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