Senate File 619 - Introduced SENATE FILE 619 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO SSB 1276) A BILL FOR An Act relating to state and local revenue and finance by 1 modifying future tax contingencies, the state inheritance 2 tax, mental health and disability services funding, school 3 district funding, commercial and industrial property tax 4 replacement payments, providing for housing incentives, 5 providing for other properly related matters, making 6 appropriations, and including effective date, applicability, 7 and retroactive applicability provisions. 8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 9 TLSB 2832SV (1) 89 jm/jh

S.F. 619 DIVISION I 1 FUTURE TAX CONTINGENCIES 2 Section 1. 2018 Iowa Acts, chapter 1161, section 133, is 3 amended by striking the section and inserting in lieu thereof 4 the following: 5 SEC. 133. EFFECTIVE DATE. This division of this Act takes 6 effect January 1, 2023. 7 DIVISION II 8 CHILD DEPENDENT AND DEVELOPMENT TAX CREDITS 9 Sec. 2. Section 422.12C, subsection 1, paragraphs f and g, 10 Code 2021, are amended to read as follows: 11 f. For a taxpayer with net income of forty thousand dollars 12 or more but less than forty-five ninety thousand dollars, 13 thirty percent. 14 g. For a taxpayer with net income of forty-five ninety 15 thousand dollars or more, zero percent. 16 Sec. 3. Section 422.12C, subsection 2, paragraph a, Code 17 2021, is amended to read as follows: 18 a. The taxes imposed under this subchapter , less the amounts 19 of nonrefundable credits allowed under this subchapter , may 20 be reduced by an early childhood development tax credit equal 21 to twenty-five percent of the first one thousand dollars 22 which the taxpayer has paid to others for each dependent, as 23 defined in the Internal Revenue Code, ages three through five 24 for early childhood development expenses. In determining the 25 amount of early childhood development expenses for the tax year 26 beginning in the 2006 calendar year only, such expenses paid 27 during November and December of the previous tax year shall 28 be considered paid in the tax year for which the tax credit 29 is claimed. This credit is available to a taxpayer whose net 30 income is less than forty-five ninety thousand dollars. If the 31 early childhood development tax credit is claimed for a tax 32 year, the taxpayer and the taxpayer’s spouse shall not claim 33 the child and dependent care credit under subsection 1 . 34 Sec. 4. RETROACTIVE APPLICABILITY. This division of this 35 -1- LSB 2832SV (1) 89 jm/jh 1/ 103

S.F. 619 Act applies retroactively to tax years beginning on or after 1 January 1, 2021. 2 DIVISION III 3 COVID-19 RELATED GRANTS —— TAXATION 4 Sec. 5. Section 422.7, subsection 62, Code 2021, is amended 5 to read as follows: 6 62. a. Subtract, to the extent included, the amount of 7 any financial assistance qualifying COVID-19 grant provided to 8 an eligible small issued to an individual or business by the 9 economic development authority under the Iowa small business 10 relief grant program created during calendar year 2020 to 11 provide financial assistance to eligible small businesses 12 economically impacted by the COVID-19 pandemic , the Iowa 13 finance authority, or the department of agriculture and land 14 stewardship . 15 b. For purposes of this subsection, “qualifying COVID-19 16 grant” includes any grant that was issued between March 17, 17 2020, and December 31, 2021, identified by the department 18 by rule under a grant program created to primarily provide 19 COVID-19 related financial assistance to economically 20 impacted individuals and businesses located in this state, 21 and administered by the economic development authority, Iowa 22 finance authority, or the department of agriculture and land 23 stewardship. 24 c. The economic development authority, Iowa finance 25 authority, or the department of agriculture and land 26 stewardship shall notify the department of any COVID-19 grant 27 program that may qualify under this subsection in the manner 28 and form prescribed by the department. 29 d. This subsection is repealed January 1, 2024, and does not 30 apply to tax years beginning on or after that date. 31 Sec. 6. Section 422.35, subsection 30, Code 2021, is amended 32 to read as follows: 33 30. a. Subtract, to the extent included, the amount of 34 any financial assistance qualifying COVID-19 grant provided 35 -2- LSB 2832SV (1) 89 jm/jh 2/ 103

