House File 868 - Introduced
HOUSE FILE
BY COMMITTEE ON WAYS AND
MEANS
(SUCCESSOR TO HF 850)
(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, and
4 including effective date and retroactive applicability
5 provisions.
6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
7 TLSB 1809HW 81
8 tm/cf/24
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 Sec. 2. NEW SECTION. 15G.112 FINANCIAL ASSISTANCE.
1 18 1. A community may apply to the economic development board
1 19 for a waiver from wage calculations requirements for financial
1 20 assistance awarded by the department of economic development
1 21 from moneys in the grow Iowa values fund. The board may grant
1 22 a waiver from the wage calculations based on wage calculations
1 23 brought forth by the applicant including, but not limited to,
1 24 any of the following:
1 25 a. The average county wage calculated without wage data
1 26 from the business in the county employing the greatest number
1 27 of full=time employees.
1 28 b. The average regional wage calculated without wage data
1 29 from up to two adjacent counties.
1 30 c. The average county wage calculated without wage data
1 31 from the largest city in the county.
1 32 d. A qualifying wage guideline for a specific project
1 33 based upon unusual economic circumstances present in the city
1 34 or county.
1 35 2. a. In order to receive financial assistance from the
2 1 department from moneys appropriated from the grow Iowa values
2 2 fund, the average annual wage, including benefits, of new jobs
2 3 created must be equal to or greater than one hundred thirty
2 4 percent of the average county wage. For purposes of this
2 5 section, "average county wage" and "benefits" mean the same as
2 6 defined in section 15H.1.
2 7 b. An applicant may apply to the department for a waiver
2 8 of the wage requirements in paragraph "a". A waiver shall be
2 9 applied for and considered by the department according to the
2 10 procedures provided in section 15.335A.
2 11 DIVISION II
2 12 IOWA ECONOMIC DEVELOPMENT BOARD
2 13 Sec. 3. Section 15.103, Code 2005, is amended to read as
2 14 follows:
2 15 15.103 ECONOMIC DEVELOPMENT BOARD.
2 16 1. a. The Iowa economic development board is created,
2 17 consisting of eleven voting members appointed by the governor
2 18 and seven ex officio nonvoting members. The ex officio
2 19 nonvoting members are four legislative members; one president,
2 20 or the president's designee, of the university of northern
2 21 Iowa, the university of Iowa, or Iowa state university of
2 22 science and technology designated by the state board of
2 23 regents on a rotating basis; and one president, or the
2 24 president's designee, of a private college or university
2 25 appointed by the Iowa association of independent colleges and
2 26 universities; and one superintendent, or the superintendent's
2 27 designee, of a community college, appointed by the Iowa
2 28 association of community college presidents. The legislative
2 29 members are two state senators, one appointed by the president
2 30 of the senate, after consultation with the majority leader of
2 31 the senate, and one appointed by the minority leader of the
2 32 senate, after consultation with the president of the senate,
2 33 from their respective parties; and two state representatives,
2 34 one appointed by the speaker and one appointed by the minority
2 35 leader of the house of representatives from their respective
3 1 parties. Not more than six of the voting members shall be
3 2 from the same political party. The secretary of agriculture
3 3 or the secretary's designee shall be one of the voting
3 4 members. The governor shall appoint the remaining ten voting
3 5 members of the board for a term of four years beginning and
3 6 ending as provided by section 69.19, subject to confirmation
3 7 by the senate, and the governor's appointments shall include
3 8 persons knowledgeable of the various elements of the
3 9 department's responsibilities.
3 10 b. Each of the following areas of expertise shall be
3 11 represented by at least one member of the board who has
3 12 professional experience in that area of expertise:
3 13 (1) Finance, insurance, or investment banking.
3 14 (2) Advanced manufacturing.
3 15 (3) Statewide agriculture.
3 16 (4) Life sciences.
3 17 (5) Small business development.
3 18 (6) Information technology.
3 19 (7) Economics.
3 20 (8) Labor.
3 21 (9) Marketing.
3 22 (10) Entrepreneurship.
3 23 c. At least nine members of the board shall be actively
3 24 employed in the private, for=profit sector of the economy.
3 25 2. A vacancy on the board shall be filled in the same
3 26 manner as regular appointments are made for the unexpired
3 27 portion of the regular term.
3 28 3. The board shall meet in May of each year for the
3 29 purpose of electing one of its voting members as chairperson
3 30 and one of its voting members as vice chairperson. However,
3 31 the chairperson and the vice chairperson shall not be from the
3 32 same political party. The board shall meet at the call of the
3 33 chairperson or when any six members of the board file a
3 34 written request with the chairperson for a meeting. Written
3 35 notice of the time and place of each meeting shall be given to
4 1 each member of the board. A majority of the voting members
4 2 constitutes a quorum.
4 3 4. Members of the board, the director, and other employees
4 4 of the department shall be allowed their actual and necessary
4 5 expenses incurred in the performance of their duties. All
4 6 expenses shall be paid from appropriations for those purposes
4 7 and the department is subject to the budget requirements of
4 8 chapter 8. Each member of the board may also be eligible to
4 9 receive compensation as provided in section 7E.6.
4 10 5. If a member of the board has an interest, either direct
4 11 or indirect, in a contract to which the department is or is to
4 12 be a party, the interest shall be disclosed to the board in
4 13 writing and shall be set forth in the minutes of a meeting of
4 14 the board. The member having the interest shall not
4 15 participate in action by the board with respect to the
4 16 contract. This paragraph does not limit the right of a member
4 17 of the board to acquire an interest in bonds, or limit the
4 18 right of a member to have an interest in a bank or other
4 19 financial institution in which the funds of the department are
4 20 deposited or which is acting as trustee or paying agent under
4 21 a trust indenture to which the department is a party.
4 22 6. As part of the organizational structure of the
4 23 department, the board shall establish a due diligence
4 24 committee and a loan and credit guarantee committee composed
4 25 of members of the board. The committees shall serve in an
4 26 advisory capacity to the board and shall carry out any duties
4 27 assigned by the board in relation to programs administered by
4 28 the department.
4 29 7. For the transitional period beginning July 1, 2005, and
4 30 ending June 30, 2006, the composition of the voting members of
4 31 the board shall be determined by the governor and shall be
4 32 composed of members of the department of economic development
4 33 in existence on June 30, 2005, and members of the grow Iowa
4 34 values board as it existed on June 15, 2004. During the
4 35 transitional period stated in this subsection, the
5 1 requirements of subsection 1, paragraphs "a" and "b", shall
5 2 not apply. This subsection is repealed June 30, 2006.
5 3 Sec. 4. Section 15.104, Code 2005, is amended by adding
5 4 the following new subsection:
5 5 NEW SUBSECTION. 9. By January 15 of each year, submit a
5 6 report to the general assembly and the governor that
5 7 delineates expenditures made under each component of the grow
5 8 Iowa values fund. In addition, the department shall provide
5 9 in the report the following information regarding each
5 10 business finance project and in the aggregate for projects
5 11 funded during the previous fiscal year:
5 12 a. The number of jobs created as of the time of reporting.
5 13 b. The average wage of the jobs created as of the time of
5 14 reporting.
5 15 c. The amount of capital investment invested as of the
5 16 time of reporting.
5 17 d. The location.
5 18 e. The amount, if any, of private and local government
5 19 moneys expended as of the time of reporting.
5 20 f. The amount of moneys expended on research and
5 21 development activities that were not included in the jobs
5 22 created and wages paid criteria.
5 23 Sec. 5. APPOINTMENTS DURING BIPARTISAN CONTROL.
5 24 Appointments of general assembly members to the Iowa economic
5 25 development board, which are to be made by the president of
5 26 the senate or by the majority or minority leader of the senate
5 27 during the period that the senate for the Eighty=first General
5 28 Assembly is composed of an equal number of members of each
5 29 major political party, shall be made jointly by the co=
5 30 presidents or co=floor leaders, as appropriate, in accordance
5 31 with Senate Resolution 1, adopted during the 2005 legislative
5 32 session.
5 33 DIVISION III
5 34 REGULATORY ASSISTANCE
5 35 Sec. 6. NEW SECTION. 15E.19 REGULATORY ASSISTANCE.
6 1 1. The department of economic development shall coordinate
6 2 all regulatory assistance for the state of Iowa. Each state
6 3 agency administering regulatory programs for business shall
6 4 maintain a coordinator within the office of the director or
6 5 the administrative division of the state agency. Each
6 6 coordinator shall do all of the following:
6 7 a. Serve as the state agency's primary contact for
6 8 regulatory affairs with the department of economic
6 9 development.
6 10 b. Provide information regarding regulatory requirements
6 11 to businesses and represent the state agency to the private
6 12 sector.
6 13 c. Monitor permit applications and provide timely permit
6 14 status information to the department of economic development.
6 15 d. Require regulatory staff participation in negotiations
6 16 and discussions with businesses.
6 17 e. Notify the department of economic development regarding
6 18 proposed rulemaking activities that impact a regulatory
6 19 program and any subsequent changes to a regulatory program.
6 20 2. The department of economic development shall, in
6 21 consultation with the coordinators described in this section,
6 22 examine, and to the extent permissible, assist in the
6 23 implementation of methods, including the possible
6 24 establishment of an electronic database, to streamline the
6 25 process for issuing permits to business.
6 26 3. By January 15 of each year, the department of economic
6 27 development shall submit a written report to the general
6 28 assembly regarding the provision of regulatory assistance by
6 29 state agencies, including the department's efforts, and its
6 30 recommendations and proposed solutions, to streamline the
6 31 process of issuing permits to business.
6 32 DIVISION IV
6 33 ECONOMIC DEVELOPMENT REGIONS
6 34 Sec. 7. NEW SECTION. 15E.21 IOWA BUSINESS RESOURCE
6 35 CENTERS.
7 1 The department shall establish an Iowa business resource
7 2 center program for purposes of locating Iowa business resource
7 3 centers in the state. The department shall partner with
7 4 another entity wanting to assist with economic growth and
7 5 establish an Iowa business resource center. Operational
7 6 duties of a center shall focus on providing information and
7 7 referrals to entrepreneurs and businesses. Operational duties
7 8 of a center shall be determined pursuant to a memorandum of
7 9 agreement between the department and the other entity.
7 10 Sec. 8. NEW SECTION. 15E.231 ECONOMIC DEVELOPMENT
7 11 REGIONS.
7 12 1. In order for an economic development region to receive
7 13 moneys from the grow Iowa values fund created in section
7 14 15G.108, an economic development region's regional development
7 15 plan must be approved by the department. An economic
7 16 development region shall consist of not less than three
7 17 counties, unless two contiguous counties have a combined
7 18 population of at least three hundred thousand based on the
7 19 most recent federal decennial census. An economic development
7 20 region shall establish a focused economic development effort
7 21 that shall include a regional development plan relating to one
7 22 or more of the following areas:
7 23 a. Regional marketing strategies.
7 24 b. Development of the information solutions sector.
7 25 c. Development of the advanced manufacturing sector.
7 26 d. Development of the life sciences and biotechnology
7 27 sector.
7 28 e. Development of the insurance or financial services
7 29 sector.
7 30 f. Physical infrastructure including, but not limited to,
7 31 horizontal infrastructure, water and sewer infrastructure, and
7 32 telecommunications infrastructure.
7 33 g. Entrepreneurship.
7 34 2. An economic development region may create an economic
7 35 development region revolving fund as provided in section
8 1 15E.232.
8 2 Sec. 9. NEW SECTION. 15E.232 ECONOMIC DEVELOPMENT REGION
8 3 REVOLVING FUNDS == TAX CREDITS.
8 4 1. An economic development region may create an economic
8 5 development region revolving fund.
8 6 2. a. A nongovernmental entity making a contribution to
8 7 an economic development region revolving fund, except those
8 8 described in paragraph "b", may claim a tax credit equal to
8 9 twenty percent of the amount contributed to the revolving
8 10 fund. The tax credit shall be allowed against taxes imposed
8 11 in chapter 422, divisions II, III, and V, and in chapter 432,
8 12 and against the moneys and credits tax imposed in section
8 13 533.24. An individual may claim under this subsection the tax
8 14 credit of a partnership, limited liability company, S
8 15 corporation, estate, or trust electing to have income taxed
8 16 directly to the individual. The amount claimed by the
8 17 individual shall be based upon the pro rata share of the
8 18 individual's earnings from the partnership, limited liability
8 19 company, S corporation, estate, or trust. Any tax credit in
8 20 excess of the taxpayer's liability for the tax year may be
8 21 credited to the tax liability for the following ten years or
8 22 until depleted, whichever occurs first. A tax credit shall
8 23 not be carried back to a tax year prior to the tax year in
8 24 which the taxpayer redeems the tax credit. A tax credit under
8 25 this section is not transferable.
8 26 b. Subject to the provisions of paragraph "c", an
8 27 organization exempt from federal income tax pursuant to
8 28 section 501(c) of the Internal Revenue Code making a
8 29 contribution to an economic development region revolving fund,
8 30 shall be paid from the general fund of the state an amount
8 31 equal to twenty percent of such contributed amount within
8 32 thirty days after the end of the fiscal year during which the
8 33 contribution was made.
8 34 c. The total amount of tax credits and payments to
8 35 contributors, referred to as the credit amount, authorized
9 1 during a fiscal year shall not exceed two million dollars plus
9 2 any unused credit amount carried over from previous years.
9 3 Any credit amount which remains unused for a fiscal year may
9 4 be carried forward to the succeeding fiscal year. The maximum
9 5 credit amount that may be authorized in a fiscal year for
9 6 contributions made to a specific economic development region
9 7 revolving fund is equal to two million dollars plus any unused
9 8 credit amount carried over from previous years divided by the
9 9 number of economic development region revolving funds existing
9 10 in the state.
9 11 d. The department of economic development shall administer
9 12 the authorization of tax credits under this section and
9 13 payments to contributors described in paragraph "b" and shall,
9 14 in cooperation with the department of revenue, adopt rules
9 15 pursuant to chapter 17A necessary for the administration of
9 16 this section.
9 17 3. An economic development region may apply for financial
9 18 assistance from the grow Iowa values fund to assist with the
9 19 installation of physical infrastructure needs including, but
9 20 not limited to, horizontal infrastructure, water and sewer
9 21 infrastructure, and telecommunications infrastructure, related
9 22 to the development of fully served business and industrial
9 23 sites by one or more of the region's economic development
9 24 partners or for the installation of infrastructure related to
9 25 a new business location or expansion. In order to receive
9 26 financial assistance pursuant to this subsection, the economic
9 27 development region must demonstrate all of the following:
9 28 a. The ability to provide matching moneys on a basis of a
9 29 one dollar contribution of local matching moneys for every two
9 30 dollars received from the grow Iowa values fund.
9 31 b. The commitment of the specific business partner
9 32 including, but not limited to, a letter of intent defining a
9 33 capital commitment or a percentage of equity.
9 34 c. That all other funding alternatives have been
9 35 exhausted.
10 1 4. The department may establish and administer a regional
10 2 economic development revenue sharing pilot project for one or
10 3 more regions. The department shall take into consideration
10 4 the geographical dispersion of the pilot projects. The
10 5 department shall provide technical assistance to the regions
10 6 participating in a pilot project.
