Senate File 657 - Enrolled Senate File 657 AN ACT RELATED TO STATE TAXATION AND FINANCE AND OTHER RELATED MATTERS, BY CREATING, MODIFYING, AND ELIMINATING TAX CREDITS AND TAX INCENTIVE PROGRAMS, PROVIDING FOR PENALTIES, AND INCLUDING EFFECTIVE DATE AND RETROACTIVE APPLICABILITY PROVISIONS. BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: DIVISION I ECONOMIC DEVELOPMENT PROGRAMS —— TAX CREDIT LIMITS Section 1. Section 15.119, Code 2025, is amended to read as follows: 15.119 Aggregate tax credit limit for certain economic business development programs. 1. a. Notwithstanding any provision to the contrary in any of the business development programs listed in subsection 2 , the authority, except as provided in paragraph “b” , shall not authorize for any one fiscal year an amount of tax credits for the programs specified in subsection 2 that is in excess of one hundred seventy ten million dollars. b. (1) The authority may authorize an amount of tax credits during a fiscal year that is in excess of the amount specified in paragraph “a” , but the amount of such excess shall not exceed twenty percent of the amount specified in paragraph “a” , and shall be counted against the total amount of tax credits that may be authorized for the next fiscal year. (2) Any amount of tax credits authorized and awarded during a fiscal year for a program specified in subsection 2 which

Senate File 657, p. 2 are irrevocably declined by the awarded business or revoked by the authority on or before June 30 of the next fiscal year may be reallocated, authorized, and awarded during the fiscal year in which the declination or revocation occurs. Tax credits authorized pursuant to this subparagraph shall not be considered for purposes of subparagraph (1). 2. The authority, with the approval of the board, shall adopt by rule a procedure for allocating the aggregate tax credit limit established in this section among the following The aggregate tax credit limit specified in subsection 1 shall be allocated to business development programs as follows : a. (1) The high quality jobs program administered pursuant to subchapter II, part 13 . (2) In allocating tax credits pursuant to this subsection for the fiscal year beginning July 1, 2022, and for each fiscal year thereafter, the authority shall not allocate more than sixty-eight million dollars for purposes of this paragraph. (3) In allocating tax credits pursuant to this subsection , the authority shall prioritize issuing additional research activities tax credits pursuant to section 15.335 . b. The enterprise zones program administered pursuant to sections 15E.191 through 15E.197, Code 2014 . c. The assistive device tax credit program administered pursuant to section 422.33, subsection 9 . d. The tax credits for investments in qualifying businesses issued pursuant to section 15E.43 . In allocating tax credits pursuant to this subsection , the authority shall allocate two million dollars for purposes of this paragraph, unless the authority determines that the tax credits awarded will be less than that amount. e. a. (1) The tax credits for investments in an innovation fund pursuant to section 15E.52 chapter 15E, subchapter VI, and the seed investor tax credit pursuant to chapter 15E, subchapter IV . In allocating tax credits pursuant to this subsection , the authority shall allocate eight ten million dollars for purposes of this paragraph, unless the authority determines that the tax credits awarded will be less than that amount and the board shall determine the tax credit amount allocated to each program under this paragraph each fiscal

Senate File 657, p. 3 year . (2) For the fiscal year beginning July 1, 2025, the allocation pursuant to this paragraph shall be reduced by any tax credit authorized by the authority prior to July 1, 2026, for an investment in a qualifying business pursuant to chapter 15E, subchapter V, Code 2025. This subparagraph is repealed July 1, 2026. f. The redevelopment tax credit program for brownfields and grayfields administered pursuant to sections 15.293A and 15.293B . g. The workforce housing tax incentives program administered pursuant to subchapter II, part 17 . In allocating tax credits pursuant to this subsection , the authority shall not allocate more than thirty-five million dollars for purposes of this paragraph. Of the moneys allocated under this paragraph, seventeen million five hundred thousand dollars shall be reserved for allocation to qualified housing projects in small cities, as defined in section 15.352 , that are registered on or after July 1, 2017. h. The renewable chemical production tax credit program administered pursuant to subchapter II, part 12 . In allocating tax credits pursuant to this subsection for the fiscal year beginning July 1, 2021, and for each fiscal year beginning before July 1, 2037, the authority shall not allocate more than five million dollars for purposes of this paragraph. This paragraph is repealed July 1, 2039. 3. In allocating the amount of tax credits authorized pursuant to subsection 1 among the programs specified in subsection 2 , the authority shall not allocate more than fifteen million dollars for purposes of subsection 2 , paragraph “f” . b. The renewable chemical production tax credit pursuant to subchapter II, part 12, and the sustainable aviation fuel production tax credit program pursuant to subchapter II, part 36. In allocating tax credits pursuant to this subsection, the authority shall allocate ten million dollars for purposes of this paragraph, and the board shall determine the tax credit amount allocated to each program specified in this paragraph for each fiscal year.

