Senate
File
2406
-
Introduced
SENATE
FILE
2406
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
SF
2152)
A
BILL
FOR
An
Act
relating
to
the
transferability
of
investment
tax
1
credits
issued
to
eligible
housing
businesses
under
the
2
enterprise
zone
program,
including
effective
date
and
3
retroactive
applicability
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
TLSB
5450SV
(1)
87
mm/jh
S.F.
2406
Section
1.
2014
Iowa
Acts,
chapter
1130,
section
27,
is
1
amended
to
read
as
follows:
2
SEC.
27.
INVESTMENT
TAX
CREDITS
ISSUED
TO
ELIGIBLE
3
HOUSING
BUSINESSES
UNDER
THE
ENTERPRISE
ZONE
PROGRAM
——
4
TRANSFERABILITY.
Notwithstanding
the
requirement
in
section
5
15E.193B,
subsection
8,
Code
2014
,
that
not
more
than
three
6
million
dollars
worth
of
tax
credits
for
housing
developments
7
located
in
a
brownfield
site
or
a
blighted
area
shall
be
8
eligible
for
transfer
in
a
calendar
year
unless
the
eligible
9
housing
business
is
also
eligible
for
low-income
housing
tax
10
credits
authorized
under
section
42
of
the
Internal
Revenue
11
Code,
and
notwithstanding
the
requirement
in
section
15E.193B,
12
subsection
8,
Code
2014
,
that
the
economic
development
13
authority
shall
not
approve
more
than
one
million
five
hundred
14
thousand
dollars
in
tax
credit
certificates
for
transfer
to
15
any
one
eligible
housing
business
located
on
a
brownfield
16
site
or
in
a
blighted
area
in
a
calendar
year,
all
investment
17
tax
credits
determined
under
section
15E.193B,
subsection
6
,
18
paragraph
“a”,
Code
2014,
for
housing
developments
located
on
19
a
brownfield
site
or
in
a
blighted
area
may
be
approved
by
the
20
economic
development
authority
for
transfer
in
calendar
year
21
2014,
or
any
subsequent
calendar
year,
provided
the
eligible
22
housing
business
was
awarded
the
investment
tax
credit
before
23
the
effective
date
of
this
section
of
this
division
of
this
Act
24
and
notifies
the
economic
development
authority,
in
writing,
25
before
July
1,
2014,
of
its
intent
to
transfer
such
tax
26
credits,
or
provided
the
eligible
housing
business
was
awarded
27
the
investment
tax
credit
before
July
1,
2015,
for
a
housing
28
development
located
in
a
blighted
area
and
in
a
county
with
29
a
total
population
of
less
than
fifty
thousand
as
determined
30
by
the
most
recent
federal
decennial
census,
and
submits
a
31
written
request
for
approval
to
transfer
such
tax
credits
to
32
the
economic
development
authority
before
October
31,
2017,
33
and
provided
the
eligible
housing
business
and
the
related
34
housing
development
meet
all
other
applicable
requirements
35
-1-
LSB
5450SV
(1)
87
mm/jh
1/
2
S.F.
2406
under
section
15E.193B,
Code
2014
.
Notwithstanding
any
other
1
provision
of
law
to
the
contrary,
a
tax
credit
transferred
2
pursuant
to
this
section
shall
not
be
claimed
by
a
transferee
3
prior
to
January
1,
2016.
4
Sec.
2.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
immediate
5
importance,
takes
effect
upon
enactment.
6
Sec.
3.
RETROACTIVE
APPLICABILITY.
This
Act
applies
7
retroactively
to
May
30,
2014.
8
EXPLANATION
9
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
10
the
explanation’s
substance
by
the
members
of
the
general
assembly.
11
This
bill
relates
to
the
transferability
of
tax
credits
12
issued
to
housing
businesses
under
the
enterprise
zone
program,
13
which
the
general
assembly
repealed
in
2014.
Investment
tax
14
credits
issued
under
that
prior
program
were
transferable
for
15
housing
developments
located
on
brownfield
sites
or
in
blighted
16
areas,
but
the
economic
development
authority
(authority)
17
could
only
approve
a
maximum
of
$3
million
worth
of
credits
18
for
transfer
each
calendar
year,
and
no
more
than
$1.5
million
19
could
be
transferred
to
any
one
housing
development
during
20
each
calendar
year.
Prior
law
provided
an
exception
to
21
these
transfer
restrictions
for
certain
housing
developments,
22
allowing
any
amount
of
the
tax
credits
to
be
transferred
during
23
a
calendar
year.
24
The
bill
provides
another
exception
to
the
tax
credit
25
transfer
restrictions
described
above.
The
bill
provides
that
26
the
full
amount
of
tax
credits
awarded
to
an
eligible
housing
27
business
before
July
1,
2015,
may
be
transferred
during
a
28
calendar
year
provided
the
housing
development
is
located
in
a
29
blighted
area
and
in
a
county
with
a
total
population
of
less
30
than
50,000,
and
provided
the
housing
business
submitted
a
31
written
request
to
the
authority
seeking
approval
to
transfer
32
the
tax
credits
prior
to
October
31,
2017.
33
The
bill
takes
effect
upon
enactment
and
applies
34
retroactively
to
May
30,
2014.
35
-2-
LSB
5450SV
(1)
87
mm/jh
2/
2