10 7 5. An economic development region may apply for financial
10 8 assistance from the grow Iowa values fund to assist an
10 9 existing business threatened with closure due to a potential
10 10 consolidation to an out=of=state location. The economic
10 11 development region may apply for financial assistance from the
10 12 grow Iowa values fund for the purchase, rehabilitation, or
10 13 marketing of a building that has become available due to the
10 14 closing of an existing business due to a consolidation to an
10 15 out=of=state location. In order to receive financial
10 16 assistance under this subsection, an economic development
10 17 region must demonstrate the ability to provide local matching
10 18 moneys on a basis of a one dollar contribution of local moneys
10 19 for every three dollars received from the grow Iowa values
10 20 fund.
10 21 6. An economic development region may apply for financial
10 22 assistance from the grow Iowa values fund to establish and
10 23 operate an entrepreneurial initiative. In order to receive
10 24 financial assistance under this subsection, an economic
10 25 development region must demonstrate the ability to provide
10 26 local matching moneys on a basis of a one dollar contribution
10 27 of local moneys for every two dollars received from the grow
10 28 Iowa values fund.
10 29 7. a. An economic development region may apply for
10 30 financial assistance from the grow Iowa values fund to
10 31 establish and operate a business succession assistance program
10 32 for the region.
10 33 b. In order to receive financial assistance under this
10 34 subsection, an economic development region must demonstrate
10 35 the ability to provide local matching moneys on a basis of a
11 1 one dollar contribution of local moneys for every two dollars
11 2 received from the grow Iowa values fund.
11 3 8. An economic development region may apply for financial
11 4 assistance from the grow Iowa values fund to implement
11 5 economic development initiatives that are either unique to the
11 6 region or innovative in design and implementation. In order
11 7 to receive financial assistance under this subsection, an
11 8 economic development region must demonstrate the ability to
11 9 provide local matching moneys on a one=to=one basis.
11 10 9. Financial assistance under subsections 3, 5, 6, 7, and
11 11 8, and section 15E.233 shall be limited to a total of one
11 12 million dollars each fiscal year for the fiscal period
11 13 beginning July 1, 2005, and ending June 30, 2015, and shall
11 14 not be provided to assist in the establishment, operation, or
11 15 installation of a project, initiative, or activity that may
11 16 result in the provision, lease, or sale of goods or services
11 17 by a government body that competes with private enterprise.
11 18 Sec. 10. NEW SECTION. 15E.233 ECONOMIC ENTERPRISE AREAS.
11 19 1. An economic development region may apply to the
11 20 department for approval to be designated as an economic
11 21 enterprise area based on criteria provided in subsection 3.
11 22 The department shall approve no more than ten regions as
11 23 economic enterprise areas.
11 24 2. a. An approved economic enterprise area may apply to
11 25 the department for financial assistance from the grow Iowa
11 26 values fund for up to seventy=five thousand dollars each
11 27 fiscal year during the fiscal period beginning July 1, 2005,
11 28 and ending June 30, 2015, for any of the following purposes:
11 29 (1) Economic development=related strategic planning and
11 30 marketing for the region as a whole.
11 31 (2) Economic development of fully=served business sites.
11 32 (3) The construction of speculative buildings on a fully
11 33 served lot.
11 34 (4) The rehabilitation of an existing building to
11 35 marketable standards.
12 1 b. In order to receive financial assistance under this
12 2 subsection, an economic enterprise area must demonstrate the
12 3 ability to provide local matching moneys on a basis of a one
12 4 dollar contribution of local moneys for every three dollars
12 5 received from the grow Iowa values fund.
12 6 3. An economic enterprise area shall consist of at least
12 7 one county containing no city with a population of more than
12 8 twenty=three thousand five hundred and shall meet at least two
12 9 of the following criteria:
12 10 a. A per capita income of eighty percent or less than the
12 11 national average.
12 12 b. A household median income of eighty percent or less
12 13 than the national average.
12 14 c. Twenty=five percent or more of the population of the
12 15 economic enterprise area with an income level of one hundred
12 16 fifty percent or less of the United States poverty level as
12 17 defined by the most recently revised poverty income guidelines
12 18 published by the United States department of health and human
12 19 services.
12 20 d. A population density in the economic enterprise area of
12 21 less than ten people per square mile.
12 22 e. A loss of population as shown by the 2000 certified
12 23 federal census when compared with the 1990 certified federal
12 24 census.
12 25 f. An unemployment rate greater than the national rate of
12 26 unemployment.
12 27 g. More than twenty percent of the population of the
12 28 economic enterprise area consisting of people over the age of
12 29 sixty=five.
12 30 Sec. 11. NEW SECTION. 15E.351 BUSINESS ACCELERATORS.
12 31 1. The department shall establish and administer a
12 32 business accelerator program to provide financial assistance
12 33 for the establishment and operation of a business accelerator
12 34 for technology=based, value=added agricultural, information
12 35 solutions, or advanced manufacturing start=up businesses or
13 1 for a satellite of an existing business accelerator. The
13 2 program shall be designed to foster the accelerated growth of
13 3 new and existing businesses through the provision of technical
13 4 assistance. The department shall use moneys appropriated to
13 5 the department from the grow Iowa values fund pursuant to
13 6 section 15G.111, subsection 1, subject to the approval of the
13 7 economic development board, to provide financial assistance
13 8 under this section.
13 9 2. In determining whether a business accelerator qualifies
13 10 for financial assistance, the department must find that a
13 11 business accelerator meets all of the following criteria:
13 12 a. The business accelerator must be a not=for=profit
13 13 organization affiliated with an area chamber of commerce, a
13 14 community or county organization, or economic development
13 15 region.
13 16 b. The geographic area served by a business accelerator
13 17 must include more than one county.
13 18 c. The business accelerator must possess the ability to
13 19 provide service to a specific type of business as well as to
13 20 meet the broad=based needs of other types of start=up
13 21 entrepreneurs.
13 22 d. The business accelerator must possess the ability to
13 23 market business accelerator services in the region and the
13 24 state.
13 25 e. The business accelerator must possess the ability to
13 26 communicate with and cooperate with other business
13 27 accelerators and similar service providers in the state.
13 28 f. The business accelerator must possess the ability to
13 29 engage various funding sources for start=up entrepreneurs.
13 30 g. The business accelerator must possess the ability to
13 31 communicate with and cooperate with various entities for
13 32 purposes of locating suitable facilities for clients of the
13 33 business accelerator.
13 34 h. The business accelerator must possess the willingness
13 35 to accept referrals from the department of economic
14 1 development.
14 2 3. In determining whether a business accelerator qualifies
14 3 for financial assistance, the department may consider any of
14 4 the following:
14 5 a. The business experience of the business accelerator's
14 6 professional staff.
14 7 b. The business plan review capacity of the business
14 8 accelerator's professional staff.
14 9 c. The business accelerator's professional staff with
14 10 demonstrated disciplines in all aspects of business
14 11 experience.
14 12 d. The business accelerator's professional staff with
14 13 access to external service providers including legal,
14 14 accounting, marketing, and financial services.
14 15 4. In order to receive financial assistance under this
14 16 section, the financial assistance recipient must demonstrate
14 17 the ability to provide matching moneys on a basis of a two
14 18 dollar contribution of recipient moneys for every one dollar
14 19 received in financial assistance.
14 20 Sec. 12. NEW SECTION. 422.11K ECONOMIC DEVELOPMENT
14 21 REGION REVOLVING FUND TAX CREDIT.
14 22 The taxes imposed under this division, less the credits
14 23 allowed under sections 422.12 and 422.12B, shall be reduced by
14 24 an economic development region revolving fund contribution tax
14 25 credit authorized pursuant to section 15E.232.
14 26 Sec. 13. Section 422.33, Code 2005, is amended by adding
14 27 the following new subsection:
14 28 NEW SUBSECTION. 17. The taxes imposed under this division
14 29 shall be reduced by an economic development region revolving
14 30 fund contribution tax credit authorized pursuant to section
14 31 15E.232.
14 32 Sec. 14. Section 422.60, Code 2005, is amended by adding
14 33 the following new subsection:
14 34 NEW SUBSECTION. 9. The taxes imposed under this division
14 35 shall be reduced by an economic development region revolving
15 1 fund contribution tax credit authorized pursuant to section
15 2 15E.232.
15 3 Sec. 15. NEW SECTION. 432.12F ECONOMIC DEVELOPMENT
15 4 REGION REVOLVING FUND CONTRIBUTION TAX CREDITS.
15 5 The tax imposed under this chapter shall be reduced by an
15 6 economic development region tax credit authorized pursuant to
15 7 section 15E.232.
15 8 Sec. 16. Section 533.24, Code 2005, is amended by adding
15 9 the following new subsection:
15 10 NEW SUBSECTION. 6. The moneys and credits tax imposed
15 11 under this section shall be reduced by an economic development
15 12 region revolving fund contribution tax credit authorized
15 13 pursuant to section 15E.232.
15 14 Sec. 17. BUSINESS SUCCESSION == SMALL BUSINESS DEVELOPMENT
15 15 CENTERS. As the loss of a community's small businesses is a
15 16 major concern for communities around the state, small business
15 17 development centers shall design a plan which includes all of
15 18 the following:
15 19 1. The pursuit of public and private partnerships with
15 20 family business consultants, experts in the area of employee
15 21 stock ownership plans, attorneys, certified public
15 22 accountants, the department of economic development, and other
15 23 service providers to assist communities with issues related to
15 24 business succession.
15 25 2. The development of a comprehensive internet website
15 26 with resources related to business succession including a
15 27 listing of family business consultants and service providers
15 28 by area of expertise, appropriate articles, links to related
15 29 resources, and a listing of businesses for sale. The internet
15 30 website should also be designed to promote the state and to
15 31 encourage former Iowa residents and others to locate in Iowa.
15 32 3. Basic training on business succession issues for all
15 33 small business development center directors and staff
15 34 counselors.
15 35 4. Courses on business succession issues available in
16 1 person in communities and on the internet.
16 2 5. Small business development centers in the state shall
16 3 develop and administer programs to assist small businesses to
16 4 plan for the transfer of ownership of the business, including
16 5 the transfer of all or a part of the ownership of a business
16 6 to an employee stock ownership plan.
16 7 DIVISION V
16 8 CULTURAL AND ENTERTAINMENT DISTRICTS
16 9 Sec. 18. NEW SECTION. 303.3B CULTURAL AND ENTERTAINMENT
16 10 DISTRICTS.
16 11 1. The department of cultural affairs shall establish and
16 12 administer a cultural and entertainment district certification
16 13 program. The program shall encourage the growth of
16 14 communities through the development of areas within a city or
16 15 county for public and private uses related to cultural and
16 16 entertainment purposes.
16 17 2. A city or county may create and designate a cultural
16 18 and entertainment district subject to certification by the
16 19 department of cultural affairs, in consultation with the
16 20 department of economic development. A cultural and
16 21 entertainment district is encouraged to include a unique form
16 22 of transportation within the district and for transportation
16 23 between the district and recreational trails. A cultural and
16 24 entertainment district certification shall remain in effect
16 25 for ten years following the date of certification. Two or
16 26 more cities or counties may apply jointly for certification of
16 27 a district that extends across a common boundary. Through the
16 28 adoption of administrative rules, the department of cultural
16 29 affairs shall develop a certification application for use in
16 30 the certification process. The provisions of this subsection
16 31 relating to the adoption of administrative rules shall be
16 32 construed narrowly.
16 33 3. The department of cultural affairs shall encourage
16 34 development projects and activities located in certified
16 35 cultural and entertainment districts through incentives under
17 1 cultural grant programs pursuant to section 303.3, chapter
17 2 303A, and any other grant programs.
17 3 DIVISION VI
17 4 HISTORIC PRESERVATION AND CULTURAL
17 5 AND ENTERTAINMENT DISTRICT TAX CREDITS
17 6 Sec. 19. Section 404A.1, subsection 1, Code 2005, is
17 7 amended to read as follows:
17 8 1. A property rehabilitation historic preservation and
17 9 cultural and entertainment district tax credit, subject to the
17 10 availability of the credit, is granted against the tax imposed
17 11 under chapter 422, division II, III, or V, or chapter 432, for
17 12 the rehabilitation of eligible property located in this state
17 13 as provided in this chapter. Tax credits in excess of tax
17 14 liabilities shall be refunded as provided in section 404A.4,
17 15 subsection 3.
17 16 Sec. 20. Section 404A.1, subsection 2, unnumbered
17 17 paragraph 1, Code 2005, is amended to read as follows:
17 18 Eligible property for which a taxpayer may receive the
17 19 property rehabilitation historic preservation and cultural and
17 20 entertainment district tax credit computed under this chapter
17 21 includes all of the following:
17 22 Sec. 21. Section 404A.3, subsection 2, unnumbered
17 23 paragraph 2, Code 2005, is amended to read as follows:
17 24 The selection standards shall provide that a person who
17 25 qualifies for the rehabilitation tax credit under section 47
17 26 of the Internal Revenue Code shall automatically qualify for
17 27 the state property rehabilitation historic preservation and
17 28 cultural and entertainment district tax credit under this
17 29 chapter.
17 30 Sec. 22. Section 404A.4, subsection 2, Code 2005, is
17 31 amended to read as follows:
17 32 2. After verifying the eligibility for the tax credit, the
17 33 state historic preservation office, in consultation with the
17 34 department of economic development, shall issue a property
17 35 rehabilitation historic preservation and cultural and
18 1 entertainment district tax credit certificate to be attached
18 2 to the person's tax return. The tax credit certificate shall
18 3 contain the taxpayer's name, address, tax identification
18 4 number, the date of project completion, the amount of credit,
18 5 other information required by the department of revenue, and a
18 6 place for the name and tax identification number of a
18 7 transferee and the amount of the tax credit being transferred.
18 8 Sec. 23. Section 404A.4, subsection 3, Code 2005, is
18 9 amended to read as follows:
18 10 3. A person receiving a property rehabilitation historic
18 11 preservation and cultural and entertainment district tax
18 12 credit under this chapter which is in excess of the person's
18 13 tax liability for the tax year is entitled to a refund of the
18 14 excess at a discounted value. The discounted value of the tax
18 15 credit refund, as calculated by the department of economic
18 16 development, in consultation with the department of revenue,
18 17 shall be determined based on the discounted value of the tax
18 18 credit five years after the tax year of the project completion
18 19 at an interest rate equivalent to the prime rate plus two
18 20 percent. The refunded tax credit shall not exceed seventy=
18 21 five percent of the allowable tax credit.
18 22 Sec. 24. Section 404A.4, subsection 4, Code 2005, is
18 23 amended to read as follows:
18 24 4. The total amount of tax credits that may be approved
18 25 for a fiscal year under this chapter shall not exceed two
18 26 million four hundred thousand dollars. Each fiscal year, the
18 27 department of cultural affairs shall allocate at least four
18 28 hundred thousand dollars worth of tax credits for
18 29 rehabilitation projects which have a total project cost of
18 30 under two hundred thousand dollars each. For the fiscal years
18 31 period beginning July 1, 2005, and July 1, 2006 and ending
18 32 June 30, 2015, an additional five hundred thousand four
18 33 million dollars of tax credits may be approved each fiscal
18 34 year for purposes of projects located in cultural and
18 35 entertainment districts certified pursuant to section 303.3B.
