Senate File 66 - Introduced SENATE FILE BY WARNSTADT Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act requiring the department of cultural affairs to prioritize 2 and award tax credits for the preservation of historic 3 property according to certain criteria. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1205XS 83 6 tw/mg:sc/5 PAG LIN 1 1 Section 1. Section 404A.4, subsection 4, Code 2009, is 1 2 amended to read as follows: 1 3 4. a. The total amount of tax credits that may be 1 4 approved for a fiscal year under this chapter shall not exceed 1 5 ten million dollars in the fiscal year beginning July 1, 2007, 1 6 fifteen million dollars in the fiscal year beginning July 1, 1 7 2008, and twenty million dollars in the fiscal year beginning 1 8 July 1, 2009, and each fiscal year thereafter. 1 9 b. Of the tax credits approved for a fiscal year under 1 10 this chapter, ten percent of the dollar amount of tax credits 1 11 shall be allocated for purposes of new projects with qualified 1 12 costs of five hundred thousand dollars or less, and forty 1 13 percent of the dollar amount of tax credits shall be allocated 1 14 for purposes of new projects located in cultural and 1 15 entertainment districts certified pursuant to section 303.3B 1 16 or identified in Iowa great places agreements developed 1 17 pursuant to section 303.3C. Any of the tax credits allocated 1 18 for projects located in certified cultural and entertainment 1 19 districts or identified in Iowa great places agreements and 1 20 for projects with a cost of five hundred thousand dollars or 1 21 less that are not reserved during a fiscal year shall be 1 22 applied to reserved tax credits issued in accordance with 1 23 section 404A.3 in order of original reservation. With the 1 24 exception of tax credits issued pursuant to contracts entered 1 25 into prior to July 1, 2007, tax credits shall not be reserved 1 26 for more than three years. 1 27 c. The department of cultural affairs shall establish by 1 28 rule the procedures for the application, review, selection, 1 29 and awarding of certifications of completion. 1 30 d. If the total value of applications for tax credits 1 31 pursuant to this chapter exceeds the amount of credits that 1 32 may be approved in a fiscal year, the department of cultural 1 33 affairs shall prioritize the applications and award the tax 1 34 credit certificates based on the following criteria listed in 1 35 order of importance: 2 1 (1) The potential for positive economic development 2 2 resulting from the preservation of eligible property. 2 3 (2) The total costs incurred in a rehabilitation project 2 4 by an applicant for the tax credit. 2 5 (3) The cultural, historic, or architectural significance 2 6 of the eligible property relative to the significance of other 2 7 property for which an application is made. 2 8 (4) Other relevant criteria adopted by the department of 2 9 cultural affairs by rule. 2 10 e. The departments of cultural affairs and revenue shall 2 11 each adopt rules to jointly administer this subsection and 2 12 shall provide by rule for the method to be used to determine 2 13 for which fiscal year the tax credits are available.With the 2 14 exception of tax credits issued pursuant to contracts entered 2 15 into prior to July 1, 2007, tax credits shall not be reserved 2 16 for more than three years.2 17 EXPLANATION 2 18 This bill provides that if the total value of applications 2 19 for historic preservation tax credits exceeds the aggregate 2 20 amount of credits that may be approved in a fiscal year, the 2 21 department of cultural affairs shall prioritize the 2 22 applications and award the tax credit certificates based on 2 23 the following criteria which are listed in order of 2 24 importance: (1) the potential for positive economic 2 25 development resulting from the preservation of eligible 2 26 property; (2) the total costs incurred in a rehabilitation 2 27 project by an applicant for the tax credit; (3) the relative 2 28 cultural, historic, or architectural significance of the 2 29 eligible property; and (4) other relevant criteria adopted by 2 30 the department of cultural affairs by rule. 2 31 LSB 1205XS 83 2 32 tw/mg:sc/5