
eligible
business’s
payroll,
and
the
jobs
pay
at
least
one
hundred
forty
percent
of
the
qualifying
wage
threshold.
The
department
of
revenue
shall
remit
the
tax
credit
to
the
eligible
business
under
this
subparagraph
equally
over
ten
tax
years.
(b)
(i)
Tax
credit
certificates
issued
under
this
subparagraph
are
refundable
and
may
be
transferred
to
another
person
or
entity,
subject
to
the
approval
of
the
authority.
Prior
to
approving
a
transfer,
the
authority
shall
verify
that
the
transferee
is
not
associated
with
a
foreign
adversary
or
foreign
adversary
entity.
Within
ninety
days
of
transfer,
the
transferee
shall
submit
the
transferred
tax
credit
certificate
to
the
department
of
revenue
along
with
a
statement
containing
the
transferee’s
name,
tax
identification
number,
and
address;
the
denomination
that
each
replacement
tax
credit
certificate
is
to
carry;
and
any
other
information
required
by
the
department
of
revenue.
(ii)
Within
thirty
days
of
receiving
the
transferred
tax
credit
certificate
and
the
transferee’s
statement,
the
department
of
revenue
shall
issue
one
or
more
replacement
tax
credit
certificates
to
the
transferee.
Each
replacement
tax
credit
certificate
must
contain
the
information
required
for
the
original
tax
credit
certificate
and
must
have
the
same
expiration
date
that
appeared
in
the
transferred
tax
credit
certificate.
(iii)
A
tax
credit
shall
not
be
claimed
by
a
transferee
House
File
2801,
p.
4
under
this
subparagraph
until
a
replacement
tax
credit
certificate
identifying
the
transferee
as
the
proper
holder
has
been
issued.
The
transferee
may
use
the
amount
of
the
tax
credit
transferred
against
the
taxes
for
any
tax
year
the
original
transferor
could
have
claimed
the
tax
credit.
Any
credit
in
excess
of
the
tax
liability
of
the
transferee
for
the
tax
year
is
refundable
or,
at
the
election
of
the
transferee,
may
be
credited
to
the
tax
liability
of
the
transferee
in
any
of
the
following
ten
consecutive
tax
years
or
until
depleted,
whichever
occurs
first.
Any
consideration
received
for
the
transfer
of
the
tax
credit
shall
not
be
included
as
income
under
chapter
422,
subchapters
II,
III,
and
V.
Any
consideration
paid
for
the
transfer
of
the
tax
credit
shall
not
be
deducted
from
income
under
chapter
422,
subchapters
II,
III,
and
V.
(iv)
This
subparagraph
division
does
not
apply
to
agreements
entered
into
after
December
31,
2027.
b.
The
tax
credit
shall
be
allowed
against
taxes
imposed
under
chapter
422,
subchapter
II
,
III
,
or
V
,
and
chapter
432,
and
against
the
moneys
and
credits
tax
imposed
in
section
533.329
.
If
the
eligible
business
is
a
partnership,
S
corporation,
limited
liability
company,
cooperative
organized
under
chapter
501
and
filing
as
a
partnership
for
federal
tax
purposes,
or
estate
or
trust
electing
to
have
the
income
taxed
directly
to
the
individual,
an
individual
may
claim
the
tax
credit
allowed.
The
amount
claimed
by
the
individual
shall
be
based
upon
the
pro
rata
share
of
the
individual’s
earnings
of
the
partnership,
S
corporation,
limited
liability
company,
cooperative
organized
under
chapter
501
and
filing
as
a
partnership
for
federal
tax
purposes,
or
estate
or
trust.
Any
c.
(1)
For
any
tax
credit
authorized
pursuant
to
paragraph
“a”
,
subparagraph
(1),
in
excess
of
the
eligible
business’s
tax
liability
for
the
tax
year
may
be
refunded
or,
at
the
eligible
business’s
election,
may
be
credited
to
the
eligible
business’s
tax
liability
in
any
of
the
following
five
consecutive
tax
years
or
until
depleted,
whichever
occurs
first.
(2)
For
any
tax
credit
authorized
pursuant
to
paragraph
“a”
,
subparagraph
(2),
in
excess
of
the
eligible
business’s
tax
liability
for
the
tax
year
may
be
refunded
or,
at
the
eligible
House
File
2801,
p.
5
business’s
election,
may
be
credited
to
the
eligible
business’s
tax
liability
in
any
of
the
following
ten
tax
years
or
until
depleted,
whichever
occurs
first.