19 1 Notwithstanding section 404A.1, the tax credits approved for
19 2 projects located in certified cultural and entertainment
19 3 districts may be for projects which include new construction
19 4 or new infrastructure projects that enhance the historic and
19 5 cultural integrity of the certified cultural and entertainment
19 6 district. Any of the additional tax credits allocated for
19 7 projects located in certified cultural and entertainment
19 8 districts that are not approved during a fiscal year may be
19 9 carried over to the succeeding fiscal year. The department of
19 10 cultural affairs shall establish by rule the procedures for
19 11 the application, review, selection, and awarding of
19 12 certifications of completion. The departments of economic
19 13 development, cultural affairs, and revenue shall each adopt
19 14 rules to jointly administer this subsection and shall provide
19 15 by rule for the method to be used to determine for which
19 16 fiscal year the tax credits are available.
19 17 Sec. 25. Section 404A.5, Code 2005, is amended to read as
19 18 follows:
19 19 404A.5 ECONOMIC IMPACT == RECOMMENDATIONS.
19 20 The department of cultural affairs, in consultation with
19 21 the department of economic development, shall be responsible
19 22 for keeping the general assembly and the legislative services
19 23 agency informed on the overall economic impact to the state of
19 24 the rehabilitation of eligible properties. An annual report
19 25 shall be filed which shall include, but is not limited to,
19 26 data on the number and potential value of rehabilitation
19 27 projects begun during the latest twelve=month period, the
19 28 total property rehabilitation historic preservation and
19 29 cultural and entertainment district tax credits originally
19 30 granted during that period, the potential reduction in state
19 31 tax revenues as a result of all tax credits still unused and
19 32 eligible for refund, and the potential increase in local
19 33 property tax revenues as a result of the rehabilitated
19 34 projects. The department, to the extent it is able, shall
19 35 provide recommendations on whether a limit on tax credits
20 1 should be established, the need for a broader or more
20 2 restrictive definition of eligible property, and other
20 3 adjustments to the tax credits under this chapter.
20 4 DIVISION VII
20 5 COMMERCIALIZATION
20 6 Sec. 26. NEW SECTION. 15.115 TECHNOLOGY
20 7 COMMERCIALIZATION SPECIALIST.
20 8 The department shall ensure that businesses in the state
20 9 are well informed about the technology patents, licenses, and
20 10 options available to them from colleges and universities in
20 11 the state and to ensure the department's business development
20 12 and marketing efforts are conducted in a way that maximizes
20 13 the advantage to the state of research and technology
20 14 commercialization efforts at colleges and universities in the
20 15 state. The department shall establish a technology
20 16 commercialization specialist position which shall be
20 17 responsible for the obligations imposed by this section and
20 18 for performance of all of the following activities:
20 19 1. Establishing and maintaining communication with
20 20 personnel at colleges and universities in the state in charge
20 21 of intellectual property management and technology
20 22 commercialization.
20 23 2. Meeting at least quarterly with personnel at colleges
20 24 and universities in the state in charge of intellectual
20 25 property management and technology commercialization regarding
20 26 new technology disclosures and technology patents, licenses,
20 27 or options available to Iowa businesses.
20 28 3. Being knowledgeable regarding intellectual property,
20 29 patent, license, and option policies of colleges and
20 30 universities in the state as well as applicable federal law.
20 31 4. Establishing and maintaining an internet website to
20 32 link other internet websites which provide electronic access
20 33 to information regarding available patents, licenses, or
20 34 options for technology at colleges and universities in the
20 35 state.
21 1 5. Establishing and maintaining communications with
21 2 business and development organizations in the state regarding
21 3 available technology patents, licenses, and options.
21 4 6. Cooperating with colleges and universities in the state
21 5 in establishing technology fairs or other public events
21 6 designed to make businesses in the state aware of available
21 7 technology patents, licenses, or options available to
21 8 businesses in the state.
21 9 Sec. 27. NEW SECTION. 15.116 CHIEF TECHNOLOGY OFFICER.
21 10 The governor shall appoint a chief technology officer for
21 11 the state. The chief technology officer shall serve a four=
21 12 year term and shall have national or international stature.
21 13 The chief technology officer shall coordinate the activities
21 14 of the technology commercialization specialist employed
21 15 pursuant to section 15.115. The chief technology officer
21 16 shall serve as a spokesperson for the department for purposes
21 17 of promoting to private sector businesses the technology
21 18 commercialization efforts of the department and the research
21 19 and technology capabilities of institutions of higher learning
21 20 in the state.
21 21 Sec. 28. Section 262B.1, Code 2005, is amended by striking
21 22 the section and inserting in lieu thereof the following:
21 23 262B.1 TITLE.
21 24 This chapter shall be known and may be cited as the
21 25 "Commercialization of Research for Iowa Act".
21 26 Sec. 29. Section 262B.2, Code 2005, is amended by striking
21 27 the section and inserting in lieu thereof the following:
21 28 262B.2 LEGISLATIVE INTENT.
21 29 It is the intent of the general assembly that the three
21 30 universities under the control of the state board of regents
21 31 have as part of their missions the use of their universities'
21 32 expertise to expand and stimulate economic growth across the
21 33 state. This activity may be accomplished through a wide
21 34 variety of partnerships, public and private joint ventures,
21 35 and cooperative endeavors, primarily, but not exclusively, in
22 1 the area of high technology, and may result in investments by
22 2 the private sector for commercialization of the technology and
22 3 job creation. It is imperative that whenever possible, the
22 4 investments and job creation be in Iowa but need not be in the
22 5 proximity of the universities. The purpose of the investments
22 6 and job creation shall be to expand and stimulate Iowa's
22 7 economy, increase the wealth of Iowans, and increase the
22 8 population of Iowa, which may be accomplished through research
22 9 conducted within the state that will competitively position
22 10 Iowa on an economic basis with other states and create high=
22 11 wage, high=growth employers and jobs. Accredited private
22 12 universities located in the state are encouraged to
22 13 incorporate the intent of this section into the mission of
22 14 their universities.
22 15 Sec. 30. Section 262B.3, Code 2005, is amended by striking
22 16 the section and inserting in lieu thereof the following:
22 17 262B.3 DUTIES AND RESPONSIBILITIES.
22 18 1. The state board of regents, as part of its mission and
22 19 strategic plan, shall establish mechanisms for the purpose of
22 20 carrying out the intent of this chapter. In addition to other
22 21 board initiatives, the board shall work with the department of
22 22 economic development, other state agencies, and the private
22 23 sector to facilitate the commercialization of research.
22 24 2. The state board of regents, in cooperation with the
22 25 department of economic development, shall implement this
22 26 chapter through any of the following activities:
22 27 a. Developing strategies to market and disseminate
22 28 information on university research for commercialization in
22 29 Iowa.
22 30 b. Evaluating university research for commercialization
22 31 potential, where relevant.
22 32 c. Developing a plan to improve private sector access to
22 33 the university licenses and patent information and the
22 34 transfer of technology from the university to the private
22 35 sector.
23 1 d. Identifying research and technical assistance needs of
23 2 existing Iowa businesses and start=up companies and
23 3 recommending ways in which the universities can meet these
23 4 needs.
23 5 e. Linking research and instruction activities to economic
23 6 development.
23 7 f. Reviewing and monitoring activities related to
23 8 technology transfer.
23 9 g. Coordinating activities to facilitate a focus on
23 10 research in the state's targeted industry clusters.
23 11 h. Surveying similar activities in other states and at
23 12 other universities.
23 13 i. Establishing a single point of contact to facilitate
23 14 commercialization of research.
23 15 j. Sustaining faculty and staff resources needed to
23 16 implement commercialization.
23 17 k. Implementing programs to provide public recognition of
23 18 university faculty and staff who demonstrate success in
23 19 technology transfer and commercialization.
23 20 l. Implementing rural entrepreneurial and regional
23 21 development assistance programs.
23 22 m. Providing market research ranging from early stage
23 23 feasibility to extensive market research.
23 24 n. Creating real or virtual research parks that may or may
23 25 not be located near universities, but with the goal of
23 26 providing economic stimulus to the entire state.
23 27 o. Capacity building in key biosciences platform areas.
23 28 p. Encouraging biosciences entrepreneurship by faculty.
23 29 q. Providing matching grants for joint biosciences
23 30 projects involving public and private entities.
23 31 r. Encouraging biosciences entrepreneurship by faculty
23 32 using faculty research and entrepreneurship grants.
23 33 s. Pursuing bioeconomy initiatives in key platform areas
23 34 as recommended by a consultant report on bioeconomy issues
23 35 contracted for by the department of economic development.
24 1 Sec. 31. Sections 262B.4, 262B.5, and 262B.12, Code 2005,
24 2 are repealed.
24 3 Sec. 32. STUDIES.
24 4 1. The state board of regents shall conduct a study to
24 5 determine the feasibility of establishing a graduate school in
24 6 western Iowa in cooperation with other public or private
24 7 institutions of higher learning. By December 15, 2005, the
24 8 board shall submit a report to the general assembly and the
24 9 governor regarding the findings and recommendations of the
24 10 study.
24 11 2. The state board of regents shall conduct a study
24 12 relating to cost=effective methods of recognizing the efforts
24 13 of faculty to achieve commercialization. By December 15,
24 14 2005, the board shall submit a report to the general assembly
24 15 and the governor regarding the findings and recommendations of
24 16 the study.
24 17 DIVISION VIII
24 18 WORKFORCE TRAINING AND ECONOMIC DEVELOPMENT FUNDS
24 19 Sec. 33. Section 260C.18A, subsection 2, paragraph b, Code
24 20 2005, is amended to read as follows:
24 21 b. Projects in which an agreement between a community
24 22 college and a business meet all the requirements of the Iowa
24 23 jobs training Act under chapter 260F. However, projects
24 24 funded by moneys provided by a local workforce training and
24 25 economic development fund of a community college are not
24 26 subject to the maximum advance or award limitations contained
24 27 in section 260F.6, subsection 2, or the allocation limitations
24 28 contained in section 260F.8, subsection 1.
24 29 Sec. 34. Section 260C.18A, subsection 2, Code 2005, is
24 30 amended by adding the following new paragraph:
24 31 NEW PARAGRAPH. f. Training and retraining programs for
24 32 targeted industries as authorized in section 15.343,
24 33 subsection 2, paragraph "a".
24 34 Sec. 35. Section 260C.18A, subsection 5, Code 2005, is
24 35 amended by striking the subsection.
25 1 DIVISION IX
25 2 LOAN AND CREDIT GUARANTEE PROGRAM
25 3 Sec. 36. Section 15E.224, subsections 1, 5, and 7, Code
25 4 2005, are amended to read as follows:
25 5 1. The department shall establish and administer a loan
25 6 and credit guarantee program. The department, pursuant to
25 7 agreements with financial institutions, shall provide loan and
25 8 credit guarantees, or other forms of credit guarantees for
25 9 qualified businesses and targeted industry businesses for
25 10 eligible project costs. The department may invest up to ten
25 11 percent of the assets of the loan and credit guarantee fund,
25 12 or five hundred thousand dollars, whichever is greater, to
25 13 provide loan and credit guarantees or other forms of credit
25 14 guarantees for eligible project costs to microenterprises
25 15 located in a municipality with a population under fifty
25 16 thousand that is not contiguous to a municipality with a
25 17 population of fifty thousand or more. For purposes of this
25 18 division, "microenterprise" means a business providing
25 19 services with five or fewer full=time equivalent employee
25 20 positions. A loan or credit guarantee provided under the
25 21 program may stand alone or may be used in conjunction with or
25 22 to enhance other loans or credit guarantees offered by
25 23 private, state, or federal entities. The department may
25 24 purchase insurance to cover defaulted loans meeting the
25 25 requirements of the program. However, the department shall not
25 26 in any manner directly or indirectly pledge the credit of the
25 27 state. Eligible project costs include expenditures for
25 28 productive equipment and machinery, working capital for
25 29 operations and export transactions, research and development,
25 30 marketing, and such other costs as the department may so
25 31 designate.
25 32 5. The department shall adopt a loan or credit guarantee
25 33 application procedure for a financial institution on behalf of
25 34 a qualified business, microenterprise, or targeted industry
25 35 business.
26 1 7. The department may adopt loan and credit guarantee
26 2 application procedures that allow a qualified business,
26 3 microenterprise, or targeted industry business to apply
26 4 directly to the department for a preliminary guarantee
26 5 commitment. A preliminary guarantee commitment may be issued
26 6 by the department subject to the qualified business,
26 7 microenterprise, or targeted industry business securing a
26 8 commitment for financing from a financial institution. The
26 9 application procedures shall specify the process by which a
26 10 financial institution may obtain a final loan and credit
26 11 guarantee.
26 12 Sec. 37. Section 15E.225, subsection 3, Code 2005, is
26 13 amended to read as follows:
26 14 3. For a preliminary guarantee commitment, the department
26 15 may charge a qualified business, microenterprise, or targeted
26 16 industry business a preliminary guarantee commitment fee. The
26 17 application fee shall be in addition to any other fees charged
26 18 by the department under this section and shall not exceed one
26 19 thousand dollars for an application.
26 20 DIVISION X
26 21 ECONOMIC DEVELOPMENT TAX INCENTIVES
26 22 Sec. 38. Section 15.113, Code 2005, is amended to read as
26 23 follows:
26 24 15.113 ECONOMIC DEVELOPMENT ASSISTANCE == REPORT.
26 25 In order for the general assembly to have accurate and
26 26 complete information regarding expenditures for economic
26 27 development and job training incentives and to respond to the
26 28 job training needs of Iowa workers, the department shall
26 29 provide to the legislative services agency by January 15 of
26 30 each year data on all assistance or benefits provided under
26 31 the community economic betterment program, the new jobs and
26 32 income program, high quality job creation program, and the
26 33 Iowa industrial new jobs training Act during the previous
26 34 calendar year. The department shall meet with the legislative
26 35 services agency prior to submitting the data to assure that
27 1 its form and specificity are sufficient to provide accurate
27 2 and complete information to the general assembly. The
27 3 department shall also contact other state agencies providing
27 4 financial assistance to Iowa businesses and, to the extent
27 5 practical, coordinate the submission of the data to the
27 6 legislative services agency.
27 7 Sec. 39. Section 15.326, Code 2005, is amended to read as
27 8 follows:
27 9 15.326 SHORT TITLE.
27 10 This part shall be known and may be cited as the "New Jobs
27 11 and Income "High Quality Job Creation Act".
27 12 Sec. 40. Section 15.327, Code 2005, is amended to read as
27 13 follows:
27 14 15.327 DEFINITIONS.
27 15 As used in this part, unless the context otherwise
27 16 requires:
27 17 1. "Community" means a city, county, or entity established
27 18 pursuant to chapter 28E.
