House File 850 - Introduced
HOUSE FILE
BY COMMITTEE ON WAYS AND
MEANS
(SUCCESSOR TO HF 794)
(SUCCESSOR TO HSB 137)
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to economic development, business, workforce, and
2 regulatory assistance and tax credits, and to state
3 developmental, research, and regulatory oversight, making
4 appropriations, and including effective date and retroactive
5 applicability provisions.
6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
7 TLSB 1809HZ 81
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PAG LIN
1 1 DIVISION I
1 2 GROW IOWA VALUES FUND
1 3 Section 1. NEW SECTION. 15G.108 GROW IOWA VALUES FUND.
1 4 A grow Iowa values fund is created in the state treasury
1 5 under the control of the department of economic development
1 6 consisting of moneys appropriated to the department. Moneys
1 7 in the fund are not subject to section 8.33. Notwithstanding
1 8 section 12C.7, interest or earnings on moneys in the fund
1 9 shall be credited to the fund. The fund shall be administered
1 10 by the department, which shall make expenditures from the fund
1 11 consistent with this chapter and pertinent Acts of the general
1 12 assembly. Any financial assistance provided using moneys from
1 13 the fund may be provided over a period of time of more than
1 14 one year. Payments of interest, repayments of moneys loaned
1 15 pursuant to this chapter, and recaptures of grants or loans
1 16 shall be deposited in the fund.
1 17 DIVISION II
1 18 APPROPRIATIONS
1 19 Sec. 2. NEW SECTION. 15G.111 APPROPRIATIONS.
1 20 1. a. For the fiscal period beginning July 1, 2005, and
1 21 ending June 30, 2015, there is appropriated each fiscal year
1 22 from the grow Iowa values fund created in section 15G.108 to
1 23 the department of economic development thirty=five million
1 24 dollars for programs administered by the department of
1 25 economic development.
1 26 b. Each year that moneys are appropriated under this
1 27 subsection, the department shall allocate a percentage of the
1 28 moneys for each of the following types of activities:
1 29 (1) Business start=ups.
1 30 (2) Business expansion.
1 31 (3) Business modernization.
1 32 (4) Business attraction.
1 33 (5) Business retention.
1 34 (6) Marketing.
1 35 (7) Research and development.
2 1 c. The department shall require an applicant for moneys
2 2 appropriated under this subsection to include in the
2 3 application a statement regarding the intended return on
2 4 investment. A recipient of moneys appropriated under this
2 5 subsection shall annually submit a statement to the department
2 6 regarding the progress achieved on the intended return on
2 7 investment stated in the application. The department, in
2 8 cooperation with the department of revenue, shall develop a
2 9 method of identifying and tracking each new job created and
2 10 the leveraging of moneys through financial assistance from
2 11 moneys appropriated under this subsection. The department of
2 12 economic development shall identify research and development
2 13 activities funded through financial assistance from not more
2 14 than ten percent of the moneys appropriated under this
2 15 subsection, and, instead of determining return on investment
2 16 and job creation for the identified funding, determine the
2 17 potential impact on the state's economy.
2 18 d. The department may use moneys appropriated under this
2 19 subsection to procure technical assistance from either the
2 20 public or private sector, for information technology purposes,
2 21 for a statewide labor shed study, and for rail, air, or river
2 22 port transportation=related purposes. The use of moneys
2 23 appropriated for rail, air, or river port
2 24 transportation=related purposes must be directly related to an
2 25 economic development project and the moneys must be used to
2 26 leverage other financial assistance moneys.
2 27 e. Of the moneys appropriated under this subsection, the
2 28 department may use up to one and one=half percent for
2 29 administrative purposes.
2 30 f. The Iowa economic development board shall approve or
2 31 deny applications for financial assistance provided with
2 32 moneys appropriated under this subsection. In providing such
2 33 financial assistance, the board shall, whenever possible,
2 34 coordinate the assistance with other programs administered by
2 35 the department of economic development, including the
3 1 community economic betterment program established in section
3 2 15.317 and the value=added agricultural products and processes
3 3 financial assistance program established in section 15E.111.
3 4 g. It is the policy of this state to expand and stimulate
3 5 the state economy by advancing, promoting, and expanding
3 6 biotechnology industries in this state. To implement this
3 7 policy, the Iowa economic development board shall consider
3 8 providing assistance to projects that increase value=added
3 9 income to individuals or organizations involved in
3 10 agricultural business or biotechnology projects. Such a
3 11 project need not create jobs specific to the project site;
3 12 however, such a project must foster the knowledge and
3 13 creativity necessary to promote the state's agricultural
3 14 economy and to increase employment in urban and rural areas as
3 15 a result.
3 16 2. a. For the fiscal period beginning July 1, 2005, and
3 17 ending June 30, 2015, there is appropriated each fiscal year
3 18 from the grow Iowa values fund created in section 15G.108 to
3 19 the department of economic development five million dollars
3 20 for the following:
3 21 (1) For financial assistance to institutions of higher
3 22 learning under the control of the state board of regents and
3 23 to accredited private universities in this state for
3 24 infrastructure projects and programs needed to assist in the
3 25 implementation of activities under chapter 262B.
3 26 (2) For financial assistance to a single biosciences
3 27 development organization determined by the department to
3 28 possess expertise in promoting the area of bioscience
3 29 entrepreneurship. The organization must be composed of
3 30 representatives of both the public and the private sector and
3 31 shall be composed of subunits or subcommittees in the areas of
3 32 existing identified biosciences platforms, education and
3 33 workforce development, commercialization, communication,
3 34 policy and governance, and finance. Such financial assistance
3 35 shall be used for purposes of activities related to
4 1 biosciences and bioeconomy development under chapter 262B.
4 2 3. For the fiscal period beginning July 1, 2005, and
4 3 ending June 30, 2015, there is appropriated each fiscal year
4 4 from the grow Iowa values fund created in section 15G.108 to
4 5 the general fund of the state four million dollars for payment
4 6 of tax credits approved pursuant to section 404A.4 for
4 7 projects located in certified cultural and entertainment
4 8 districts.
4 9 4. For the fiscal period beginning July 1, 2005, and
4 10 ending June 30, 2015, there is appropriated each fiscal year
4 11 from the grow Iowa values fund created in section 15G.108 to
4 12 the department of economic development one million dollars for
4 13 purposes of providing financial assistance for projects in
4 14 targeted state parks and destination parks. The department of
4 15 natural resources shall submit a plan to the department of
4 16 economic development for the expenditure of moneys
4 17 appropriated under this subsection. The plan shall focus on
4 18 improving state parks, state banner parks, and destination
4 19 parks for economic development purposes. Based on the report
4 20 submitted, the department of economic development shall
4 21 provide financial assistance to the department of natural
4 22 resources for support of state parks, state banner parks, and
4 23 destination parks.
4 24 5. For the fiscal period beginning July 1, 2005, and
4 25 ending June 30, 2015, there is appropriated each fiscal year
4 26 from the grow Iowa values fund created in section 15G.108 to
4 27 the office of the treasurer of state one million dollars for
4 28 deposit in the Iowa cultural trust fund created in section
4 29 303A.4.
4 30 6. For the fiscal period beginning July 1, 2005, and
4 31 ending June 30, 2015, there is appropriated each fiscal year
4 32 from the grow Iowa values fund created in section 15G.108 to
4 33 the department of economic development seven million dollars
4 34 for deposit into the workforce training and economic
4 35 development funds of the community colleges created pursuant
5 1 to section 260C.18A.
5 2 7. a. For the fiscal period beginning July 1, 2005, and
5 3 ending June 30, 2015, there is appropriated each fiscal year
5 4 from the grow Iowa values fund created in section 15G.108 to
5 5 the general fund of the state four hundred thousand dollars
5 6 for payment of endow Iowa tax credits approved pursuant to
5 7 section 15E.305 and for new small business development center
5 8 assistance as provided in this subsection.
5 9 b. Of the moneys appropriated in this subsection, the
5 10 department shall allocate two hundred fifty thousand dollars
5 11 during the fiscal year beginning July 1, 2005, for purposes of
5 12 providing financial assistance to cities and counties for the
5 13 establishment of new small business development centers. A
5 14 city or county may apply to the department for such financial
5 15 assistance provided that the city or county demonstrates the
5 16 ability to obtain local matching moneys on a dollar=for=dollar
5 17 basis. An award of financial assistance under this paragraph
5 18 shall not exceed twenty thousand dollars.
5 19 8. For the fiscal period beginning July 1, 2005, and
5 20 ending June 30, 2015, there is appropriated each fiscal year
5 21 from the grow Iowa values fund created in section 15G.108 to
5 22 the department of economic development one million dollars for
5 23 providing economic development region financial assistance
5 24 under section 15E.232, subsections 3, 4, 5, and 6, and under
5 25 section 15E.233.
5 26 9. For the fiscal period beginning July 1, 2005, and
5 27 ending June 30, 2015, there is appropriated each fiscal year
5 28 from the grow Iowa values fund created in section 15G.108 to
5 29 the general fund of the state two million dollars for payment
5 30 of economic development region revolving fund contribution tax
5 31 credits approved pursuant to section 15E.232.
5 32 10. Notwithstanding section 8.33, moneys that remain
5 33 unexpended at the end of a fiscal year shall not revert to any
5 34 fund but shall remain available for expenditure for the
5 35 designated purposes during the succeeding fiscal year.
6 1 DIVISION III
6 2 IOWA ECONOMIC DEVELOPMENT BOARD
6 3 Sec. 3. Section 15.103, Code 2005, is amended to read as
6 4 follows:
6 5 15.103 ECONOMIC DEVELOPMENT BOARD.
6 6 1. a. The Iowa economic development board is created,
6 7 consisting of eleven voting members appointed by the governor
6 8 and seven ex officio nonvoting members. The ex officio
6 9 nonvoting members are four legislative members; one president,
6 10 or the president's designee, of the university of northern
6 11 Iowa, the university of Iowa, or Iowa state university of
6 12 science and technology designated by the state board of
6 13 regents on a rotating basis; and one president, or the
6 14 president's designee, of a private college or university
6 15 appointed by the Iowa association of independent colleges and
6 16 universities; and one superintendent, or the superintendent's
6 17 designee, of a community college, appointed by the Iowa
6 18 association of community college presidents. The legislative
6 19 members are two state senators, one appointed by the president
6 20 of the senate, after consultation with the majority leader of
6 21 the senate, and one appointed by the minority leader of the
6 22 senate, after consultation with the president of the senate,
6 23 from their respective parties; and two state representatives,
6 24 one appointed by the speaker and one appointed by the minority
6 25 leader of the house of representatives from their respective
6 26 parties. Not more than six of the voting members shall be
6 27 from the same political party. The secretary of agriculture
6 28 or the secretary's designee shall be one of the voting
6 29 members. The governor shall appoint the remaining ten voting
6 30 members of the board for a term of four years beginning and
6 31 ending as provided by section 69.19, subject to confirmation
6 32 by the senate, and the governor's appointments shall include
6 33 persons knowledgeable of the various elements of the
6 34 department's responsibilities.
6 35 b. Each of the following areas of expertise shall be
7 1 represented by at least one member of the board who has
7 2 professional experience in that area of expertise:
7 3 (1) Finance, insurance, or investment banking.
7 4 (2) Advanced manufacturing.
7 5 (3) Statewide agriculture.
7 6 (4) Life sciences.
7 7 (5) Small business development.
7 8 (6) Information technology.
7 9 (7) Economics.
7 10 (8) Labor.
7 11 (9) Marketing.
7 12 (10) Entrepreneurship.
7 13 c. At least nine members of the board shall be actively
7 14 employed in the private, for=profit sector of the economy.
7 15 2. A vacancy on the board shall be filled in the same
7 16 manner as regular appointments are made for the unexpired
7 17 portion of the regular term.
7 18 3. The board shall meet in May of each year for the
7 19 purpose of electing one of its voting members as chairperson
7 20 and one of its voting members as vice chairperson. However,
7 21 the chairperson and the vice chairperson shall not be from the
7 22 same political party. The board shall meet at the call of the
7 23 chairperson or when any six members of the board file a
7 24 written request with the chairperson for a meeting. Written
7 25 notice of the time and place of each meeting shall be given to
7 26 each member of the board. A majority of the voting members
7 27 constitutes a quorum.
7 28 4. Members of the board, the director, and other employees
7 29 of the department shall be allowed their actual and necessary
7 30 expenses incurred in the performance of their duties. All
7 31 expenses shall be paid from appropriations for those purposes
7 32 and the department is subject to the budget requirements of
7 33 chapter 8. Each member of the board may also be eligible to
7 34 receive compensation as provided in section 7E.6.
7 35 5. If a member of the board has an interest, either direct
8 1 or indirect, in a contract to which the department is or is to
8 2 be a party, the interest shall be disclosed to the board in
8 3 writing and shall be set forth in the minutes of a meeting of
8 4 the board. The member having the interest shall not
8 5 participate in action by the board with respect to the
8 6 contract. This paragraph does not limit the right of a member
8 7 of the board to acquire an interest in bonds, or limit the
8 8 right of a member to have an interest in a bank or other
8 9 financial institution in which the funds of the department are
8 10 deposited or which is acting as trustee or paying agent under
8 11 a trust indenture to which the department is a party.
8 12 6. As part of the organizational structure of the
8 13 department, the board shall establish a due diligence
8 14 committee and a loan and credit guarantee committee composed
8 15 of members of the board. The committees shall serve in an
8 16 advisory capacity to the board and shall carry out any duties
8 17 assigned by the board in relation to programs administered by
8 18 the department.
8 19 7. For the transitional period beginning July 1, 2005, and
8 20 ending June 30, 2006, the composition of the voting members of
8 21 the board shall be determined by the governor and shall be
8 22 composed of members of the department of economic development
8 23 in existence on June 30, 2005, and members of the grow Iowa
8 24 values board as it existed on June 15, 2004. During the
8 25 transitional period stated in this subsection, the
8 26 requirements of subsection 1, paragraphs "a" and "b", shall
8 27 not apply. This subsection is repealed June 30, 2006.
8 28 Sec. 4. Section 15.104, Code 2005, is amended by adding
8 29 the following new subsection:
8 30 NEW SUBSECTION. 9. By January 15 of each year, submit a
8 31 report to the general assembly and the governor that
8 32 delineates expenditures made under each component of the grow
8 33 Iowa values fund. In addition, the department shall provide
8 34 in the report the following information regarding each
8 35 business finance project and in the aggregate for projects
9 1 funded during the previous fiscal year:
9 2 a. The number of jobs created as of the time of reporting.
9 3 b. The average wage of the jobs created as of the time of
9 4 reporting.
9 5 c. The amount of capital investment invested as of the
9 6 time of reporting.
9 7 d. The location.
9 8 e. The amount, if any, of private and local government
9 9 moneys expended as of the time of reporting.
9 10 Sec. 5. APPOINTMENTS DURING BIPARTISAN CONTROL.
9 11 Appointments of general assembly members to the Iowa economic
9 12 development board, which are to be made by the president of
9 13 the senate or by the majority or minority leader of the senate
9 14 during the period that the senate for the Eighty=first General
9 15 Assembly is composed of an equal number of members of each
9 16 major political party, shall be made jointly by the co=
9 17 presidents or co=floor leaders, as appropriate, in accordance
9 18 with Senate Resolution 1, adopted during the 2005 legislative
9 19 session.
9 20 DIVISION IV
9 21 REGULATORY ASSISTANCE
9 22 Sec. 6. NEW SECTION. 15E.19 REGULATORY ASSISTANCE.
9 23 1. The department of economic development shall coordinate
9 24 all regulatory assistance for the state of Iowa. Each state
9 25 agency administering regulatory programs for business shall
9 26 maintain a coordinator within the office of the director or
9 27 the administrative division of the state agency. Each
9 28 coordinator shall do all of the following:
9 29 a. Serve as the state agency's primary contact for
9 30 regulatory affairs with the department of economic
9 31 development.
