Senate File 2287 - Introduced SENATE FILE 2287 BY BOWMAN A BILL FOR An Act related to the high quality jobs program by allowing 1 additional tax incentives for businesses locating in 2 specified areas, and including applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 6039XS (5) 87 ko/rn

S.F. 2287 Section 1. Section 15.335A, subsection 1, unnumbered 1 paragraph 1, Code 2018, is amended to read as follows: 2 Tax incentives are available to eligible businesses as 3 provided in this section . The incentives under this subsection 4 are based upon the number of jobs created or retained that pay 5 at least one hundred twenty percent of the qualifying wage 6 threshold and the amount of the qualifying investment made 7 according to the following schedule: 8 Sec. 2. Section 15.335A, Code 2018, is amended by adding the 9 following new subsection: 10 NEW SUBSECTION . 1A. a. In addition to the tax incentives 11 available under subsection 1, an additional investment tax 12 credit of up to two percent is available to an eligible 13 business that locates in a city or an unincorporated area 14 located in this state that has a population of less than or 15 equal to seven thousand, as determined under the latest federal 16 decennial census. 17 b. This subsection is repealed June 30, 2025. 18 Sec. 3. ADDITIONAL INVESTMENT TAX CREDIT —— EFFECTIVENESS 19 STUDY. 20 1. The authority shall conduct a study regarding the 21 effectiveness of the additional investment tax credit 22 established pursuant to section 15.335A, subsection 1A, by 23 comparing the five-year period immediately preceding the 24 effective date of this Act to the five-year period immediately 25 following the effective date of this Act, and identifying all 26 of the following for each eligible business: 27 a. The size of the business. 28 b. The number of jobs created. 29 c. The average wage of all jobs created. 30 d. How long the business has been located in the city or 31 unincorporated area. 32 e. Any measurable economic impact on the city or 33 unincorporated area attributable to the location of an eligible 34 business. 35 -1- LSB 6039XS (5) 87 ko/rn 1/ 3

S.F. 2287 f. The percentage of additional investment tax credit the 1 business received pursuant to section 15.335A, subsection 1A. 2 2. The authority shall submit a report including findings 3 and recommendations for increasing the number of eligible 4 businesses that locate in a city or unincorporated area that 5 has a population of seven thousand or less to the governor and 6 the general assembly no later than January 1, 2024. 7 Sec. 4. APPLICABILITY. This Act applies to an eligible 8 business that receives a tax incentive under section 15.335A on 9 or after July 1, 2018. 10 EXPLANATION 11 The inclusion of this explanation does not constitute agreement with 12 the explanation’s substance by the members of the general assembly. 13 This bill relates to tax incentives under the high quality 14 job program for eligible businesses that locate in cities or 15 unincorporated areas in the state that are under a specified 16 population level. 17 The bill permits the economic development authority to 18 award an additional investment tax credit of up to 2 percent 19 to an eligible business that locates in a city or in an 20 unincorporated area located in this state that has a population 21 of 7,000 or less. 22 The bill requires the authority to conduct a study regarding 23 the effectiveness of the additional investment tax credit 24 by comparing the five-year period immediately prior to the 25 availability of the additional investment tax credit to the 26 five-year period immediately following the availability of 27 the tax credit, and identifying specific metrics for each 28 eligible business that located in a city or unincorporated 29 area with a population of 7,000 or less during that time 30 period. These metrics include the size of the business, the 31 number of jobs created, the average wage of the jobs, how long 32 the business has been located in the area, the percentage of 33 additional tax credit the business received, and any measurable 34 economic impact on the community that can be attributed to the 35 -2- LSB 6039XS (5) 87 ko/rn 2/ 3

S.F. 2287 business. The authority must submit a report with findings and 1 recommendations to the governor and general assembly no later 2 than January 1, 2024. 3 The bill provides for the repeal of the additional 4 investment tax credit effective June 30, 2025. 5 The bill applies to an eligible business that receives a tax 6 incentive under Code section 15.335A on or after July 1, 2018. 7 -3- LSB 6039XS (5) 87 ko/rn 3/ 3