Senate File 657, p. 4 c. The research and development tax credit program pursuant to subchapter II, part 35. In allocating tax credits pursuant to this subsection, the authority shall allocate forty million dollars for purposes of this paragraph. d. The business incentives for growth program administered pursuant to subchapter II, part 33. In allocating tax credits pursuant to this subsection for the fiscal year beginning July 1, 2026, and for each fiscal year thereafter, the authority shall not allocate more than fifty million dollars for purposes of this paragraph. e. (1) The high quality jobs program administered pursuant to chapter 15, subchapter II, part 13, and the business incentives for growth program administered pursuant to chapter 15, subchapter II, part 33. In allocating tax credits pursuant to this subsection, the authority shall allocate fifty million dollars in the aggregate for purposes of this paragraph, by allocating tax credits to the high quality jobs program prior to January 1, 2026, and by allocating the remaining tax credits to the business incentives for growth program on or after January 1, 2026. (2) This paragraph is repealed July 1, 2026. 4. 3. The authority shall submit to the department of revenue on or before August 15 of each year a report on the tax credits allocated pursuant to this section and the tax credits awarded under each of the programs described in subsection 2 . DIVISION II ECONOMIC DEVELOPMENT PROGRAMS —— TAX CREDIT LIMITS CONFORMING CHANGES Sec. 2. Section 15.293A, subsection 6, Code 2025, is amended to read as follows: 6. The amount of tax credits that may be awarded by the board shall be subject to the limitation in section 15.119 Except as provided in section 15.293B, subsection 6, the board shall not award in any one fiscal year an amount of tax credits that exceeds fifteen million dollars . Sec. 3. Section 15.293B, subsection 6, Code 2025, is amended to read as follows: 6. a. (1) Tax credits revoked under subsection 3 including tax credits revoked up to five years prior to July 1, 2021, and

Senate File 657, p. 5 tax credits not awarded under subsection 4 or 5 , may be awarded in the next annual application period established in subsection 1 , paragraph “c” . (2) Any amount of tax credits authorized and awarded during a fiscal year which are irrevocably declined by the awarded investor on or before June 30 of the immediately succeeding fiscal year may be awarded in the next annual application period established in subsection 1, paragraph “c” . b. Tax credits awarded pursuant to paragraph “a” shall not be counted against the limit under section 15.119, subsection 3 15.293A, subsection 6 . Sec. 4. Section 15.318, subsection 3, paragraph e, Code 2025, is amended to read as follows: e. In each fiscal year beginning on or after July 1, 2023 2025 , and ending on or before June 30, 2036, the authority may award an amount of tax credits under the program not to exceed the maximum aggregate amount allocated in determined by the board pursuant to section 15.119, subsection 2, paragraph “h” “b” . Sec. 5. Section 15.354, subsection 2, paragraph a, Code 2025, is amended to read as follows: a. All completed applications shall be reviewed and scored on a competitive basis by the authority pursuant to rules adopted by the authority. In scoring applications, the authority may award additional points for all of the following: (1) A housing project located in a community where no housing project has been awarded a tax incentive under the program in the immediately preceding three application periods. (2) A housing project located in a community where a recent or planned business expansion, or a new business, has received a tax incentive or financial assistance under the high quality jobs program administered pursuant to subchapter II, part 13, the major economic growth attraction program administered pursuant to subchapter II, part 32, or the business incentives for growth program administered pursuant to subchapter II, part 33. Sec. 6. Section 15.354, subsection 4, Code 2025, is amended by striking the subsection and inserting in lieu thereof the following:

Senate File 657, p. 6 4. Maximum tax incentives amount. a. (1) In the fiscal year beginning July 1, 2025, and ending June 30, 2026, the authority shall not award an amount of tax credits in excess of thirty-nine million five hundred thousand dollars. (2) In the fiscal year beginning July 1, 2026, and ending June 30, 2027, the authority shall not award an amount of tax credits in excess of thirty-six million five hundred thousand dollars. (3) In the fiscal year beginning July 1, 2027, and for each fiscal year thereafter, the authority shall not award an amount of tax credits in excess of thirty-five million dollars. b. Of the tax credits allocated under paragraph “a” , fifty percent of the allocation available in each fiscal year shall be reserved for allocation to qualified housing projects in small cities. c. Notwithstanding paragraph “b” , if the sum of the amount of tax incentives awarded in a given fiscal year for housing projects located in small cities based on the authority’s review and scoring of applications does not exceed the amount reserved for housing projects located in small cities pursuant to paragraph “b” , the authority may award the remaining amount of tax incentives reserved for housing projects located in small cities to other housing projects during that same fiscal year. d. Tax credits revoked by the authority or irrevocably declined by a housing business before June 30 of the fiscal year following the award may be awarded during the fiscal year the revocation or declination occurs. Tax credits awarded pursuant to this paragraph shall not be counted against the tax credit limit established in paragraph “a” . e. The maximum aggregate amount of tax incentives that may be awarded and issued under section 15.355 to a housing business for a housing project shall not exceed one million dollars. f. If a housing business qualifies for a higher amount of tax incentives under section 15.355 than is allowed by the limitation imposed in paragraph “e” , the authority and the housing business may negotiate an apportionment of the

Senate File 657, p. 7 reduction in tax incentives between the sales tax refund provided in section 15.355, subsection 2, and the workforce housing investment tax credits provided in section 15.355, subsection 3, provided the total aggregate amount of tax incentives after the apportioned reduction does not exceed the amount in paragraph “e” . g. The authority shall issue tax incentives under the program on a first-come, first-served basis until the maximum amount of tax incentives allowed under paragraph “a” is reached. Sec. 7. Section 15.354, subsection 6, paragraph d, Code 2025, is amended to read as follows: d. The authority shall administer tax credit allocations for disaster recovery housing projects separately from the general allocation and separately from the allocation reserved for small cities in section 15.119, subsection 2, paragraph “g” . The authority shall issue tax incentives under the program for disaster recovery housing projects on a first-come, first-served basis until the maximum amount of tax incentives allocated under section 15.119, subsection 5 , is reached. The authority shall maintain a list of disaster recovery housing projects awarded tax incentives under the program, so that if the maximum aggregate amount of tax incentives allocated for disaster recovery housing projects under the program is reached in a given fiscal year, such disaster recovery housing projects that were completed but for which tax incentives were not issued shall be placed on a wait list in the order the disaster recovery housing projects were awarded tax incentives pursuant to paragraph “c” , and shall be given priority for receiving tax incentives in succeeding fiscal years maximum tax credit amounts specified in section 15.354, subsection 4, paragraphs “a” and “b” . DIVISION III BUSINESS INCENTIVES FOR GROWTH PROGRAM Sec. 8. NEW SECTION . 15.111 Assistance for certain programs and projects. 1. a. Under the authority provided in section 15.106A, there shall be established one or more funds within the state treasury, under the control of the authority, to be used for purposes of this section.

Senate File 657, p. 8 b. A fund established for purposes of this section shall consist of any moneys appropriated to the authority for purposes of this section, or moneys otherwise accruing to the authority and deposited in the fund for purposes of this section. c. Interest or earnings on moneys in a fund used for the purposes of this section, and all repayments or recaptures of the assistance provided under this section, shall accrue to the authority and shall be used for purposes of this section, notwithstanding section 12C.7. Moneys in a fund are not subject to section 8.33. 2. a. The moneys in a fund established for purposes of this section, as described in subsection 1, shall be allocated by the authority in appropriate amounts to be used for the following purposes: (1) For program support. For purposes of this subparagraph, “program support” means the services necessary for the efficient administration of a program administered by the authority, including but not limited to administrative costs, conducting a statewide laborshed study in coordination with the department of workforce development, outreach to business and marketing programs, the procurement of technical assistance, and the implementation of information technology. (2) For deposit in the innovation and commercialization development fund created pursuant to section 15.412. (3) For providing financial assistance to businesses engaged in disaster recovery. For purposes of this subparagraph, “business engaged in disaster recovery” means a business located in an area declared a disaster area by a federal official, that has sustained physical damage, has closed as a result of a natural disaster, and has a plan for reopening that includes employing a substantial number of the employees the business employed before the natural disaster occurred. (4) For deposit in the entrepreneur investment awards program fund pursuant to section 15E.363. (5) For deposit in a fund created for purposes of the strategic infrastructure program established pursuant to section 15.313.