9 32 b. Provide information regarding regulatory requirements
9 33 to businesses and represent the state agency to the private
9 34 sector.
9 35 c. Monitor permit applications and provide timely permit
10 1 status information to the department of economic development.
10 2 d. Require regulatory staff participation in negotiations
10 3 and discussions with businesses.
10 4 e. Notify the department of economic development regarding
10 5 proposed rulemaking activities that impact a regulatory
10 6 program and any subsequent changes to a regulatory program.
10 7 2. The department of economic development shall, in
10 8 consultation with the coordinators described in this section,
10 9 examine, and to the extent permissible, assist in the
10 10 implementation of methods, including the possible
10 11 establishment of an electronic database, to streamline the
10 12 process for issuing permits to business.
10 13 3. By January 15 of each year, the department of economic
10 14 development shall submit a written report to the general
10 15 assembly regarding the provision of regulatory assistance by
10 16 state agencies, including the department's efforts, and its
10 17 recommendations and proposed solutions, to streamline the
10 18 process of issuing permits to business.
10 19 DIVISION V
10 20 ECONOMIC DEVELOPMENT REGIONS
10 21 Sec. 7. NEW SECTION. 15E.21 IOWA BUSINESS CENTERS.
10 22 1. The department shall establish an Iowa business center
10 23 program for purposes of locating Iowa business centers in the
10 24 state. Such centers may be located in areas of the state that
10 25 are not served by a business accelerator or any similar type
10 26 entity that assists start=up businesses. The department shall
10 27 partner with another entity focusing on economic growth to
10 28 establish an Iowa business center. Operational duties of a
10 29 center shall be determined pursuant to a memorandum of
10 30 agreement between the department and the other entity. The
10 31 memorandum of agreement shall also contain a description of
10 32 core services to be provided by the center and the
10 33 responsibilities of the entities entering into the agreement.
10 34 A center shall coordinate the intake of any person or business
10 35 seeking business related assistance from a state entity.
11 1 2. a. For the fiscal period beginning July 1, 2005, and
11 2 ending June 30, 2015, there is appropriated to the department
11 3 of economic development each fiscal year fifty thousand
11 4 dollars from the rural enterprise fund. Moneys appropriated
11 5 under this paragraph shall be used for purposes of supporting
11 6 Iowa business centers in rural areas of the state. The
11 7 department shall provide financial assistance to such offices
11 8 after the department and the entity operating the center enter
11 9 into a memorandum of agreement for the operation of the
11 10 center.
11 11 b. For the fiscal period beginning July 1, 2005, and
11 12 ending June 30, 2015, there is appropriated to the department
11 13 of economic development each fiscal year fifty thousand
11 14 dollars from the grow Iowa values fund created in section
11 15 15G.108. Moneys appropriated under this paragraph shall be
11 16 used for purposes of supporting Iowa business centers in any
11 17 part of the state. The department shall provide financial
11 18 assistance to such offices after the department and the entity
11 19 operating the center enter into a memorandum of agreement for
11 20 the operation of the center.
11 21 Sec. 8. NEW SECTION. 15E.231 ECONOMIC DEVELOPMENT
11 22 REGIONS.
11 23 1. In order for an economic development region to receive
11 24 moneys from the grow Iowa values fund created in section
11 25 15G.108, an economic development region's regional development
11 26 plan must be approved by the department. An economic
11 27 development region shall consist of not less than three
11 28 counties. An economic development region shall establish a
11 29 focused economic development effort that shall include a
11 30 regional development plan relating to one or more of the
11 31 following areas:
11 32 a. Regional marketing strategies.
11 33 b. Development of the information solutions sector.
11 34 c. Development of the advanced manufacturing sector.
11 35 d. Development of the life sciences and biotechnology
12 1 sector.
12 2 e. Development of the insurance or financial services
12 3 sector.
12 4 f. Physical infrastructure including, but not limited to,
12 5 horizontal infrastructure, water and sewer infrastructure, and
12 6 telecommunications infrastructure.
12 7 g. Entrepreneurship.
12 8 2. An economic development region may create an economic
12 9 development region revolving fund as provided in section
12 10 15E.232.
12 11 Sec. 9. NEW SECTION. 15E.232 ECONOMIC DEVELOPMENT REGION
12 12 REVOLVING FUNDS == TAX CREDITS.
12 13 1. An economic development region may create an economic
12 14 development region revolving fund.
12 15 2. a. A nongovernmental entity making a contribution to
12 16 an economic development region revolving fund, except those
12 17 described in paragraph "b", may claim a tax credit equal to
12 18 twenty percent of the amount contributed to the revolving
12 19 fund. The tax credit shall be allowed against taxes imposed
12 20 in chapter 422, divisions II, III, and V, and in chapter 432,
12 21 and against the moneys and credits tax imposed in section
12 22 533.24. An individual may claim under this subsection the tax
12 23 credit of a partnership, limited liability company, S
12 24 corporation, estate, or trust electing to have income taxed
12 25 directly to the individual. The amount claimed by the
12 26 individual shall be based upon the pro rata share of the
12 27 individual's earnings from the partnership, limited liability
12 28 company, S corporation, estate, or trust. Any tax credit in
12 29 excess of the taxpayer's liability for the tax year may be
12 30 credited to the tax liability for the following ten years or
12 31 until depleted, whichever occurs first. A tax credit shall
12 32 not be carried back to a tax year prior to the tax year in
12 33 which the taxpayer redeems the tax credit. A tax credit under
12 34 this section is not transferable.
12 35 b. Subject to the provisions of paragraph "c", an
13 1 organization exempt from federal income tax pursuant to
13 2 section 501(c) of the Internal Revenue Code making a
13 3 contribution to an economic development region revolving fund,
13 4 shall be paid from the general fund of the state an amount
13 5 equal to twenty percent of such contributed amount within
13 6 thirty days after the end of the fiscal year during which the
13 7 contribution was made.
13 8 c. The total amount of tax credits and payments to
13 9 contributors, referred to as the credit amount, authorized
13 10 during a fiscal year shall not exceed two million dollars plus
13 11 any unused credit amount carried over from previous years.
13 12 Any credit amount which remains unused for a fiscal year may
13 13 be carried forward to the succeeding fiscal year. The maximum
13 14 credit amount that may be authorized in a fiscal year for
13 15 contributions made to a specific economic development region
13 16 revolving fund is equal to two million dollars plus any unused
13 17 credit amount carried over from previous years divided by the
13 18 number of economic development region revolving funds existing
13 19 in the state.
13 20 d. The department of economic development shall administer
13 21 the authorization of tax credits under this section and
13 22 payments to contributors described in paragraph "b" and shall,
13 23 in cooperation with the department of revenue, adopt rules
13 24 pursuant to chapter 17A necessary for the administration of
13 25 this section.
13 26 3. An economic development region may apply for financial
13 27 assistance from the grow Iowa values fund to assist with the
13 28 installation of physical infrastructure needs including, but
13 29 not limited to, horizontal infrastructure, water and sewer
13 30 infrastructure, and telecommunications infrastructure, related
13 31 to the development of fully served business and industrial
13 32 sites by one or more of the region's economic development
13 33 partners or for the installation of infrastructure related to
13 34 a new business location or expansion. In order to receive
13 35 financial assistance pursuant to this subsection, the economic
14 1 development region must demonstrate all of the following:
14 2 a. The ability to provide matching moneys on a basis of a
14 3 one dollar contribution of local matching moneys for every two
14 4 dollars received from the grow Iowa values fund.
14 5 b. The commitment of the specific business partner
14 6 including, but not limited to, a letter of intent defining a
14 7 capital commitment or a percentage of equity.
14 8 c. That all other funding alternatives have been
14 9 exhausted.
14 10 4. The department may establish and administer a regional
14 11 economic development revenue sharing pilot project for one or
14 12 more regions. The department shall take into consideration
14 13 the geographical dispersion of the pilot projects. The
14 14 department shall provide technical assistance to the regions
14 15 participating in a pilot project.
14 16 5. An economic development region may apply for financial
14 17 assistance from the grow Iowa values fund to assist an
14 18 existing business threatened with closure due to a potential
14 19 consolidation to an out=of=state location. The economic
14 20 development region may apply for financial assistance from the
14 21 grow Iowa values fund for the purchase, rehabilitation, or
14 22 marketing of a building that has become available due to the
14 23 closing of an existing business due to a consolidation to an
14 24 out=of=state location. In order to receive financial
14 25 assistance under this subsection, an economic development
14 26 region must demonstrate the ability to provide local matching
14 27 moneys on a basis of a one dollar contribution of local moneys
14 28 for every three dollars received from the grow Iowa values
14 29 fund.
14 30 6. An economic development region may apply for financial
14 31 assistance from the grow Iowa values fund to establish and
14 32 operate an entrepreneurial initiative. In order to receive
14 33 financial assistance under this subsection, an economic
14 34 development region must demonstrate the ability to provide
14 35 local matching moneys on a basis of a one dollar contribution
15 1 of local moneys for every two dollars received from the grow
15 2 Iowa values fund.
15 3 7. a. An economic development region may apply for
15 4 financial assistance from the grow Iowa values fund to
15 5 establish and operate a business succession assistance program
15 6 for the region.
15 7 b. In order to receive financial assistance under this
15 8 subsection, an economic development region must demonstrate
15 9 the ability to provide local matching moneys on a basis of a
15 10 one dollar contribution of local moneys for every two dollars
15 11 received from the grow Iowa values fund.
15 12 8. An economic development region may apply for financial
15 13 assistance from the grow Iowa values fund to implement
15 14 economic development initiatives that are either unique to the
15 15 region or innovative in design and implementation. In order
15 16 to receive financial assistance under this subsection, an
15 17 economic development region must demonstrate the ability to
15 18 provide local matching moneys on a one=to=one basis.
15 19 9. Financial assistance under subsections 3, 5, 6, 7, and
15 20 8, and section 15E.233 shall be limited to a total of two
15 21 million dollars each fiscal year for the fiscal period
15 22 beginning July 1, 2005, and ending June 30, 2015.
15 23 Sec. 10. NEW SECTION. 15E.233 ECONOMIC ENTERPRISE AREAS.
15 24 1. An economic development region may apply to the
15 25 department for approval to be designated as an economic
15 26 enterprise area based on criteria provided in subsection 3.
15 27 The department shall approve no more than ten regions as
15 28 economic enterprise areas.
15 29 2. a. An approved economic enterprise area may apply to
15 30 the department for financial assistance from the grow Iowa
15 31 values fund for up to seven hundred fifty thousand dollars
15 32 over a ten=year period for any of the following purposes:
15 33 (1) Economic development=related strategic planning and
15 34 marketing for the region as a whole.
15 35 (2) Economic development of fully=served business sites.
16 1 (3) The construction of speculative buildings on a fully
16 2 served lot.
16 3 (4) The rehabilitation of an existing building to
16 4 marketable standards.
16 5 b. In order to receive financial assistance under this
16 6 subsection, an economic enterprise area must demonstrate the
16 7 ability to provide local matching moneys on a basis of a one
16 8 dollar contribution of local moneys for every three dollars
16 9 received from the grow Iowa values fund.
16 10 3. An economic enterprise area shall consist of at least
16 11 one county containing no city with a population of more than
16 12 twenty=three thousand five hundred and shall meet at least two
16 13 of the following criteria:
16 14 a. A per capita income of eighty percent or less than the
16 15 national average.
16 16 b. A household median income of eighty percent or less
16 17 than the national average.
16 18 c. Twenty=five percent or more of the population of the
16 19 economic enterprise area with an income level of one hundred
16 20 fifty percent or less of the United States poverty level as
16 21 defined by the most recently revised poverty income guidelines
16 22 published by the United States department of health and human
16 23 services.
16 24 d. A population density in the economic enterprise area of
16 25 less than ten people per square mile.
16 26 e. A loss of population as shown by the 2000 certified
16 27 federal census when compared with the 1990 certified federal
16 28 census.
16 29 f. An unemployment rate greater than the national rate of
16 30 unemployment.
16 31 g. More than twenty percent of the population of the
16 32 economic enterprise area consisting of people over the age of
16 33 sixty=five.
16 34 Sec. 11. NEW SECTION. 15E.351 BUSINESS ACCELERATORS.
16 35 1. The department shall establish and administer a
17 1 business accelerator program to provide financial assistance
17 2 for the establishment and operation of a business accelerator
17 3 for technology=based, value=added agricultural, information
17 4 solutions, or advanced manufacturing start=up businesses or
17 5 for a satellite of an existing business accelerator. The
17 6 program shall be designed to foster the accelerated growth of
17 7 new and existing businesses through the provision of technical
17 8 assistance. The department shall use moneys appropriated to
17 9 the department from the grow Iowa values fund to provide
17 10 financial assistance under this section.
17 11 2. In determining whether a business accelerator qualifies
17 12 for financial assistance, the department must find that a
17 13 business accelerator meets all of the following criteria:
17 14 a. The business accelerator must be a not=for=profit
17 15 organization affiliated with an area chamber of commerce, a
17 16 community or county organization, or economic development
17 17 region.
17 18 b. The geographic area served by a business accelerator
17 19 must include more than one county.
17 20 c. The business accelerator must possess the ability to
17 21 provide service to a specific type of business as well as to
17 22 meet the broad=based needs of other types of start=up
17 23 entrepreneurs.
17 24 d. The business accelerator must possess the ability to
17 25 market business accelerator services in the region and the
17 26 state.
17 27 e. The business accelerator must possess the ability to
17 28 communicate with and cooperate with other business
17 29 accelerators and similar service providers in the state.
17 30 f. The business accelerator must possess the ability to
17 31 engage various funding sources for start=up entrepreneurs.
17 32 g. The business accelerator must possess the ability to
17 33 communicate with and cooperate with various entities for
17 34 purposes of locating suitable facilities for clients of the
17 35 business accelerator.
18 1 h. The business accelerator must possess the willingness
18 2 to accept referrals from the department of economic
18 3 development.
18 4 3. In determining whether a business accelerator qualifies
18 5 for financial assistance, the department may consider any of
18 6 the following:
18 7 a. The business experience of the business accelerator's
18 8 professional staff.
18 9 b. The business plan review capacity of the business
18 10 accelerator's professional staff.
18 11 c. The business accelerator's professional staff with
18 12 demonstrated disciplines in all aspects of business
18 13 experience.
18 14 d. The business accelerator's professional staff with
18 15 access to external service providers including legal,
18 16 accounting, marketing, and financial services.
18 17 4. In order to receive financial assistance under this
18 18 section, the financial assistance recipient must demonstrate
18 19 the ability to provide matching moneys on a basis of a two
18 20 dollar contribution of recipient moneys for every one dollar
18 21 received in financial assistance.
18 22 Sec. 12. NEW SECTION. 422.11K ECONOMIC DEVELOPMENT
18 23 REGION REVOLVING FUND TAX CREDIT.
18 24 The taxes imposed under this division, less the credits
18 25 allowed under sections 422.12 and 422.12B, shall be reduced by
18 26 an economic development region revolving fund contribution tax
18 27 credit authorized pursuant to section 15E.232.
18 28 Sec. 13. Section 422.33, Code 2005, is amended by adding
18 29 the following new subsection:
18 30 NEW SUBSECTION. 17. The taxes imposed under this division
18 31 shall be reduced by an economic development region revolving
18 32 fund contribution tax credit authorized pursuant to section
18 33 15E.232.
18 34 Sec. 14. Section 422.60, Code 2005, is amended by adding
18 35 the following new subsection:
19 1 NEW SUBSECTION. 9. The taxes imposed under this division
19 2 shall be reduced by an economic development region revolving
19 3 fund contribution tax credit authorized pursuant to section
19 4 15E.232.
19 5 Sec. 15. NEW SECTION. 432.12F ECONOMIC DEVELOPMENT
19 6 REGION REVOLVING FUND CONTRIBUTION TAX CREDITS.