S.F. 619 to an eligible small issued to a business by the economic 1 development authority under the Iowa small business relief 2 grant program created during calendar year 2020 to provide 3 financial assistance to eligible small businesses economically 4 impacted by the COVID-19 pandemic , the Iowa finance authority, 5 or the department of agriculture and land stewardship . 6 b. For purposes of this subsection, “qualifying COVID-19 7 grant” means the same as defined in section 422.7, subsection 8 62, paragraph “b” . 9 c. The economic development authority, Iowa finance 10 authority, or the department of agriculture and land 11 stewardship shall notify the department of any COVID-19 grant 12 program that may qualify under this subsection in the manner 13 and form prescribed by the department. 14 d. This subsection is repealed January 1, 2024, and does not 15 apply to tax years beginning on or after that date. 16 Sec. 7. EFFECTIVE DATE. This division of this Act, being 17 deemed of immediate importance, takes effect upon enactment. 18 Sec. 8. RETROACTIVE APPLICABILITY. This division of this 19 Act applies retroactively to March 17, 2020, for tax years 20 ending on or after that date. 21 DIVISION IV 22 FEDERAL PAYCHECK PROTECTION PROGRAM 23 Sec. 9. FEDERAL PAYCHECK PROTECTION PROGRAM. 24 Notwithstanding any other provision of the law to the contrary, 25 for any tax year ending after March 27, 2020, Division N, Tit. 26 II, subtit. B, §276 and §278(a), of the federal Consolidated 27 Appropriations Act, 2021, Pub. L. No. 116-260, applies in 28 computing net income for state tax purposes under section 422.7 29 or 422.35. 30 Sec. 10. EFFECTIVE DATE. This division of this Act, being 31 deemed of immediate importance, takes effect upon enactment. 32 DIVISION V 33 INSTALLMENT SALES —— CAPITAL GAINS 34 Sec. 11. 2018 Iowa Acts, chapter 1161, section 134, is 35 -3- LSB 2832SV (1) 89 jm/jh 3/ 103

S.F. 619 amended to read as follows: 1 SEC. 134. APPLICABILITY. 2 1. This division of this Act applies to tax years beginning 3 on or after the effective date of this division of this Act. 4 2. The section of this division of this Act amending section 5 422.7, subsection 21, as amended by 2019 Iowa Acts, chapter 6 162, applies to sales consummated on or after the effective 7 date of this division of this Act, and sales consummated prior 8 to the effective date of this division of this Act shall be 9 governed by law as it existed prior to the effective date of 10 this division of this Act. 11 DIVISION VI 12 STATE INHERITANCE TAX 13 PART I 14 EXEMPTIONS AND RATES 15 Sec. 12. Section 450.4, subsection 1, Code 2021, is amended 16 to read as follows: 17 1. When the entire estate of the decedent does not exceed 18 the sum of twenty-five thousand dollars following amounts after 19 deducting the liabilities, as defined in this chapter : 20 a. For decedents dying on or after January 1, 2021, but 21 before January 1, 2022, three hundred thousand dollars . 22 b. For decedents dying on or after January 1, 2022, but 23 before January 1, 2023, six hundred thousand dollars. 24 c. For decedents dying on or after January 1, 2023, but 25 before January 1, 2024, one million dollars. 26 Sec. 13. Section 450.10, Code 2021, is amended by adding the 27 following new subsection: 28 NEW SUBSECTION . 7. a. In lieu of each rate of tax imposed 29 in subsections 1 through 4, for property passing from the 30 estate of a decedent dying on or after January 1, 2021, but 31 before January 1, 2022, there shall be imposed a rate of tax 32 equal to the applicable tax rate in subsections 1 through 4, 33 reduced by twenty-five percent, and rounded to the nearest 34 one-hundredth of one percent. 35 -4- LSB 2832SV (1) 89 jm/jh 4/ 103

S.F. 619 b. In lieu of each rate of tax imposed in subsections 1 1 through 4, for property passing from the estate of a decedent 2 dying on or after January 1, 2022, but before January 1, 2023, 3 there shall be imposed a rate of tax equal to the applicable 4 tax rate in subsections 1 through 4, reduced by fifty percent, 5 and rounded to the nearest one-hundredth of one percent. 6 c. In lieu of each rate of tax imposed in subsections 1 7 through 4, for property passing from the estate of a decedent 8 dying on or after January 1, 2023, but before January 1, 2024, 9 there shall be imposed a rate of tax equal to the applicable 10 tax rate in subsections 1 through 4, reduced by seventy-five 11 percent, and rounded to the nearest one-hundredth of one 12 percent. 13 PART II 14 REPEAL OF STATE INHERITANCE TAX 15 Sec. 14. NEW SECTION . 450.98 Tax repealed. 16 This chapter shall not apply, effective January 1, 2024, 17 to property of estates of decedents dying on or after January 18 1, 2024. The inheritance tax shall not be imposed under this 19 chapter if a decedent dies on or after January 1, 2024, and to 20 this extent this chapter is repealed. 21 Sec. 15. NEW SECTION . 450.99 Future repeal. 22 This chapter is repealed effective January 1, 2034. 23 Sec. 16. NEW SECTION . 450B.8 Tax repealed. 24 This chapter shall not apply, effective January 1, 2024, 25 to property of estates of decedents dying on or after January 26 1, 2024. The inheritance tax shall not be imposed under this 27 chapter if a decedent dies on or after January 1, 2024, and to 28 this extent this chapter is repealed. 29 Sec. 17. NEW SECTION . 450B.9 Future repeal. 30 This chapter is repealed effective January 1, 2034. 31 Sec. 18. EFFECTIVE DATE. This division of this Act, being 32 deemed of immediate importance, takes effect upon enactment. 33 Sec. 19. RETROACTIVE APPLICABILITY. This division of this 34 Act applies retroactively to January 1, 2021, for tax years 35 -5- LSB 2832SV (1) 89 jm/jh 5/ 103

