House File 2131 - Introduced



                                       HOUSE FILE       
                                       BY  DANDEKAR, STRUYK, HUSER,
                                           and J.K. VAN FOSSEN


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to historic preservation and cultural and
  2    entertainment district tax credits.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 5843HH 81
  5 tm/je/5

PAG LIN



  1  1    Section 1.  Section 404A.4, subsection 4, Code Supplement
  1  2 2005, is amended to read as follows:
  1  3    4.  The total amount of tax credits that may be approved
  1  4 for a fiscal year under this chapter shall not exceed two
  1  5 million four hundred thousand dollars.  For However, for the
  1  6 fiscal period beginning July 1, 2005 2006, and ending June 30,
  1  7 2015 2016, an additional four seventeen million six hundred
  1  8 thousand dollars in tax credits may be approved each fiscal
  1  9 year.  During that fiscal period, fifteen million dollars of
  1 10 tax credits may be approved each fiscal year for purposes of
  1 11 projects located in cultural and entertainment districts
  1 12 certified pursuant to section 303.3B.  Any of the additional
  1 13 tax credits allocated for projects located in certified
  1 14 cultural and entertainment districts that are not approved
  1 15 during a fiscal year shall be applied to reserved tax credits
  1 16 issued in accordance with section 404A.3 in order of original
  1 17 reservation.  The department of cultural affairs shall
  1 18 establish by rule the procedures for the application, review,
  1 19 selection, and awarding of certifications of completion.  The
  1 20 departments of economic development, cultural affairs, and
  1 21 revenue shall each adopt rules to jointly administer this
  1 22 subsection and shall provide by rule for the method to be used
  1 23 to determine for which fiscal year the tax credits are
  1 24 available.  With the exception of tax credits issued pursuant
  1 25 to contracts entered into prior to July 1, 2005, tax credits
  1 26 shall not be reserved for more than five years.
  1 27                           EXPLANATION
  1 28    This bill relates to historic preservation and cultural and
  1 29 entertainment district tax credits.
  1 30    Currently, $2.4 million of historic preservation and
  1 31 cultural and entertainment district tax credits may be
  1 32 approved in a fiscal year, and, for the fiscal period
  1 33 beginning July 1, 2005, and ending June 30, 2015, an
  1 34 additional $4 million of tax credits may be approved each
  1 35 fiscal year for purposes of projects located in certified
  2  1 cultural and entertainment districts.
  2  2    The bill eliminates the additional $4 million of tax
  2  3 credits and instead provides that, for the fiscal period
  2  4 beginning July 1, 2006, and ending June 30, 2016, $17 million
  2  5 of additional tax credits may be approved each fiscal year, of
  2  6 which $15 million of tax credits may be approved each fiscal
  2  7 year for purposes of projects located in certified cultural
  2  8 and entertainment districts.
  2  9    The bill eliminates a restriction that, with the exception
  2 10 of tax credits issued pursuant to contracts entered into prior
  2 11 to July 1, 2005, tax credits shall not be reserved for more
  2 12 than five years.
  2 13 LSB 5843HH 81
  2 14 tm:nh/je/5