19 7 The tax imposed under this chapter shall be reduced by an
19 8 economic development region tax credit authorized pursuant to
19 9 section 15E.232.
19 10 Sec. 16. Section 533.24, Code 2005, is amended by adding
19 11 the following new subsection:
19 12 NEW SUBSECTION. 6. The moneys and credits tax imposed
19 13 under this section shall be reduced by an economic development
19 14 region revolving fund contribution tax credit authorized
19 15 pursuant to section 15E.232.
19 16 DIVISION VI
19 17 CULTURAL AND ENTERTAINMENT DISTRICTS
19 18 Sec. 17. NEW SECTION. 303.3B CULTURAL AND ENTERTAINMENT
19 19 DISTRICTS.
19 20 1. The department of cultural affairs shall establish and
19 21 administer a cultural and entertainment district certification
19 22 program. The program shall encourage the growth of
19 23 communities through the development of areas within a city or
19 24 county for public and private uses related to cultural and
19 25 entertainment purposes.
19 26 2. A city or county may create and designate a cultural
19 27 and entertainment district subject to certification by the
19 28 department of cultural affairs, in consultation with the
19 29 department of economic development. A cultural and
19 30 entertainment district is encouraged to include a unique form
19 31 of transportation within the district and for transportation
19 32 between the district and recreational trails. A cultural and
19 33 entertainment district certification shall remain in effect
19 34 for ten years following the date of certification. Two or
19 35 more cities or counties may apply jointly for certification of
20 1 a district that extends across a common boundary. Through the
20 2 adoption of administrative rules, the department of cultural
20 3 affairs shall develop a certification application for use in
20 4 the certification process. The provisions of this subsection
20 5 relating to the adoption of administrative rules shall be
20 6 construed narrowly.
20 7 3. The department of cultural affairs shall encourage
20 8 development projects and activities located in certified
20 9 cultural and entertainment districts through incentives under
20 10 cultural grant programs pursuant to section 303.3, chapter
20 11 303A, and any other grant programs.
20 12 DIVISION VII
20 13 HISTORIC PRESERVATION AND CULTURAL
20 14 AND ENTERTAINMENT DISTRICT TAX CREDITS
20 15 Sec. 18. Section 404A.1, subsection 1, Code 2005, is
20 16 amended to read as follows:
20 17 1. A property rehabilitation historic preservation and
20 18 cultural and entertainment district tax credit, subject to the
20 19 availability of the credit, is granted against the tax imposed
20 20 under chapter 422, division II, III, or V, or chapter 432, for
20 21 the rehabilitation of eligible property located in this state
20 22 as provided in this chapter. Tax credits in excess of tax
20 23 liabilities shall be refunded as provided in section 404A.4,
20 24 subsection 3.
20 25 Sec. 19. Section 404A.1, subsection 2, unnumbered
20 26 paragraph 1, Code 2005, is amended to read as follows:
20 27 Eligible property for which a taxpayer may receive the
20 28 property rehabilitation historic preservation and cultural and
20 29 entertainment district tax credit computed under this chapter
20 30 includes all of the following:
20 31 Sec. 20. Section 404A.3, subsection 2, unnumbered
20 32 paragraph 2, Code 2005, is amended to read as follows:
20 33 The selection standards shall provide that a person who
20 34 qualifies for the rehabilitation tax credit under section 47
20 35 of the Internal Revenue Code shall automatically qualify for
21 1 the state property rehabilitation historic preservation and
21 2 cultural and entertainment district tax credit under this
21 3 chapter.
21 4 Sec. 21. Section 404A.4, subsection 2, Code 2005, is
21 5 amended to read as follows:
21 6 2. After verifying the eligibility for the tax credit, the
21 7 state historic preservation office, in consultation with the
21 8 department of economic development, shall issue a property
21 9 rehabilitation historic preservation and cultural and
21 10 entertainment district tax credit certificate to be attached
21 11 to the person's tax return. The tax credit certificate shall
21 12 contain the taxpayer's name, address, tax identification
21 13 number, the date of project completion, the amount of credit,
21 14 other information required by the department of revenue, and a
21 15 place for the name and tax identification number of a
21 16 transferee and the amount of the tax credit being transferred.
21 17 Sec. 22. Section 404A.4, subsection 3, Code 2005, is
21 18 amended to read as follows:
21 19 3. A person receiving a property rehabilitation historic
21 20 preservation and cultural and entertainment district tax
21 21 credit under this chapter which is in excess of the person's
21 22 tax liability for the tax year is entitled to a refund of the
21 23 excess at a discounted value. The discounted value of the tax
21 24 credit refund, as calculated by the department of economic
21 25 development, in consultation with the department of revenue,
21 26 shall be determined based on the discounted value of the tax
21 27 credit five years after the tax year of the project completion
21 28 at an interest rate equivalent to the prime rate plus two
21 29 percent. The refunded tax credit shall not exceed seventy=
21 30 five percent of the allowable tax credit.
21 31 Sec. 23. Section 404A.4, subsection 4, Code 2005, is
21 32 amended to read as follows:
21 33 4. The total amount of tax credits that may be approved
21 34 for a fiscal year under this chapter shall not exceed two
21 35 million four hundred thousand dollars. Each fiscal year, the
22 1 department of cultural affairs shall allocate at least four
22 2 hundred thousand dollars worth of tax credits for
22 3 rehabilitation projects which have a total project cost of
22 4 under two hundred thousand dollars each. For the fiscal years
22 5 period beginning July 1, 2005, and July 1, 2006 and ending
22 6 June 30, 2015, an additional five hundred thousand four
22 7 million dollars of tax credits may be approved each fiscal
22 8 year for purposes of projects located in cultural and
22 9 entertainment districts certified pursuant to section 303.3B.
22 10 Notwithstanding section 404A.1, the tax credits approved for
22 11 projects located in certified cultural and entertainment
22 12 districts may be for projects which include new construction
22 13 or new infrastructure projects that enhance the historic and
22 14 cultural integrity of the certified cultural and entertainment
22 15 district. Any of the additional tax credits allocated for
22 16 projects located in certified cultural and entertainment
22 17 districts that are not approved during a fiscal year may be
22 18 carried over to the succeeding fiscal year. The department of
22 19 cultural affairs shall establish by rule the procedures for
22 20 the application, review, selection, and awarding of
22 21 certifications of completion. The departments of economic
22 22 development, cultural affairs, and revenue shall each adopt
22 23 rules to jointly administer this subsection and shall provide
22 24 by rule for the method to be used to determine for which
22 25 fiscal year the tax credits are available.
22 26 Sec. 24. Section 404A.5, Code 2005, is amended to read as
22 27 follows:
22 28 404A.5 ECONOMIC IMPACT == RECOMMENDATIONS.
22 29 The department of cultural affairs, in consultation with
22 30 the department of economic development, shall be responsible
22 31 for keeping the general assembly and the legislative services
22 32 agency informed on the overall economic impact to the state of
22 33 the rehabilitation of eligible properties. An annual report
22 34 shall be filed which shall include, but is not limited to,
22 35 data on the number and potential value of rehabilitation
23 1 projects begun during the latest twelve=month period, the
23 2 total property rehabilitation historic preservation and
23 3 cultural and entertainment district tax credits originally
23 4 granted during that period, the potential reduction in state
23 5 tax revenues as a result of all tax credits still unused and
23 6 eligible for refund, and the potential increase in local
23 7 property tax revenues as a result of the rehabilitated
23 8 projects. The department, to the extent it is able, shall
23 9 provide recommendations on whether a limit on tax credits
23 10 should be established, the need for a broader or more
23 11 restrictive definition of eligible property, and other
23 12 adjustments to the tax credits under this chapter.
23 13 DIVISION VIII
23 14 COMMERCIALIZATION
23 15 Sec. 25. Section 262B.1, Code 2005, is amended by striking
23 16 the section and inserting in lieu thereof the following:
23 17 262B.1 TITLE.
23 18 This chapter shall be known and may be cited as the
23 19 "Commercialization of Research for Iowa Act".
23 20 Sec. 26. Section 262B.2, Code 2005, is amended by striking
23 21 the section and inserting in lieu thereof the following:
23 22 262B.2 LEGISLATIVE INTENT.
23 23 It is the intent of the general assembly that the three
23 24 universities under the control of the state board of regents
23 25 have as part of their missions the use of their universities'
23 26 expertise to expand and stimulate economic growth across the
23 27 state. This activity may be accomplished through a wide
23 28 variety of partnerships, public and private joint ventures,
23 29 and cooperative endeavors, primarily, but not exclusively, in
23 30 the area of high technology, and may result in investments by
23 31 the private sector for commercialization of the technology and
23 32 job creation. It is imperative that whenever possible, the
23 33 investments and job creation be in Iowa but need not be in the
23 34 proximity of the universities. The purpose of the investments
23 35 and job creation shall be to expand and stimulate Iowa's
24 1 economy, increase the wealth of Iowans, and increase the
24 2 population of Iowa, which may be accomplished through research
24 3 conducted within the state that will competitively position
24 4 Iowa on an economic basis with other states and create high=
24 5 wage, high=growth employers and jobs. Accredited private
24 6 universities located in the state are encouraged to
24 7 incorporate the intent of this section into the mission of
24 8 their universities.
24 9 Sec. 27. Section 262B.3, Code 2005, is amended by striking
24 10 the section and inserting in lieu thereof the following:
24 11 262B.3 DUTIES AND RESPONSIBILITIES.
24 12 1. The state board of regents, as part of its mission and
24 13 strategic plan, shall establish mechanisms for the purpose of
24 14 carrying out the intent of this chapter. In addition to other
24 15 board initiatives, the board shall work with the department of
24 16 economic development, other state agencies, and the private
24 17 sector to facilitate the commercialization of research.
24 18 2. The state board of regents, in cooperation with the
24 19 department of economic development, shall implement this
24 20 chapter through any of the following activities:
24 21 a. Developing strategies to market and disseminate
24 22 information on university research for commercialization in
24 23 Iowa.
24 24 b. Evaluating university research for commercialization
24 25 potential, where relevant.
24 26 c. Developing a plan to improve private sector access to
24 27 the university licenses and patent information and the
24 28 transfer of technology from the university to the private
24 29 sector.
24 30 d. Identifying research and technical assistance needs of
24 31 existing Iowa businesses and start=up companies and
24 32 recommending ways in which the universities can meet these
24 33 needs.
24 34 e. Linking research and instruction activities to economic
24 35 development.
25 1 f. Reviewing and monitoring activities related to
25 2 technology transfer.
25 3 g. Coordinating activities to facilitate a focus on
25 4 research in the state's targeted industry clusters.
25 5 h. Surveying similar activities in other states and at
25 6 other universities.
25 7 i. Establishing a single point of contact to facilitate
25 8 commercialization of research.
25 9 j. Sustaining faculty and staff resources needed to
25 10 implement commercialization.
25 11 k. Implementing programs to provide public recognition of
25 12 university faculty and staff who demonstrate success in
25 13 technology transfer and commercialization.
25 14 l. Implementing rural entrepreneurial and regional
25 15 development assistance programs.
25 16 m. Providing market research ranging from early stage
25 17 feasibility to extensive market research.
25 18 n. Creating real or virtual research parks that may or may
25 19 not be located near universities, but with the goal of
25 20 providing economic stimulus to the entire state.
25 21 o. Capacity building in key biosciences platform areas.
25 22 p. Encouraging biosciences entrepreneurship by faculty.
25 23 q. Providing matching grants for joint biosciences
25 24 projects involving public and private entities.
25 25 r. Encouraging biosciences entrepreneurship by faculty
25 26 using faculty research and entrepreneurship grants.
25 27 s. Pursuing bioeconomy initiatives in key platform areas
25 28 as recommended by a consultant report on bioeconomy issues
25 29 contracted for by the department of economic development.
25 30 Sec. 28. Sections 262B.4, 262B.5, and 262B.12, Code 2005,
25 31 are repealed.
25 32 Sec. 29. STUDIES.
25 33 1. The state board of regents shall conduct a study to
25 34 determine the feasibility of establishing a graduate school in
25 35 western Iowa in cooperation with other public or private
26 1 institutions of higher learning. By December 15, 2005, the
26 2 board shall submit a report to the general assembly and the
26 3 governor regarding the findings and recommendations of the
26 4 study.
26 5 2. The state board of regents shall conduct a study
26 6 relating to cost=effective methods of recognizing the efforts
26 7 of faculty to achieve commercialization. By December 15,
26 8 2005, the board shall submit a report to the general assembly
26 9 and the governor regarding the findings and recommendations of
26 10 the study.
26 11 DIVISION IX
26 12 WORKFORCE TRAINING AND ECONOMIC DEVELOPMENT FUNDS
26 13 Sec. 30. Section 260C.18A, subsection 2, paragraph b, Code
26 14 2005, is amended to read as follows:
26 15 b. Projects in which an agreement between a community
26 16 college and a business meet all the requirements of the Iowa
26 17 jobs training Act under chapter 260F. However, projects
26 18 funded by moneys provided by a local workforce training and
26 19 economic development fund of a community college are not
26 20 subject to the maximum advance or award limitations contained
26 21 in section 260F.6, subsection 2, or the allocation limitations
26 22 contained in section 260F.8, subsection 1.
26 23 Sec. 31. Section 260C.18A, subsection 2, Code 2005, is
26 24 amended by adding the following new paragraph:
26 25 NEW PARAGRAPH. f. Training and retraining programs for
26 26 targeted industries as authorized in section 15.343,
26 27 subsection 2, paragraph "a".
26 28 Sec. 32. Section 260C.18A, subsection 5, Code 2005, is
26 29 amended by striking the subsection.
26 30 DIVISION X
26 31 LOAN AND CREDIT GUARANTEE PROGRAM
26 32 Sec. 33. Section 15E.224, subsections 1, 5, and 7, Code
26 33 2005, are amended to read as follows:
26 34 1. The department shall establish and administer a loan
26 35 and credit guarantee program. The department, pursuant to
27 1 agreements with financial institutions, shall provide loan and
27 2 credit guarantees, or other forms of credit guarantees for
27 3 qualified businesses and targeted industry businesses for
27 4 eligible project costs. The department may invest up to ten
27 5 percent of the assets of the loan and credit guarantee fund,
27 6 or five hundred thousand dollars, whichever is greater, to
27 7 provide loan and credit guarantees or other forms of credit
27 8 guarantees for eligible project costs to microenterprises
27 9 located in a municipality with a population under fifty
27 10 thousand that is not contiguous to a municipality with a
27 11 population of fifty thousand or more. For purposes of this
27 12 division, "microenterprise" means a business providing
27 13 services with five or fewer full=time equivalent employee
27 14 positions. A loan or credit guarantee provided under the
27 15 program may stand alone or may be used in conjunction with or
27 16 to enhance other loans or credit guarantees offered by
27 17 private, state, or federal entities. The department may
27 18 purchase insurance to cover defaulted loans meeting the
27 19 requirements of the program. However, the department shall not
27 20 in any manner directly or indirectly pledge the credit of the
27 21 state. Eligible project costs include expenditures for
27 22 productive equipment and machinery, working capital for
27 23 operations and export transactions, research and development,
27 24 marketing, and such other costs as the department may so
27 25 designate.
27 26 5. The department shall adopt a loan or credit guarantee
27 27 application procedure for a financial institution on behalf of
27 28 a qualified business, microenterprise, or targeted industry
27 29 business.
27 30 7. The department may adopt loan and credit guarantee
27 31 application procedures that allow a qualified business,
27 32 microenterprise, or targeted industry business to apply
27 33 directly to the department for a preliminary guarantee
27 34 commitment. A preliminary guarantee commitment may be issued
27 35 by the department subject to the qualified business,
28 1 microenterprise, or targeted industry business securing a
28 2 commitment for financing from a financial institution. The
28 3 application procedures shall specify the process by which a
28 4 financial institution may obtain a final loan and credit
28 5 guarantee.
