House File 301 - Introduced HOUSE FILE 301 BY RUNNING-MARQUARDT A BILL FOR An Act relating to the historic preservation and cultural and 1 entertainment district tax credit by modifying the total 2 amount of tax credits that may be issued and the allocation 3 of the tax credits for a certain time period, and amending 4 the qualifications for certain projects. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 1523YH (2) 85 mm/sc

H.F. 301 Section 1. Section 404A.4, subsection 2, paragraph d, Code 1 2013, is amended to read as follows: 2 d. For the fiscal year beginning July 1, 2012, and for each 3 fiscal year thereafter, the office shall reserve not more than 4 forty-five million dollars worth of tax credits for any one 5 taxable year. 6 Sec. 2. Section 404A.4, subsection 2, Code 2013, is amended 7 by adding the following new paragraphs: 8 NEW PARAGRAPH . e. For fiscal years beginning on or after 9 July 1, 2013, but before July 1, 2015, the office shall reserve 10 not more than fifty-five million dollars worth of tax credits 11 for any one taxable year. 12 NEW PARAGRAPH . f. For the fiscal year beginning July 1, 13 2015, and for each fiscal year thereafter, the office shall 14 reserve not more than forty-five million dollars worth of tax 15 credits for any one taxable year. 16 Sec. 3. Section 404A.4, subsection 4, paragraph a, Code 17 2013, is amended to read as follows: 18 a. The total amount of tax credits that may be approved for 19 a fiscal year prior to the fiscal year beginning July 1, 2012, 20 under this chapter shall not exceed fifty million dollars. 21 The total amount of tax credits that may be approved for a 22 the fiscal year beginning on or after July 1, 2012, shall not 23 exceed forty-five million dollars. The total amount of tax 24 credits that may be approved for fiscal years beginning on or 25 after July 1, 2013, but before July 1, 2015, shall not exceed 26 fifty-five million dollars. The total amount of tax credits 27 that may be approved for a fiscal year beginning on or after 28 July 1, 2015, shall not exceed forty-five million dollars. 29 Sec. 4. Section 404A.4, subsection 4, paragraph b, 30 subparagraphs (1) through (5), Code 2013, are amended to read 31 as follows: 32 (1) Ten percent of the dollar amount of tax credits shall 33 be allocated for purposes of new projects with final qualified 34 rehabilitation costs of five hundred thousand one million 35 -1- LSB 1523YH (2) 85 mm/sc 1/ 4

H.F. 301 dollars or less. However, for each fiscal year beginning on 1 or after July 1, 2013, but before July 1, 2015, four million 2 seven hundred thousand dollars shall be allocated for purposes 3 of this subparagraph. 4 (2) Thirty percent of the dollar amount of tax credits 5 shall be allocated for purposes of new projects located in 6 cultural and entertainment districts certified pursuant to 7 section 303.3B or identified in Iowa great places agreements 8 developed pursuant to section 303.3C . However, for each fiscal 9 year beginning on or after July 1, 2013, but before July 1, 10 2015, fourteen million one hundred thousand dollars shall be 11 allocated for purposes of this subparagraph. 12 (3) Twenty percent of the dollar amount of tax credits shall 13 be allocated for disaster recovery projects. However, for each 14 fiscal year beginning on or after July 1, 2013, but before 15 July 1, 2015, seventeen million four hundred thousand dollars 16 shall be allocated for purposes of this subparagraph. For 17 purposes of this subparagraph, “disaster recovery project” means 18 a property meeting the requirements of an eligible property as 19 described in section 404A.1, subsection 2 , which is located 20 in an area declared a disaster area by the governor or by a 21 federal official and which has been physically impacted as a 22 result of a natural disaster. 23 (4) Twenty percent of the dollar amount of the tax credits 24 shall be allocated for projects that involve the creation of 25 more than five hundred new permanent jobs. However, for each 26 fiscal year beginning on or after July 1, 2013, but before 27 July 1, 2015, nine million four hundred thousand dollars shall 28 be allocated for purposes of this subparagraph. A taxpayer 29 receiving a tax credit certificate for a project under this 30 allocation shall provide information documenting the creation 31 of the jobs to the state historic preservation office and to 32 the economic development authority. The jobs shall be created 33 within two years of the date a tax credit certificate is 34 issued. The economic development authority shall verify the 35 -2- LSB 1523YH (2) 85 mm/sc 2/ 4

H.F. 301 creation of the jobs. The amount of any tax credits received 1 is subject to recapture by the department of revenue if the 2 jobs are not created within two years. The state historic 3 preservation office and the economic development authority may 4 adopt rules for the implementation of this subparagraph. The 5 rules shall provide for a method or form that allows a city or 6 county to track the number of jobs created in the construction 7 industry by the project. 8 (5) Twenty percent of the dollar amount of the tax credits 9 shall be allocated for any eligible project. However, for each 10 fiscal year beginning on or after July 1, 2013, but before July 11 1, 2015, nine million four hundred thousand dollars shall be 12 allocated for purposes of this subparagraph. 13 EXPLANATION 14 This bill increases the amount of the historic preservation 15 and cultural and entertainment district tax credit and amends 16 the allocation of the tax credits for a certain time period, 17 and amends the requirements for certain projects under the tax 18 credit. 19 Under current law, not more than $45 million in tax credits 20 may be approved for a fiscal year and reserved for any one 21 taxable year. The bill increases this amount to $55 million 22 for fiscal year 2013-2014 and fiscal year 2014-2015. For 23 fiscal year 2015-2016, and for each fiscal year thereafter, the 24 total amount is $45 million. 25 Also under current law, the total amount of tax credits are 26 required to be allocated among various projects as follows: 27 10 percent ($4.5 million) to projects with $500,000 or less 28 of qualified rehabilitation costs; 30 percent ($13.5 million) 29 to projects located in certified cultural and entertainment 30 districts; 20 percent ($9 million) to disaster recovery 31 projects; 20 percent ($9 million) to projects involving the 32 creation of more than 500 new permanent jobs; and 20 percent 33 ($9 million) for any eligible project. The bill amends 34 the allocation of $55 million for fiscal year 2013-2014 35 -3- LSB 1523YH (2) 85 mm/sc 3/ 4

H.F. 301 and fiscal year 2014-2015 to be as follows: $4.7 million 1 (approximately 8.54 percent of the $55 million) to projects 2 with $500,000 or less of qualified rehabilitation costs; $14.1 3 million (approximately 25.64 percent) to projects located in 4 certified cultural and entertainment districts; $17.4 million 5 (approximately 31.64 percent) to disaster recovery projects; 6 $9.4 million (approximately 17.09 percent) to projects 7 involving the creation of more than 500 new permanent jobs; and 8 $9.4 million (approximately 17.09 percent) for any eligible 9 project. For fiscal year 2015-2016, and for each fiscal year 10 thereafter, the allocation amounts return to the current 11 percentage levels. 12 The bill permanently increases to $1 million from $500,000 13 the amount of qualified rehabilitation costs that a project 14 must have in order to qualify as an eligible project under the 15 10 percent small project allocation category. 16 -4- LSB 1523YH (2) 85 mm/sc 4/ 4