(3)
The
eligible
business
shall
make
such
election
prior
to
the
authority
issuing
a
tax
credit
certificate
to
the
eligible
business,
and
the
eligible
business’s
election
shall
be
noted
on
the
tax
credit
certificate.
A
tax
credit
shall
not
be
carried
back
to
a
tax
year
prior
to
the
tax
year
in
which
the
tax
credit
is
first
claimed
by
the
eligible
business.
2.
a.
If
an
eligible
business
obtains
a
tax
credit
certificate
from
the
authority
by
way
of
a
prohibited
activity,
the
eligible
business
and
any
transferee
of
a
tax
credit
certificate
shall
be
jointly
and
severally
liable
to
the
state
for
the
amount
of
the
tax
credit
issued,
interest
and
penalties
allowed
under
chapter
422,
and
reasonable
attorney
fees
and
litigation
costs,
except
that
the
liability
of
the
transferee
shall
not
exceed
an
amount
equal
to
the
amount
of
the
tax
credit
acquired
by
the
transferee.
The
department
of
revenue,
upon
notification
or
discovery
that
a
tax
credit
certificate
was
issued
to
an
eligible
business
by
way
of
a
prohibited
activity,
shall
revoke
any
outstanding
tax
credit
and
seek
repayment
of
the
value
of
any
tax
credit
already
claimed,
and
the
failure
to
make
such
a
repayment
may
be
treated
by
the
department
of
revenue
in
the
same
manner
as
a
failure
to
pay
the
tax
shown
due
or
required
to
be
shown
due
with
the
filing
of
a
return
or
deposit
form.
However,
a
qualifying
transferee
of
a
tax
credit
certificate
is
not
subject
to
the
liability,
revocation,
and
repayment
imposed
under
this
paragraph.
b.
For
purposes
of
this
subsection:
(1)
“Control”
means
when
a
person,
directly
or
indirectly
or
acting
through
or
together
with
one
or
more
persons,
satisfies
any
of
the
following:
(a)
Owns,
controls,
or
has
the
power
to
vote
fifty
percent
or
more
of
any
class
of
voting
securities
or
voting
membership
interests
of
another
person.
(b)
Controls,
in
any
manner,
the
election
of
a
majority
of
the
directors,
managers,
trustees,
or
other
persons
exercising
similar
functions
of
another
person.
(c)
Has
the
power
to
exercise
a
controlling
influence
over
House
File
2801,
p.
6
the
management
or
policies
of
another
person.
(2)
“Prohibited
activity”
means
a
breach
or
default
under
the
agreement
with
the
authority,
the
violation
of
any
warranty
provided
by
the
eligible
business
to
the
authority
or
the
department
of
revenue,
the
claiming
of
a
tax
credit
issued
under
this
section
for
expenditures
that
are
not
a
qualifying
investment,
misrepresentation,
fraud,
a
violation
of
any
other
requirements
or
rules
of
this
part,
or
any
other
unlawful
act
or
omission.
(3)
“Qualifying
transferee”
means
a
transferee
who
acquires
a
tax
credit
certificate
issued
under
this
section
for
value,
in
good
faith,
without
express
or
implied
notice
of
a
prohibited
activity
of
the
eligible
business
who
was
originally
issued
the
tax
credit,
and
without
express
or
implied
notice
of
any
other
claim
to
or
defense
against
the
tax
credit,
and
which
transferee
is
not
associated
with
the
eligible
business
by
being
one
or
more
of
the
following:
(a)
An
owner,
member,
shareholder,
or
partner
of
the
eligible
business
who
directly
or
indirectly
owns
and
controls,
in
whole
or
in
part,
the
eligible
business.
(b)
A
director,
officer,
or
employee
of
the
eligible
business.
(c)
A
relative
of
the
eligible
business
or
a
person
listed
in
subparagraph
division
(a)
or
(b)
or,
if
the
eligible
business
or
an
owner,
member,
shareholder,
or
partner
of
the
eligible
business
is
a
legal
entity,
the
natural
persons
who
ultimately
own
such
legal
entity.
(d)
A
person
who
is
owned
or
controlled,
in
whole
or
in
part,
by
a
person
listed
in
subparagraph
division
(a)
or
(b).
(4)
“Relative”
means
an
individual
related
by
consanguinity
within
the
second
degree
as
determined
by
common
law,
a
spouse,
or
an
individual
related
to
a
spouse
within
the
second
degree
as
determined
by
common
law,
and
includes
an
individual
in
an
adoptive
relationship
within
the
second
degree.