28 6 Sec. 34. Section 15E.225, subsection 3, Code 2005, is
28 7 amended to read as follows:
28 8 3. For a preliminary guarantee commitment, the department
28 9 may charge a qualified business, microenterprise, or targeted
28 10 industry business a preliminary guarantee commitment fee. The
28 11 application fee shall be in addition to any other fees charged
28 12 by the department under this section and shall not exceed one
28 13 thousand dollars for an application.
28 14 DIVISION XI
28 15 ECONOMIC DEVELOPMENT TAX INCENTIVES
28 16 Sec. 35. Section 15.113, Code 2005, is amended to read as
28 17 follows:
28 18 15.113 ECONOMIC DEVELOPMENT ASSISTANCE == REPORT.
28 19 In order for the general assembly to have accurate and
28 20 complete information regarding expenditures for economic
28 21 development and job training incentives and to respond to the
28 22 job training needs of Iowa workers, the department shall
28 23 provide to the legislative services agency by January 15 of
28 24 each year data on all assistance or benefits provided under
28 25 the community economic betterment program, the new jobs and
28 26 income program, high quality job creation program, and the
28 27 Iowa industrial new jobs training Act during the previous
28 28 calendar year. The department shall meet with the legislative
28 29 services agency prior to submitting the data to assure that
28 30 its form and specificity are sufficient to provide accurate
28 31 and complete information to the general assembly. The
28 32 department shall also contact other state agencies providing
28 33 financial assistance to Iowa businesses and, to the extent
28 34 practical, coordinate the submission of the data to the
28 35 legislative services agency.
29 1 Sec. 36. Section 15.326, Code 2005, is amended to read as
29 2 follows:
29 3 15.326 SHORT TITLE.
29 4 This part shall be known and may be cited as the "New Jobs
29 5 and Income "High Quality Job Creation Act".
29 6 Sec. 37. Section 15.327, Code 2005, is amended to read as
29 7 follows:
29 8 15.327 DEFINITIONS.
29 9 As used in this part, unless the context otherwise
29 10 requires:
29 11 1. "Community" means a city, county, or entity established
29 12 pursuant to chapter 28E.
29 13 2. "Contractor or subcontractor" means a person who
29 14 contracts with the eligible business or a supporting business
29 15 or subcontracts with a contractor for the provision of
29 16 property, materials, or services for the construction or
29 17 equipping of a facility, located within the economic
29 18 development area, of the eligible business or a supporting
29 19 business.
29 20 3. "Department" means the Iowa department of economic
29 21 development.
29 22 4. "Director" means the director of the department or the
29 23 director's designee.
29 24 5. "Economic development area" means a site or sites
29 25 designated by the department of economic development for the
29 26 purpose of attracting an eligible business and supporting
29 27 businesses to locate facilities within the state.
29 28 6. 4. "Eligible business" means a business meeting the
29 29 conditions of section 15.329.
29 30 7. 5. "Program" means the new jobs and income high
29 31 quality job creation program.
29 32 8. 6. "Project completion" means the first date upon
29 33 which the average annualized production of finished product
29 34 for the preceding ninety=day period at the manufacturing
29 35 facility operated by the eligible business within the economic
30 1 development area is at least fifty percent of the initial
30 2 design capacity of the facility. The eligible business shall
30 3 inform the department of revenue in writing within two weeks
30 4 of project completion.
30 5 9. "Supporting business" means a business under contract
30 6 with the eligible business to provide property, materials, or
30 7 services which are a necessary component of the operation of
30 8 the manufacturing facility. To qualify as a supporting
30 9 business, the business shall have a permanent facility or
30 10 operations located within the economic development area and
30 11 the revenue from fulfilling the contract with the eligible
30 12 business shall constitute at least seventy=five percent of the
30 13 revenue generated by the business from all activities
30 14 undertaken from the facility within the economic development
30 15 area.
30 16 7. "Qualifying investment" means a capital investment in
30 17 real property including the purchase price of land and
30 18 existing buildings and structures, site preparation,
30 19 improvements to the real property, building construction, and
30 20 long=term lease costs. "Qualifying investment" also means a
30 21 capital investment in depreciable assets.
30 22 Sec. 38. Section 15.329, Code 2005, is amended by striking
30 23 the section and inserting in lieu thereof the following:
30 24 15.329 ELIGIBLE BUSINESS.
30 25 1. To be eligible to receive incentives under this part, a
30 26 business shall meet all of the following requirements:
30 27 a. If the qualifying investment is ten million dollars or
30 28 more, the community has approved by ordinance or resolution
30 29 the start=up, location, or expansion of the business for the
30 30 purpose of receiving the benefits of this part.
30 31 b. The business has not closed or substantially reduced
30 32 its operation in one area of the state and relocated
30 33 substantially the same operation in the community. This
30 34 subsection does not prohibit a business from expanding its
30 35 operation in the community if existing operations of a similar
31 1 nature in the state are not closed or substantially reduced.
31 2 c. The business is not a retail business.
31 3 2. In addition to the requirements of subsection 1, a
31 4 business shall do at least four of the following in order to
31 5 be eligible for incentives under the program:
31 6 a. Offer a pension or profit sharing plan to full=time
31 7 employees.
31 8 b. Produce or manufacture high value=added goods or
31 9 services or be engaged in one of the following industries:
31 10 (1) Value=added agricultural products.
31 11 (2) Insurance and financial services.
31 12 (3) Plastics.
31 13 (4) Metals.
31 14 (5) Printing paper or packaging products.
31 15 (6) Drugs and pharmaceuticals.
31 16 (7) Software development.
31 17 (8) Instruments and measuring devices and medical
31 18 instruments.
31 19 (9) Recycling and waste management.
31 20 (10) Telecommunications.
31 21 Retail business shall not be eligible for benefits under
31 22 this part.
31 23 c. Provide and pay at least eighty percent of the cost of
31 24 a standard medical and dental insurance plan for all full=time
31 25 employees working at the facility in which the new investment
31 26 occurred.
31 27 d. Make child care services available to its employees.
31 28 e. Invest annually no less than one percent of pretax
31 29 profits, from the facility located to Iowa or expanded under
31 30 the program, in research and development in Iowa.
31 31 f. Invest annually no less than one percent of pretax
31 32 profits, from the facility located to Iowa or expanded under
31 33 the program, in worker training and skills enhancement.
31 34 g. Have an active productivity and safety improvement
31 35 program involving management and worker participation and
32 1 cooperation with benchmarks for gauging compliance.
32 2 h. Occupy an existing facility, at least one of the
32 3 buildings of which shall be vacant and shall contain at least
32 4 twenty thousand square feet.
32 5 3. Any business located in a quality jobs enterprise zone
32 6 is ineligible to receive the economic development incentives
32 7 under the program.
32 8 4. If the department finds that a business has a record of
32 9 violations of the law, including but not limited to
32 10 environmental and worker safety statutes, rules, and
32 11 regulations, over a period of time that tends to show a
32 12 consistent pattern, the business shall not qualify for
32 13 economic development assistance under this part, unless the
32 14 department finds that the violations did not seriously affect
32 15 public health or safety, or the environment, or if it did,
32 16 that there were mitigating circumstances. In making the
32 17 findings and determinations regarding violations, mitigating
32 18 circumstances, and whether the business is disqualified for
32 19 economic development assistance under this part, the
32 20 department shall be exempt from chapter 17A.
32 21 5. The department shall also consider a variety of
32 22 factors, including but not limited to the following in
32 23 determining the eligibility of a business to participate in
32 24 the program:
32 25 a. The quality of the jobs to be created. In rating the
32 26 quality of the jobs, the department shall place greater
32 27 emphasis on those jobs that have a higher wage scale, have a
32 28 lower turnover rate, are full=time or career=type positions,
32 29 provide comprehensive health benefits, or have other related
32 30 factors which could be considered to be higher in quality,
32 31 than to other jobs. Businesses that have wage scales
32 32 substantially below that of existing Iowa businesses in that
32 33 area should be rated as providing the lowest quality of jobs
32 34 and should therefore be given the lowest ranking for providing
32 35 such assistance.
33 1 b. The impact of the proposed project on other businesses
33 2 in competition with the business being considered for
33 3 assistance. The department shall make a good faith effort to
33 4 identify existing Iowa businesses within an industry in
33 5 competition with the business being considered for assistance.
33 6 The department shall make a good faith effort to determine the
33 7 probability that the proposed financial assistance will
33 8 displace employees of the existing businesses. In determining
33 9 the impact on businesses in competition with the business
33 10 being considered for assistance, jobs created as a result of
33 11 other jobs being displaced elsewhere in the state shall not be
33 12 considered direct jobs created.
33 13 c. The impact to the state of the proposed project. In
33 14 measuring the economic impact, the department shall place
33 15 greater emphasis on projects which have greater consistency
33 16 with the state strategic plan than other projects. Greater
33 17 consistency may include any or all of the following:
33 18 (1) A business with a greater percentage of sales out=of=
33 19 state or of import substitution.
33 20 (2) A business with a higher proportion of in=state
33 21 suppliers.
33 22 (3) A project which would provide greater diversification
33 23 of the state economy.
33 24 (4) A business with fewer in=state competitors.
33 25 (5) A potential for future job growth.
33 26 (6) A project which is not a retail operation.
33 27 d. If a business has, within three years of application
33 28 for assistance, acquired or merged with an Iowa corporation or
33 29 company, whether the business has made a good faith effort to
33 30 hire the workers of the acquired or merged company.
33 31 e. Whether a business provides for a preference for hiring
33 32 residents of the state or of the economic development area,
33 33 except for out=of=state employees offered a transfer to Iowa
33 34 or to the economic development area.
33 35 f. Whether all known required environmental permits have
34 1 been issued and regulations met before moneys are released.
34 2 6. The department may waive any of the requirements of
34 3 this section for good cause shown.
34 4 7. An application to receive incentives under this part
34 5 may be submitted to the department at any time within one year
34 6 from the time the job for which benefits are sought commences.
34 7 Sec. 39. Section 15.330, Code 2005, is amended by striking
34 8 the section and inserting in lieu thereof the following:
34 9 15.330 AGREEMENT.
34 10 A business shall enter into an agreement with the
34 11 department specifying the requirements that must be met to
34 12 confirm eligibility pursuant to this part. The department
34 13 shall consult with the community during negotiations relating
34 14 to the agreement. The agreement shall contain, at a minimum,
34 15 the following provisions:
34 16 1. A business that is approved to receive incentives
34 17 shall, for the length of the agreement, certify annually to
34 18 the community and the department the compliance of the
34 19 business with the requirements of the agreement.
34 20 2. The repayment of incentives by the business if the
34 21 business does not meet any of the requirements of this part or
34 22 the resulting agreement.
34 23 3. If a business that is approved to receive incentives
34 24 under this part experiences a layoff within the state or
34 25 closes any of its facilities within the state, the department
34 26 shall have the discretion to reduce or eliminate some or all
34 27 of the incentives. If a business has received incentives
34 28 under this part and experiences a layoff within the state or
34 29 closes any of its facilities within the state, the business
34 30 may be subject to repayment of all or a portion of the
34 31 incentives that it has received.
34 32 4. A business creating fifteen or fewer new high quality
34 33 jobs shall have up to three years to complete a project and
34 34 shall be required to maintain the jobs for an additional two
34 35 years. A business creating sixteen or more new high quality
35 1 jobs shall have up to five years to complete a project and
35 2 shall be required to maintain the jobs for an additional two
35 3 years.
35 4 Sec. 40. Section 15.331A, Code 2005, is amended to read as
35 5 follows:
35 6 15.331A SALES AND USE TAX REFUND == CONTRACTOR OR
35 7 SUBCONTRACTOR.
35 8 The eligible business or a supporting business shall be
35 9 entitled to a refund of the sales and use taxes paid under
35 10 chapter 423 for gas, electricity, water, or sewer utility
35 11 services, goods, wares, or merchandise, or on services
35 12 rendered, furnished, or performed to or for a contractor or
35 13 subcontractor and used in the fulfillment of a written
35 14 contract relating to the construction or equipping of a
35 15 facility within the economic development area of the eligible
35 16 business or a supporting business. Taxes attributable to
35 17 intangible property and furniture and furnishings shall not be
35 18 refunded. However, an eligible business shall be entitled to
35 19 a refund for taxes attributable to racks, shelving, and
35 20 conveyor equipment to be used in a warehouse or distribution
35 21 center subject to section 15.331C.
35 22 To receive the refund a claim shall be filed by the
35 23 eligible business or a supporting business with the department
35 24 of revenue as follows:
35 25 1. The contractor or subcontractor shall state under oath,
35 26 on forms provided by the department, the amount of the sales
35 27 of goods, wares, or merchandise or services rendered,
35 28 furnished, or performed including water, sewer, gas, and
35 29 electric utility services for use in the economic development
35 30 area upon which sales or use tax has been paid prior to the
35 31 project completion, and shall file the forms with the eligible
35 32 business or supporting business before final settlement is
35 33 made.
35 34 2. The eligible business or a supporting business shall,
35 35 not more than one year after project completion, make
36 1 application to the department for any refund of the amount of
36 2 the sales and use taxes paid pursuant to chapter 423 upon any
36 3 goods, wares, or merchandise, or services rendered, furnished,
36 4 or performed, including water, sewer, gas, and electric
36 5 utility services. The application shall be made in the manner
36 6 and upon forms to be provided by the department, and the
36 7 department shall audit the claim and, if approved, issue a
36 8 warrant to the eligible business or supporting business in the
36 9 amount of the sales or use tax which has been paid to the
36 10 state of Iowa under a contract. A claim filed by the eligible
36 11 business or a supporting business in accordance with this
36 12 section shall not be denied by reason of a limitation
36 13 provision set forth in chapter 421 or 423.
36 14 3. A contractor or subcontractor who willfully makes a
36 15 false report of tax paid under the provisions of this section
36 16 is guilty of a simple misdemeanor and in addition is liable
36 17 for the payment of the tax and any applicable penalty and
36 18 interest.
36 19 Sec. 41. Section 15.331C, Code 2005, is amended to read as
36 20 follows:
36 21 15.331C CORPORATE TAX CREDIT FOR CERTAIN SALES TAXES PAID
36 22 BY THIRD=PARTY DEVELOPER.
36 23 1. An eligible business or a supporting business may claim
36 24 a corporate tax credit in an amount equal to the taxes paid by
36 25 a third=party developer under chapters 422 and 423 for gas,
36 26 electricity, water, or sewer utility services, goods, wares,
36 27 or merchandise, or on services rendered, furnished, or
36 28 performed to or for a contractor or subcontractor and used in
36 29 the fulfillment of a written contract relating to the
36 30 construction or equipping of a facility within the economic
36 31 development area of the eligible business or supporting
36 32 business. Taxes attributable to intangible property and
36 33 furniture and furnishings shall not be included, but taxes
36 34 attributable to racks, shelving, and conveyor equipment to be
36 35 used in a warehouse or distribution center shall be included.
37 1 Any credit in excess of the tax liability for the tax year may
37 2 be credited to the tax liability for the following seven years
37 3 or until depleted, whichever occurs earlier. An eligible
37 4 business may elect to receive a refund of all or a portion of
37 5 an unused tax credit.