S.F. 619 beginning on or after that date, and for decedents dying on or 1 after that date. 2 Sec. 20. CODE EDITOR DIRECTIVE. The Code editor is directed 3 to correct internal references and other appropriate references 4 in the Code, and in any enacted Iowa Acts as necessary, to 5 chapters 450 and 450B, and to the inheritance tax and qualified 6 use inheritance tax, effective January 1, 2034. 7 DIVISION VII 8 HOUSING TRUST FUND 9 Sec. 21. Section 428A.8, subsection 3, Code 2021, is amended 10 to read as follows: 11 3. Notwithstanding subsection 2 , the amount of money that 12 shall be transferred pursuant to this section to the housing 13 trust fund in any one fiscal year shall not exceed three seven 14 million dollars. Any money that otherwise would be transferred 15 pursuant to this section to the housing trust fund in excess 16 of that amount shall be deposited in the general fund of the 17 state. 18 DIVISION VIII 19 HIGH QUALITY JOBS PROGRAM —— DAY CARE CENTERS 20 Sec. 22. Section 15.327, Code 2021, is amended by adding the 21 following new subsection: 22 NEW SUBSECTION . 016. “Licensed center” means the same as 23 defined in section 237A.1. 24 Sec. 23. Section 15.329, Code 2021, is amended by adding the 25 following new subsection: 26 NEW SUBSECTION . 3A. In addition to the factors in 27 subsection 3, in determining the eligibility of a business to 28 participate in the program the authority may consider whether a 29 proposed project will provide a licensed center for use by the 30 business’s employees. 31 DIVISION IX 32 INVESTMENT TAX CREDITS AND INNOVATION FUND TAX CREDITS 33 Sec. 24. Section 15.119, subsection 2, paragraph d, Code 34 2021, is amended to read as follows: 35 -6- LSB 2832SV (1) 89 jm/jh 6/ 103

S.F. 619 d. (1) The tax credits for investments in qualifying 1 businesses issued pursuant to section 15E.43 and for equity 2 investments in an innovation fund pursuant to section 15E.52 . 3 In allocating tax credits pursuant to this subsection , the 4 authority shall allocate two an aggregate of ten million 5 dollars for purposes of this paragraph subparagraph , unless the 6 authority determines that the tax credits awarded will be less 7 than that amount. 8 (2) On or before June 30 of each fiscal year the authority 9 shall determine the amount of tax credits to be allocated 10 for the next fiscal year beginning July 1 to investments 11 in qualifying businesses and to equity investments in an 12 innovation fund under subparagraph (1). Any tax credits 13 allocated for purposes of subparagraph (1) and not awarded 14 in that fiscal year shall be reallocated to a purpose under 15 subparagraph (1) for the next fiscal year and shall not be 16 counted against the aggregate maximum of ten million dollars. 17 Sec. 25. Section 15.119, subsection 2, paragraph e, Code 18 2021, is amended by striking the paragraph. 19 Sec. 26. Section 15E.43, subsection 2, paragraphs b and c, 20 Code 2021, are amended to read as follows: 21 b. The maximum amount of a tax credit that may be issued 22 per calendar fiscal year to a natural person and the person’s 23 spouse or dependent shall not exceed one hundred thousand 24 dollars combined. For purposes of this paragraph, a tax 25 credit issued to a partnership, limited liability company, S 26 corporation, estate, or trust electing to have income taxed 27 directly to the individual shall be deemed to be issued to 28 the individual owners based upon the pro rata share of the 29 individual’s earnings from the entity. For purposes of this 30 paragraph, “dependent” has the same meaning as provided by the 31 Internal Revenue Code. 32 c. The maximum amount of tax credits that may be issued 33 per calendar fiscal year for equity investments in any one 34 qualifying business shall not exceed five hundred thousand 35 -7- LSB 2832SV (1) 89 jm/jh 7/ 103