27 19 2. "Contractor or subcontractor" means a person who
27 20 contracts with the eligible business or a supporting business
27 21 or subcontracts with a contractor for the provision of
27 22 property, materials, or services for the construction or
27 23 equipping of a facility, located within the economic
27 24 development area, of the eligible business or a supporting
27 25 business.
27 26 3. "Department" means the Iowa department of economic
27 27 development.
27 28 4. "Director" means the director of the department or the
27 29 director's designee.
27 30 5. "Economic development area" means a site or sites
27 31 designated by the department of economic development for the
27 32 purpose of attracting an eligible business and supporting
27 33 businesses to locate facilities within the state.
27 34 6. 4. "Eligible business" means a business meeting the
27 35 conditions of section 15.329.
28 1 7. 5. "Program" means the new jobs and income high
28 2 quality job creation program.
28 3 8. 6. "Project completion" means the first date upon
28 4 which the average annualized production of finished product
28 5 for the preceding ninety=day period at the manufacturing
28 6 facility operated by the eligible business within the economic
28 7 development area is at least fifty percent of the initial
28 8 design capacity of the facility. The eligible business shall
28 9 inform the department of revenue in writing within two weeks
28 10 of project completion.
28 11 9. "Supporting business" means a business under contract
28 12 with the eligible business to provide property, materials, or
28 13 services which are a necessary component of the operation of
28 14 the manufacturing facility. To qualify as a supporting
28 15 business, the business shall have a permanent facility or
28 16 operations located within the economic development area and
28 17 the revenue from fulfilling the contract with the eligible
28 18 business shall constitute at least seventy=five percent of the
28 19 revenue generated by the business from all activities
28 20 undertaken from the facility within the economic development
28 21 area.
28 22 7. "Qualifying investment" means a capital investment in
28 23 real property including the purchase price of land and
28 24 existing buildings and structures, site preparation,
28 25 improvements to the real property, building construction, and
28 26 long=term lease costs. "Qualifying investment" also means a
28 27 capital investment in depreciable assets.
28 28 Sec. 41. Section 15.329, Code 2005, is amended by striking
28 29 the section and inserting in lieu thereof the following:
28 30 15.329 ELIGIBLE BUSINESS.
28 31 1. To be eligible to receive incentives under this part, a
28 32 business shall meet all of the following requirements:
28 33 a. If the qualifying investment is ten million dollars or
28 34 more, the community has approved by ordinance or resolution
28 35 the start=up, location, or expansion of the business for the
29 1 purpose of receiving the benefits of this part.
29 2 b. The business has not closed or substantially reduced
29 3 its operation in one area of the state and relocated
29 4 substantially the same operation in the community. This
29 5 subsection does not prohibit a business from expanding its
29 6 operation in the community if existing operations of a similar
29 7 nature in the state are not closed or substantially reduced.
29 8 c. The business is not a retail or service business.
29 9 2. In addition to the requirements of subsection 1, a
29 10 business shall do at least four of the following in order to
29 11 be eligible for incentives under the program:
29 12 a. Offer a pension or profit sharing plan to full=time
29 13 employees.
29 14 b. Produce or manufacture high value=added goods or
29 15 services or be engaged in one of the following industries:
29 16 (1) Value=added agricultural products.
29 17 (2) Insurance and financial services.
29 18 (3) Plastics.
29 19 (4) Metals.
29 20 (5) Printing paper or packaging products.
29 21 (6) Drugs and pharmaceuticals.
29 22 (7) Software development.
29 23 (8) Instruments and measuring devices and medical
29 24 instruments.
29 25 (9) Recycling and waste management.
29 26 (10) Telecommunications.
29 27 Retail business shall not be eligible for benefits under
29 28 this part.
29 29 c. Provide and pay at least eighty percent of the cost of
29 30 a standard medical and dental insurance plan for all full=time
29 31 employees working at the facility in which the new investment
29 32 occurred.
29 33 d. Make child care services available to its employees.
29 34 e. Invest annually no less than one percent of pretax
29 35 profits, from the facility located to Iowa or expanded under
30 1 the program, in research and development in Iowa.
30 2 f. Invest annually no less than one percent of pretax
30 3 profits, from the facility located to Iowa or expanded under
30 4 the program, in worker training and skills enhancement.
30 5 g. Have an active productivity and safety improvement
30 6 program involving management and worker participation and
30 7 cooperation with benchmarks for gauging compliance.
30 8 h. Occupy an existing facility, at least one of the
30 9 buildings of which shall be vacant and shall contain at least
30 10 twenty thousand square feet.
30 11 3. Any business located in a quality jobs enterprise zone
30 12 is ineligible to receive the economic development incentives
30 13 under the program.
30 14 4. If the department finds that a business has a record of
30 15 violations of the law, including but not limited to
30 16 environmental and worker safety statutes, rules, and
30 17 regulations, over a period of time that tends to show a
30 18 consistent pattern, the business shall not qualify for
30 19 economic development assistance under this part, unless the
30 20 department finds that the violations did not seriously affect
30 21 public health or safety, or the environment, or if it did,
30 22 that there were mitigating circumstances. In making the
30 23 findings and determinations regarding violations, mitigating
30 24 circumstances, and whether the business is disqualified for
30 25 economic development assistance under this part, the
30 26 department shall be exempt from chapter 17A.
30 27 5. The department shall also consider a variety of
30 28 factors, including but not limited to the following in
30 29 determining the eligibility of a business to participate in
30 30 the program:
30 31 a. The quality of the jobs to be created. In rating the
30 32 quality of the jobs, the department shall place greater
30 33 emphasis on those jobs that have a higher wage scale, have a
30 34 lower turnover rate, are full=time or career=type positions,
30 35 provide comprehensive health benefits, or have other related
31 1 factors which could be considered to be higher in quality,
31 2 than to other jobs. Businesses that have wage scales
31 3 substantially below that of existing Iowa businesses in that
31 4 area should be rated as providing the lowest quality of jobs
31 5 and should therefore be given the lowest ranking for providing
31 6 such assistance.
31 7 b. The impact of the proposed project on other businesses
31 8 in competition with the business being considered for
31 9 assistance. The department shall make a good faith effort to
31 10 identify existing Iowa businesses within an industry in
31 11 competition with the business being considered for assistance.
31 12 The department shall make a good faith effort to determine the
31 13 probability that the proposed financial assistance will
31 14 displace employees of the existing businesses. In determining
31 15 the impact on businesses in competition with the business
31 16 being considered for assistance, jobs created as a result of
31 17 other jobs being displaced elsewhere in the state shall not be
31 18 considered direct jobs created.
31 19 c. The impact to the state of the proposed project. In
31 20 measuring the economic impact, the department shall place
31 21 greater emphasis on projects which have greater consistency
31 22 with the state strategic plan than other projects. Greater
31 23 consistency may include any or all of the following:
31 24 (1) A business with a greater percentage of sales out=of=
31 25 state or of import substitution.
31 26 (2) A business with a higher proportion of in=state
31 27 suppliers.
31 28 (3) A project which would provide greater diversification
31 29 of the state economy.
31 30 (4) A business with fewer in=state competitors.
31 31 (5) A potential for future job growth.
31 32 (6) A project which is not a retail operation.
31 33 d. If a business has, within three years of application
31 34 for assistance, acquired or merged with an Iowa corporation or
31 35 company, whether the business has made a good faith effort to
32 1 hire the workers of the acquired or merged company.
32 2 e. Whether a business provides for a preference for hiring
32 3 residents of the state, except for out=of=state employees
32 4 offered a transfer to Iowa.
32 5 f. Whether all known required environmental permits have
32 6 been issued and regulations met before moneys are released.
32 7 6. The department may waive any of the requirements of
32 8 this section for good cause shown.
32 9 7. An application to receive incentives under this part
32 10 may be submitted to the department at any time within one year
32 11 from the time the job for which benefits are sought commences.
32 12 Sec. 42. Section 15.330, Code 2005, is amended by striking
32 13 the section and inserting in lieu thereof the following:
32 14 15.330 AGREEMENT.
32 15 A business shall enter into an agreement with the
32 16 department specifying the requirements that must be met to
32 17 confirm eligibility pursuant to this part. The department
32 18 shall consult with the community during negotiations relating
32 19 to the agreement. The agreement shall contain, at a minimum,
32 20 the following provisions:
32 21 1. A business that is approved to receive incentives
32 22 shall, for the length of the agreement, certify annually to
32 23 the community and the department the compliance of the
32 24 business with the requirements of the agreement.
32 25 2. The repayment of incentives by the business if the
32 26 business does not meet any of the requirements of this part or
32 27 the resulting agreement.
32 28 3. If a business that is approved to receive incentives
32 29 under this part experiences a layoff within the state or
32 30 closes any of its facilities within the state, the department
32 31 shall have the discretion to reduce or eliminate some or all
32 32 of the incentives. If a business has received incentives
32 33 under this part and experiences a layoff within the state or
32 34 closes any of its facilities within the state, the business
32 35 may be subject to repayment of all or a portion of the
33 1 incentives that it has received.
33 2 4. A business creating fifteen or fewer new high quality
33 3 jobs shall have up to three years to complete a project and
33 4 shall be required to maintain the jobs for an additional two
33 5 years. A business creating sixteen or more new high quality
33 6 jobs shall have up to five years to complete a project and
33 7 shall be required to maintain the jobs for an additional two
33 8 years.
33 9 Sec. 43. Section 15.331A, Code 2005, is amended to read as
33 10 follows:
33 11 15.331A SALES AND USE TAX REFUND == CONTRACTOR OR
33 12 SUBCONTRACTOR.
33 13 The eligible business or a supporting business shall be
33 14 entitled to a refund of the sales and use taxes paid under
33 15 chapter 423 for gas, electricity, water, or sewer utility
33 16 services, goods, wares, or merchandise, or on services
33 17 rendered, furnished, or performed to or for a contractor or
33 18 subcontractor and used in the fulfillment of a written
33 19 contract relating to the construction or equipping of a
33 20 facility within the economic development area of the eligible
33 21 business or a supporting business. Taxes attributable to
33 22 intangible property and furniture and furnishings shall not be
33 23 refunded. However, an eligible business shall be entitled to
33 24 a refund for taxes attributable to racks, shelving, and
33 25 conveyor equipment to be used in a warehouse or distribution
33 26 center subject to section 15.331C.
33 27 To receive the refund a claim shall be filed by the
33 28 eligible business or a supporting business with the department
33 29 of revenue as follows:
33 30 1. The contractor or subcontractor shall state under oath,
33 31 on forms provided by the department, the amount of the sales
33 32 of goods, wares, or merchandise or services rendered,
33 33 furnished, or performed including water, sewer, gas, and
33 34 electric utility services for use in the economic development
33 35 area upon which sales or use tax has been paid prior to the
34 1 project completion, and shall file the forms with the eligible
34 2 business or supporting business before final settlement is
34 3 made.
34 4 2. The eligible business or a supporting business shall,
34 5 not more than one year after project completion, make
34 6 application to the department for any refund of the amount of
34 7 the sales and use taxes paid pursuant to chapter 423 upon any
34 8 goods, wares, or merchandise, or services rendered, furnished,
34 9 or performed, including water, sewer, gas, and electric
34 10 utility services. The application shall be made in the manner
34 11 and upon forms to be provided by the department, and the
34 12 department shall audit the claim and, if approved, issue a
34 13 warrant to the eligible business or supporting business in the
34 14 amount of the sales or use tax which has been paid to the
34 15 state of Iowa under a contract. A claim filed by the eligible
34 16 business or a supporting business in accordance with this
34 17 section shall not be denied by reason of a limitation
34 18 provision set forth in chapter 421 or 423.
34 19 3. A contractor or subcontractor who willfully makes a
34 20 false report of tax paid under the provisions of this section
34 21 is guilty of a simple misdemeanor and in addition is liable
34 22 for the payment of the tax and any applicable penalty and
34 23 interest.
34 24 Sec. 44. Section 15.331C, Code 2005, is amended to read as
34 25 follows:
34 26 15.331C CORPORATE TAX CREDIT FOR CERTAIN SALES TAXES PAID
34 27 BY THIRD=PARTY DEVELOPER.
34 28 1. An eligible business or a supporting business may claim
34 29 a corporate tax credit in an amount equal to the taxes paid by
34 30 a third=party developer under chapters 422 and 423 for gas,
34 31 electricity, water, or sewer utility services, goods, wares,
34 32 or merchandise, or on services rendered, furnished, or
34 33 performed to or for a contractor or subcontractor and used in
34 34 the fulfillment of a written contract relating to the
34 35 construction or equipping of a facility within the economic
35 1 development area of the eligible business or supporting
35 2 business. Taxes attributable to intangible property and
35 3 furniture and furnishings shall not be included, but taxes
35 4 attributable to racks, shelving, and conveyor equipment to be
35 5 used in a warehouse or distribution center shall be included.
35 6 Any credit in excess of the tax liability for the tax year may
35 7 be credited to the tax liability for the following seven years
35 8 or until depleted, whichever occurs earlier. An eligible
35 9 business may elect to receive a refund of all or a portion of
35 10 an unused tax credit.
35 11 2. A third=party developer shall state under oath, on
35 12 forms provided by the department of economic development, the
35 13 amount of taxes paid as described in subsection 1 and shall
35 14 submit such forms to the department. The taxes paid shall be
35 15 itemized to allow identification of the taxes attributable to
35 16 racks, shelving, and conveyor equipment to be used in a
35 17 warehouse or distribution center. After receiving the form
35 18 from the third=party developer, the department shall issue a
35 19 tax credit certificate to the eligible business or supporting
35 20 business equal to the taxes paid by a third=party developer
35 21 under chapters 422 and 423 for gas, electricity, water, or
35 22 sewer utility services, goods, wares, or merchandise, or on
35 23 services rendered, furnished, or performed to or for a
35 24 contractor or subcontractor and used in the fulfillment of a
35 25 written contract relating to the construction or equipping of
35 26 a facility. The department shall also issue a tax credit
35 27 certificate to the eligible business or supporting business
35 28 equal to the taxes paid and attributable to racks, shelving,
35 29 and conveyor equipment to be used in a warehouse or
35 30 distribution center. The aggregate combined total amount of
35 31 tax refunds under section 15.331A for taxes attributable to
35 32 racks, shelving, and conveyor equipment to be used in a
35 33 warehouse or distribution center and of tax credit
35 34 certificates issued by the department for the taxes paid and
35 35 attributable to racks, shelving, and conveyor equipment to be
36 1 used in a warehouse or distribution center shall not exceed
36 2 five hundred thousand dollars in a fiscal year. If an
36 3 applicant for a tax credit certificate does not receive a
36 4 certificate for the taxes paid and attributable to racks,
36 5 shelving, and conveyor equipment to be used in a warehouse or
36 6 distribution center, the application shall be considered in
36 7 succeeding fiscal years. The eligible business or supporting
36 8 business shall not claim a tax credit under this section
36 9 unless a tax credit certificate issued by the department of
36 10 economic development is attached to the taxpayer's tax return
36 11 for the tax year for which the tax credit is claimed. A tax
36 12 credit certificate shall contain the eligible business's or
36 13 supporting business's name, address, tax identification
36 14 number, the amount of the tax credit, and other information
36 15 required by the department of revenue.