37 6 2. A third=party developer shall state under oath, on
37 7 forms provided by the department of economic development, the
37 8 amount of taxes paid as described in subsection 1 and shall
37 9 submit such forms to the department. The taxes paid shall be
37 10 itemized to allow identification of the taxes attributable to
37 11 racks, shelving, and conveyor equipment to be used in a
37 12 warehouse or distribution center. After receiving the form
37 13 from the third=party developer, the department shall issue a
37 14 tax credit certificate to the eligible business or supporting
37 15 business equal to the taxes paid by a third=party developer
37 16 under chapters 422 and 423 for gas, electricity, water, or
37 17 sewer utility services, goods, wares, or merchandise, or on
37 18 services rendered, furnished, or performed to or for a
37 19 contractor or subcontractor and used in the fulfillment of a
37 20 written contract relating to the construction or equipping of
37 21 a facility. The department shall also issue a tax credit
37 22 certificate to the eligible business or supporting business
37 23 equal to the taxes paid and attributable to racks, shelving,
37 24 and conveyor equipment to be used in a warehouse or
37 25 distribution center. The aggregate combined total amount of
37 26 tax refunds under section 15.331A for taxes attributable to
37 27 racks, shelving, and conveyor equipment to be used in a
37 28 warehouse or distribution center and of tax credit
37 29 certificates issued by the department for the taxes paid and
37 30 attributable to racks, shelving, and conveyor equipment to be
37 31 used in a warehouse or distribution center shall not exceed
37 32 five hundred thousand dollars in a fiscal year. If an
37 33 applicant for a tax credit certificate does not receive a
37 34 certificate for the taxes paid and attributable to racks,
37 35 shelving, and conveyor equipment to be used in a warehouse or
38 1 distribution center, the application shall be considered in
38 2 succeeding fiscal years. The eligible business or supporting
38 3 business shall not claim a tax credit under this section
38 4 unless a tax credit certificate issued by the department of
38 5 economic development is attached to the taxpayer's tax return
38 6 for the tax year for which the tax credit is claimed. A tax
38 7 credit certificate shall contain the eligible business's or
38 8 supporting business's name, address, tax identification
38 9 number, the amount of the tax credit, and other information
38 10 required by the department of revenue.
38 11 Sec. 42. Section 15.333, Code 2005, is amended by striking
38 12 the section and inserting in lieu thereof the following:
38 13 15.333 INVESTMENT TAX CREDIT.
38 14 1. An eligible business may claim a tax credit equal to a
38 15 percentage of the new investment directly related to new jobs
38 16 created by the location or expansion of an eligible business
38 17 under the program. The tax credit shall be amortized equally
38 18 over five calendar years. The tax credit shall be allowed
38 19 against taxes imposed under chapter 422, division II, III, or
38 20 V, and against the moneys and credits tax imposed in section
38 21 533.24. If the business is a partnership, S corporation,
38 22 limited liability company, cooperative organized under chapter
38 23 501 and filing as a partnership for federal tax purposes, or
38 24 estate or trust electing to have the income taxed directly to
38 25 the individual, an individual may claim the tax credit
38 26 allowed. The amount claimed by the individual shall be based
38 27 upon the pro rata share of the individual's earnings of the
38 28 partnership, S corporation, limited liability company,
38 29 cooperative organized under chapter 501 and filing as a
38 30 partnership for federal tax purposes, or estate or trust. The
38 31 percentage shall be determined as provided in section 15.335A.
38 32 Any tax credit in excess of the tax liability for the tax year
38 33 may be credited to the tax liability for the following seven
38 34 years or until depleted, whichever occurs first.
38 35 Subject to prior approval by the department of economic
39 1 development, in consultation with the department of revenue,
39 2 an eligible business whose project primarily involves the
39 3 production of value=added agricultural products or uses
39 4 biotechnology=related processes may elect to receive a refund
39 5 of all or a portion of an unused tax credit. For purposes of
39 6 this subsection, such an eligible business includes a
39 7 cooperative described in section 521 of the Internal Revenue
39 8 Code which is not required to file an Iowa corporate income
39 9 tax return, and whose project primarily involves the
39 10 production of ethanol. The refund may be applied against a
39 11 tax liability imposed under chapter 422, division II, III, or
39 12 V, and against the moneys and credits tax imposed in section
39 13 533.24. If the business is a partnership, S corporation,
39 14 limited liability company, cooperative organized under chapter
39 15 501 and filing as a partnership for federal tax purposes, or
39 16 estate or trust electing to have the income taxed directly to
39 17 the individual, an individual may claim the tax credit
39 18 allowed. The amount claimed by the individual shall be based
39 19 upon the pro rata share of the individual's earnings of the
39 20 partnership, S corporation, limited liability company,
39 21 cooperative organized under chapter 501 and filing as a
39 22 partnership for federal tax purposes, or estate or trust.
39 23 2. For purposes of this subsection, "new investment
39 24 directly related to new jobs created by the location or
39 25 expansion of an eligible business under the program" means the
39 26 cost of machinery and equipment, as defined in section 427A.1,
39 27 subsection 1, paragraphs "e" and "j", purchased for use in the
39 28 operation of the eligible business, the purchase price of
39 29 which has been depreciated in accordance with generally
39 30 accepted accounting principles, the purchase price of real
39 31 property and any buildings and structures located on the real
39 32 property, and the cost of improvements made to real property
39 33 which is used in the operation of the eligible business. "New
39 34 investment directly related to new jobs created by the
39 35 location or expansion of an eligible business under the
40 1 program" also means the annual base rent paid to a third=
40 2 party developer by an eligible business for a period not to
40 3 exceed ten years, provided the cumulative cost of the base
40 4 rent payments for that period does not exceed the cost of the
40 5 land and the third=party developer's costs to build or
40 6 renovate the building for the eligible business. The eligible
40 7 business shall enter into a lease agreement with the third=
40 8 party developer for a minimum of five years. If, however,
40 9 within five years of purchase, the eligible business sells,
40 10 disposes of, razes, or otherwise renders unusable all or a
40 11 part of the land, buildings, or other existing structures for
40 12 which tax credit was claimed under this section, the tax
40 13 liability of the eligible business for the year in which all
40 14 or part of the property is sold, disposed of, razed, or
40 15 otherwise rendered unusable shall be increased by one of the
40 16 following amounts:
40 17 a. One hundred percent of the tax credit claimed under
40 18 this section if the property ceases to be eligible for the tax
40 19 credit within one full year after being placed in service.
40 20 b. Eighty percent of the tax credit claimed under this
40 21 section if the property ceases to be eligible for the tax
40 22 credit within two full years after being placed in service.
40 23 c. Sixty percent of the tax credit claimed under this
40 24 section if the property ceases to be eligible for the tax
40 25 credit within three full years after being placed in service.
40 26 d. Forty percent of the tax credit claimed under this
40 27 section if the property ceases to be eligible for the tax
40 28 credit within four full years after being placed in service.
40 29 e. Twenty percent of the tax credit claimed under this
40 30 section if the property ceases to be eligible for the tax
40 31 credit within five full years after being placed in service.
40 32 3. a. An eligible business whose project primarily
40 33 involves the production of value=added agricultural products
40 34 or uses biotechnology=related processes, which elects to
40 35 receive a refund of all or a portion of an unused tax credit,
41 1 shall apply to the department of economic development for tax
41 2 credit certificates. Such an eligible business shall not
41 3 claim a tax credit refund under this subsection unless a tax
41 4 credit certificate issued by the department of economic
41 5 development is attached to the taxpayer's tax return for the
41 6 tax year for which the tax credit refund is claimed. For
41 7 purposes of this subsection, an eligible business includes a
41 8 cooperative described in section 521 of the Internal Revenue
41 9 Code which is not required to file an Iowa corporate income
41 10 tax return, and whose project primarily involves the
41 11 production of ethanol. For purposes of this subsection, an
41 12 eligible business also includes a cooperative described in
41 13 section 521 of the Internal Revenue Code which is required to
41 14 file an Iowa corporate income tax return and whose project
41 15 primarily involves the production of ethanol. Such
41 16 cooperative may elect to transfer all or a portion of its tax
41 17 credit to its members. The amount of tax credit transferred
41 18 and claimed by a member shall be based upon the pro rata share
41 19 of the member's earnings of the cooperative.
41 20 b. A tax credit certificate issued under this subsection
41 21 shall not be valid until the tax year following the date of
41 22 the capital investment project completion. A tax credit
41 23 certificate shall contain the taxpayer's name, address, tax
41 24 identification number, the date of project completion, the
41 25 amount of the tax credit, and other information required by
41 26 the department of revenue. The department of economic
41 27 development shall not issue tax credit certificates under this
41 28 subsection which total more than four million dollars during a
41 29 fiscal year. If the department receives and approves
41 30 applications for tax credit certificates under this subsection
41 31 in excess of four million dollars, the applicants shall
41 32 receive certificates for a prorated amount. The tax credit
41 33 certificates shall not be transferred except as provided in
41 34 this subsection for a cooperative described in section 521 of
41 35 the Internal Revenue Code which is required to file an Iowa
42 1 corporate income tax return and whose project primarily
42 2 involves the production of ethanol. For a cooperative
42 3 described in section 521 of the Internal Revenue Code, the
42 4 department of economic development shall require that the
42 5 cooperative submit a list of its members and the share of each
42 6 member's interest in the cooperative. The department shall
42 7 issue a tax credit certificate to each member contained on the
42 8 submitted list.
42 9 Sec. 43. Section 15.333A, Code 2005, is amended by
42 10 striking the section and inserting in lieu thereof the
42 11 following:
42 12 15.333A INSURANCE PREMIUM TAX CREDITS.
42 13 1. An eligible business may claim an insurance premium tax
42 14 credit equal to a percentage of the new investment directly
42 15 related to new jobs created by the location or expansion of an
42 16 eligible business under the program. The tax credit shall be
42 17 amortized equally over a five=year period. The tax credit
42 18 shall be allowed against taxes imposed in chapter 432. A tax
42 19 credit in excess of the tax liability for the tax year may be
42 20 credited to the tax liability for the following seven years or
42 21 until depleted, whichever occurs first. The percentage shall
42 22 be determined as provided in section 15.335A.
42 23 2. For purposes of this section, "new investment directly
42 24 related to new jobs created by the location or expansion of an
42 25 eligible business under the program" means the cost of
42 26 machinery and equipment, as defined in section 427A.1,
42 27 subsection 1, paragraphs "e" and "j", purchased for use in the
42 28 operation of the eligible business, the purchase price of
42 29 which has been depreciated in accordance with generally
42 30 accepted accounting principles, the purchase price of real
42 31 property and any buildings and structures located on the real
42 32 property, and the cost of improvements made to real property
42 33 which is used in the operation of the eligible business. "New
42 34 investment directly related to new jobs created by the
42 35 location or expansion of an eligible business under the
43 1 program" also means the annual base rent paid to a third=party
43 2 developer by an eligible business for a period not to exceed
43 3 ten years, provided the cumulative cost of the base rent
43 4 payments for that period does not exceed the cost of the land
43 5 and the third=party developer's costs to build or renovate the
43 6 building for the eligible business. The eligible business
43 7 shall enter into a lease agreement with the third=party
43 8 developer for a minimum of five years. If, however, within
43 9 five years of purchase, the eligible business sells, disposes
43 10 of, razes, or otherwise renders unusable all or a part of the
43 11 land, buildings, or other existing structures for which tax
43 12 credit was claimed under this section, the tax liability of
43 13 the eligible business for the year in which all or part of the
43 14 property is sold, disposed of, razed, or otherwise rendered
43 15 unusable shall be increased by one of the following amounts:
43 16 a. One hundred percent of the tax credit claimed under
43 17 this section if the property ceases to be eligible for the tax
43 18 credit within one full year after being placed in service.
43 19 b. Eighty percent of the tax credit claimed under this
43 20 section if the property ceases to be eligible for the tax
43 21 credit within two full years after being placed in service.
43 22 c. Sixty percent of the tax credit claimed under this
43 23 section if the property ceases to be eligible for the tax
43 24 credit within three full years after being placed in service.
43 25 d. Forty percent of the tax credit claimed under this
43 26 section if the property ceases to be eligible for the tax
43 27 credit within four full years after being placed in service.
43 28 e. Twenty percent of the tax credit claimed under this
43 29 section if the property ceases to be eligible for the tax
43 30 credit within five full years after being placed in service.
43 31 Sec. 44. NEW SECTION. 15.335A TAX INCENTIVES.
43 32 1. Tax incentives are available to eligible businesses as
43 33 provided in this section. The incentives are based upon the
43 34 number of new high quality jobs created and the amount of the
43 35 qualifying investment made according to the following
44 1 schedule:
44 2 a. The number of new high quality jobs created with an
44 3 annual wage, including benefits, equal to or greater than one
44 4 hundred thirty percent of the average county wage is one of
44 5 the following:
44 6 (1) The number of jobs is zero and economic activity is
44 7 furthered by the qualifying investment and the amount of the
44 8 qualifying investment is one of the following:
44 9 (a) Less than one hundred thousand dollars, then the tax
44 10 incentive is the investment tax credit of up to one percent.
44 11 (b) At least one hundred thousand dollars but less than
44 12 five hundred thousand dollars, then the tax incentives are the
44 13 investment tax credit of up to one percent and the sales tax
44 14 refund.
44 15 (c) At least five hundred thousand dollars, then the tax
44 16 incentives are the investment tax credit of up to one percent,
44 17 the sales tax refund, and the additional research and
44 18 development tax credit.
44 19 (2) The number of jobs is one but not more than five and
44 20 the amount of the qualifying investment is one of the
44 21 following:
44 22 (a) Less than one hundred thousand dollars, then the tax
44 23 incentive is the investment tax credit of up to two percent.
44 24 (b) At least one hundred thousand dollars but less than
44 25 five hundred thousand dollars, then the tax incentives are the
44 26 investment tax credit of up to two percent and the sales tax
44 27 refund.
44 28 (c) At least five hundred thousand dollars, then the tax
44 29 incentives are the investment tax credit of up to two percent,
44 30 the sales tax refund, and the additional research and
44 31 development tax credit.
44 32 (3) The number of jobs is six but not more than ten and
44 33 the amount of the qualifying investment is one of the
44 34 following:
44 35 (a) Less than one hundred thousand dollars, then the tax
45 1 incentive is the investment tax credit of up to three percent.
45 2 (b) At least one hundred thousand dollars but less than
45 3 five hundred thousand dollars, then the tax incentives are the
45 4 investment tax credit of up to three percent and the sales tax
45 5 refund.
45 6 (c) At least five hundred thousand dollars, then the tax
45 7 incentives are the investment tax credit of up to three
45 8 percent, the sales tax refund, and the additional research and
45 9 development tax credit.
45 10 (4) The number of jobs is eleven but not more than fifteen
45 11 and the amount of the qualifying investment is one of the
45 12 following:
45 13 (a) Less than one hundred thousand dollars, then the tax
45 14 incentive is the investment tax credit of up to four percent.
45 15 (b) At least one hundred thousand dollars but less than
45 16 five hundred thousand dollars, then the tax incentives are the
45 17 investment tax credit of up to four percent and the sales tax
45 18 refund.
45 19 (c) At least five hundred thousand dollars, then the tax
45 20 incentives are the investment tax credit of up to four
45 21 percent, the sales tax refund, and the additional research and
45 22 development tax credit.
45 23 (5) The number of jobs is sixteen or more and the amount
45 24 of the qualifying investment is one of the following:
45 25 (a) Less than one hundred thousand dollars, then the tax
45 26 incentive is the investment tax credit of up to five percent.
45 27 (b) At least one hundred thousand dollars but less than
45 28 five hundred thousand dollars, then the tax incentives are the
45 29 investment tax credit of up to five percent and the sales tax
45 30 refund.
45 31 (c) At least five hundred thousand dollars, then the tax
45 32 incentives are the investment tax credit of up to five
45 33 percent, the sales tax refund, and the additional research and
45 34 development tax credit.
45 35 b. In lieu of paragraph "a", the number of new high
46 1 quality jobs created with an annual wage, including benefits,
46 2 equal to or greater than one hundred sixty percent of the
46 3 average county wage is one of the following:
46 4 (1) The number of jobs is twenty=one but not more than
46 5 thirty and the amount of the qualifying investment is at least
46 6 ten million dollars, then the tax incentives are the local
46 7 property tax exemption, the investment tax credit of up to six
46 8 percent, the sales tax refund, and the additional research and
46 9 development tax credit.
