Senate File 606 - Introduced SENATE FILE 606 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO SF 103) A BILL FOR An Act relating to the transfer of investment tax credits 1 issued to housing businesses under the enterprise zone 2 program, and including effective date and retroactive 3 applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1907SV (2) 88 ko/jh
S.F. 606 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 20 the economic development authority for transfer in calendar 21 year 2014, or any subsequent calendar year, provided the 22 eligible housing business was awarded the investment tax credit 23 before the effective date of this section of this division of 24 this Act and notifies the economic development authority, in 25 writing, before July 1, 2014, of its intent to transfer such 26 tax credits, or provided the eligible housing business was 27 awarded the investment tax credit before July 1, 2015, for a 28 housing development located in a blighted area and in a county 29 with a total population of less than one hundred five thousand 30 as determined by the most recent federal decennial census, and 31 submits a written request to the economic development authority 32 before June 1, 2019, for approval to transfer such tax credits 33 and provided the eligible housing business and the related 34 housing development meet all other applicable requirements 35 -1- LSB 1907SV (2) 88 ko/jh 1/ 2
S.F. 606 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 transfer of investment tax credits 12 issued to housing businesses under the enterprise zone program. 13 Under current law, the economic development authority 14 can approve a transfer of an investment tax credit awarded 15 to a housing business under the enterprise zone program if 16 an eligible business was awarded the tax credit before May 17 30, 2014, and notified the authority before July 1, 2014, of 18 its intent to transfer the tax credit. The bill allows the 19 authority to also approve the transfer of tax credits that were 20 awarded to an eligible housing business before July 1, 2015, 21 for a housing development in a blighted area in a county with 22 a population of less than 105,000, if the housing business 23 submitted a request for approval to the authority before June 24 1, 2019. 25 The bill is effective upon enactment and is retroactive to 26 May 30, 2014. 27 -2- LSB 1907SV (2) 88 ko/jh 2/ 2