36 16 Sec. 45. Section 15.333, Code 2005, is amended by striking
36 17 the section and inserting in lieu thereof the following:
36 18 15.333 INVESTMENT TAX CREDIT.
36 19 1. An eligible business may claim a tax credit equal to a
36 20 percentage of the new investment directly related to new jobs
36 21 created by the location or expansion of an eligible business
36 22 under the program. The tax credit shall be amortized equally
36 23 over five calendar years. The tax credit shall be allowed
36 24 against taxes imposed under chapter 422, division II, III, or
36 25 V, and against the moneys and credits tax imposed in section
36 26 533.24. If the business is a partnership, S corporation,
36 27 limited liability company, cooperative organized under chapter
36 28 501 and filing as a partnership for federal tax purposes, or
36 29 estate or trust electing to have the income taxed directly to
36 30 the individual, an individual may claim the tax credit
36 31 allowed. The amount claimed by the individual shall be based
36 32 upon the pro rata share of the individual's earnings of the
36 33 partnership, S corporation, limited liability company,
36 34 cooperative organized under chapter 501 and filing as a
36 35 partnership for federal tax purposes, or estate or trust. The
37 1 percentage shall be determined as provided in section 15.335A.
37 2 Any tax credit in excess of the tax liability for the tax year
37 3 may be credited to the tax liability for the following seven
37 4 years or until depleted, whichever occurs first.
37 5 Subject to prior approval by the department of economic
37 6 development, in consultation with the department of revenue,
37 7 an eligible business whose project primarily involves the
37 8 production of value=added agricultural products or uses
37 9 biotechnology=related processes may elect to receive a refund
37 10 of all or a portion of an unused tax credit. For purposes of
37 11 this subsection, such an eligible business includes a
37 12 cooperative described in section 521 of the Internal Revenue
37 13 Code which is not required to file an Iowa corporate income
37 14 tax return, and whose project primarily involves the
37 15 production of ethanol. The refund may be applied against a
37 16 tax liability imposed under chapter 422, division II, III, or
37 17 V, and against the moneys and credits tax imposed in section
37 18 533.24. If the business is a partnership, S corporation,
37 19 limited liability company, cooperative organized under chapter
37 20 501 and filing as a partnership for federal tax purposes, or
37 21 estate or trust electing to have the income taxed directly to
37 22 the individual, an individual may claim the tax credit
37 23 allowed. The amount claimed by the individual shall be based
37 24 upon the pro rata share of the individual's earnings of the
37 25 partnership, S corporation, limited liability company,
37 26 cooperative organized under chapter 501 and filing as a
37 27 partnership for federal tax purposes, or estate or trust.
37 28 2. For purposes of this subsection, "new investment
37 29 directly related to new jobs created by the location or
37 30 expansion of an eligible business under the program" means the
37 31 cost of machinery and equipment, as defined in section 427A.1,
37 32 subsection 1, paragraphs "e" and "j", purchased for use in the
37 33 operation of the eligible business, the purchase price of
37 34 which has been depreciated in accordance with generally
37 35 accepted accounting principles, the purchase price of real
38 1 property and any buildings and structures located on the real
38 2 property, and the cost of improvements made to real property
38 3 which is used in the operation of the eligible business. "New
38 4 investment directly related to new jobs created by the
38 5 location or expansion of an eligible business under the
38 6 program" also means the annual base rent paid to a third=
38 7 party developer by an eligible business for a period not to
38 8 exceed ten years, provided the cumulative cost of the base
38 9 rent payments for that period does not exceed the cost of the
38 10 land and the third=party developer's costs to build or
38 11 renovate the building for the eligible business. The eligible
38 12 business shall enter into a lease agreement with the third=
38 13 party developer for a minimum of five years. If, however,
38 14 within five years of purchase, the eligible business sells,
38 15 disposes of, razes, or otherwise renders unusable all or a
38 16 part of the land, buildings, or other existing structures for
38 17 which tax credit was claimed under this section, the tax
38 18 liability of the eligible business for the year in which all
38 19 or part of the property is sold, disposed of, razed, or
38 20 otherwise rendered unusable shall be increased by one of the
38 21 following amounts:
38 22 a. One hundred percent of the tax credit claimed under
38 23 this section if the property ceases to be eligible for the tax
38 24 credit within one full year after being placed in service.
38 25 b. Eighty percent of the tax credit claimed under this
38 26 section if the property ceases to be eligible for the tax
38 27 credit within two full years after being placed in service.
38 28 c. Sixty percent of the tax credit claimed under this
38 29 section if the property ceases to be eligible for the tax
38 30 credit within three full years after being placed in service.
38 31 d. Forty percent of the tax credit claimed under this
38 32 section if the property ceases to be eligible for the tax
38 33 credit within four full years after being placed in service.
38 34 e. Twenty percent of the tax credit claimed under this
38 35 section if the property ceases to be eligible for the tax
39 1 credit within five full years after being placed in service.
39 2 3. a. An eligible business whose project primarily
39 3 involves the production of value=added agricultural products
39 4 or uses biotechnology=related processes, which elects to
39 5 receive a refund of all or a portion of an unused tax credit,
39 6 shall apply to the department of economic development for tax
39 7 credit certificates. Such an eligible business shall not
39 8 claim a tax credit refund under this subsection unless a tax
39 9 credit certificate issued by the department of economic
39 10 development is attached to the taxpayer's tax return for the
39 11 tax year for which the tax credit refund is claimed. For
39 12 purposes of this subsection, an eligible business includes a
39 13 cooperative described in section 521 of the Internal Revenue
39 14 Code which is not required to file an Iowa corporate income
39 15 tax return, and whose project primarily involves the
39 16 production of ethanol. For purposes of this subsection, an
39 17 eligible business also includes a cooperative described in
39 18 section 521 of the Internal Revenue Code which is required to
39 19 file an Iowa corporate income tax return and whose project
39 20 primarily involves the production of ethanol. Such
39 21 cooperative may elect to transfer all or a portion of its tax
39 22 credit to its members. The amount of tax credit transferred
39 23 and claimed by a member shall be based upon the pro rata share
39 24 of the member's earnings of the cooperative.
39 25 b. A tax credit certificate issued under this subsection
39 26 shall not be valid until the tax year following the date of
39 27 the capital investment project completion. A tax credit
39 28 certificate shall contain the taxpayer's name, address, tax
39 29 identification number, the date of project completion, the
39 30 amount of the tax credit, and other information required by
39 31 the department of revenue. The department of economic
39 32 development shall not issue tax credit certificates under this
39 33 subsection which total more than four million dollars during a
39 34 fiscal year. If the department receives and approves
39 35 applications for tax credit certificates under this subsection
40 1 in excess of four million dollars, the applicants shall
40 2 receive certificates for a prorated amount. The tax credit
40 3 certificates shall not be transferred except as provided in
40 4 this subsection for a cooperative described in section 521 of
40 5 the Internal Revenue Code which is required to file an Iowa
40 6 corporate income tax return and whose project primarily
40 7 involves the production of ethanol. For a cooperative
40 8 described in section 521 of the Internal Revenue Code, the
40 9 department of economic development shall require that the
40 10 cooperative submit a list of its members and the share of each
40 11 member's interest in the cooperative. The department shall
40 12 issue a tax credit certificate to each member contained on the
40 13 submitted list.
40 14 Sec. 46. Section 15.333A, Code 2005, is amended by
40 15 striking the section and inserting in lieu thereof the
40 16 following:
40 17 15.333A INSURANCE PREMIUM TAX CREDITS.
40 18 1. An eligible business may claim an insurance premium tax
40 19 credit equal to a percentage of the new investment directly
40 20 related to new jobs created by the location or expansion of an
40 21 eligible business under the program. The tax credit shall be
40 22 amortized equally over a five=year period. The tax credit
40 23 shall be allowed against taxes imposed in chapter 432. A tax
40 24 credit in excess of the tax liability for the tax year may be
40 25 credited to the tax liability for the following seven years or
40 26 until depleted, whichever occurs first. The percentage shall
40 27 be determined as provided in section 15.335A.
40 28 2. For purposes of this section, "new investment directly
40 29 related to new jobs created by the location or expansion of an
40 30 eligible business under the program" means the cost of
40 31 machinery and equipment, as defined in section 427A.1,
40 32 subsection 1, paragraphs "e" and "j", purchased for use in the
40 33 operation of the eligible business, the purchase price of
40 34 which has been depreciated in accordance with generally
40 35 accepted accounting principles, the purchase price of real
41 1 property and any buildings and structures located on the real
41 2 property, and the cost of improvements made to real property
41 3 which is used in the operation of the eligible business. "New
41 4 investment directly related to new jobs created by the
41 5 location or expansion of an eligible business under the
41 6 program" also means the annual base rent paid to a third=party
41 7 developer by an eligible business for a period not to exceed
41 8 ten years, provided the cumulative cost of the base rent
41 9 payments for that period does not exceed the cost of the land
41 10 and the third=party developer's costs to build or renovate the
41 11 building for the eligible business. The eligible business
41 12 shall enter into a lease agreement with the third=party
41 13 developer for a minimum of five years. If, however, within
41 14 five years of purchase, the eligible business sells, disposes
41 15 of, razes, or otherwise renders unusable all or a part of the
41 16 land, buildings, or other existing structures for which tax
41 17 credit was claimed under this section, the tax liability of
41 18 the eligible business for the year in which all or part of the
41 19 property is sold, disposed of, razed, or otherwise rendered
41 20 unusable shall be increased by one of the following amounts:
41 21 a. One hundred percent of the tax credit claimed under
41 22 this section if the property ceases to be eligible for the tax
41 23 credit within one full year after being placed in service.
41 24 b. Eighty percent of the tax credit claimed under this
41 25 section if the property ceases to be eligible for the tax
41 26 credit within two full years after being placed in service.
41 27 c. Sixty percent of the tax credit claimed under this
41 28 section if the property ceases to be eligible for the tax
41 29 credit within three full years after being placed in service.
41 30 d. Forty percent of the tax credit claimed under this
41 31 section if the property ceases to be eligible for the tax
41 32 credit within four full years after being placed in service.
41 33 e. Twenty percent of the tax credit claimed under this
41 34 section if the property ceases to be eligible for the tax
41 35 credit within five full years after being placed in service.
42 1 Sec. 47. NEW SECTION. 15.335A TAX INCENTIVES.
42 2 1. Tax incentives are available to eligible businesses as
42 3 provided in this section. The incentives are based upon the
42 4 number of new high quality jobs created and the amount of the
42 5 qualifying investment made according to the following
42 6 schedule:
42 7 a. The number of new high quality jobs created with an
42 8 annual wage, including benefits, equal to or greater than one
42 9 hundred thirty percent of the average county wage is one of
42 10 the following:
42 11 (1) The number of jobs is zero and economic activity is
42 12 furthered by the qualifying investment and the amount of the
42 13 qualifying investment is one of the following:
42 14 (a) Less than one hundred thousand dollars, then the tax
42 15 incentive is the investment tax credit of up to one percent.
42 16 (b) At least one hundred thousand dollars but less than
42 17 five hundred thousand dollars, then the tax incentives are the
42 18 investment tax credit of up to one percent and the sales tax
42 19 refund.
42 20 (c) At least five hundred thousand dollars, then the tax
42 21 incentives are the investment tax credit of up to one percent,
42 22 the sales tax refund, and the additional research and
42 23 development tax credit.
42 24 (2) The number of jobs is one but not more than five and
42 25 the amount of the qualifying investment is one of the
42 26 following:
42 27 (a) Less than one hundred thousand dollars, then the tax
42 28 incentive is the investment tax credit of up to two percent.
42 29 (b) At least one hundred thousand dollars but less than
42 30 five hundred thousand dollars, then the tax incentives are the
42 31 investment tax credit of up to two percent and the sales tax
42 32 refund.
42 33 (c) At least five hundred thousand dollars, then the tax
42 34 incentives are the investment tax credit of up to two percent,
42 35 the sales tax refund, and the additional research and
43 1 development tax credit.
43 2 (3) The number of jobs is six but not more than ten and
43 3 the amount of the qualifying investment is one of the
43 4 following:
43 5 (a) Less than one hundred thousand dollars, then the tax
43 6 incentive is the investment tax credit of up to three percent.
43 7 (b) At least one hundred thousand dollars but less than
43 8 five hundred thousand dollars, then the tax incentives are the
43 9 investment tax credit of up to three percent and the sales tax
43 10 refund.
43 11 (c) At least five hundred thousand dollars, then the tax
43 12 incentives are the investment tax credit of up to three
43 13 percent, the sales tax refund, and the additional research and
43 14 development tax credit.
43 15 (4) The number of jobs is eleven but not more than fifteen
43 16 and the amount of the qualifying investment is one of the
43 17 following:
43 18 (a) Less than one hundred thousand dollars, then the tax
43 19 incentive is the investment tax credit of up to four percent.
43 20 (b) At least one hundred thousand dollars but less than
43 21 five hundred thousand dollars, then the tax incentives are the
43 22 investment tax credit of up to four percent and the sales tax
43 23 refund.
43 24 (c) At least five hundred thousand dollars, then the tax
43 25 incentives are the investment tax credit of up to four
43 26 percent, the sales tax refund, and the additional research and
43 27 development tax credit.
43 28 (5) The number of jobs is sixteen or more and the amount
43 29 of the qualifying investment is one of the following:
43 30 (a) Less than one hundred thousand dollars, then the tax
43 31 incentive is the investment tax credit of up to five percent.
43 32 (b) At least one hundred thousand dollars but less than
43 33 five hundred thousand dollars, then the tax incentives are the
43 34 investment tax credit of up to five percent and the sales tax
43 35 refund.
44 1 (c) At least five hundred thousand dollars, then the tax
44 2 incentives are the investment tax credit of up to five
44 3 percent, the sales tax refund, and the additional research and
44 4 development tax credit.
44 5 b. In lieu of paragraph "a", the number of new high
44 6 quality jobs created with an annual wage, including benefits,
44 7 equal to or greater than one hundred sixty percent of the
44 8 average county wage is one of the following:
44 9 (1) The number of jobs is twenty=one but not more than
44 10 thirty and the amount of the qualifying investment is at least
44 11 ten million dollars, then the tax incentives are the local
44 12 property tax exemption, the investment tax credit of up to six
44 13 percent, the sales tax refund, and the additional research and
44 14 development tax credit.
44 15 (2) The number of jobs is thirty=one but not more than
44 16 forty and the amount of the qualifying investment is at least
44 17 ten million dollars, then the tax incentives are the local
44 18 property tax exemption, the investment tax credit of up to
44 19 seven percent, the sales tax refund, and the additional
44 20 research and development tax credit.
44 21 (3) The number of jobs is forty=one but not more than
44 22 fifty and the amount of the qualifying investment is at least
44 23 ten million dollars, then the tax incentives are the local
44 24 property tax exemption, the investment tax credit of up to
44 25 eight percent, the sales tax refund, and the additional
44 26 research and development tax credit.
44 27 (4) The number of jobs is fifty=one but not more than
44 28 sixty and the amount of the qualifying investment is at least
44 29 ten million dollars, then the tax incentives are the local
44 30 property tax exemption, the investment tax credit of up to
44 31 nine percent, the sales tax refund, and the additional
44 32 research and development tax credit.