Senate File 657, p. 9 (6) For deposit in the nuisance property remediation fund established pursuant to section 15.338. (7) For deposit in the community catalyst building remediation fund established pursuant to section 15.231. (8) For providing financial assistance to eligible businesses for the business incentives for growth program pursuant to section 15.504. b. Each fiscal year, the authority shall estimate the amount of revenues available for purposes of this section and shall develop a budget appropriate for the expenditure of the revenues available. Sec. 9. NEW SECTION . 15.502 Short title. This part shall be known and may be cited as the “Business Incentives for Growth Program” or “BIG Program” . Sec. 10. NEW SECTION . 15.503 Definitions. As used in this part, unless the context otherwise requires: 1. “Base employment level” means the number of full-time equivalent positions at a business, as established by the authority and the business using the business’s payroll records, as of the date the business applies for tax incentives under the program. 2. “Benefits” means nonwage compensation provided to an employee. “Benefits” include medical and dental insurance, a pension, a retirement plan, a profit-sharing plan, child care, life insurance, vision insurance, and disability insurance. 3. “Community” means a city, county, or entity established pursuant to chapter 28E. 4. “Contract completion” means the date of completion of the terms of a contract between a contractor and an eligible business. 5. “Contractor” means a person that has executed a contract with an eligible business for the provision of property, materials, or services for the construction or equipping of a facility that is part of the eligible business’s project. 6. “Created jobs” or “create jobs” means new, permanent, full-time equivalent positions added to an eligible business’s payroll, at the location of the eligible business’s project, in excess of the eligible business’s base employment level. 7. “Data center business” means the same as defined in

Senate File 657, p. 10 section 423.3, subsection 95. 8. “Eligible business” means a business that meets the requirements of section 15.504. 9. “Full-time equivalent position” means a non-part-time position for the number of hours or days per week considered to be full-time work for the kind of service or work performed for an employer. Typically, a full-time equivalent position requires two thousand eighty hours of work in a calendar year, including all paid holidays, vacations, sick time, and other paid leave. 10. “Program” means the business incentives for growth program. 11. “Project” means an activity or set of activities directly related to the start-up, location, modernization, or expansion of an eligible business and proposed in an eligible business’s application to the program, that will accomplish the goals of the program. 12. “Project completion date” means the date by which an eligible business that has been approved by the authority to participate in the program agrees to complete the terms and conditions of the agreement under section 15.506. 13. “Project completion period” means the period of time between the date the authority approves an eligible business to participate in the program and the project completion date. 14. “Qualifying investment” means a capital investment in real property, including the purchase price of the land and existing buildings and structures, site preparation, improvements to the real property, building construction, and long-term lease costs. “Qualifying investment” also means a capital investment in depreciable assets for use in the operation of an eligible business. 15. “Qualifying wage threshold” means the mean wage level represented by the wages within two standard deviations of the mean wage within the laborshed area in which the eligible business is located, as calculated by the authority by rule, using the most current covered wage and employment data available from the department of workforce development for the laborshed area in which the eligible business is located. 16. “Retained job” means a full-time equivalent position

Senate File 657, p. 11 that is in existence at the time an eligible business applies for the program that remains continuously filled, and that is at risk of elimination if the proposed project for which the eligible business is applying to the program does not proceed. 17. “Subcontractor” means a person that contracts with a contractor for the provision of property, materials, or services for the construction or equipping of a facility that is part of an eligible business’s project. 18. “Tax incentives” means tax credits, tax refunds, or tax exemptions authorized under the program by the authority for an eligible business. Sec. 11. NEW SECTION . 15.504 Eligible business. 1. To be eligible to receive tax incentives under the program, a business must meet all of the following requirements: a. The community in which the proposed project is located must approve the project either by ordinance or resolution. b. (1) The business must be primarily engaged in advanced manufacturing, bioscience, insurance and finance, or technology and innovation. The business shall not be a data center business, a retail business, or a business where a cover charge or membership requirement restricts certain individuals from entering the business. (2) Factors the authority shall consider to determine if a business is primarily engaged in advanced manufacturing, biosciences, insurance and finance, or technology and innovation shall include but are not limited to all of the following: (a) The business’s North American industry classification system code. (b) The business’s main sources of revenue. (c) The business’s customer base. c. (1) The business must not be solely relocating operations from one area of the state to another area of the state. A proposed project that does not create jobs or involve a substantial amount of new capital investment shall be presumed to be a relocation of operations. For purposes of this subparagraph, the authority shall consider a letter from the affected local community’s government officials supporting