S.F. 619 dollars. 1 Sec. 27. EFFECTIVE DATE. This division of this Act, being 2 deemed of immediate importance, takes effect upon enactment. 3 Sec. 28. APPLICABILITY. The following applies to tax 4 credits allocated on or after the fiscal year beginning July 1, 5 2021, and for each fiscal year thereafter: 6 The section of this division of this Act amending section 7 15.119, subsection 2, paragraph “d”. 8 DIVISION X 9 TELEHEALTH —— MENTAL HEALTH PARITY 10 Sec. 29. Section 514C.34, subsection 1, Code 2021, is 11 amended by adding the following new paragraphs: 12 NEW PARAGRAPH . 0a. “Covered person” means the same as 13 defined in section 514J.102. 14 NEW PARAGRAPH . 00a. “Facility” means the same as defined in 15 section 514J.102. 16 NEW PARAGRAPH . 0c. “Health carrier” means the same as 17 defined in section 514J.102. 18 Sec. 30. Section 514C.34, subsection 1, paragraph c, Code 19 2021, is amended to read as follows: 20 c. “Telehealth” means the delivery of health care services 21 through the use of real-time interactive audio and video , or 22 other real-time interactive electronic media, regardless of 23 where the health care professional and the covered person are 24 each located . “Telehealth” does not include the delivery of 25 health care services delivered solely through an audio-only 26 telephone, electronic mail message, or facsimile transmission. 27 Sec. 31. Section 514C.34, Code 2021, is amended by adding 28 the following new subsection: 29 NEW SUBSECTION . 3A. a. A health carrier shall reimburse 30 a health care professional and a facility for health care 31 services provided by telehealth to a covered person for a 32 mental health condition, illness, injury, or disease on the 33 same basis and at the same rate as the health carrier would 34 apply to the same health care services for a mental health 35 -8- LSB 2832SV (1) 89 jm/jh 8/ 103

S.F. 619 condition, illness, injury, or disease provided in person to a 1 covered person by the health care professional or the facility. 2 b. As a condition of reimbursement pursuant to paragraph 3 “a” , a health carrier shall not require that an additional 4 health care professional be located in the same room as a 5 covered person while health care services for a mental health 6 condition, illness, injury, or disease are provided via 7 telehealth by another health care professional to the covered 8 person. 9 Sec. 32. EFFECTIVE DATE. This division of this Act, being 10 deemed of immediate importance, takes effect upon enactment. 11 Sec. 33. RETROACTIVE APPLICABILITY. This division of 12 this Act applies to health care services for a mental health 13 condition, illness, injury, or disease provided by a health 14 care professional or a facility to a covered person by 15 telehealth on or after January 1, 2021. 16 DIVISION XI 17 HIGH QUALITY JOBS AND RENEWABLE CHEMICAL PRODUCTION TAX CREDITS 18 Sec. 34. Section 15.119, subsection 2, paragraph a, 19 subparagraphs (2) and (3), Code 2021, are amended to read as 20 follows: 21 (2) In allocating tax credits pursuant to this subsection 22 for each fiscal year of the fiscal period beginning July 1, 23 2016, and ending June 30, 2021 the fiscal year beginning July 24 1, 2021, and for each fiscal year thereafter , the authority 25 shall not allocate more than one hundred five seventy million 26 dollars for purposes of this paragraph. This subparagraph (2) 27 is repealed July 1, 2021. 28 (3) (a) In allocating tax credits pursuant to this 29 subsection for the fiscal year beginning July 1, 2021, and 30 ending June 30, 2022, the authority shall not allocate more 31 than one hundred five million dollars for purposes of this 32 paragraph if the aggregate amount of renewable chemical 33 production tax credits under section 15.319 that were awarded 34 on or after July 1, 2018, but before July 1, 2021, equals or 35 -9- LSB 2832SV (1) 89 jm/jh 9/ 103