44 33 (5) The number of jobs is at least sixty=one and the
44 34 amount of the qualifying investment is at least ten million
44 35 dollars, then the tax incentives are the local property tax
45 1 exemption, the investment tax credit of up to ten percent, the
45 2 sales tax refund, and the additional research and development
45 3 tax credit.
45 4 2. For purposes of this section:
45 5 a. "Additional research and development tax credit" means
45 6 the research activities credit as provided under section
45 7 15.335.
45 8 b. "Average county wage" means the same as defined in
45 9 section 15H.1.
45 10 c. "Benefits" means the same as defined in section 15H.1.
45 11 d. "Investment tax credit" means the investment tax credit
45 12 or the insurance premium tax credit as provided under section
45 13 15.333 or 15.333A, respectively.
45 14 e. "Local property tax exemption" means the property tax
45 15 exemption as provided under section 15.332.
45 16 f. "Sales tax refund" means the sales and use tax refund
45 17 as provided under section 15.331A or the corporate tax credit
45 18 for certain sales taxes paid by third=party developers as
45 19 provided under section 15.331C.
45 20 3. A community may apply to the Iowa economic development
45 21 board for a waiver from the average county wage calculations
45 22 provided in subsection 1 in order for an eligible business to
45 23 receive tax incentives. The board may grant a waiver from the
45 24 average county wage calculations in subsection 1 for the
45 25 remainder of the calendar year, based on average county or
45 26 regional wage calculations brought forth by the applicant
45 27 county including, but not limited to, any of the following:
45 28 a. The average county wage calculated without wage data
45 29 from the business in the county employing the greatest number
45 30 of full=time employees.
45 31 b. The average regional wage calculated without wage data
45 32 from up to two adjacent counties.
45 33 c. The average county wage calculated without wage data
45 34 from the largest city in the county.
45 35 d. A qualifying wage guideline for a specific project
46 1 based upon unusual economic circumstances present in the city
46 2 or county.
46 3 e. The annualized, average hourly wage paid by all
46 4 businesses in the county located outside the largest city of
46 5 the county.
46 6 f. The annualized, average hourly wage paid by all
46 7 businesses other than the largest employer in the entire
46 8 county.
46 9 4. Average wage calculations made under this section shall
46 10 be calculated quarterly using wage data submitted to the
46 11 department of workforce development during the previous four
46 12 quarters.
46 13 5. Each calendar year, the department shall not approve
46 14 more than three million six hundred thousand dollars worth of
46 15 investment tax credits for projects with qualifying
46 16 investments of less than one million dollars.
46 17 Sec. 48. Section 15.336, Code 2005, is amended to read as
46 18 follows:
46 19 15.336 OTHER INCENTIVES.
46 20 An eligible business may receive other applicable federal,
46 21 state, and local incentives and credits in addition to those
46 22 provided in this part. However, a business which participates
46 23 in the program under this part shall not receive any funds
46 24 from the community economic development account under the
46 25 community economic betterment program, tax credits, or
46 26 incentives under chapter 15E, division XVIII, or moneys from
46 27 the grow Iowa values fund.
46 28 Sec. 49. Section 15E.196, subsection 1, paragraph a, Code
46 29 2005, is amended to read as follows:
46 30 a. New jobs credit from withholding, as provided in
46 31 section 15.331 15E.197.
46 32 Sec. 50. Section 15E.196, subsections 3 and 6, Code 2005,
46 33 are amended to read as follows:
46 34 3. Investment tax credit of up to ten percent, as provided
46 35 in section 15.333.
47 1 6. Insurance premium tax credit of up to ten percent, as
47 2 provided in section 15.333A.
47 3 Sec. 51. NEW SECTION. 15E.197 NEW JOBS CREDIT FROM
47 4 WITHHOLDING.
47 5 An eligible business may enter into an agreement with the
47 6 department of revenue and a community college for a
47 7 supplemental new jobs credit from withholding from jobs
47 8 created under the program. The agreement shall be for program
47 9 services for an additional job training project, as defined in
47 10 chapter 260E. The agreement shall provide for the following:
47 11 1. That the project shall be administered in the same
47 12 manner as a project under chapter 260E and that a supplemental
47 13 new jobs credit from withholding in an amount equal to one and
47 14 one=half percent of the gross wages paid by the eligible
47 15 business pursuant to section 422.16 is authorized to fund the
47 16 program services for the additional project.
47 17 2. That the supplemental new jobs credit from withholding
47 18 shall be collected, accounted for, and may be pledged by the
47 19 community college in the same manner as described in section
47 20 260E.5.
47 21 3. That the auditor of state shall perform an annual audit
47 22 regarding how the training funds are being used.
47 23 To provide funds for the payment of the costs of the
47 24 additional project, a community college may borrow money,
47 25 issue and sell certificates, and secure the payment of the
47 26 certificates in the same manner as described in section
47 27 260E.6, including but not limited to providing the assessment
47 28 of an annual levy as described in section 260E.6, subsection
47 29 4. The program and credit authorized by this section is in
47 30 addition to, and not in lieu of, the program and credit
47 31 authorized in chapter 260E.
47 32 4. For purposes of this section, "eligible business" means
47 33 a business which has been approved to receive incentives and
47 34 assistance by the department of economic development pursuant
47 35 to application as provided in section 15E.195.
48 1 Sec. 52. NEW SECTION. 15H.1 DEFINITIONS.
48 2 For purposes of this chapter, unless the context otherwise
48 3 requires:
48 4 1. "Average county wage" means the annualized, average
48 5 hourly wage based on wage information compiled by the
48 6 department of workforce development.
48 7 2. "Benefits" means all of the following:
48 8 a. Medical and dental insurance plans.
48 9 b. Pension and profit sharing plans.
48 10 c. Child care services.
48 11 d. Overtime.
48 12 e. Life insurance coverage.
48 13 f. Other benefits identified by rule of the department.
48 14 3. "Department" means the department of revenue.
48 15 4. a. "Qualified new job" means a job that meets all of
48 16 the following:
48 17 (1) Is a new full=time job that has not existed in the
48 18 business within the previous twelve months in the state.
48 19 (2) Is filled by a new employee for at least twelve
48 20 months.
48 21 (3) Is filled by a resident of the state.
48 22 (4) Is not created as a result of a change in ownership.
48 23 b. "Qualified new job" does not include any of the
48 24 following:
48 25 (1) A job previously filled by the same employee in the
48 26 state.
48 27 (2) A job that was relocated from another location in the
48 28 state.
48 29 (3) A job that is created as a result of a consolidation,
48 30 merger, or restructuring of a business entity if the job does
48 31 not represent a new job in the state.
48 32 5. "Qualifying investment" means a capital investment in
48 33 real property including the purchase price of land and
48 34 existing buildings, site preparation, building construction,
48 35 and long=term lease costs. "Qualifying investment" also means
49 1 a capital investment in depreciable assets.
49 2 6. "Retained qualified new job" means the continued
49 3 employment for another twelve months of the same employee in a
49 4 qualified new job.
49 5 Sec. 53. NEW SECTION. 15H.2 WAGE=BENEFITS TAX CREDIT.
49 6 1. a. Any nonretail, nonservice business may claim a tax
49 7 credit equal to a percentage of the annual wages and benefits
49 8 paid for a qualified new job created by the location or
49 9 expansion of the business in the state. The tax credit shall
49 10 be allowed against taxes imposed under chapter 422, division
49 11 II, III, or V, and chapter 432 and against the moneys and
49 12 credits tax imposed in section 533.24. The percentage shall
49 13 be equal to the amount provided in subsection 2.
49 14 Any credit in excess of the tax liability shall be
49 15 refunded. In lieu of claiming a refund, a taxpayer may elect
49 16 to have the overpayment shown on the taxpayer's final,
49 17 completed return credited to the tax liability for the
49 18 following taxable year.
49 19 b. If the business is a partnership, S corporation,
49 20 limited liability company, or estate or trust electing to have
49 21 the income taxed directly to the individual, an individual may
49 22 claim the tax credit allowed. The amount claimed by the
49 23 individual shall be based upon the pro rata share of the
49 24 individual's earnings of the partnership, S corporation,
49 25 limited liability company, or estate or trust.
49 26 2. The percentage of the annual wages and benefits paid
49 27 for a qualified new job is determined as follows:
49 28 a. If the annual wage and benefits for the qualified new
49 29 job equals less than one hundred thirty percent of the average
49 30 county wage, zero percent.
49 31 b. If the annual wage and benefits for the qualified new
49 32 job equals at least one hundred thirty percent but less than
49 33 one hundred sixty percent of the average county wage, five
49 34 percent.
49 35 c. If the annual wage and benefits for the qualified new
50 1 job equals at least one hundred sixty percent of the average
50 2 county wage, ten percent.
50 3 3. A qualified new job is entitled to the tax credit upon
50 4 the end of the twelfth month of the job having been filled.
50 5 Once a qualified new job is approved for a tax credit, tax
50 6 credits for the next four subsequent tax years may be approved
50 7 if the job continues to be filled and application is made as
50 8 provided in section 15H.3. The percentage determined under
50 9 subsection 2 for the first tax year shall continue to apply to
50 10 subsequent tax credits as the credits relate to that qualified
50 11 new job.
50 12 Sec. 54. NEW SECTION. 15H.3 TAX CREDIT CERTIFICATION ==
50 13 CREDIT LIMITATION.
50 14 1. In order for a wage=benefit tax credit to be claimed,
50 15 the business shall submit an application to the department
50 16 along with information on the qualified new job or retained
50 17 qualified new job and any other information required.
50 18 Applications for approval of the tax credit shall be on forms
50 19 approved by the department. Within forty=five days of receipt
50 20 of the application, the department shall either approve or
50 21 disapprove the application. After the forty=five=day limit,
50 22 the application is deemed approved.
50 23 2. Upon approval of the tax credit and subject to
50 24 subsection 4, a tax credit certificate shall be issued by the
50 25 department. A tax credit certificate shall identify the
50 26 business claiming the tax credit under this chapter and the
50 27 wage and benefit costs incurred during the previous twelve
50 28 months.
50 29 3. The tax credit certificate shall contain the taxpayer's
50 30 name, address, tax identification number, the date of the
50 31 qualified new job, the amount of credit, and other information
50 32 required by the department.
50 33 4. The total amount of tax credit certificates that may be
50 34 issued for a fiscal year under this chapter shall not exceed
50 35 ten million dollars. The department shall establish by rule
51 1 the procedures for the application, review, selection,
51 2 awarding of certificates, and the method to be used to
51 3 determine for which fiscal year the tax credits are available.
51 4 If the approved tax credits exceed the maximum amount for a
51 5 fiscal year, tax credit certificates shall be issued on a pro
51 6 rata basis.
51 7 5. a. A nonretail, nonservice business that has created a
51 8 qualified new job and made the qualifying investment for which
51 9 a tax credit certificate under this chapter is issued is
51 10 eligible to receive a tax credit certificate for each of the
51 11 four subsequent tax years without making additional qualifying
51 12 investments if the business retains the qualified new job
51 13 during each of the twelve months ending in each of the tax
51 14 years by applying for the credit under this section.
51 15 Preference in issuing these tax credit certificates shall be
51 16 given businesses applying for the credit for retained
51 17 qualified new jobs.
51 18 b. A nonretail, nonservice business that created a
51 19 qualified new job and made the qualifying investments but
51 20 failed to receive all or part of the tax credit because of the
51 21 limitation in subsection 4 is eligible to reapply for the tax
51 22 credit for the retained qualified new job.
51 23 6. a. A business whose application has been disapproved
51 24 by the department may appeal the decision to the department of
51 25 economic development within thirty days of notice of
51 26 disapproval. If the department of economic development
51 27 subsequently approves the application, the business shall
51 28 receive the tax credit certificates subject to the
51 29 availability of the amount of credits that may be issued as
51 30 provided in subsection 4.
51 31 b. A nonretail, nonservice business may apply to the
51 32 department of economic development for a waiver of any
51 33 provision of this chapter as it relates to the requirements
51 34 for qualifying for the wage=benefits tax credit. The
51 35 department of economic development shall establish by rule the
52 1 conditions under which a waiver of such requirements will be
52 2 granted. A waiver from average county wage calculations shall
52 3 be applied for and considered by the department according to
52 4 the procedures provided in section 15.335A.
52 5 Sec. 55. NEW SECTION. 15H.4 MONITORING OF JOB CREATION.
52 6 The department shall develop definitions for the terms "job
52 7 creation" and "job retention" to measure and identify the
52 8 number of permanent, full=time positions which businesses
52 9 actually create and retain and which can be documented by
52 10 comparison of the payroll reports during the twenty=four=month
52 11 period before and after tax credits are earned.
52 12 Sec. 56. NEW SECTION. 15H.5 OTHER INCENTIVES.
52 13 A nonretail, nonservice business may receive other
52 14 applicable federal, state, and local incentives and tax
52 15 credits in addition to those provided in this chapter.
52 16 However, a business which has received a tax credit under this
52 17 chapter shall not receive any funds, incentives, tax credits
52 18 from the community development account of the community
52 19 development program, under chapter 15E, division XVIII, and
52 20 under the grow Iowa values fund, if created.
52 21 Sec. 57. NEW SECTION. 422.11L WAGE=BENEFITS TAX CREDIT.
52 22 The taxes imposed under this division, less the credits
52 23 allowed under sections 422.12 and 422.12B, shall be reduced by
52 24 a wage=benefits tax credit authorized pursuant to section
52 25 15H.2.
52 26 Sec. 58. Section 422.16A, Code 2005, is amended to read as
52 27 follows:
52 28 422.16A JOB TRAINING WITHHOLDING == CERTIFICATION AND
52 29 TRANSFER.
52 30 Upon the completion by a business of its repayment
52 31 obligation for a training project funded under chapter 260E,
52 32 including a job training project funded under section 15A.8 or
52 33 repaid in whole or in part by the supplemental new jobs credit
52 34 from withholding under section 15A.7 or section 15.331
52 35 15E.197, the sponsoring community college shall report to the
53 1 department of economic development the amount of withholding
53 2 paid by the business to the community college during the final
53 3 twelve months of withholding payments. The department of
53 4 economic development shall notify the department of revenue of
53 5 that amount. The department shall credit to the workforce
53 6 development fund account established in section 15.342A
53 7 twenty=five percent of that amount each quarter for a period
53 8 of ten years. If the amount of withholding from the business
53 9 or employer is insufficient, the department shall prorate the
53 10 quarterly amount credited to the workforce development fund
53 11 account. The maximum amount from all employers which shall be
53 12 transferred to the workforce development fund account in any
53 13 year is four million dollars.
53 14 Sec. 59. Section 422.33, Code 2005, is amended by adding
53 15 the following new subsection:
53 16 NEW SUBSECTION. 17. The taxes imposed under this division
53 17 shall be reduced by a wage=benefits tax credit authorized
53 18 pursuant to section 15H.2.