Senate File 657, p. 12 the business’s move away from the affected local community in making a determination whether the business is solely relocating operations. (2) This paragraph shall not be construed to prohibit a business from expanding the business’s operations in a community if the business has similar operations in this state that are not closing or undergoing a substantial reduction in operations. d. The business must offer comprehensive benefits to each full-time equivalent employee employed at the project. The authority may adopt rules under chapter 17A to determine the procedure for establishing requirements for comprehensive benefits. e. (1) The business must not have a record of violations of the law or of rules, including but not limited to antitrust, environmental, trade, or worker safety, that over a period of time show a consistent pattern or that establish the business’s intentional, criminal, or reckless conduct in violation of such laws or rules. (2) If the authority determines that the business has a record of violations described in subparagraph (1), and the authority finds that the violations did not seriously affect public health, public safety, or the environment, the business may be eligible to qualify for the program. (3) If the authority determines that the business has a record of violations described in subparagraph (1), and the authority finds that there were mitigating circumstances related to the violations, the business may be eligible to qualify for the program. (4) In making determinations and findings under subparagraphs (2) and (3), and making a determination whether a business is disqualified from the program, the authority shall be exempt from chapter 17A. 2. In determining if a business is eligible to participate in the program, the authority shall consider a variety of factors, including but not limited to all of the following: a. The impact of the business’s proposed project on businesses that are in competition with the business. The authority shall make a good-faith effort to identify

Senate File 657, p. 13 existing Iowa businesses in competition with the business being considered for the program. The authority shall make a good-faith effort to determine the probability that any proposed tax incentives will displace employees of the competing businesses. b. The business’s proposed project’s economic impact on the state. The authority shall place greater emphasis on businesses and proposed projects that meet the following requirements: (1) The business has a high proportion of in-state suppliers. (2) The proposed project will diversify the state economy. (3) The business has few in-state competitors. (4) The proposed project has the potential to create jobs on an ongoing basis, or will result in increased skills and wages for employees of the eligible business. (5) The proposed project has the potential to increase productivity, efficiency, and competitiveness through adoption and integration of smart technologies including specialized hardware, software, or other equipment. (6) The proposed project has the potential to increase the state’s overall gross domestic product. (7) Any other factors the authority deems relevant in determining the economic impact of a proposed project. Sec. 12. NEW SECTION . 15.505 Applications —— authorization of tax credits and exemptions. 1. a. Applications for the program shall be submitted to the authority in the form and manner prescribed by the authority by rule. Each application must be accompanied by an application fee in an amount determined by the authority by rule. b. For a proposed project that will result in elevated water consumption by the business, the application shall be accompanied by a water conservation and waste reduction plan, and shall be submitted to the authority in the form and manner prescribed by the authority by rule. 2. In determining the eligibility of a business to participate in the program, the authority may engage outside experts to complete a technical, financial, or other review of

Senate File 657, p. 14 an application submitted by a business. 3. a. The authority and the board may negotiate with an eligible business regarding the terms of, and the aggregate value of, the tax incentives the eligible business may receive under the program. The maximum aggregate value of the tax incentives that any one eligible business may receive shall not exceed five percent of the eligible business’s qualifying investment, unless the eligible business’s project is located in a rural county, in which case the maximum aggregate value of tax incentives that any one eligible business may receive shall not exceed seven and one-half percent of the eligible business’s qualifying investment. For purposes of this paragraph, “rural county” means a county in the state with a population of twenty thousand or less based on the most recent decennial census released by the United States census bureau. b. The board may authorize any combination of tax incentives available under the program for an eligible business. 4. The board shall not authorize an award under this part before January 1, 2026. Sec. 13. NEW SECTION . 15.506 Agreement. 1. An eligible business that is approved by the authority to participate in the program shall enter into an agreement with the authority that specifies the criteria for the successful completion of all requirements of the program. The agreement must contain, at a minimum, provisions related to all of the following: a. The eligible business must certify to the authority annually that the business is in compliance with the agreement. 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 by the authority, the authority will notify the department of revenue of any required repayment of a tax incentive, which 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

