House File 2784 - Introduced HOUSE FILE BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HF 2670) (SUCCESSOR TO HF 2004) Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act concerning community foundations and economic development 2 relating to the endow Iowa tax credit, the allocation of 3 gambling tax revenues, the distribution of county endowment 4 moneys, making an appropriation, and providing an effective 5 date. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 5566HZ 81 8 ec/je/5 PAG LIN 1 1 Section 1. Section 15E.305, subsection 2, unnumbered 1 2 paragraph 1, Code Supplement 2005, is amended to read as 1 3 follows: 1 4 The aggregate amount of tax credits authorized pursuant to 1 5 this section shall not exceed a total of two million dollars 1 6 plus such additional credit amount as provided by this section 1 7 annually. The maximum amount of tax credits granted to a 1 8 taxpayer shall not exceed five percent of the aggregate amount 1 9 of tax credits authorized. 1 10 Sec. 2. Section 15E.305, subsection 2, Code Supplement 1 11 2005, is amended by adding the following new unnumbered 1 12 paragraph: 1 13 NEW UNNUMBERED PARAGRAPH. For purposes of this subsection, 1 14 the additional credit amount shall be an amount for each 1 15 applicable calendar year determined by the department of 1 16 revenue equal to the amount of money credited as provided by 1 17 section 99F.11, subsection 3, paragraph "d", subparagraph (3), 1 18 for the prior fiscal year. 1 19 Sec. 3. Section 15E.305, subsection 4, Code Supplement 1 20 2005, is amended by striking the subsection. 1 21 Sec. 4. Section 15E.311, subsection 3, paragraph a, Code 1 22 Supplement 2005, is amended to read as follows: 1 23 a. At the end of each fiscal year, moneys in the fund 1 24 shall be transferred into separate accounts within the fund 1 25 and designated for use by each county in which no licensee 1 26 authorized to conduct gambling games under chapter 99F was 1 27 located during that fiscal year. Moneys transferred to county 1 28 accounts shall be divided equally among the counties. Moneys 1 29 transferred into an account for a county shall be transferred 1 30 by the department to an eligible county recipient for that 1 31 county. Of the moneys transferred, an eligible county 1 32 recipient shall distribute seventy=five percent of the moneys 1 33 as grants to charitable organizations for charitable purposes 1 34 in that county and shall retain twenty=five percent of the 1 35 moneys for use in establishing a permanent endowment fund for 2 1 the benefit of charitable organizations for charitable 2 2 purposes. Of the amounts distributed, eligible county 2 3 recipients shall give special consideration to grants for 2 4 projects that include significant vertical infrastructure 2 5 components designed to enhance quality of life aspects within 2 6 local communities. 2 7 Sec. 5. Section 99F.11, subsection 3, paragraph d, Code 2 8 2005, is amended to read as follows: 2 9 d.One=half of oneOne percent of the adjusted gross 2 10 receipts shall bedepositedallocated as follows: 2 11 (1) Eight=tenths of one percent shall be deposited in the 2 12 county endowment fund created in section 15E.311. 2 13 (2) One=tenth of one percent, less up to two hundred sixty 2 14 thousand dollars, is appropriated to the community development 2 15 division of the department of economic development for the 2 16 purposes of regional tourism marketing. However, none of the 2 17 moneys appropriated shall be used for administrative purposes. 2 18 (3) One=tenth of one percent, less up to two hundred sixty 2 19 thousand dollars, shall be credited to the general fund of the 2 20 state for the purpose of funding the endow Iowa tax credit 2 21 provided in section 15E.305. 2 22 (4) Up to five hundred twenty thousand dollars is 2 23 appropriated to the department of cultural affairs with one= 2 24 half of the moneys allocated for operational support grants 2 25 and the remaining one=half allocated for the community 2 26 cultural grants program established under section 303.3. 2 27 Sec. 6. 2003 Iowa Acts, 1st Extraordinary Session, chapter 2 28 2, section 93, is amended to read as follows: 2 29 SEC. 93. The divisions of this Act designated economic 2 30 development appropriations, workforce=related issues, loan and 2 31 credit guarantee fund, university=based research utilization 2 32 program appropriation,endow Iowa tax credit,and 2 33 rehabilitation project tax credits are repealed effective June 2 34 30, 2010. 2 35 Sec. 7. EFFECTIVE DATE. This Act takes effect July 1, 3 1 2007. 3 2 EXPLANATION 3 3 This bill concerns the endow Iowa tax credit and the 3 4 distribution of gambling tax revenues collected from excursion 3 5 gambling boats and racetracks. 3 6 Code section 15E.305, concerning the endow Iowa tax credit, 3 7 is amended. The bill increases the aggregate amount of tax 3 8 credits authorized in a calendar year by an amount equal to 3 9 the amount generated for this purpose from a distribution of 3 10 gambling tax revenues generated in the prior fiscal year. The 3 11 bill eliminates the provision ending this tax credit after 3 12 December 31, 2008. The bill also eliminates the repeal of the 3 13 Code provisions concerning the endow Iowa tax credit that 3 14 would have occurred on June 30, 2010. 3 15 Code section 15E.311 is amended to provide that eligible 3 16 county recipients receiving money from the county endowment 3 17 fund shall consider grants for projects that include vertical 3 18 infrastructure components designed to enhance the quality of 3 19 life within local communities. 3 20 Code section 99F.11, subsection 3, concerning the 3 21 distribution of gambling tax revenues from gambling games at 3 22 excursion gambling boats and racetracks, is amended. Current 3 23 law provides that one=half of 1 percent of tax revenues shall 3 24 be deposited in the county endowment fund. The bill increases 3 25 this percentage to eight=tenths of 1 percent. The bill also 3 26 provides that two=tenths of 1 percent of tax revenues is 3 27 allocated as follows, with up to $520,000 appropriated to the 3 28 department of cultural affairs and split equally between 3 29 operational support grants and the community cultural grants 3 30 program. Of the remaining moneys derived from the two=tenths 3 31 of 1 percent, one=half is appropriated to the community 3 32 development division of the department of economic development 3 33 for regional tourism marketing and one=half shall be credited 3 34 to the general fund of the state for the purposes of funding 3 35 the endow Iowa tax credit. 4 1 The bill takes effect July 1, 2007. 4 2 LSB 5566HZ 81 4 3 ec:rj/je/5