53 19 Sec. 60. Section 422.60, Code 2005, is amended by adding
53 20 the following new subsection:
53 21 NEW SUBSECTION. 9. The taxes imposed under this division
53 22 shall be reduced by a wage=benefits tax credit authorized
53 23 pursuant to section 15H.2.
53 24 Sec. 61. Section 427B.17, subsection 5, unnumbered
53 25 paragraph 2, Code 2005, is amended to read as follows:
53 26 Any electric power generating plant which operated during
53 27 the preceding assessment year at a net capacity factor of more
53 28 than twenty percent, shall not receive the benefits of this
53 29 section or of sections section 15.332 and 15.334. For
53 30 purposes of this section, "electric power generating plant"
53 31 means any nameplate rated electric power generating plant, in
53 32 which electric energy is produced from other forms of energy,
53 33 including all taxable land, buildings, and equipment used in
53 34 the production of such energy. "Net capacity factor" means
53 35 net actual generation divided by the product of net maximum
54 1 capacity times the number of hours the unit was in the active
54 2 state during the assessment year. Upon commissioning, a unit
54 3 is in the active state until it is decommissioned. "Net
54 4 actual generation" means net electrical megawatt hours
54 5 produced by the unit during the preceding assessment year.
54 6 "Net maximum capacity" means the capacity the unit can sustain
54 7 over a specified period when not restricted by ambient
54 8 conditions or equipment deratings, minus the losses associated
54 9 with station service or auxiliary loads.
54 10 Sec. 62. NEW SECTION. 432.12G WAGE=BENEFITS TAX CREDIT.
54 11 The taxes imposed under this chapter shall be reduced by a
54 12 wage=benefits tax credit authorized pursuant to section 15H.2.
54 13 Sec. 63. Section 533.24, Code 2005, is amended by adding
54 14 the following new subsection:
54 15 NEW SUBSECTION. 6. The moneys and credits tax imposed
54 16 under this section shall be reduced by a wage=benefits tax
54 17 credit authorized pursuant to section 15H.2.
54 18 Sec. 64. Sections 15.331, 15.331B, 15.334, 15.334A,
54 19 15.337, and 15.381 through 15.387, Code 2005, are repealed.
54 20 Sec. 65. EFFECTIVE AND APPLICABILITY DATE. The provisions
54 21 of this division of this Act relating to Code chapter 15H,
54 22 being deemed of immediate importance, take effect upon
54 23 enactment and apply to qualified new jobs created on or after
54 24 the effective date of this division of this Act. This
54 25 division of this Act applies to tax years ending on or after
54 26 the effective date of this division of this Act.
54 27 DIVISION XI
54 28 RESEARCH AND DEVELOPMENT
54 29 TAX CREDIT
54 30 Sec. 66. Section 15.335, subsection 1, unnumbered
54 31 paragraph 1, Code 2005, is amended to read as follows:
54 32 An eligible business may claim a corporate tax credit for
54 33 increasing research activities in this state during the period
54 34 the eligible business is participating in the program. For
54 35 purposes of this section, "research activities" includes the
55 1 development and deployment of innovative renewable energy
55 2 generation components manufactured or assembled in this state.
55 3 For purposes of this section, "innovative renewable energy
55 4 generation components" does not include a component with more
55 5 than two hundred megawatts of installed effective nameplate
55 6 capacity. The tax credits for innovative renewable energy
55 7 generation components shall not exceed one million dollars.
55 8 DIVISION XII
55 9 ENDOW IOWA
55 10 Sec. 67. Section 15E.303, subsections 4 and 6, Code 2005,
55 11 are amended to read as follows:
55 12 4. "Endowment gift" means an irrevocable contribution to a
55 13 permanent endowment held by a an endow Iowa qualified
55 14 community foundation.
55 15 6. "Qualified "Endow Iowa qualified community foundation"
55 16 means a community foundation organized or operating in this
55 17 state that meets or exceeds substantially complies with the
55 18 national standards established by the national council on
55 19 foundations as determined by the department in collaboration
55 20 with the Iowa council of foundations.
55 21 Sec. 68. Section 15E.304, subsection 2, paragraphs c and
55 22 d, Code 2005, are amended to read as follows:
55 23 c. Identify a an endow Iowa qualified community foundation
55 24 to hold all funds. A An endow Iowa qualified community
55 25 foundation shall not be required to meet this requirement.
55 26 d. Provide a plan to the board demonstrating the method
55 27 for distributing grant moneys received from the board to
55 28 organizations within the community or geographic area as
55 29 defined by the endow Iowa qualified community foundation or
55 30 the community affiliate organization.
55 31 Sec. 69. Section 15E.304, subsection 3, Code 2005, is
55 32 amended to read as follows:
55 33 3. Endow Iowa grants awarded to new and existing endow
55 34 Iowa qualified community foundations and to community
55 35 affiliate organizations shall not exceed twenty=five thousand
56 1 dollars per foundation or organization unless a foundation or
56 2 organization demonstrates a multiple county or regional
56 3 approach. Endow Iowa grants may be awarded on an annual basis
56 4 with not more than three grants going to one county in a
56 5 fiscal year.
56 6 Sec. 70. Section 15E.305, subsection 1, Code 2005, is
56 7 amended to read as follows:
56 8 1. For tax years beginning on or after January 1, 2003, a
56 9 tax credit shall be allowed against the taxes imposed in
56 10 chapter 422, divisions II, III, and V, and in chapter 432, and
56 11 against the moneys and credits tax imposed in section 533.24
56 12 equal to twenty percent of a taxpayer's endowment gift to a an
56 13 endow Iowa qualified community foundation. An individual may
56 14 claim a tax credit under this section of a partnership,
56 15 limited liability company, S corporation, estate, or trust
56 16 electing to have income taxed directly to the individual. The
56 17 amount claimed by the individual shall be based upon the pro
56 18 rata share of the individual's earnings from the partnership,
56 19 limited liability company, S corporation, estate, or trust. A
56 20 tax credit shall be allowed only for an endowment gift made to
56 21 a an endow Iowa qualified community foundation for a permanent
56 22 endowment fund established to benefit a charitable cause in
56 23 this state. Any tax credit in excess of the taxpayer's tax
56 24 liability for the tax year may be credited to the tax
56 25 liability for the following five years or until depleted,
56 26 whichever occurs first. A tax credit shall not be carried
56 27 back to a tax year prior to the tax year in which the taxpayer
56 28 claims the tax credit.
56 29 Sec. 71. Section 15E.305, subsection 2, Code 2005, is
56 30 amended by adding the following new unnumbered paragraph:
56 31 NEW UNNUMBERED PARAGRAPH. Ten percent of the aggregate
56 32 amount of tax credits authorized in a calendar year shall be
56 33 reserved for those endowment gifts in amounts of thirty
56 34 thousand dollars or less. If by September 1 of a calendar
56 35 year the entire ten percent of the reserved tax credits is not
57 1 distributed, the remaining tax credits shall be available to
57 2 any other eligible applicants.
57 3 Sec. 72. Section 15E.305, subsection 4, Code 2005, is
57 4 amended to read as follows:
57 5 4. A tax credit shall not be authorized pursuant to this
57 6 section after December 31, 2005 2008.
57 7 Sec. 73. Section 15E.311, subsection 3, paragraphs a and
57 8 c, Code 2005, are amended to read as follows:
57 9 a. At the end of each fiscal year, moneys in the fund
57 10 shall be transferred into separate accounts within the fund
57 11 and designated for use by each county in which no licensee
57 12 authorized to conduct gambling games under chapter 99F was
57 13 located during that fiscal year. Moneys transferred to county
57 14 accounts shall be divided equally among the counties. Moneys
57 15 transferred into an account for a county shall be transferred
57 16 by the department to an eligible county recipient for that
57 17 county. Of the moneys transferred, an eligible county
57 18 recipient shall distribute seventy=five percent of the moneys
57 19 as grants to charitable organizations for educational, civic,
57 20 public, charitable, patriotic, or religious uses, as defined
57 21 in section 99B.7, subsection 3, paragraph "b", charitable
57 22 purposes in that county and shall retain twenty=five percent
57 23 of the moneys for use in establishing a permanent endowment
57 24 fund for the benefit of charitable organizations for
57 25 educational, civic, public, charitable, patriotic, or
57 26 religious uses, as defined in section 99B.7, subsection 3,
57 27 paragraph "b" charitable purposes.
57 28 c. For purposes of
57 29 3A. As used in this subsection section, an "eligible
57 30 unless the context otherwise requires:
57 31 a. "Charitable organization" means an organization that is
57 32 described in section 501(c)(3) of the Internal Revenue Code
57 33 that is exempt from taxation under section 501(a) of the
57 34 Internal Revenue Code or an organization that is established
57 35 for a charitable purpose.
58 1 b. "Charitable purpose" means a purpose described in
58 2 section 501(c)(3) of the Internal Revenue Code, or a
58 3 benevolent, educational, philanthropic, humane, scientific,
58 4 patriotic, social welfare or advocacy, public health,
58 5 environmental conservation, civic, or other eleemosynary
58 6 objective.
58 7 c. "Eligible county recipient" means a an endow Iowa
58 8 qualified community foundation or community affiliate
58 9 organization, as defined in section 15E.303, that is selected,
58 10 in accordance with the procedures described in section
58 11 15E.304, to receive moneys from an account created in this
58 12 section for a particular county. To be selected as an
58 13 eligible county recipient, a community affiliate organization
58 14 shall establish a county affiliate fund to receive moneys as
58 15 provided by this section.
58 16 Sec. 74. Section 15E.311, Code 2005, is amended by adding
58 17 the following new subsection:
58 18 NEW SUBSECTION. 5. Three percent of the moneys deposited
58 19 in the county endowment fund shall be used by the lead
58 20 philanthropic organization identified by the department
58 21 pursuant to section 15E.304 for purposes of administering and
58 22 marketing the county endowment fund.
58 23 Sec. 75. EFFECTIVE AND RETROACTIVE APPLICABILITY DATES.
58 24 This division of this Act, being deemed of immediate
58 25 importance, takes effect upon enactment and applies
58 26 retroactively to January 1, 2005.
58 27 DIVISION XIII
58 28 E=85 BLENDED GASOLINE
58 29 Sec. 76. NEW SECTION. 15.401 E=85 BLENDED GASOLINE.
58 30 The department shall provide a cost=share program for
58 31 financial incentives for the installation or conversion of
58 32 infrastructure used by service stations to sell and dispense
58 33 E=85 blended gasoline and for the installation or conversion
58 34 of infrastructure required to establish on=site and off=site
58 35 terminal facilities that store biodiesel for distribution to
59 1 service stations. The department shall provide for an
59 2 addition of at least thirty new or converted E=85 retail
59 3 outlets and four new or converted on=site or off=site terminal
59 4 facilities with a maximum expenditure of three hundred twenty=
59 5 five thousand dollars per year for the fiscal period beginning
59 6 July 1, 2005, and ending June 30, 2008. The department may
59 7 provide for the marketing of these products in conjunction
59 8 with this infrastructure program.
59 9 EXPLANATION
59 10 This bill relates to economic development activities.
59 11 DIVISION I == This division of the bill creates the grow
59 12 Iowa values fund.
59 13 The division creates the grow Iowa values fund under the
59 14 control of the department of economic development and
59 15 consisting of moneys appropriated to the fund.
59 16 The division allows a community to apply to the economic
59 17 development board for financial assistance awarded by the
59 18 department from moneys in the grow Iowa values fund. The
59 19 division provides that, in order to receive financial
59 20 assistance from the department from moneys appropriated from
59 21 the grow Iowa values fund, the average annual wage, including
59 22 benefits, of new jobs created must be equal to or greater than
59 23 130 percent of the average county wage. An applicant may
59 24 apply for a waiver of the wage requirements.
59 25 DIVISION II == This division of the bill amends the Iowa
59 26 economic development board provisions. The bill also provides
59 27 areas of expertise that must be represented on the board by at
59 28 least one member each. The bill requires, as part of the
59 29 organizational structure of the department, that the board
59 30 establish a due diligence committee and a loan and credit
59 31 guarantee committee composed of members of the board. The
59 32 bill provides composition requirements for a transitional
59 33 period for the board beginning July 1, 2005, and ending June
59 34 30, 2006. The bill provides annual reporting requirements for
59 35 the board relating to expenditures under the grow Iowa values
60 1 fund.
60 2 DIVISION III == This division of the bill requires the
60 3 department of economic development to coordinate all
60 4 regulatory assistance for the state of Iowa. Each state
60 5 agency administering regulatory programs for business shall
60 6 maintain a coordinator within the agency. The division
60 7 provides that the department of economic development shall, in
60 8 consultation with the coordinators, examine, and to the extent
60 9 permissible, assist in the implementation of methods,
60 10 including the possible establishment of an electronic
60 11 database, to streamline the process for issuing permits to
60 12 business. The division was previously enacted in 2003 and
60 13 then was stricken pursuant to Rants v. Vilsack, 684 N.W.2d
60 14 193.
60 15 DIVISION IV == This division of the bill relates to Iowa
60 16 business resource centers, business accelerators, and economic
60 17 development regions, and provides for a tax credit.
60 18 The bill requires the department of economic development to
60 19 establish an Iowa business resource center program for
60 20 purposes of locating Iowa business resource centers in the
60 21 state. The bill provides that the department shall partner
60 22 with another entity wanting to assist with economic growth to
60 23 establish a center. The bill provides that operational duties
60 24 for a center shall be determined pursuant to a memorandum of
60 25 agreement.
60 26 The division provides for the creation of economic
60 27 development regions. A regional development plan must be
60 28 approved by the department of economic development before the
60 29 region may receive moneys from the grow Iowa values fund.
60 30 Such regions may create economic development region revolving
60 31 funds.
60 32 The division provides that a nongovernmental entity making
60 33 a contribution to an economic development region revolving
60 34 fund may claim a tax credit equal to 20 percent of the amount
60 35 contributed to the revolving fund. The tax credit is allowed
61 1 against personal and corporate income tax, the franchise tax
61 2 for financial institutions, the insurance premium tax, and the
61 3 moneys and credits tax for credit unions. The division allows
61 4 an organization exempt from federal income tax pursuant to
61 5 section 501(c) of the Internal Revenue Code making a
61 6 contribution to an economic development region revolving fund
61 7 to be paid from the general fund of the state an amount equal
61 8 to 20 percent of such contributed amount within 30 days after
61 9 the end of the fiscal year during which the contribution was
61 10 made. The total amount of tax credits and payments to
61 11 contributors, referred to as the credit amount, authorized
61 12 during a fiscal year shall not exceed $2 million plus any
61 13 unused credit amount carried over from previous years. The
61 14 division provides that any credit amount which remains unused
61 15 for a fiscal year may be carried forward to the succeeding
61 16 fiscal year. The division provides that the maximum credit
61 17 amount that may be authorized in a fiscal year for
61 18 contributions made to a specific economic development region
61 19 revolving fund is equal to $2 million plus any unused credit
61 20 amount carried over from previous years divided by the number
61 21 of economic development region revolving funds existing in the
61 22 state.
