HSB 670 (LSB 5423DP (4) 88)

SENATE/HOUSE FILE _____

BY  (PROPOSED ECONOMIC DEVELOPMENT AUTHORITY BILL)

A BILL FOR

An Act relating to certain tax incentive and tax credit programs administered by the economic development authority and including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 15.353, subsection 3, Code 2020, is amended to read as follows:
   3.  a.  Except as provided in paragraph “b”, the The average dwelling unit cost does not exceed two hundred thousand dollars per dwelling unit an amount determined by the authority by rule.  In determining the average dwelling unit cost the authority shall consider, at a minimum, building material costs, labor costs, land or property acquisition costs, and site development costs.
   b.  (1)  The average dwelling unit cost does not exceed two hundred fifty thousand dollars per dwelling unit if the project involves the rehabilitation, repair, redevelopment, or preservation of property described in section 404A.1, subsection 8, paragraph “a”.
   (2)  The average dwelling unit cost for the project does not exceed two hundred fifteen thousand dollars per dwelling unit if the project is located in a small city.
    Sec. 2.  Section 15.354, subsection 3, paragraph d, Code 2020, is amended to read as follows:
   d.  Upon completion of a housing project, a housing business shall submit all of the following to the authority: 
   (1)  an An examination of the project in accordance with the American institute of certified public accountants’ statements on standards for attestation engagements, completed by a certified public accountant authorized to practice in this state, shall be submitted to the authority.
   (2)  A statement of the final amount of qualifying new investment for the housing project. 
   (3)  Any information the authority deems necessary to ensure compliance with the agreement signed by the housing business pursuant to paragraph “a”, the requirements of this part, and the rules the authority and the department of revenue adopt pursuant to section 15.356.
    Sec. 3.  Section 15.354, subsection 3, paragraph e, subparagraph (1), Code 2020, is amended to read as follows:
   (1)  Upon review of the examination, and verification of the amount of the qualifying new investment, and review of any other information submitted pursuant to paragraph “d”, subparagraph (3), the authority may notify the housing business of the amount that the housing business may claim as a refund of the sales and use tax under section 15.355, subsection 2, and may issue a tax credit certificate to the housing business stating the amount of workforce housing investment tax credits under section 15.355, subsection 3, the eligible housing business may claim. The sum of the amount that the housing business may claim as a refund of the sales and use tax and the amount of the tax credit certificate shall not exceed the amount of the tax incentive award.
    Sec. 4.  Section 15.355, subsection 2, Code 2020, is amended to read as follows:
   2.  A housing business may claim a refund of the sales and use taxes paid under chapter 423 that are directly related to a housing project and specified in the agreement. The refund available pursuant to this subsection shall be as provided in section 15.331A, excluding subsection 2, paragraph “c”, of that section. For purposes of the program, the term “project completion”, as used in section 15.331A, shall mean the date on which the authority notifies the department of revenue that all applicable requirements of an the agreement entered into pursuant to section 15.354, subsection 3, paragraph “a”, and all applicable requirements of this part, including the rules the authority and the department of revenue adopted pursuant to section 15.356, are satisfied.
    Sec. 5.  Section 404A.1, subsection 8, Code 2020, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  d.  The property is not a homeowner-occupied residential property or a residential property occupied as a personal residence by an applicant to the program.
    Sec. 6.  APPLICABILITY.  This Act applies to projects for which an application is submitted to the workforce housing tax incentives program pursuant to chapter 15, part 17, or to the historic preservation tax credit program pursuant to chapter 404A, on or after the effective date of this Act.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to certain tax incentive and tax credit programs administered by the economic development authority.
   Current law requires that to be eligible for the workforce housing tax incentive program (program) the average dwelling unit cost must not exceed $200,000, subject to certain exceptions, for a proposed housing project (project). The bill amends that requirement to allow the economic development authority (authority) to determine by rule the average dwelling unit cost that is eligible for the program. In determining the average dwelling unit cost, the authority is required to consider, at a minimum, building material costs, labor costs, land or property acquisition costs, and site development costs. 
   Current law requires that upon completion of a project, a housing business (business) must submit an examination of the project in accordance with the American institute of certified public accountants’ statements on standards for attestation engagements completed by a certified public accountant authorized to practice in this state. The bill requires that in addition to the examination, the business must submit a statement of the final amount of qualifying new investment for the project and any information the authority deems necessary to ensure the business’s compliance with the program. 
   The bill amends the historic preservation tax credit program (preservation program) to make homeowner-occupied residential property and residential property occupied as a personal residence ineligible for the preservation program.
   The bill applies to projects for which an application is submitted to the program, or to the preservation program, on or after the effective date of the bill.