46 10 (2) The number of jobs is thirty=one but not more than
46 11 forty and the amount of the qualifying investment is at least
46 12 ten million dollars, then the tax incentives are the local
46 13 property tax exemption, the investment tax credit of up to
46 14 seven percent, the sales tax refund, and the additional
46 15 research and development tax credit.
46 16 (3) The number of jobs is forty=one but not more than
46 17 fifty and the amount of the qualifying investment is at least
46 18 ten million dollars, then the tax incentives are the local
46 19 property tax exemption, the investment tax credit of up to
46 20 eight percent, the sales tax refund, and the additional
46 21 research and development tax credit.
46 22 (4) The number of jobs is fifty=one but not more than
46 23 sixty and the amount of the qualifying investment is at least
46 24 ten million dollars, then the tax incentives are the local
46 25 property tax exemption, the investment tax credit of up to
46 26 nine percent, the sales tax refund, and the additional
46 27 research and development tax credit.
46 28 (5) The number of jobs is at least sixty=one and the
46 29 amount of the qualifying investment is at least fifteen
46 30 million dollars, then the tax incentives are the local
46 31 property tax exemption, the investment tax credit of up to ten
46 32 percent, the sales tax refund, and the additional research and
46 33 development tax credit.
46 34 2. For purposes of this section:
46 35 a. "Additional research and development tax credit" means
47 1 the research activities credit as provided under section
47 2 15.335.
47 3 b. "Average county wage" means the same as defined in
47 4 section 15H.1.
47 5 c. "Benefits" means the same as defined in section 15H.1.
47 6 d. "Investment tax credit" means the investment tax credit
47 7 or the insurance premium tax credit as provided under section
47 8 15.333 or 15.333A, respectively.
47 9 e. "Local property tax exemption" means the property tax
47 10 exemption as provided under section 15.332.
47 11 f. "Sales tax refund" means the sales and use tax refund
47 12 as provided under section 15.331A or the corporate tax credit
47 13 for certain sales taxes paid by third=party developers as
47 14 provided under section 15.331C.
47 15 3. A community may apply to the Iowa economic development
47 16 board for a waiver from the average county wage calculations
47 17 provided in subsection 1 in order for an eligible business to
47 18 receive tax incentives. The board may grant a waiver from the
47 19 average county wage calculations in subsection 1 for the
47 20 remainder of the calendar year, based on average county or
47 21 regional wage calculations brought forth by the applicant
47 22 county including, but not limited to, any of the following:
47 23 a. The average county wage calculated without wage data
47 24 from the business in the county employing the greatest number
47 25 of full=time employees.
47 26 b. The average regional wage calculated without wage data
47 27 from up to two adjacent counties.
47 28 c. The average county wage calculated without wage data
47 29 from the largest city in the county.
47 30 4. Average wage calculations made under this section shall
47 31 be calculated quarterly using wage data submitted to the
47 32 department of workforce development during the previous four
47 33 quarters.
47 34 5. Each calendar year, the department shall not approve
47 35 more than three million six hundred thousand dollars worth of
48 1 investment tax credits for projects with qualifying
48 2 investments of less than one million dollars.
48 3 Sec. 45. Section 15.336, Code 2005, is amended to read as
48 4 follows:
48 5 15.336 OTHER INCENTIVES.
48 6 An eligible business may receive other applicable federal,
48 7 state, and local incentives and credits in addition to those
48 8 provided in this part. However, a business which participates
48 9 in the program under this part shall not receive any funds
48 10 from the community economic development account under the
48 11 community economic betterment program, tax credits, or
48 12 incentives under chapter 15E, division XVIII, or moneys from
48 13 the grow Iowa values fund.
48 14 Sec. 46. Section 15E.196, subsection 1, paragraph a, Code
48 15 2005, is amended to read as follows:
48 16 a. New jobs credit from withholding, as provided in
48 17 section 15.331 15E.197.
48 18 Sec. 47. NEW SECTION. 15E.197 NEW JOBS CREDIT FROM
48 19 WITHHOLDING.
48 20 An eligible business may enter into an agreement with the
48 21 department of revenue and a community college for a
48 22 supplemental new jobs credit from withholding from jobs
48 23 created under the program. The agreement shall be for program
48 24 services for an additional job training project, as defined in
48 25 chapter 260E. The agreement shall provide for the following:
48 26 1. That the project shall be administered in the same
48 27 manner as a project under chapter 260E and that a supplemental
48 28 new jobs credit from withholding in an amount equal to one and
48 29 one=half percent of the gross wages paid by the eligible
48 30 business pursuant to section 422.16 is authorized to fund the
48 31 program services for the additional project.
48 32 2. That the supplemental new jobs credit from withholding
48 33 shall be collected, accounted for, and may be pledged by the
48 34 community college in the same manner as described in section
48 35 260E.5.
49 1 3. That the auditor of state shall perform an annual audit
49 2 regarding how the training funds are being used.
49 3 To provide funds for the payment of the costs of the
49 4 additional project, a community college may borrow money,
49 5 issue and sell certificates, and secure the payment of the
49 6 certificates in the same manner as described in section
49 7 260E.6, including but not limited to providing the assessment
49 8 of an annual levy as described in section 260E.6, subsection
49 9 4. The program and credit authorized by this section is in
49 10 addition to, and not in lieu of, the program and credit
49 11 authorized in chapter 260E.
49 12 4. For purposes of this section, "eligible business" means
49 13 a business which has been approved to receive incentives and
49 14 assistance by the department of economic development pursuant
49 15 to application as provided in section 15E.195.
49 16 Sec. 48. NEW SECTION. 15H.1 DEFINITIONS.
49 17 For purposes of this chapter, unless the context otherwise
49 18 requires:
49 19 1. "Average county wage" means the annualized, average
49 20 hourly wage calculated by the department which equals the
49 21 least of the following:
49 22 a. The annualized, average hourly wage paid by all
49 23 businesses in the entire county.
49 24 b. The annualized, average hourly wage paid by all
49 25 businesses in the county located outside the largest city of
49 26 the county.
49 27 c. The annualized, average hourly wage paid by all
49 28 businesses other than the largest employer in the entire
49 29 county.
49 30 2. "Benefits" means all of the following:
49 31 a. Medical and dental insurance plans.
49 32 b. Pension and profit sharing plans.
49 33 c. Child care services.
49 34 d. Overtime.
49 35 e. Life insurance coverage.
50 1 f. Other benefits identified by rule of the department.
50 2 3. "Department" means the department of revenue.
50 3 4. a. "Qualified new job" means a job that meets all of
50 4 the following:
50 5 (1) Is a new full=time job that has not existed in the
50 6 business within the previous twelve months in the state.
50 7 (2) Is filled by a new employee for at least twelve
50 8 months.
50 9 (3) Is filled by a resident of the state.
50 10 (4) Is not created as a result of a change in ownership.
50 11 b. "Qualified new job" does not include any of the
50 12 following:
50 13 (1) A job previously filled by the same employee in the
50 14 state.
50 15 (2) A job that was relocated from another location in the
50 16 state.
50 17 (3) A job that is created as a result of a consolidation,
50 18 merger, or restructuring of a business entity if the job does
50 19 not represent a new job in the state.
50 20 5. "Qualifying investment" means a capital investment in
50 21 real property including the purchase price of land and
50 22 existing buildings, site preparation, building construction,
50 23 and long=term lease costs. "Qualifying investment" also means
50 24 a capital investment in depreciable assets.
50 25 6. "Retained qualified new job" means the continued
50 26 employment for another twelve months of the same employee in a
50 27 qualified new job.
50 28 Sec. 49. NEW SECTION. 15H.2 WAGE=BENEFITS TAX CREDIT.
50 29 1. a. Any nonretail business may claim a tax credit equal
50 30 to a percentage of the annual wages and benefits paid for a
50 31 qualified new job created by the location or expansion of the
50 32 business in the state. The tax credit shall be allowed
50 33 against taxes imposed under chapter 422, division II, III, or
50 34 V, and chapter 432 and against the moneys and credits tax
50 35 imposed in section 533.24. The percentage shall be equal to
51 1 the amount provided in subsection 2.
51 2 Any credit in excess of the tax liability shall be
51 3 refunded. In lieu of claiming a refund, a taxpayer may elect
51 4 to have the overpayment shown on the taxpayer's final,
51 5 completed return credited to the tax liability for the
51 6 following taxable year.
51 7 b. If the business is a partnership, S corporation,
51 8 limited liability company, or estate or trust electing to have
51 9 the income taxed directly to the individual, an individual may
51 10 claim the tax credit allowed. The amount claimed by the
51 11 individual shall be based upon the pro rata share of the
51 12 individual's earnings of the partnership, S corporation,
51 13 limited liability company, or estate or trust.
51 14 2. The percentage of the annual wages and benefits paid
51 15 for a qualified new job is determined as follows:
51 16 a. If the annual wage and benefits for the qualified new
51 17 job equals less than one hundred thirty percent of the average
51 18 county wage, zero percent.
51 19 b. If the annual wage and benefits for the qualified new
51 20 job equals at least one hundred thirty percent but less than
51 21 one hundred sixty percent of the average county wage, five
51 22 percent.
51 23 c. If the annual wage and benefits for the qualified new
51 24 job equals at least one hundred sixty percent of the average
51 25 county wage, ten percent.
51 26 3. a. Subject to paragraph "b", a qualified new job is
51 27 entitled to the tax credit upon the end of the twelfth month
51 28 of the job having been filled. Once a qualified new job is
51 29 approved for a tax credit, tax credits for the next four
51 30 subsequent tax years may be approved if the job continues to
51 31 be filled and application is made as provided in section
51 32 15H.3. The percentage determined under subsection 2 for the
51 33 first tax year shall continue to apply to subsequent tax
51 34 credits as the credits relate to that qualified new job.
51 35 b. In addition to meeting the wage and benefits
52 1 requirements, the business must also make a qualifying
52 2 investment equal to at least five thousand dollars for each
52 3 qualified new job that the business is to claim the tax
52 4 credit.
52 5 Sec. 50. NEW SECTION. 15H.3 TAX CREDIT CERTIFICATION ==
52 6 CREDIT LIMITATION.
52 7 1. In order for a wage=benefit tax credit to be claimed,
52 8 the business shall submit an application to the department
52 9 along with information on the qualified new job or retained
52 10 qualified new job and any other information required.
52 11 Applications for approval of the tax credit shall be on forms
52 12 approved by the department. Within forty=five days of receipt
52 13 of the application, the department shall either approve or
52 14 disapprove the application. After the forty=five=day limit,
52 15 the application is deemed approved.
52 16 2. Upon approval of the tax credit and subject to
52 17 subsection 4, a tax credit certificate shall be issued by the
52 18 department. A tax credit certificate shall identify the
52 19 business claiming the tax credit under this chapter and the
52 20 wage and benefit costs incurred during the previous twelve
52 21 months.
52 22 3. The tax credit certificate shall contain the taxpayer's
52 23 name, address, tax identification number, the date of the
52 24 qualified new job, the amount of credit, and other information
52 25 required by the department.
52 26 4. The total amount of tax credit certificates that may be
52 27 issued for a fiscal year under this chapter shall not exceed
52 28 ten million dollars. The department shall establish by rule
52 29 the procedures for the application, review, selection,
52 30 awarding of certificates, and the method to be used to
52 31 determine for which fiscal year the tax credits are available.
52 32 If the approved tax credits exceed the maximum amount for a
52 33 fiscal year, tax credit certificates shall be issued on an
52 34 earliest date applied basis.
52 35 5. a. A nonretail business that has created a qualified
53 1 new job and made the qualifying investment for which a tax
53 2 credit certificate under this chapter is issued is eligible to
53 3 receive a tax credit certificate for each of the four
53 4 subsequent tax years without making additional qualifying
53 5 investments if the business retains the qualified new job
53 6 during each of the twelve months ending in each of the tax
53 7 years by applying for the credit under this section.
53 8 Preference in issuing these tax credit certificates shall be
53 9 given businesses applying for the credit for retained
53 10 qualified new jobs.
53 11 b. A nonretail business that created a qualified new job
53 12 and made the qualifying investments but failed to receive all
53 13 or part of the tax credit because of the limitation in
53 14 subsection 4 is eligible to reapply for the tax credit for the
53 15 retained qualified new job.
53 16 6. a. A business whose application has been disapproved
53 17 by the department may appeal the decision to the department of
53 18 economic development within thirty days of notice of
53 19 disapproval. If the department of economic development
53 20 subsequently approves the application, the business shall
53 21 receive the tax credit certificates subject to the
53 22 availability of the amount of credits that may be issued as
53 23 provided in subsection 4.
53 24 b. A nonretail business may apply to the department of
53 25 economic development for a waiver of any provision of this
53 26 chapter as it relates to the requirements for qualifying for
53 27 the wage=benefits tax credit. The department of economic
53 28 development shall establish by rule the conditions under which
53 29 a waiver of such requirements will be granted. A waiver from
53 30 average county wage calculations shall be applied for and
53 31 granted pursuant to the procedures provided in section
53 32 15.335A.
53 33 Sec. 51. NEW SECTION. 15H.4 MONITORING OF JOB CREATION.
53 34 The department shall develop definitions for the terms "job
53 35 creation" and "job retention" to measure and identify the
54 1 number of permanent, full=time positions which businesses
54 2 actually create and retain and which can be documented by
54 3 comparison of the payroll reports during the twenty=four=month
54 4 period before and after tax credits are earned.
54 5 Sec. 52. NEW SECTION. 15H.5 OTHER INCENTIVES.
54 6 A nonretail business may receive other applicable federal,
54 7 state, and local incentives and tax credits in addition to
54 8 those provided in this chapter. However, a business which has
54 9 received a tax credit under this chapter shall not receive any
54 10 funds, incentives, tax credits from the community development
54 11 account of the community development program, under chapter
54 12 15E, division XVIII, and under the grow Iowa values fund, if
54 13 created.
54 14 Sec. 53. NEW SECTION. 422.11L WAGE=BENEFITS TAX CREDIT.
54 15 The taxes imposed under this division, less the credits
54 16 allowed under sections 422.12 and 422.12B, shall be reduced by
54 17 a wage=benefits tax credit authorized pursuant to section
54 18 15H.2.
54 19 Sec. 54. Section 422.16A, Code 2005, is amended to read as
54 20 follows:
54 21 422.16A JOB TRAINING WITHHOLDING == CERTIFICATION AND
54 22 TRANSFER.
54 23 Upon the completion by a business of its repayment
54 24 obligation for a training project funded under chapter 260E,
54 25 including a job training project funded under section 15A.8 or
54 26 repaid in whole or in part by the supplemental new jobs credit
54 27 from withholding under section 15A.7 or section 15.331
54 28 15E.197, the sponsoring community college shall report to the
54 29 department of economic development the amount of withholding
54 30 paid by the business to the community college during the final
54 31 twelve months of withholding payments. The department of
54 32 economic development shall notify the department of revenue of
54 33 that amount. The department shall credit to the workforce
54 34 development fund account established in section 15.342A
54 35 twenty=five percent of that amount each quarter for a period
55 1 of ten years. If the amount of withholding from the business
55 2 or employer is insufficient, the department shall prorate the
55 3 quarterly amount credited to the workforce development fund
55 4 account. The maximum amount from all employers which shall be
55 5 transferred to the workforce development fund account in any
55 6 year is four million dollars.
55 7 Sec. 55. Section 422.33, Code 2005, is amended by adding
55 8 the following new subsection:
55 9 NEW SUBSECTION. 17. The taxes imposed under this division
55 10 shall be reduced by a wage=benefits tax credit authorized
55 11 pursuant to section 15H.2.
55 12 Sec. 56. Section 422.60, Code 2005, is amended by adding
55 13 the following new subsection:
55 14 NEW SUBSECTION. 9. The taxes imposed under this division
55 15 shall be reduced by a wage=benefits tax credit authorized
55 16 pursuant to section 15H.2.
