Senate Study Bill 1086 



                                       SENATE/HOUSE FILE       
                                       BY  (PROPOSED DEPARTMENT OF
                                            CULTURAL AFFAIRS BILL)


    Passed Senate, Date               Passed House,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act increasing the aggregate amount of tax credits that may be
  2    approved for property rehabilitation.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 1304XD 83
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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 fifty million
  1  9 dollars.
  1 10    b.  Of the tax credits approved for a fiscal year under
  1 11 this chapter, ten percent of the dollar amount of tax credits
  1 12 shall be allocated for purposes of new projects with qualified
  1 13 costs of five hundred thousand dollars or less, and forty
  1 14 percent of the dollar amount of tax credits shall be allocated
  1 15 for purposes of new projects located in cultural and
  1 16 entertainment districts certified pursuant to section 303.3B
  1 17 or identified in Iowa great places agreements developed
  1 18 pursuant to section 303.3C.
  1 19    c.  Any of the tax credits allocated for projects located
  1 20 in certified cultural and entertainment districts or
  1 21 identified in Iowa great places agreements and for projects
  1 22 with a cost of five hundred thousand dollars or less that are
  1 23 not reserved during a fiscal year shall be applied to reserved
  1 24 tax credits issued in accordance with section 404A.3 in order
  1 25 of original reservation.
  1 26    d.  The department of cultural affairs shall establish by
  1 27 rule the procedures for the application, review, selection,
  1 28 and awarding of certifications of completion.  The departments
  1 29 of cultural affairs and revenue shall each adopt rules to
  1 30 jointly administer this subsection and shall provide by rule
  1 31 for the method to be used to determine for which fiscal year
  1 32 the tax credits are available.
  1 33    e.  With the exception of tax credits issued pursuant to
  1 34 contracts entered into prior to July 1, 2007, tax credits
  1 35 shall not be reserved for more than three years.
  2  1                           EXPLANATION
  2  2    This bill relates to the total amount of tax credits that
  2  3 may be approved for property rehabilitation.  These credits
  2  4 are available for the preservation of historic properties.
  2  5 Current law limits the amount of tax credits available for a
  2  6 fiscal year to $20 million for the fiscal year beginning July
  2  7 1, 2009, and subsequent fiscal years.  The bill increases the
  2  8 limit to $50 million for the fiscal year beginning July 1,
  2  9 2009, and subsequent fiscal years.
  2 10 LSB 1304XD 83
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