House File 468 - Introduced HOUSE FILE 468 BY GRASSLEY , BRINK , KLEIN , HEIN , MAXWELL , THORUP , BEST , BACON , DOLECHECK , HOLT , HITE , KERR , WORTHAN , GUSTAFSON , MOORE , MOMMSEN , MITCHELL , HUSEMAN , BLOOMINGDALE , FRY , SEXTON , SIECK , SALMON , GASSMAN , SHIPLEY , JENEARY , FISHER , BAXTER , McKEAN , SORENSEN , THOMPSON , GERHOLD , KAUFMANN , and WILLS A BILL FOR An Act requiring that a certain percentage of the tax 1 incentives administered by the economic development 2 authority be provided to projects located in small cities, 3 and including applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1404YH (7) 88 jm/jh

H.F. 468 Section 1. Section 15.119, Code 2019, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 3A. a. Of the total amount of tax credits 3 allocated for purposes of subsection 2, paragraph “a” , during 4 each fiscal year, at least fifty percent shall be allocated for 5 purposes of projects located in a small city that has all of 6 the following located in the county in which the small city is 7 located: 8 (1) An accredited public or private postsecondary 9 educational institution. 10 (2) A federal highway or a divided, multilaned highway. 11 (3) Sufficient housing to accommodate the project. 12 b. In the event this small city allocation percentage is not 13 satisfied in a given fiscal year, a shortfall is declared to 14 exist, and the percentage of the total amount of tax credits 15 allocated for purposes of subsection 2, paragraph “a” , during 16 the succeeding fiscal year that shall be allocated for purposes 17 of projects located in a small city shall be adjusted to equal 18 an amount necessary to reach the fifty percent small city 19 allocation percentage for that fiscal year, plus an amount 20 equal to the shortfall for the prior fiscal year or years. 21 c. For purposes of this subsection, “small city” means 22 any city located in this state with a population of less than 23 fifteen thousand. A small city that is located in more than 24 one county shall be considered to be located in the county 25 having the greatest taxable base within the city. 26 Sec. 2. APPLICABILITY. This Act applies to fiscal years 27 beginning on or after the effective date of this Act. 28 EXPLANATION 29 The inclusion of this explanation does not constitute agreement with 30 the explanation’s substance by the members of the general assembly. 31 This bill relates to tax credits administered by the 32 economic development authority (authority). Under the program, 33 the authority provides various tax incentives to eligible 34 businesses that complete projects in Iowa. 35 -1- LSB 1404YH (7) 88 jm/jh 1/ 2

H.F. 468 The bill requires that at least 50 percent of the tax 1 incentives awarded by the authority each fiscal year shall 2 be allocated for projects located in a small city based upon 3 certain criteria. The criteria for purposes of allocation 4 of projects in a small city shall include the following: 5 an accredited public or private postsecondary educational 6 institution, a federal highway or divided, multilaned highway, 7 and sufficient housing to accommodate the project. 8 The bill defines “small city” to mean any city located in 9 this state with a population of less than 15,000. If a small 10 city is located in more than one county, it is considered to be 11 located in the county having the greatest taxable base within 12 the city. 13 In the event this small city percentage is not satisfied in 14 a given fiscal year, a shortfall is declared to exist, and the 15 percentage of tax incentives awarded to projects in a small 16 city in the succeeding fiscal year shall be adjusted to equal 17 an amount necessary to reach the 50 percent requirement for 18 that fiscal year, plus an amount equal to the shortfall for the 19 prior fiscal year or years. 20 The bill applies to fiscal years beginning on or after the 21 effective date of the bill. 22 -2- LSB 1404YH (7) 88 jm/jh 2/ 2