House File 404 - Introduced
HOUSE FILE
BY S. OLSON and BUKTA
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to enterprise zones that include the site of a
2 biodiesel or biodiesel blended fuel production facility.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 1898HH 82
5 tm/gg/14
PAG LIN
1 1 Section 1. Section 15E.192, subsection 4, paragraph b,
1 2 Code 2007, is amended to read as follows:
1 3 b. A county or city may apply to the department for an
1 4 area to be certified as an enterprise zone at any time prior
1 5 to July 1, 2010. However, the total amount of land designated
1 6 as enterprise zones under subsection 1, and any other
1 7 enterprise zones certified by the department, excluding those
1 8 approved pursuant to subsection 2 and section 15E.194,
1 9 subsections 3 and, 5, and 6, shall not exceed in the aggregate
1 10 one percent of the total county area.
1 11 Sec. 2. Section 15E.194, subsection 4, Code 2007, is
1 12 amended to read as follows:
1 13 4. The department of economic development shall certify
1 14 eligible enterprise zones that meet the requirements of
1 15 subsection 1 upon request by the county, subsection 2 upon
1 16 request by the city, or subsection 3 upon request by the city,
1 17 or subsection 6 upon request by the city or county, as
1 18 applicable.
1 19 Sec. 3. Section 15E.194, Code 2007, is amended by adding
1 20 the following new subsection:
1 21 NEW SUBSECTION. 6. a. A city of any size or any county
1 22 may designate an enterprise zone provided the enterprise zone
1 23 includes the site or planned site of a biodiesel or biodiesel
1 24 blended fuel production facility. The enterprise zone may
1 25 include an area up to an additional three miles adjacent to
1 26 the property where the production facility is located or
1 27 planned to be located. In order to designate an enterprise
1 28 zone under this subsection, the city or county must include in
1 29 the application required under section 15E.195, subsection 4,
1 30 documentation of a commitment, including a letter of intent,
1 31 to locate the production facility in the enterprise zone. The
1 32 biodiesel or biodiesel blended fuel production facility is an
1 33 eligible business for purposes of section 15E.196.
1 34 b. The area meeting the requirements for enterprise zone
1 35 eligibility under this subsection shall not be included for
2 1 the purpose of determining the area limitation pursuant to
2 2 section 15E.192, subsection 4. An eligible housing business
2 3 under section 15E.193B shall not receive incentives or
2 4 assistance for a home or multiple dwelling unit built or
2 5 rehabilitated in an enterprise zone designated pursuant to
2 6 this subsection.
2 7 c. For purposes of the investment tax credit available
2 8 under section 15E.196, subsection 3, after verifying
2 9 eligibility for a tax credit under this subsection, the
2 10 department of economic development shall issue a biodiesel
2 11 enterprise zone investment tax credit certificate to be
2 12 attached to the taxpayer's tax return. The tax credit
2 13 certificate shall contain the taxpayer's name, address, tax
2 14 identification number, the date of project completion, the
2 15 amount of credit, other information required by the department
2 16 of revenue, and a place for the name and tax identification
2 17 number of a transferee and the amount of the tax credit being
2 18 transferred. Tax credit certificates issued under this
2 19 paragraph may be transferred to any person or entity. Within
2 20 ninety days of transfer, the transferee must submit the
2 21 transferred tax credit certificate to the department of
2 22 revenue along with a statement containing the transferee's
2 23 name, tax identification number, and address, and the
2 24 denomination that each replacement tax credit certificate is
2 25 to carry and any other information required by the department
2 26 of revenue. Within thirty days of receiving the transferred
2 27 tax credit certificate and the transferee's statement, the
2 28 department of revenue shall issue one or more replacement tax
2 29 credit certificates to the transferee. Each replacement
2 30 certificate must contain the information required for the
2 31 original tax credit certificate and must have the same
2 32 expiration date that appeared on the original tax credit
2 33 certificate. Tax credit certificate amounts of less than the
2 34 minimum amount established by rule of the department of
2 35 economic development shall not be transferable. A tax credit
3 1 shall not be claimed by a transferee under this paragraph
3 2 until a replacement tax credit certificate identifying the
3 3 transferee as the proper holder has been issued. The
3 4 transferee may use the amount of the tax credit transferred
3 5 against the taxes imposed under chapter 422, divisions II,
3 6 III, and V, and under chapter 432, and against the moneys and
3 7 credits tax imposed in section 533.24, for any tax year the
3 8 original transferor could have claimed the tax credit. Any
3 9 consideration received for the transfer of the tax credit
3 10 shall not be included as income under chapter 422, divisions
3 11 II, III, and V, under chapter 432, or against the moneys and
3 12 credits tax imposed in section 533.24. Any consideration paid
3 13 for the transfer of the tax credit shall not be deducted from
3 14 income under chapter 422, divisions II, III, and V, under
3 15 chapter 432, or against the moneys and credits tax imposed in
3 16 section 533.24.
3 17 d. For purposes of this subsection, the terms "biodiesel"
3 18 and "biodiesel blended fuel" mean the same as defined in
3 19 section 214A.1.
3 20 EXPLANATION
3 21 This bill relates to enterprise zones that include the site
3 22 of a biodiesel or biodiesel blended fuel production facility.
3 23 The bill allows any city or county to designate an
3 24 enterprise zone provided the enterprise zone includes the site
3 25 or planned site of a biodiesel or biodiesel blended fuel
3 26 production facility. The bill allows the enterprise zone to
3 27 include an area up to an additional three miles adjacent to
3 28 the property where the production facility is located or
3 29 planned to be located. The bill requires the city or county
3 30 to include in the application submitted to the department of
3 31 economic development for certification of the enterprise zone
3 32 documentation of a commitment, including a letter of intent,
3 33 to locate the production facility in the enterprise zone. The
3 34 bill provides that the biodiesel or biodiesel blended fuel
3 35 production facility is an eligible business for purposes of
4 1 incentives and assistance under the enterprise zone program.
4 2 The bill provides that an enterprise zone that includes the
4 3 site of a biodiesel or biodiesel blended fuel production
4 4 facility is not included for purposes of area limitations
4 5 under the enterprise zone laws, and eligible housing
4 6 businesses under the enterprise zone laws are not eligible to
4 7 receive incentives or assistance for a home or multiple
4 8 dwelling unit built or rehabilitated in such enterprise zones.
4 9 Currently, one of the incentives or types of assistance
4 10 available to an eligible business under the enterprise zone is
4 11 an investment tax credit. The bill provides that investment
4 12 tax credits for an eligible business in a biodiesel enterprise
4 13 zone are transferable.
4 14 LSB 1898HH 82
4 15 tm:sc/gg/14.1