House File 670 - Introduced
HOUSE FILE
BY COMMITTEE ON ECONOMIC GROWTH
(SUCCESSOR TO HSB 53)
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to the transferability of eligible housing
2 business tax credits for new housing investment under the
3 enterprise zone program.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 1871HV 81
6 tm/gg/14
PAG LIN
1 1 Section 1. Section 15E.193B, subsection 8, unnumbered
1 2 paragraph 1, Code 2005, is amended to read as follows:
1 3 The amount of the tax credits determined pursuant to
1 4 subsection 6, paragraph "a", for each project shall be
1 5 approved by the department of economic development. The
1 6 department shall utilize the financial information required to
1 7 be provided under subsection 5, paragraph "e", to determine
1 8 the tax credits allowed for each project. In determining the
1 9 amount of tax credits to be allowed for a project, the
1 10 department shall not include the portion of the project cost
1 11 financed through federal, state, and local government tax
1 12 credits, grants, and forgivable loans. Upon approving the
1 13 amount of the tax credit, the department of economic
1 14 development shall issue a tax credit certificate to the
1 15 eligible housing business. An eligible housing business or
1 16 transferee shall not claim the tax credit unless a tax credit
1 17 certificate issued by the department of economic development
1 18 is attached to the taxpayer's return for the tax year for
1 19 which the tax credit is claimed. The tax credit certificate
1 20 shall contain the taxpayer's name, address, tax identification
1 21 number, the amount of the tax credit, and other information
1 22 required by the department of revenue. The tax credit
1 23 certificate shall be transferable if the housing development
1 24 is located in a brownfield site as defined in section 15.291,
1 25 if the housing development is located in a blighted area as
1 26 defined in section 403.17, or if low=income housing tax
1 27 credits authorized under section 42 of the Internal Revenue
1 28 Code are used to assist in the financing of the housing
1 29 development. Not more than three million dollars worth of tax
1 30 credits for housing developments that are located in a
1 31 brownfield site as defined in section 15.291 or housing
1 32 developments located in a blighted area as defined in section
1 33 403.17 shall be transferred in one calendar year. If the
1 34 transfer of more than three million dollars of such tax
1 35 credits are applied for in a calendar year, tax credit
2 1 certificates for transfers shall be issued on a pro rata
2 2 basis. Tax credit certificates issued under this chapter may
2 3 be transferred to any person or entity. Within ninety days of
2 4 transfer, the transferee must submit the transferred tax
2 5 credit certificate to the department of economic development
2 6 along with a statement containing the transferee's name, tax
2 7 identification number, and address, and the denomination that
2 8 each replacement tax credit certificate is to carry and any
2 9 other information required by the department of revenue.
2 10 Within thirty days of receiving the transferred tax credit
2 11 certificate and the transferee's statement, the department of
2 12 economic development shall issue one or more replacement tax
2 13 credit certificates to the transferee. Each replacement
2 14 certificate must contain the information required to receive
2 15 the original certificate and must have the same expiration
2 16 date that appeared in the transferred tax credit certificate.
2 17 Tax credit certificate amounts of less than the minimum amount
2 18 established by rule of the department of economic development
2 19 shall not be transferable. A tax credit shall not be claimed
2 20 by a transferee under subsection 6, paragraph "a", until a
2 21 replacement tax credit certificate identifying the transferee
2 22 as the proper holder has been issued.
2 23 Sec. 2. APPLICABILITY. This Act shall apply to transfers
2 24 of tax credit certificates for projects that begin on or after
2 25 July 1, 2005.
2 26 EXPLANATION
2 27 This bill relates to the transferability of eligible
2 28 housing business tax credits for new housing investment under
2 29 the enterprise zone program.
2 30 An eligible housing business under the enterprise zone
2 31 program may receive a tax credit of up to 10 percent of the
2 32 new investment which is directly related to the building or
2 33 rehabilitating of a minimum of four single=family homes
2 34 located in that part of a city or county in which there is a
2 35 designated enterprise zone or one multiple=dwelling unit
3 1 building containing three or more individual dwelling units
3 2 located in that part of a city or county in which there is a
3 3 designated enterprise zone. Currently, the tax credits are
3 4 transferable if low=income housing tax credits authorized
3 5 under section 42 of the Internal Revenue Code are used to
3 6 assist in the financing of the housing development. The bill
3 7 provides that not more than $3 million worth of tax credits
3 8 are transferable if the housing development is located in a
3 9 brownfield site or if the housing development is located in a
3 10 blighted area. The bill provides that if the transfer of more
3 11 than $3 million worth of tax credits are applied for in a
3 12 calendar year, the tax credit certificates shall be issued on
3 13 a pro rata basis.
3 14 The bill applies to transfers of tax credits for projects
3 15 that begin on or after July 1, 2005.
3 16 LSB 1871HV 81
3 17 tm:nh/gg/14