61 23 The division provides that an economic development region
61 24 may apply for financial assistance from the grow Iowa values
61 25 fund to assist with physical infrastructure needs related to a
61 26 specific business partner, to assist an existing business
61 27 located in the region impacted by business consolidation
61 28 actions, to implement economic development initiatives unique
61 29 to the region, to implement innovative initiatives that do not
61 30 otherwise qualify for financial assistance, to establish and
61 31 operate an entrepreneurial initiative, and to establish and
61 32 operate a business succession assistance program. The
61 33 division allows the department to establish and administer a
61 34 regional economic development revenue sharing pilot project
61 35 for one or more regions. The division limits financial
62 1 assistance to economic development regions to a total of $1
62 2 million each fiscal year for the fiscal period beginning July
62 3 1, 2005, and ending June 30, 2015, and provides that such
62 4 assistance shall not be provided to assist in the
62 5 establishment, operation, or installation of certain projects,
62 6 initiatives, or activities.
62 7 The division allows an economic development region to apply
62 8 to the department for approval to be designated as an economic
62 9 enterprise area based on criteria as determined by the
62 10 department. An economic enterprise area must consist of at
62 11 least one county containing no city with a population of more
62 12 than 23,500 meeting other certain distress criteria. The
62 13 division limits the number of economic enterprise areas to 10
62 14 regions. The division provides that an approved economic
62 15 enterprise area may apply for financial assistance from the
62 16 grow Iowa values fund of up to $75,000 each fiscal year over a
62 17 10=year period for certain economic development=related
62 18 purposes for the area.
62 19 The bill requires the department of economic development to
62 20 establish and administer a business accelerator program to
62 21 provide financial assistance for the establishment and
62 22 operation of a business accelerator for technology=based,
62 23 value=added agricultural, information solutions, or advanced
62 24 manufacturing start=up businesses or for a satellite of an
62 25 existing business accelerator. The bill provides certain
62 26 criteria that a business accelerator must meet in order to
62 27 receive financial assistance and other criteria that the
62 28 department may consider in determining financial assistance
62 29 awards.
62 30 The division requires small business development centers to
62 31 design a plan which relates to business succession issues for
62 32 small business owners.
62 33 DIVISION V == This division of the bill relates to the
62 34 establishment of cultural and entertainment districts. The
62 35 cultural and entertainment district legislation was previously
63 1 enacted in 2003 and then stricken pursuant to Rants v.
63 2 Vilsack, 684 N.W.2d 193. The division allows a city or county
63 3 to create and designate a district subject to certification by
63 4 the department of cultural affairs, in consultation with the
63 5 department of economic development. The division provides
63 6 that a district is encouraged to include a unique form of
63 7 transportation within the district.
63 8 The division provides that district certification is for a
63 9 period of 10 years and allows for the certification of areas
63 10 that extend across boundaries of cities and counties. The
63 11 division provides that the department of cultural affairs
63 12 shall encourage development projects and activities located in
63 13 certified cultural and entertainment districts through
63 14 incentives under cultural grant programs and any other grant
63 15 programs.
63 16 DIVISION VI == This division of the bill relates to
63 17 rehabilitation project tax credits. The division changes the
63 18 name of the tax credit to historic preservation and cultural
63 19 and entertainment district tax credits. The bill provides
63 20 that, each fiscal year, the department of cultural affairs
63 21 shall allocate at least $400,000 of the tax credits for
63 22 rehabilitation projects which have a total cost of under
63 23 $200,000 each. The division provides that, for the fiscal
63 24 period beginning July 1, 2005, and ending June 30, 2015, an
63 25 additional $4 million of the rehabilitation tax credits may be
63 26 approved each fiscal year for purposes of projects located in
63 27 certified cultural and entertainment districts. The division
63 28 allows tax credits approved for projects located in cultural
63 29 and entertainment districts to be used for projects which
63 30 include new construction or new infrastructure projects.
63 31 DIVISION VII == This division of the bill repeals and
63 32 strikes current Code chapter 262B and replaces it with
63 33 provisions relating to commercialization of research.
63 34 The division requires the department of economic
63 35 development to ensure that businesses in the state are well
64 1 informed about the technology patents, licenses, and options
64 2 available to them from colleges and universities in the state
64 3 and to ensure the department's business development and
64 4 marketing efforts are conducted in a way that maximizes the
64 5 advantage to the state of research and technology
64 6 commercialization efforts at colleges and universities in the
64 7 state. The division requires the department to establish a
64 8 technology commercialization specialist position to be
64 9 responsible for certain responsibilities related to maximizing
64 10 research and technology commercialization efforts at colleges
64 11 and universities in the state.
64 12 The division requires the governor to appoint a chief
64 13 technology officer for the state to serve a four=year term.
64 14 The chief technology officer shall coordinate the activities
64 15 of the technology commercialization specialist and shall serve
64 16 as a spokesperson for the department of economic development
64 17 for purposes of promoting to private sector businesses the
64 18 technology commercialization efforts of the department and the
64 19 research and technology capabilities of institutions of higher
64 20 learning in the state.
64 21 The bill requires that the state board of regents, as part
64 22 of its mission and strategic plan, establish mechanisms for
64 23 the purpose of carrying out commercialization activities. The
64 24 bill requires the board to work with the department of
64 25 economic development, other state agencies, and the private
64 26 sector to facilitate the commercialization of research. The
64 27 board, in cooperation with the department of economic
64 28 development, is required to implement various
64 29 commercialization=related activities.
64 30 The bill requires the state board of regents to conduct a
64 31 study to determine the feasibility of establishing a graduate
64 32 school in western Iowa in cooperation with other public or
64 33 private institutions of higher learning. The bill requires
64 34 the board to conduct a study relating to cost=effective
64 35 methods of recognizing the efforts of faculty to achieve
65 1 commercialization.
65 2 DIVISION VIII == This division of the bill relates to
65 3 workforce training and economic development funds.
65 4 The bill provides that projects funded by moneys provided
65 5 by a local workforce training and economic development fund of
65 6 a community college and which meet the requirements of Code
65 7 chapter 260F are not subject to certain maximum advance or
65 8 award limitations contained in Code chapter 260F. The bill
65 9 provides that moneys in a local workforce training and
65 10 economic development fund may also be used for training and
65 11 retraining programs for targeted industries. The bill strikes
65 12 the June 30, 2010, repeal of the workforce training and
65 13 economic development funds.
65 14 DIVISION IX == This division of the bill relates to the
65 15 loan and credit guarantee program.
65 16 The bill provides that the department of economic
65 17 development may invest up to 10 percent of the assets of the
65 18 loan and credit guarantee fund, or $500,000, whichever is
65 19 greater, to provide loan and credit guarantees or other forms
65 20 of credit guarantees for eligible project costs to
65 21 microenterprises located in a municipality with a population
65 22 under 50,000 that is not contiguous to a municipality with a
65 23 population of 50,000 or more. The bill defines a
65 24 microenterprise as a business providing services with five or
65 25 fewer full=time equivalent employee positions.
65 26 DIVISION X == This division of the bill establishes a high
65 27 quality job creation program and enacts a new Code chapter 15H
65 28 that provides wage=benefits tax credits.
65 29 The division eliminates the new jobs and income program and
65 30 the new capital investment program and creates a high quality
65 31 job creation program to be administered by the department of
65 32 economic development. Under the program, an eligible business
65 33 is not a retail business, has not closed or substantially
65 34 reduced its operation in one area of the state and relocated
65 35 substantially the same operation, and, if the qualifying
66 1 investment is $10 million or more, the community has approved
66 2 the start=up, location, or expansion of the business. The
66 3 division provides that an eligible business must also meet
66 4 four of eight other possible criteria in order to receive
66 5 assistance and provides other factors for the department to
66 6 consider in determining eligibility. The division allows the
66 7 department to waive any eligibility requirement of the program
66 8 for good cause shown. The division allows an applicant to
66 9 submit an application at any time within one year from the
66 10 time the job for which benefits are sought commences.
66 11 The division requires a business to enter into an agreement
66 12 with the department specifying the requirements that must be
66 13 met to confirm eligibility pursuant to the program.
66 14 The division includes the sales and use tax refund under
66 15 the new jobs and income program for the program except that
66 16 the division eliminates the term "supporting businesses".
66 17 The division includes the corporate tax credit for certain
66 18 sales taxes paid by third=party developers under the new jobs
66 19 and income program for the program except that the division
66 20 eliminates the terms "supporting business" and "economic
66 21 development areas".
66 22 The division includes the investment tax credit and the
66 23 insurance premium tax credit under the new capital investment
66 24 program for the program. The division changes the amount of
66 25 the tax credits to be an amount provided under new Code
66 26 section 15.335A, which relates to tax incentives under the
66 27 program and provides that the tax credit shall be amortized
66 28 equally over a five=year period.
66 29 The division creates a system of tax incentives under the
66 30 program that are based on the number of new high quality jobs
66 31 created, the amount of qualifying investments made, and the
66 32 annual wage, including benefits, as compared to the average
66 33 county wage. The types of tax incentives include investment
66 34 tax credits, research and development tax credits, property
66 35 tax exemptions, and sales tax refunds. The type and amount of
67 1 tax incentives available under the program varies depending on
67 2 whether the annual wage, including benefits, of the new jobs
67 3 is equal to or greater than 130 percent or 160 percent of the
67 4 average county wage. The range for qualifying investments is
67 5 $0 to at least $15 million. The range of number of new high
67 6 quality jobs is zero to 61 or more. The division allows for a
67 7 waiver of the average county wage calculations to be granted
67 8 by the department of economic development. The division
67 9 requires the average wage calculations to be calculated on a
67 10 quarterly basis using wage data submitted to the department of
67 11 workforce development during previous calendar quarters. The
67 12 division provides that, each calendar year, the department of
67 13 economic development shall not approve more than $3.6 million
67 14 worth of investment tax credits and insurance premium tax
67 15 credits for projects with qualifying investments of less than
67 16 $1 million.
67 17 The division provides that an eligible business receiving
67 18 incentives under the program shall not receive any funds from
67 19 the community economic development account under the community
67 20 economic betterment program, incentives under the enterprise
67 21 zone program, or moneys from the grow Iowa values fund.
67 22 The division repeals Code section 15.331 relating to a new
67 23 jobs credit from withholding and moves it to new Code section
67 24 15E.197 under the enterprise zone program and makes other
67 25 conforming amendments to the enterprise zone program.
67 26 The division enacts a new Code chapter 15H that provides
67 27 wage=benefits tax credits under the individual and corporate
67 28 income taxes, franchise tax, insurance premiums tax, and
67 29 moneys and credits tax. The amount of the tax credit equals a
67 30 percentage of the wages and benefits paid in the previous 12
67 31 months to the employee in a qualified new job. The percentage
67 32 varies with the maximum being 10 percent if the wages and
67 33 benefits paid to the new employee are at least 160 percent of
67 34 the average county wage and the minimum being 5 percent if the
67 35 wages and benefits paid equal between 130 and 160 percent of
68 1 the average county wage. No tax credit is granted if the
68 2 wages and benefits are less than 130 percent of the average
68 3 county wage. The average county wage is calculated by the
68 4 department of revenue based on information compiled by the
68 5 department of workforce development and equals the annualized,
68 6 average county hourly wage paid.
68 7 A qualified new job is a job that is a new full=time job,
68 8 is filled by a new employee for one year, is filled by a
68 9 resident, and is not created as a result of a change in
68 10 ownership. A qualified new job is not created if it involves
68 11 the rehiring of previously laid=off employees or results from
68 12 the relocation from another place in Iowa or a merger of
68 13 businesses located in Iowa.
68 14 "Benefits" means medical and dental insurance, pension and
68 15 profit sharing, child care, overtime, life insurance, and
68 16 other benefits identified by rule.
68 17 Once a tax credit is granted for new employment, the
68 18 business may continue to receive for up to the next four tax
68 19 years a tax credit for retaining that new employee. The
68 20 business must reapply each year and establish by rule of the
68 21 department of revenue that it has retained the new employee.
68 22 The chapter provides that a maximum of $10 million in tax
68 23 credits are to be awarded in a fiscal year. If there are more
68 24 claims for tax credits than the $10 million, tax credits will
68 25 be granted on a pro rata basis. However, once a taxpayer has
68 26 been awarded the tax credit, if the credit exceeds the tax
68 27 liability, the excess may be refunded.
68 28 The chapter provides that retail and service businesses are
68 29 not eligible to receive tax credits for increased employment.
68 30 The chapter takes effect upon enactment and applies to
68 31 qualified new jobs created on or after the enactment date.
68 32 DIVISION XI == This division of the bill relates to the
68 33 research and development tax credit in Code section 15.335.
68 34 The division provides that research activities include the
68 35 development and deployment of innovative renewable energy
69 1 generation components manufactured or assembled in this state.
69 2 The division provides that "innovative renewable energy
69 3 generation components" does not include a component with more
69 4 than 200 megawatts of installed effective nameplate capacity.
69 5 The division limits the tax credits for such components to $1
69 6 million.
69 7 DIVISION XII == This division of the bill relates to the
69 8 endow Iowa program and the county endowment funds and makes
69 9 appropriations.
69 10 The division changes the term "qualified community
69 11 foundation" to "endow Iowa qualified community foundation".
69 12 The division changes the definition of endow Iowa qualified
69 13 community foundation to provide that such a foundation must
69 14 substantially comply with national standards established by
69 15 the national council on foundations as determined by the
69 16 department of economic development in collaboration with the
69 17 Iowa council of foundations. The division provides that 10
69 18 percent of the aggregate amount of tax credits authorized in a
69 19 calendar year shall be reserved for those endowment gifts in
69 20 amounts of $30,000 or less. If by September 1 of a calendar
69 21 year the entire 10 percent of the reserved tax credits is not
69 22 distributed, the remaining tax credits shall be available to
69 23 any other eligible applicants. The division provides that a
69 24 tax credit shall not be authorized after December 31, 2008.
69 25 The division provides that 75 percent of the moneys in the
69 26 county endowment fund shall be distributed to charitable
69 27 organizations for charitable purposes and 25 percent of the
69 28 moneys shall be retained for use in establishing a permanent
69 29 endowment fund for the benefit of charitable organizations for
69 30 charitable purposes. The division defines "charitable
69 31 purpose" as a purpose described in section 501(c)(3) of the
69 32 Internal Revenue Code, or a benevolent, educational,
69 33 philanthropic, humane, scientific, patriotic, social welfare
69 34 or advocacy, public health, environmental conservation, civic,
69 35 or other eleemosynary objective. The division provides that 3
70 1 percent of the moneys deposited in the county endowment fund
70 2 shall be used for purposes of administering and marketing the
70 3 county endowment fund.
70 4 The division takes effect upon enactment and applies
70 5 retroactively to January 1, 2005.
70 6 DIVISION XIII == This division of the bill relates to E=85
70 7 blended gasoline.
70 8 The division requires the department of economic
70 9 development to provide a cost=share program for financial
70 10 incentives for the installation or conversion of
70 11 infrastructure used by service stations to sell and dispense
70 12 E=85 blended gasoline and for the installation or conversion
70 13 of infrastructure required to establish on=site and off=site
70 14 terminal facilities that store biodiesel for distribution to
70 15 service stations.
70 16 LSB 1809HW 81
70 17 tm:rj/cf/24