55 17 Sec. 57. Section 427B.17, subsection 5, unnumbered
55 18 paragraph 2, Code 2005, is amended to read as follows:
55 19 Any electric power generating plant which operated during
55 20 the preceding assessment year at a net capacity factor of more
55 21 than twenty percent, shall not receive the benefits of this
55 22 section or of sections section 15.332 and 15.334. For
55 23 purposes of this section, "electric power generating plant"
55 24 means any nameplate rated electric power generating plant, in
55 25 which electric energy is produced from other forms of energy,
55 26 including all taxable land, buildings, and equipment used in
55 27 the production of such energy. "Net capacity factor" means
55 28 net actual generation divided by the product of net maximum
55 29 capacity times the number of hours the unit was in the active
55 30 state during the assessment year. Upon commissioning, a unit
55 31 is in the active state until it is decommissioned. "Net
55 32 actual generation" means net electrical megawatt hours
55 33 produced by the unit during the preceding assessment year.
55 34 "Net maximum capacity" means the capacity the unit can sustain
55 35 over a specified period when not restricted by ambient
56 1 conditions or equipment deratings, minus the losses associated
56 2 with station service or auxiliary loads.
56 3 Sec. 58. NEW SECTION. 432.12G WAGE=BENEFITS TAX CREDIT.
56 4 The taxes imposed under this chapter shall be reduced by a
56 5 wage=benefits tax credit authorized pursuant to section 15H.2.
56 6 Sec. 59. Section 533.24, Code 2005, is amended by adding
56 7 the following new subsection:
56 8 NEW SUBSECTION. 6. The moneys and credits tax imposed
56 9 under this section shall be reduced by a wage=benefits tax
56 10 credit authorized pursuant to section 15H.2.
56 11 Sec. 60. Sections 15.331, 15.331B, 15.334, 15.334A,
56 12 15.337, and 15.381 through 15.387, Code 2005, are repealed.
56 13 Sec. 61. EFFECTIVE AND APPLICABILITY DATE. The provisions
56 14 of this division of this Act relating to Code chapter 15H,
56 15 being deemed of immediate importance, take effect upon
56 16 enactment and apply to qualified new jobs created on or after
56 17 the effective date of this division of this Act. This
56 18 division of this Act applies to tax years ending on or after
56 19 the effective date of this division of this Act.
56 20 DIVISION XII
56 21 RESEARCH AND DEVELOPMENT
56 22 TAX CREDIT
56 23 Sec. 62. Section 15.335, subsection 1, unnumbered
56 24 paragraph 1, Code 2005, is amended to read as follows:
56 25 An eligible business may claim a corporate tax credit for
56 26 increasing research activities in this state during the period
56 27 the eligible business is participating in the program. For
56 28 purposes of this section, "research activities" includes the
56 29 development of innovative renewable energy generation
56 30 components manufactured or assembled in this state. For
56 31 purposes of this section, "innovative renewable energy
56 32 generation components" does not include a component with more
56 33 than two hundred megawatts of effective nameplate capacity.
56 34 DIVISION XIII
56 35 ENDOW IOWA
57 1 Sec. 63. Section 15E.303, subsections 4 and 6, Code 2005,
57 2 are amended to read as follows:
57 3 4. "Endowment gift" means an irrevocable contribution to a
57 4 permanent endowment held by a an endow Iowa qualified
57 5 community foundation.
57 6 6. "Qualified "Endow Iowa qualified community foundation"
57 7 means a community foundation organized or operating in this
57 8 state that meets or exceeds substantially complies with the
57 9 national standards established by the national council on
57 10 foundations as determined by the department in collaboration
57 11 with the Iowa council of foundations.
57 12 Sec. 64. Section 15E.304, subsection 2, paragraphs c and
57 13 d, Code 2005, are amended to read as follows:
57 14 c. Identify a an endow Iowa qualified community foundation
57 15 to hold all funds. A An endow Iowa qualified community
57 16 foundation shall not be required to meet this requirement.
57 17 d. Provide a plan to the board demonstrating the method
57 18 for distributing grant moneys received from the board to
57 19 organizations within the community or geographic area as
57 20 defined by the endow Iowa qualified community foundation or
57 21 the community affiliate organization.
57 22 Sec. 65. Section 15E.304, subsection 3, Code 2005, is
57 23 amended to read as follows:
57 24 3. Endow Iowa grants awarded to new and existing endow
57 25 Iowa qualified community foundations and to community
57 26 affiliate organizations shall not exceed twenty=five thousand
57 27 dollars per foundation or organization unless a foundation or
57 28 organization demonstrates a multiple county or regional
57 29 approach. Endow Iowa grants may be awarded on an annual basis
57 30 with not more than three grants going to one county in a
57 31 fiscal year.
57 32 Sec. 66. Section 15E.305, subsection 1, Code 2005, is
57 33 amended to read as follows:
57 34 1. For tax years beginning on or after January 1, 2003, a
57 35 tax credit shall be allowed against the taxes imposed in
58 1 chapter 422, divisions II, III, and V, and in chapter 432, and
58 2 against the moneys and credits tax imposed in section 533.24
58 3 equal to twenty percent of a taxpayer's endowment gift to a an
58 4 endow Iowa qualified community foundation. An individual may
58 5 claim a tax credit under this section of a partnership,
58 6 limited liability company, S corporation, estate, or trust
58 7 electing to have income taxed directly to the individual. The
58 8 amount claimed by the individual shall be based upon the pro
58 9 rata share of the individual's earnings from the partnership,
58 10 limited liability company, S corporation, estate, or trust. A
58 11 tax credit shall be allowed only for an endowment gift made to
58 12 a an endow Iowa qualified community foundation for a permanent
58 13 endowment fund established to benefit a charitable cause in
58 14 this state. Any tax credit in excess of the taxpayer's tax
58 15 liability for the tax year may be credited to the tax
58 16 liability for the following five years or until depleted,
58 17 whichever occurs first. A tax credit shall not be carried
58 18 back to a tax year prior to the tax year in which the taxpayer
58 19 claims the tax credit.
58 20 Sec. 67. Section 15E.305, subsection 2, Code 2005, is
58 21 amended by adding the following new unnumbered paragraph:
58 22 NEW UNNUMBERED PARAGRAPH. Ten percent of the aggregate
58 23 amount of tax credits authorized in a calendar year shall be
58 24 reserved for those endowment gifts in amounts of thirty
58 25 thousand dollars or less. If by September 1 of a calendar
58 26 year the entire ten percent of the reserved tax credits is not
58 27 distributed, the remaining tax credits shall be available to
58 28 any other eligible applicants.
58 29 Sec. 68. Section 15E.305, subsection 4, Code 2005, is
58 30 amended to read as follows:
58 31 4. A tax credit shall not be authorized pursuant to this
58 32 section after December 31, 2005 2008.
58 33 Sec. 69. Section 15E.311, subsection 3, paragraphs a and
58 34 c, Code 2005, are amended to read as follows:
58 35 a. At the end of each fiscal year, moneys in the fund
59 1 shall be transferred into separate accounts within the fund
59 2 and designated for use by each county in which no licensee
59 3 authorized to conduct gambling games under chapter 99F was
59 4 located during that fiscal year. Moneys transferred to county
59 5 accounts shall be divided equally among the counties. Moneys
59 6 transferred into an account for a county shall be transferred
59 7 by the department to an eligible county recipient for that
59 8 county. Of the moneys transferred, an eligible county
59 9 recipient shall distribute seventy=five percent of the moneys
59 10 as grants to charitable organizations for educational, civic,
59 11 public, charitable, patriotic, or religious uses, as defined
59 12 in section 99B.7, subsection 3, paragraph "b", charitable
59 13 purposes in that county and shall retain twenty=five percent
59 14 of the moneys for use in establishing a permanent endowment
59 15 fund for the benefit of charitable organizations for
59 16 educational, civic, public, charitable, patriotic, or
59 17 religious uses, as defined in section 99B.7, subsection 3,
59 18 paragraph "b" charitable purposes.
59 19 c. For purposes of
59 20 3A. As used in this subsection section, an "eligible
59 21 unless the context otherwise requires:
59 22 a. "Charitable organization" means an organization that is
59 23 described in section 501(c)(3) of the Internal Revenue Code
59 24 that is exempt from taxation under section 501(a) of the
59 25 Internal Revenue Code or an organization that is established
59 26 for a charitable purpose.
59 27 b. "Charitable purpose" means a purpose described in
59 28 section 501(c)(3) of the Internal Revenue Code, or a
59 29 benevolent, educational, philanthropic, humane, scientific,
59 30 patriotic, social welfare or advocacy, public health,
59 31 environmental conservation, civic, or other eleemosynary
59 32 objective.
59 33 c. "Eligible county recipient" means a an endow Iowa
59 34 qualified community foundation or community affiliate
59 35 organization, as defined in section 15E.303, that is selected,
60 1 in accordance with the procedures described in section
60 2 15E.304, to receive moneys from an account created in this
60 3 section for a particular county. To be selected as an
60 4 eligible county recipient, a community affiliate organization
60 5 shall establish a county affiliate fund to receive moneys as
60 6 provided by this section.
60 7 Sec. 70. Section 15E.311, Code 2005, is amended by adding
60 8 the following new subsection:
60 9 NEW SUBSECTION. 5. Three percent of the moneys deposited
60 10 in the county endowment fund shall be used by the lead
60 11 philanthropic organization identified by the department
60 12 pursuant to section 15E.304 for purposes of administering and
60 13 marketing the county endowment fund.
60 14 Sec. 71. ENDOW IOWA GRANTS APPROPRIATIONS.
60 15 1. There is appropriated from the general fund of the
60 16 state to the department of economic development for the fiscal
60 17 period beginning July 1, 2005, and ending June 30, 2008, the
60 18 following amounts, or so much thereof as is necessary, to be
60 19 used for the purpose designated:
60 20 For endow Iowa grants to lead philanthropic entities
60 21 pursuant to section 15E.304:
60 22 FY 2005=2006.......................................$ 50,000
60 23 FY 2006=2007.......................................$ 50,000
60 24 FY 2007=2008.......................................$ 50,000
60 25 2. Notwithstanding section 8.33, moneys that remain
60 26 unexpended at the end of the fiscal year shall not revert to
60 27 any fund but shall remain available for expenditure for the
60 28 designated purposes during the succeeding fiscal year.
60 29 Sec. 72. EFFECTIVE AND RETROACTIVE APPLICABILITY DATES.
60 30 This division of this Act, being deemed of immediate
60 31 importance, takes effect upon enactment and applies
60 32 retroactively to January 1, 2005.
60 33 EXPLANATION
60 34 This bill relates to economic development activities.
60 35 DIVISION I == This division of the bill creates the grow
61 1 Iowa values fund.
61 2 The division creates the grow Iowa values fund under the
61 3 control of the department of economic development and
61 4 consisting of moneys appropriated to the fund.
61 5 DIVISION II == This division of the bill appropriates
61 6 moneys from the grow Iowa values fund to various entities.
61 7 For the fiscal period beginning July 1, 2005, and ending
61 8 June 30, 2015, the division appropriates each fiscal year to
61 9 the department of economic development $35 million for
61 10 programs administered by the department of economic
61 11 development. The division provides for the allocation of
61 12 moneys appropriated for programs administered by the
61 13 department and for the use up to 1 and 1/2 percent of the
61 14 moneys appropriated to be used by the department for
61 15 administrative purposes.
61 16 For the fiscal period beginning July 1, 2005, and ending
61 17 June 30, 2015, the division appropriates each fiscal year to
61 18 the department of economic development $5 million for
61 19 financial assistance for institutions of higher learning under
61 20 the control of the state board of regents and for accredited
61 21 private institutions for infrastructure projects and programs
61 22 needed to assist in the implementation of activities under
61 23 Code chapter 262B and for financial assistance to a single
61 24 biosciences development organization.
61 25 For the fiscal period beginning July 1, 2005, and ending
61 26 June 30, 2015, the division appropriates each fiscal year to
61 27 the general fund of the state $4 million for payment of tax
61 28 credits approved for projects located in certified cultural
61 29 and entertainment districts.
61 30 For the fiscal period beginning July 1, 2005, and ending
61 31 June 30, 2015, the division appropriates each fiscal year to
61 32 the department of economic development $1 million for purposes
61 33 of providing financial assistance for projects in targeted
61 34 state parks and destination parks.
61 35 For the fiscal period beginning July 1, 2005, and ending
62 1 June 30, 2015, the division appropriates each fiscal year to
62 2 the office of the treasurer of state $1 million for deposit in
62 3 the Iowa cultural trust fund.
62 4 For the fiscal period beginning July 1, 2005, and ending
62 5 June 30, 2015, the division appropriates each fiscal year to
62 6 the department of economic development $7 million for deposit
62 7 into the workforce training and economic development funds of
62 8 the community colleges.
62 9 For the fiscal period beginning July 1, 2005, and ending
62 10 June 30, 2015, the division appropriates each fiscal year to
62 11 the general fund of the state $400,000 for payment of endow
62 12 Iowa tax credits. The bill allocates $250,000 of the moneys
62 13 appropriated during the fiscal year beginning July 1, 2005,
62 14 for purposes of providing financial assistance for small
62 15 business development centers.
62 16 For the fiscal period beginning July 1, 2005, and ending
62 17 June 30, 2015, the division appropriates each fiscal year to
62 18 the department of economic development $1 million for
62 19 providing economic development region financial assistance.
62 20 For the fiscal period beginning July 1, 2005, and ending
62 21 June 30, 2015, the division appropriates each fiscal year to
62 22 the general fund of the state $2 million for payment of
62 23 economic development region revolving fund contribution tax
62 24 credits.
62 25 The division provides that moneys that remain unexpended at
62 26 the end of a fiscal year shall not revert to any fund but
62 27 shall remain available for expenditure for the designated
62 28 purposes during the succeeding fiscal year.
62 29 DIVISION III == This division of the bill amends the Iowa
62 30 economic development board provisions. The bill also provides
62 31 areas of expertise that must be represented on the board by at
62 32 least one member each. The bill requires, as part of the
62 33 organizational structure of the department, that the board
62 34 establish a due diligence committee and a loan and credit
62 35 guarantee committee composed of members of the board. The
63 1 bill provides composition requirements for a transitional
63 2 period for the board beginning July 1, 2005, and ending June
63 3 30, 2006. The bill provides annual reporting requirements for
63 4 the board relating to expenditures under the grow Iowa values
63 5 fund.
63 6 DIVISION IV == This division of the bill requires the
63 7 department of economic development to coordinate all
63 8 regulatory assistance for the state of Iowa. Each state
63 9 agency administering regulatory programs for business shall
63 10 maintain a coordinator within the agency. The division
63 11 provides that the department of economic development shall, in
63 12 consultation with the coordinators, examine, and to the extent
63 13 permissible, assist in the implementation of methods,
63 14 including the possible establishment of an electronic
63 15 database, to streamline the process for issuing permits to
63 16 business. The division was previously enacted in 2003 and
63 17 then was stricken pursuant to Rants v. Vilsack, 684 N.W.2d
63 18 193.
63 19 DIVISION V == This division of the bill relates to Iowa
63 20 business centers, business accelerators, and economic
63 21 development regions, and provides for a tax credit.
63 22 The bill requires the department of economic development to
63 23 establish an Iowa business center program for purposes of
63 24 locating Iowa business centers in the state. The bill
63 25 provides that the department shall partner with another entity
63 26 focusing on economic growth to establish a center. The bill
63 27 provides that operational duties for a center shall be
63 28 determined pursuant to a memorandum of agreement. For the
63 29 fiscal period beginning July 1, 2005, and ending June 30,
63 30 2015, the bill appropriates $50,000 each fiscal year from the
63 31 rural enterprise fund to the department for purposes of
63 32 supporting centers in rural areas of the state. For the
63 33 fiscal period beginning July 1, 2005, and ending June 30,
63 34 2015, the bill appropriates $50,000 each fiscal year from the
63 35 grow Iowa values fund to the department for purposes of
64 1 supporting centers in any part of the state.