2.
3.
If
For
an
eligible
business
receiving
a
tax
credit
under
subsection
1,
paragraph
“a”
,
subparagraph
(1),
if
within
five
years
of
the
date
the
authority
issues
an
the
eligible
business
a
tax
credit
under
subsection
1
,
the
eligible
business
sells,
disposes
of,
razes,
or
otherwise
renders
unusable
all
House
File
2801,
p.
7
or
a
part
of
the
land,
buildings,
or
other
structures
for
which
the
tax
credit
was
claimed
under
this
section
,
the
tax
liability
of
the
eligible
business
for
the
year
in
which
all
or
part
of
the
land,
buildings,
or
other
existing
structures
are
sold,
disposed
of,
razed,
or
otherwise
rendered
unusable
shall
be
increased
by
one
of
the
following
amounts:
a.
One
hundred
percent
of
the
tax
credit
claimed
under
this
section
if
all
or
a
part
of
the
land,
buildings,
or
other
structures
for
which
the
tax
credit
was
claimed
under
this
section
cease
to
be
eligible
for
the
tax
credit
within
one
year
after
the
date
the
authority
issued
the
tax
credit
to
the
eligible
business.
b.
Eighty
percent
of
the
tax
credit
claimed
under
this
section
if
all
or
a
part
of
the
land,
buildings,
or
other
structures
for
which
the
tax
credit
was
claimed
under
this
section
cease
to
be
eligible
for
the
tax
credit
within
two
years
after
the
date
the
authority
issued
the
tax
credit
to
the
eligible
business.
c.
Sixty
percent
of
the
tax
credit
claimed
under
this
section
if
all
or
a
part
of
the
land,
buildings,
or
other
structures
for
which
the
tax
credit
was
claimed
under
this
section
cease
to
be
eligible
for
the
tax
credit
within
three
years
after
the
date
the
authority
issued
the
tax
credit
to
the
eligible
business.
d.
Forty
percent
of
the
tax
credit
claimed
under
this
section
if
all
or
a
part
of
the
land,
buildings,
or
other
structures
for
which
the
tax
credit
was
claimed
under
this
section
cease
to
be
eligible
for
the
tax
credit
within
four
years
after
the
date
the
authority
issued
the
tax
credit
to
the
eligible
business.
e.
Twenty
percent
of
the
tax
credit
claimed
under
this
section
if
all
or
a
part
of
the
land,
buildings,
or
other
structures
for
which
the
tax
credit
was
claimed
under
this
section
cease
to
be
eligible
for
the
tax
credit
within
five
years
after
the
date
the
authority
issued
the
tax
credit
to
the
eligible
business.
4.
For
an
eligible
business
receiving
a
tax
credit
under
subsection
1,
paragraph
“a”
,
subparagraph
(2),
if
within
ten
years
of
the
date
the
authority
issues
an
eligible
business
a
House
File
2801,
p.
8
tax
credit
under
subsection
1,
the
eligible
business
sells,
disposes
of,
razes,
or
otherwise
renders
unusable
all
or
a
part
of
the
land,
buildings,
or
other
structures
for
which
the
tax
credit
was
claimed
by
any
taxpayer
under
this
section,
the
tax
liability
of
the
eligible
business
for
the
year
in
which
all
or
part
of
the
land,
buildings,
or
other
existing
structures
are
sold,
disposed
of,
razed,
or
otherwise
rendered
unusable
shall
be
increased
by
one
of
the
following
amounts:
a.
One
hundred
percent
of
the
tax
credit
claimed
under
this
section
if
all
or
a
part
of
the
land,
buildings,
or
other
structures
for
which
the
tax
credit
was
claimed
under
this
section
cease
to
be
eligible
for
the
tax
credit
within
one
year
after
the
date
the
authority
issued
the
tax
credit
to
the
eligible
business.
b.
Ninety
percent
of
the
tax
credit
claimed
under
this
section
if
all
or
a
part
of
the
land,
buildings,
or
other
structures
for
which
the
tax
credit
was
claimed
under
this
section
cease
to
be
eligible
for
the
tax
credit
within
two
years
after
the
date
the
authority
issued
the
tax
credit
to
the
eligible
business.
c.
Eighty
percent
of
the
tax
credit
claimed
under
this
section
if
all
or
a
part
of
the
land,
buildings,
or
other
structures
for
which
the
tax
credit
was
claimed
under
this
section
cease
to
be
eligible
for
the
tax
credit
within
three
years
after
the
date
the
authority
issued
the
tax
credit
to
the
eligible
business.
d.
