Senate File 178 - Introduced SENATE FILE 178 BY SODDERS , DANIELSON , DOTZLER , SENG , HANCOCK , SCHOENJAHN , McCOY , HORN , DEARDEN , HATCH , COURTNEY , GRONSTAL , KIBBIE , BLACK , QUIRMBACH , BEALL , RAGAN , WILHELM , JOCHUM , and DANDEKAR A BILL FOR An Act relating to community development by allocating tax 1 credits for redevelopment of brownfields and grayfields and 2 by making an appropriation for certain community partnership 3 programs designed to support community beautification 4 projects. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 1682XS (8) 84 tw/sc

S.F. 178 Section 1. Section 15.119, subsection 2, Code 2011, is 1 amended by adding the following new paragraph: 2 NEW PARAGRAPH . f. The redevelopment tax credit program for 3 brownfields and grayfields administered pursuant to sections 4 15.293A and 15.293B. 5 Sec. 2. Section 15.119, Code 2011, is amended by adding the 6 following new subsection: 7 NEW SUBSECTION . 2A. In allocating the amount of tax 8 credits authorized pursuant to subsection 1 among the programs 9 specified in subsection 2, the department shall allocate at 10 least five million dollars for purposes of subsection 2, 11 paragraph “f” . 12 Sec. 3. Section 15.293A, subsections 6, 7, and 12, Code 13 2011, are amended to read as follows: 14 6. For the fiscal year beginning July 1, 2009, the maximum 15 amount of tax credits issued by the department shall not 16 exceed one million dollars. The department shall not issue 17 tax credits pursuant to this section in subsequent fiscal 18 years unless authorized pursuant to this subsection . For each 19 subsequent fiscal year, the amount of tax credits that may be 20 issued by the department shall be subject to the limitation in 21 section 15.119. 22 7. An investment shall be deemed to have been made on the 23 date the qualifying redevelopment project is completed. An 24 investment made prior to January 1, 2009, or after June 30, 25 2010, shall not qualify for a tax credit under this part. 26 12. If the maximum amount of tax credits available has 27 not been issued at the end of a fiscal year, the remaining 28 tax credit amount may be carried over to a subsequent fiscal 29 year or may be issued in advance to qualifying redevelopment 30 projects for a subsequent fiscal year department does not issue 31 tax credits for the full amount allocated pursuant to section 32 15.119, subsection 2, paragraph “f” , the remaining unallocated 33 amount of tax credits shall not carry forward to a subsequent 34 fiscal year allocation . Whenever the council approves a tax 35 -1- LSB 1682XS (8) 84 tw/sc 1/ 2

S.F. 178 credit which has not been allocated at the end of a fiscal 1 year, the department may prorate the remaining credit amount to 2 more than one eligible applicant. 3 Sec. 4. COMMUNITY PARTNERSHIP PROGRAM. There is 4 appropriated from the general fund of the state to the 5 department of natural resources for the fiscal year beginning 6 July 1, 2011, and ending June 30, 2012, the following amount, 7 or so much thereof as is necessary, to be used for the purposes 8 designated: 9 For the purposes of the community partnership program 10 described in section 455E.11, subsection 2, paragraph “a”, 11 subparagraph (1), subparagraph division (a), subparagraph 12 subdivision (ii), subparagraph part (B): 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 200,000 14 EXPLANATION 15 This bill relates to community development. 16 The bill includes the redevelopment tax credits program for 17 brownfields and grayfields under the department of economic 18 development’s aggregate tax credit limitation and makes 19 conforming changes to Code section 15.293A in order to allow 20 the department to issue tax credits under the program beginning 21 July 1, 2011. The bill requires the department to allocate at 22 least $5 million of its maximum aggregate tax credit limitation 23 for purposes of the program. Including the program under 24 this limitation prevents the department from carrying forward 25 unissued credit amounts to the next fiscal year allocation. 26 In 2010, the general assembly authorized the department of 27 natural resources to expend up to $100,000 for purposes of 28 providing grants to certain community partnership programs 29 designed to support community beautification projects. The 30 bill appropriates an additional $200,000 for such purposes. 31 -2- LSB 1682XS (8) 84 tw/sc 2/ 2