64 2 The division provides for the creation of economic
64 3 development regions. A regional development plan must be
64 4 approved by the department of economic development before the
64 5 region may receive moneys from the grow Iowa values fund.
64 6 Such regions may create economic development region revolving
64 7 funds.
64 8 The division provides that a nongovernmental entity making
64 9 a contribution to an economic development region revolving
64 10 fund may claim a tax credit equal to 20 percent of the amount
64 11 contributed to the revolving fund. The tax credit is allowed
64 12 against personal and corporate income tax, the franchise tax
64 13 for financial institutions, the insurance premium tax, and the
64 14 moneys and credits tax for credit unions. The division allows
64 15 an organization exempt from federal income tax pursuant to
64 16 section 501(c) of the Internal Revenue Code making a
64 17 contribution to an economic development region revolving fund
64 18 to be paid from the general fund of the state an amount equal
64 19 to 20 percent of such contributed amount within 30 days after
64 20 the end of the fiscal year during which the contribution was
64 21 made. The total amount of tax credits and payments to
64 22 contributors, referred to as the credit amount, authorized
64 23 during a fiscal year shall not exceed $2 million plus any
64 24 unused credit amount carried over from previous years. The
64 25 division provides that any credit amount which remains unused
64 26 for a fiscal year may be carried forward to the succeeding
64 27 fiscal year. The division provides that the maximum credit
64 28 amount that may be authorized in a fiscal year for
64 29 contributions made to a specific economic development region
64 30 revolving fund is equal to $2 million plus any unused credit
64 31 amount carried over from previous years divided by the number
64 32 of economic development region revolving funds existing in the
64 33 state.
64 34 The division provides that an economic development region
64 35 may apply for financial assistance from the grow Iowa values
65 1 fund to assist with physical infrastructure needs related to a
65 2 specific business partner, to assist an existing business
65 3 located in the region impacted by business consolidation
65 4 actions, to implement economic development initiatives unique
65 5 to the region, to implement innovative initiatives that do not
65 6 otherwise qualify for financial assistance, to establish and
65 7 operate an entrepreneurial initiative, and to establish and
65 8 operate a business succession assistance program. The
65 9 division allows the department to establish and administer a
65 10 regional economic development revenue sharing pilot project
65 11 for one or more regions. The division limits financial
65 12 assistance to economic development regions to a total of $2
65 13 million each fiscal year for the fiscal period beginning July
65 14 1, 2005, and ending June 30, 2015.
65 15 The division allows an economic development region to apply
65 16 to the department for approval to be designated as an economic
65 17 enterprise area based on criteria as determined by the
65 18 department. An economic enterprise area must consist of at
65 19 least one county containing no city with a population of more
65 20 than 23,500 meeting other certain distress criteria. The
65 21 division limits the number of economic enterprise areas to 10
65 22 regions. The division provides that an approved economic
65 23 enterprise area may apply for financial assistance from the
65 24 grow Iowa values fund of up to $750,000 over a 10=year period
65 25 for certain economic development=related purposes for the
65 26 area.
65 27 The bill requires the department of economic development to
65 28 establish and administer a business accelerator program to
65 29 provide financial assistance for the establishment and
65 30 operation of a business accelerator for technology=based,
65 31 value=added agricultural, information solutions, or advanced
65 32 manufacturing start=up businesses or for a satellite of an
65 33 existing business accelerator. The bill provides certain
65 34 criteria that a business accelerator must meet in order to
65 35 receive financial assistance and other criteria that the
66 1 department may consider in determining financial assistance
66 2 awards.
66 3 DIVISION VI == This division of the bill relates to the
66 4 establishment of cultural and entertainment districts. The
66 5 cultural and entertainment district legislation was previously
66 6 enacted in 2003 and then stricken pursuant to Rants v.
66 7 Vilsack, 684 N.W.2d 193. The division allows a city or county
66 8 to create and designate a district subject to certification by
66 9 the department of cultural affairs, in consultation with the
66 10 department of economic development. The division provides
66 11 that a district is encouraged to include a unique form of
66 12 transportation within the district.
66 13 The division provides that district certification is for a
66 14 period of 10 years and allows for the certification of areas
66 15 that extend across boundaries of cities and counties. The
66 16 division provides that the department of cultural affairs
66 17 shall encourage development projects and activities located in
66 18 certified cultural and entertainment districts through
66 19 incentives under cultural grant programs and any other grant
66 20 programs.
66 21 DIVISION VII == This division of the bill relates to
66 22 rehabilitation project tax credits. The division changes the
66 23 name of the tax credit to historic preservation and cultural
66 24 and entertainment district tax credits. The bill provides
66 25 that, each fiscal year, the department of cultural affairs
66 26 shall allocate at least $400,000 of the tax credits for
66 27 rehabilitation projects which have a total cost of under
66 28 $200,000 each. The division provides that, for the fiscal
66 29 period beginning July 1, 2005, and ending June 30, 2015, an
66 30 additional $4 million of the rehabilitation tax credits may be
66 31 approved each fiscal year for purposes of projects located in
66 32 certified cultural and entertainment districts. The division
66 33 allows tax credits approved for projects located in cultural
66 34 and entertainment districts to be used for projects which
66 35 include new construction or new infrastructure projects.
67 1 DIVISION VIII == This division of the bill repeals and
67 2 strikes current Code chapter 262B and replaces it with
67 3 provisions relating to commercialization of research.
67 4 The bill requires that the state board of regents, as part
67 5 of its mission and strategic plan, establish mechanisms for
67 6 the purpose of carrying out commercialization activities. The
67 7 bill requires the board to work with the department of
67 8 economic development, other state agencies, and the private
67 9 sector to facilitate the commercialization of research. The
67 10 board, in cooperation with the department of economic
67 11 development, is required to implement various
67 12 commercialization=related activities.
67 13 The bill requires the state board of regents to conduct a
67 14 study to determine the feasibility of establishing a graduate
67 15 school in western Iowa in cooperation with other public or
67 16 private institutions of higher learning. The bill requires
67 17 the board to conduct a study relating to cost=effective
67 18 methods of recognizing the efforts of faculty to achieve
67 19 commercialization.
67 20 DIVISION IX == This division of the bill relates to
67 21 workforce training and economic development funds.
67 22 The bill provides that projects funded by moneys provided
67 23 by a local workforce training and economic development fund of
67 24 a community college and which meet the requirements of Code
67 25 chapter 260F are not subject to certain maximum advance or
67 26 award limitations contained in Code chapter 260F. The bill
67 27 provides that moneys in a local workforce training and
67 28 economic development fund may also be used for training and
67 29 retraining programs for targeted industries. The bill strikes
67 30 the June 30, 2010, repeal of the workforce training and
67 31 economic development funds.
67 32 DIVISION X == This division of the bill relates to the loan
67 33 and credit guarantee program.
67 34 The bill provides that the department of economic
67 35 development may invest up to 10 percent of the assets of the
68 1 loan and credit guarantee fund, or $500,000, whichever is
68 2 greater, to provide loan and credit guarantees or other forms
68 3 of credit guarantees for eligible project costs to
68 4 microenterprises located in a municipality with a population
68 5 under 50,000 that is not contiguous to a municipality with a
68 6 population of 50,000 or more. The bill defines a
68 7 microenterprise as a business providing services with five or
68 8 fewer full=time equivalent employee positions.
68 9 DIVISION XI == This division of the bill establishes a high
68 10 quality job creation program and enacts a new Code chapter 15H
68 11 that provides wage=benefits tax credits.
68 12 The division eliminates the new jobs and income program and
68 13 the new capital investment program and creates a high quality
68 14 job creation program to be administered by the department of
68 15 economic development. Under the program, an eligible business
68 16 is not a retail business, has not closed or substantially
68 17 reduced its operation in one area of the state and relocated
68 18 substantially the same operation, and, if the qualifying
68 19 investment is $10 million or more, the community has approved
68 20 the start=up, location, or expansion of the business. The
68 21 division provides that an eligible business must also meet
68 22 four of eight other possible criteria in order to receive
68 23 assistance and provides other factors for the department to
68 24 consider in determining eligibility. The division allows the
68 25 department to waive any eligibility requirement of the program
68 26 for good cause shown. The division allows an applicant to
68 27 submit an application at any time within one year from the
68 28 time the job for which benefits are sought commences.
68 29 The division requires a business to enter into an agreement
68 30 with the department specifying the requirements that must be
68 31 met to confirm eligibility pursuant to the program.
68 32 The division includes the sales and use tax refund under
68 33 the new jobs and income program for the program except that
68 34 the division eliminates the term "supporting businesses".
68 35 The division includes the corporate tax credit for certain
69 1 sales taxes paid by third=party developers under the new jobs
69 2 and income program for the program except that the division
69 3 eliminates the terms "supporting business" and "economic
69 4 development areas".
69 5 The division includes the investment tax credit and the
69 6 insurance premium tax credit under the new capital investment
69 7 program for the program. The division changes the amount of
69 8 the tax credits to be an amount provided under new Code
69 9 section 15.335A, which relates to tax incentives under the
69 10 program.
69 11 The division creates a system of tax incentives under the
69 12 program that are based on the number of new high quality jobs
69 13 created, the amount of qualifying investments made, and the
69 14 annual wage, including benefits, as compared to the average
69 15 county wage. The types of tax incentives include investment
69 16 tax credits, research and development tax credits, property
69 17 tax exemptions, and sales tax refunds. The type and amount of
69 18 tax incentives available under the program varies depending on
69 19 whether the annual wage, including benefits, of the new jobs
69 20 is equal to or greater than 130 percent or 160 percent of the
69 21 average county wage. The range for qualifying investments is
69 22 $0 to at least $15 million. The range of number of new high
69 23 quality jobs is zero to 61 or more. The division allows for a
69 24 waiver of the average county wage calculations to be granted
69 25 by the department of economic development. The division
69 26 requires the average wage calculations to be calculated on a
69 27 quarterly basis using wage data submitted to the department of
69 28 workforce development during previous calendar quarters. The
69 29 division provides that, each calendar year, the department of
69 30 economic development shall not approve more than $3.6 million
69 31 worth of investment tax credits and insurance premium tax
69 32 credits for projects with qualifying investments of less than
69 33 $1 million.
69 34 The division provides that an eligible business receiving
69 35 incentives under the program shall not receive any funds from
70 1 the community economic development account under the community
70 2 economic betterment program, incentives under the enterprise
70 3 zone program, or moneys from the grow Iowa values fund.
70 4 The division repeals Code section 15.331 relating to a new
70 5 jobs credit from withholding and moves it to new Code section
70 6 15E.197 under the enterprise zone program.
70 7 The division enacts a new Code chapter 15H that provides
70 8 wage=benefits tax credits under the individual and corporate
70 9 income taxes, franchise tax, insurance premiums tax, and
70 10 moneys and credits tax. The amount of the tax credit equals a
70 11 percentage of the wages and benefits paid in the previous 12
70 12 months to the employee in a qualified new job. The percentage
70 13 varies with the maximum being 10 percent if the wages and
70 14 benefits paid to the new employee are at least 160 percent of
70 15 the average county wage and the minimum being 5 percent if the
70 16 wages and benefits paid equal between 130 and 160 percent of
70 17 the average county wage. No tax credit is granted if the
70 18 wages and benefits are less than 130 percent of the average
70 19 county wage. The average county wage is calculated by the
70 20 department of revenue and equals the lessor of the annualized,
70 21 average county hourly wage paid by all businesses, the
70 22 annualized, average county hourly wage paid by all businesses
70 23 in the county outside the largest city, and the annualized,
70 24 average county hourly wage paid by all businesses excluding
70 25 the largest employer. In addition to meeting the wages and
70 26 benefits paid requirements, a business must also make a
70 27 qualifying investment of $5,000 per qualified new job. A
70 28 "qualified investment" means a capital investment in real
70 29 property or in depreciable assets.
70 30 A qualified new job is a job that is a new full=time job,
70 31 is filled by a new employee for one year, is filled by a
70 32 resident, and is not created as a result of a change in
70 33 ownership. A qualified new job is not created if it involves
70 34 the rehiring of previously laid=off employees or results from
70 35 the relocation from another place in Iowa or a merger of
71 1 businesses located in Iowa.
71 2 "Benefits" means medical and dental insurance, pension and
71 3 profit sharing, child care, overtime, life insurance, and
71 4 other benefits identified by rule.
71 5 Once a tax credit is granted for new employment, the
71 6 business may continue to receive for up to the next four tax
71 7 years a tax credit for retaining that new employee. The
71 8 business must reapply each year and establish by rule of the
71 9 department of revenue that it has retained the new employee.
71 10 The chapter provides that a maximum of $10 million in tax
71 11 credits are to be awarded in a fiscal year. If there are more
71 12 claims for tax credits than the $10 million, tax credits will
71 13 be granted on an earliest date applied basis. However, once a
71 14 taxpayer has been awarded the tax credit, if the credit
71 15 exceeds the tax liability, the excess may be refunded.
71 16 The chapter provides that retail businesses are not
71 17 eligible to receive tax credits for increased employment.
71 18 The chapter takes effect upon enactment and applies to
71 19 qualified new jobs created on or after the enactment date.
71 20 DIVISION XII = This division of the bill relates to the
71 21 research and development tax credit in Code section 15.335.
71 22 The division provides that research activities include the
71 23 development of innovative renewable energy generation
71 24 components manufactured or assembled in this state. The
71 25 division provides that "innovative renewable energy generation
71 26 components" does not include a component with more than 200
71 27 megawatts of effective nameplate capacity.
71 28 DIVISION XIII == This division of the bill relates to the
71 29 endow Iowa program and the county endowment funds and makes
71 30 appropriations.
71 31 The division changes the term "qualified community
71 32 foundation" to "endow Iowa qualified community foundation".
71 33 The division changes the definition of endow Iowa qualified
71 34 community foundation to provide that such a foundation must
71 35 substantially comply with national standards established by
72 1 the national council on foundations as determined by the
72 2 department of economic development in collaboration with the
72 3 Iowa council of foundations. The division provides that 10
72 4 percent of the aggregate amount of tax credits authorized in a
72 5 calendar year shall be reserved for those endowment gifts in
72 6 amounts of $30,000 or less. If by September 1 of a calendar
72 7 year the entire 10 percent of the reserved tax credits is not
72 8 distributed, the remaining tax credits shall be available to
72 9 any other eligible applicants. The division provides that a
72 10 tax credit shall not be authorized after December 31, 2008.
72 11 The division provides that 75 percent of the moneys in the
72 12 county endowment fund shall be distributed to charitable
72 13 organizations for charitable purposes and 25 percent of the
72 14 moneys shall be retained for use in establishing a permanent
72 15 endowment fund for the benefit of charitable organizations for
72 16 charitable purposes. The division defines "charitable
72 17 purpose" as a purpose described in section 501(c)(3) of the
72 18 Internal Revenue Code, or a benevolent, educational,
72 19 philanthropic, humane, scientific, patriotic, social welfare
72 20 or advocacy, public health, environmental conservation, civic,
72 21 or other eleemosynary objective. The division provides that 3
72 22 percent of the moneys deposited in the county endowment fund
72 23 shall be used for purposes of administering and marketing the
72 24 county endowment fund.
72 25 The division appropriates from the general fund of the
72 26 state to the department of economic development for the fiscal
72 27 period beginning July 1, 2005, and ending June 30, 2008,
72 28 $50,000 each fiscal year for endow Iowa grants to lead
72 29 philanthropic entities.
72 30 The division takes effect upon enactment and applies
72 31 retroactively to January 1, 2005.
72 32 LSB 1809HZ 81
72 33 tm:rj/cf/24.1