Seventy
percent
of
the
tax
credit
claimed
under
this
section
if
all
or
a
part
of
the
land,
buildings,
or
other
structures
for
which
the
tax
credit
was
claimed
under
this
section
cease
to
be
eligible
for
the
tax
credit
within
four
years
after
the
date
the
authority
issued
the
tax
credit
to
the
eligible
business.
e.
Sixty
percent
of
the
tax
credit
claimed
under
this
section
if
all
or
a
part
of
the
land,
buildings,
or
other
structures
for
which
the
tax
credit
was
claimed
under
this
section
cease
to
be
eligible
for
the
tax
credit
within
five
years
after
the
date
the
authority
issued
the
tax
credit
to
the
eligible
business.
f.
Fifty
percent
of
the
tax
credit
claimed
under
this
House
File
2801,
p.
9
section
if
all
or
a
part
of
the
land,
buildings,
or
other
structures
for
which
the
tax
credit
was
claimed
under
this
section
cease
to
be
eligible
for
the
tax
credit
within
six
years
after
the
date
the
authority
issued
the
tax
credit
to
the
eligible
business.
g.
Forty
percent
of
the
tax
credit
claimed
under
this
section
if
all
or
a
part
of
the
land,
buildings,
or
other
structures
for
which
the
tax
credit
was
claimed
under
this
section
cease
to
be
eligible
for
the
tax
credit
within
seven
years
after
the
date
the
authority
issued
the
tax
credit
to
the
eligible
business.
h.
Thirty
percent
of
the
tax
credit
claimed
under
this
section
if
all
or
a
part
of
the
land,
buildings,
or
other
structures
for
which
the
tax
credit
was
claimed
under
this
section
cease
to
be
eligible
for
the
tax
credit
within
eight
years
after
the
date
the
authority
issued
the
tax
credit
to
the
eligible
business.
i.
Twenty
percent
of
the
tax
credit
claimed
under
this
section
if
all
or
a
part
of
the
land,
buildings,
or
other
structures
for
which
the
tax
credit
was
claimed
under
this
section
cease
to
be
eligible
for
the
tax
credit
within
nine
years
after
the
date
the
authority
issued
the
tax
credit
to
the
eligible
business.
j.
Ten
percent
of
the
tax
credit
claimed
under
this
section
if
all
or
a
part
of
the
land,
buildings,
or
other
structures
for
which
the
tax
credit
was
claimed
under
this
section
cease
to
be
eligible
for
the
tax
credit
within
ten
years
after
the
date
the
authority
issued
the
tax
credit
to
the
eligible
business.
Sec.
5.
Section
15.498,
subsection
1,
paragraph
c,
Code
2026,
is
amended
to
read
as
follows:
c.
The
agricultural
land
for
which
the
exemption
is
provided
is
a
mega
site
or
included
in
a
mega
site
or
the
eligible
business
documents
to
the
satisfaction
of
the
authority
that
the
eligible
business
has
completed
a
site
evaluation
commensurate
with
a
certified
site
.
Sec.
6.
Section
15.501,
Code
2026,
as
amended
by
2026
Iowa
Acts,
House
File
2799,
section
14,
is
amended
to
read
as
follows:
House
File
2801,
p.
10
15.501
Restrictions
on
board.
The
board
shall
not
authorize
tax
incentives
available
under
the
program,
or
an
exemption
to
restrictions
on
agricultural
land
holdings
pursuant
to
this
part
,
for
more
than
two
eligible
businesses,
or
one
eligible
business
if
issued
a
credit
pursuant
to
section
15.496,
subsection
1,
paragraph
“a”
,
subparagraph
(2),
or
on
or
after
January
1,
2030,
whichever
occurs
first.
Sec.
7.
NEW
SECTION
.
432.12P
Major
economic
growth
attraction
program
tax
credit.
The
taxes
imposed
under
this
chapter
shall
be
reduced
by
investment
tax
credits
authorized
pursuant
to
section
15.496.
Sec.
8.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
enactment.
______________________________
PAT
GRASSLEY
Speaker
of
the
House
______________________________
AMY
SINCLAIR
President
of
the
Senate
I
hereby
certify
that
this
bill
originated
in
the
House
and
is
known
as
House
File
2801,
Ninety-first
General
Assembly.
______________________________
MEGHAN
NELSON
Chief
Clerk
of
the
House
Approved
_______________,
2026
______________________________
KIM
REYNOLDS
Governor