House File 2447 - Introduced HOUSE FILE 2447 BY GRASSLEY , BEST , PETTENGILL , MAXWELL , KLEIN , HEATON , SEXTON , McKEAN , FISHER , HOLT , GASSMAN , VANDER LINDEN , JONES , BLOOMINGDALE , WORTHAN , HEIN , DOLECHECK , WILLS , FRY , SHEETS , MOORE , WHEELER , BAXTER , HEARTSILL , and KERR A BILL FOR An Act requiring that a certain portion of the tax incentives 1 and financial assistance provided under the high quality 2 jobs program administered by the economic development 3 authority be provided to projects located in small cities, 4 and including applicability provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 5147YH (7) 87 mm/jh

H.F. 2447 Section 1. Section 15.119, subsection 2, paragraph a, 1 subparagraph (1), Code 2018, is amended to read as follows: 2 (1) The high quality jobs program administered pursuant to 3 sections 15.326 through 15.336 . Of the total amount of tax 4 credits allocated for purposes of this paragraph during each 5 fiscal year, at least fifty percent shall be allocated for 6 purposes of projects located in a small city. In the event 7 this small city allocation percentage is not satisfied in a 8 given fiscal year, a shortfall is declared to exist, and the 9 percentage of the total amount of tax credits allocated for 10 purposes of this paragraph during the succeeding fiscal year 11 that shall be allocated for purposes of projects located in a 12 small city shall be adjusted to equal an amount necessary to 13 reach the fifty percent small city allocation percentage for 14 that fiscal year, plus an amount equal to the shortfall for the 15 prior fiscal year or years. For purposes of this subparagraph, 16 “small city” means the same as defined in section 15.335A, 17 subsection 3. 18 Sec. 2. Section 15.335A, subsection 3, Code 2018, is amended 19 to read as follows: 20 3. (a) The authority shall negotiate the amount of tax 21 incentives provided to an applicant under the program in 22 accordance with this section . 23 (b) At least fifty percent of the total amount of tax 24 incentives, not including the local property tax exemption, 25 awarded to applicants under the program each fiscal year shall 26 be awarded for projects located in a small city. 27 (c) In the event the tax incentive percentage in paragraph 28 “b” is not satisfied in a given fiscal year, a shortfall 29 is declared to exist, and the percentage of tax incentives 30 required to be awarded to projects located in a small city 31 shall be adjusted for the succeeding fiscal year to equal an 32 amount necessary to reach the fifty percent requirement in 33 paragraph “b” for that fiscal year, plus an amount equal to the 34 shortfall for the prior fiscal year or years. 35 -1- LSB 5147YH (7) 87 mm/jh 1/ 3

H.F. 2447 (d) For purposes of this subsection, “small city” means any 1 city or township located in this state, except those located 2 within one or more of the eleven most populous counties in 3 the state, as determined by the most recent federal decennial 4 census. For the purposes of this part, a city that is located 5 in more than one county shall be considered to be located in 6 the county having the greatest taxable base within the city. 7 Sec. 3. Section 15.335B, subsection 2, paragraph a, 8 subparagraph (1), Code 2018, is amended to read as follows: 9 (1) (a) For providing project completion assistance to 10 eligible businesses under this part and for program support of 11 such assistance. 12 (b) At least fifty percent of the total amount of financial 13 assistance provided to eligible businesses under this program 14 each fiscal year shall be provided for projects located in a 15 small city. 16 (c) In the event the financial assistance percentage in 17 subparagraph division (b) is not satisfied in a given fiscal 18 year, a shortfall is declared to exist, and the percentage 19 of financial assistance required to be provided to projects 20 located in a small city shall be adjusted for the succeeding 21 fiscal year to equal an amount necessary to reach the fifty 22 percent requirement in subparagraph division (b) for that 23 fiscal year, plus an amount equal to the shortfall for the 24 prior fiscal year or years. 25 (d) For purposes of this subparagraph, “small city” means 26 the same as defined in section 15.335A, subsection 3. 27 Sec. 4. APPLICABILITY. This Act applies to high quality 28 jobs program agreements entered into on or after the effective 29 date of this Act. 30 EXPLANATION 31 The inclusion of this explanation does not constitute agreement with 32 the explanation’s substance by the members of the general assembly. 33 This bill relates to the high quality jobs program (program) 34 administered by the economic development authority (authority). 35 -2- LSB 5147YH (7) 87 mm/jh 2/ 3

H.F. 2447 Under the program, the authority provides various tax 1 incentives and financial assistance to eligible businesses that 2 complete projects in Iowa. The bill requires that at least 50 3 percent of the tax incentives awarded or financial assistance 4 provided by the authority each fiscal year shall be awarded 5 or provided to projects located in a small city. The bill 6 defines “small city” to mean any city or township located in 7 this state, except those located within one or more of the 11 8 most populous counties in the state, as determined by the most 9 recent federal decennial census. If a city is located in more 10 than one county, it is considered to be located in the county 11 having the greatest taxable base within the city. 12 In the event this small city percentage is not satisfied in 13 a given fiscal year, a shortfall is declared to exist, and the 14 percentage of tax incentives awarded or financial assistance 15 provided to projects in a small city in the succeeding fiscal 16 year shall be adjusted to equal an amount necessary to reach 17 the 50 percent requirement for that fiscal year, plus an amount 18 equal to the shortfall for the prior fiscal year or years. 19 The bill applies to high quality jobs program agreements 20 entered into on or after the effective date of the bill. 21 -3- LSB 5147YH (7) 87 mm/jh 3/ 3