Senate File 657, p. 15 due, or required to be shown due, with the filing of a return or deposit form. A 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. c. If the eligible business undergoes a layoff or permanently closes any of its facilities within the state, the eligible business may be subject to all of the following: (1) A reduction or elimination of some or all of the tax incentives the authority issued to the eligible business. (2) Repayment of any tax incentives that the business has claimed, and payment of any penalties assessed by the department of revenue. d. The project completion date, the agreement end date, the base employment level, any retained jobs, the number of created jobs, the qualifying wage threshold that is applicable to the project, the amount of qualifying investment, the maximum aggregate value of the tax incentives authorized by the board, and any other terms and obligations the authority deems necessary or material to the determination of the business’s eligibility for the program, or the aggregate value of tax incentives approved by the board. e. The eligible business shall only employ individuals legally authorized to work in this state. If the eligible business is found to knowingly employ individuals who are not legally authorized to work in this state, in addition to any penalties provided by law, all or a portion of any tax incentives issued by the authority shall be subject to repayment as described in section 15.506, subsection 1, paragraph “b” . f. Any terms deemed necessary by the authority to effect the eligible business’s ongoing compliance with section 15.504. 2. The business shall satisfy all applicable terms of the agreement by the project completion date; however, the board may for good cause extend the project completion date or otherwise amend the terms of the agreement. The board shall not amend the terms of the agreement to allow an increase in the maximum aggregate value of the tax incentives authorized by the board under section 15.505, subsection 3.

Senate File 657, p. 16 3. The eligible business shall comply with all applicable terms of the agreement until the agreement end date. An eligible business shall maintain the business’s base employment level until the agreement end date. 4. The eligible business shall not assign the agreement to another entity without the advance written approval of the board. 5. The authority may enforce the terms of the agreement as necessary and appropriate. Sec. 14. NEW SECTION . 15.507 Sales and use tax refund. 1. An eligible business that has been issued a tax incentive certificate under the program shall be entitled to a refund, as negotiated under section 15.505, subsection 3, of the sales and use taxes paid under chapter 423 for gas, electricity, water, and sewer utility services, tangible personal property, or on services rendered, furnished, or performed to or for a contractor or subcontractor and used in the fulfillment of a written contract for the construction or equipping of a facility that is part of the eligible business’s project. Taxes attributable to intangible property and furniture and furnishings shall not be refunded. 2. To receive the sales and use tax refund, the eligible business shall file a claim with the department of revenue as follows: a. The contractor or subcontractor shall state under oath, on forms provided by the department of revenue, the amount of the sales of tangible personal property or services rendered, furnished, or performed including water, sewer, gas, and electric utility services upon which sales or use tax has been paid during the period for which the refund is claimed, and shall submit the forms to the eligible business before contract completion. b. The eligible business shall, no more frequently than quarterly, submit an application to the department of revenue for a refund of the amount of the sales and use taxes paid pursuant to chapter 423 upon any tangible personal property, or services rendered, furnished, or performed, including water, sewer, gas, and electric utility services. The application shall be submitted in the form and manner prescribed by the

Senate File 657, p. 17 department of revenue. The department of revenue shall audit the application and, if approved, issue a warrant or warrants to the eligible business in the amount of the sales or use tax which has been paid to the state of Iowa under subsection 1. The eligible business’s final application must be submitted to the department of revenue within one year after the project completion date. An application filed by the eligible business in accordance with this section shall not be denied by reason of a time limitation for filing a refund claim set forth in section 423.47. c. The refund shall be remitted by the department of revenue to the eligible business as soon as practicable after completion of the audit pursuant to paragraph “b” . Interest shall not accrue on any part of the refund that has not yet been remitted by the department of revenue to the eligible business. 3. A contractor or subcontractor that willfully makes a false report of tax paid under this section is guilty of an aggravated misdemeanor, and shall be liable for payment of the tax and any applicable penalty and interest. Sec. 15. NEW SECTION . 15.508 Qualifying investment tax credit. 1. The authority may authorize a tax credit for an eligible business pursuant to section 15.505, subsection 3. The authority shall not issue a tax credit certificate to the eligible business until the eligible business’s project or a portion of the project has been placed in service. An eligible business may claim the tax credit authorized and issued by the authority. The tax credit shall be amortized to the eligible business equally over five tax years. The tax credit shall be allowed against taxes imposed under chapter 422, subchapter II, III, or V, 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,