S.F. 619 exceeds twenty-seven million dollars. 1 (b) As soon as practicable after June 30, 2021, the 2 authority shall notify the general assembly of the aggregate 3 amount of renewable chemical production tax credits awarded 4 under section 15.319 on or after July 1, 2018, but before 5 July 1, 2021, and whether or not the tax credit allocation 6 limitation described in subparagraph division (a) is 7 applicable. 8 (c) This subparagraph (3) is repealed July 1, 2022. 9 Sec. 35. Section 15.119, subsection 2, paragraph h, Code 10 2021, is amended to read as follows: 11 h. The renewable chemical production tax credit program 12 administered pursuant to sections 15.315 through 15.322 . In 13 allocating tax credits pursuant to this subsection for the 14 fiscal year beginning July 1, 2021, and for each fiscal year 15 thereafter , the authority shall not allocate more than ten five 16 million dollars for purposes of this paragraph. This paragraph 17 is repealed July 1, 2030. 18 Sec. 36. EFFECTIVE DATE. This division of this Act, being 19 deemed of immediate importance, takes effect upon enactment. 20 DIVISION XII 21 HIGH QUALITY JOBS —— ELIGIBILITY REQUIREMENTS 22 Sec. 37. HIGH QUALITY JOBS —— REDUCTIONS IN OPERATIONS. 23 1. Notwithstanding section 15.329, subsection 1, paragraph 24 “b”, subparagraph (2), the economic development authority shall 25 not presume that a reduction in operations is a reduction in 26 operations while simultaneously applying for assistance with 27 regard to a business that submits an application on or before 28 June 30, 2022, if the business demonstrates to the satisfaction 29 of the authority all of the following: 30 a. That the reduction in operations occurred after March 1, 31 2020. 32 b. That the reduction in operations was caused by the 33 COVID-19 pandemic. 34 2. The economic development authority shall consider 35 -10- LSB 2832SV (1) 89 jm/jh 10/ 103

S.F. 619 whether the benefit of the project proposed by a business 1 under subsection 1 outweighs any negative impact related to 2 the business’s reduction in operations. The business shall 3 remain subject to all other eligibility requirements pursuant 4 to section 15.329. 5 3. This section is repealed July 1, 2022. 6 DIVISION XIII 7 MANUFACTURING 4.0 8 Sec. 38. NEW SECTION . 15.371 Manufacturing 4.0 technology 9 investment program. 10 1. This section shall be known as and may be cited as the 11 “Manufacturing 4.0 Technology Investment Program” . 12 2. For purposes of this section unless the context otherwise 13 requires: 14 a. “Financial assistance” means the same as defined in 15 section 15.102. 16 b. “Manufacturing 4.0 technology investments” means projects 17 that are intended to lead to the adoption of, and integration 18 of, smart technologies into existing manufacturing operations 19 located in the state by mitigating the risk to the manufacturer 20 of significant technology investments. Projects may include 21 investments in specialized hardware, software, or other 22 equipment intended to assist a manufacturer in increasing the 23 manufacturer’s productivity, efficiency, and competitiveness. 24 3. a. A manufacturing 4.0 technology investment fund 25 is created within the state treasury under the control of 26 the authority for the purpose of financing manufacturing 4.0 27 technology investments as described in this section. 28 b. The fund may be administered as a revolving fund and 29 may consist of any moneys appropriated by the general assembly 30 for purposes of this section and any other moneys that are 31 lawfully available to the authority. Any moneys appropriated 32 to the fund shall be used for purposes of the manufacturing 33 4.0 technology investment program. The authority may use all 34 other moneys in the fund, including interest, earnings, and 35 -11- LSB 2832SV (1) 89 jm/jh 11/ 103

S.F. 619 recaptures, for purposes of this section. 1 c. Notwithstanding section 8.33, moneys appropriated in this 2 section that remain unencumbered or unobligated at the close of 3 the fiscal year shall not revert but shall remain available for 4 expenditure for the purposes designated until the close of the 5 succeeding fiscal year. 6 d. Notwithstanding any law to the contrary, the authority 7 may transfer any unobligated and unencumbered moneys in the 8 fund, except for moneys appropriated for purposes of this 9 section, to any fund created pursuant to section 15.106A, 10 subsection 1, paragraph “o” . 11 4. The authority shall establish and administer a 12 manufacturing 4.0 technology investment program and shall use 13 moneys in the fund to award financial assistance to eligible 14 manufacturers for manufacturing 4.0 technology investments. 15 5. To be eligible for a financial assistance award under the 16 manufacturing 4.0 technology investment program, a manufacturer 17 must do all of the following: 18 a. Manufacture goods at a facility located in this state. 19 b. Have a North American industry classification system 20 number within the manufacturing sector range of 31-33. 21 c. Have been an established business for a minimum of three 22 years prior to the date of application to the program. 23 d. Derive a minimum of fifty-one percent of the 24 manufacturer’s gross revenue from the sale of manufactured 25 goods. 26 e. Employ a minimum of three full-time employees and no 27 more than seventy-five full-time employees across all of the 28 manufacturer’s locations. 29 f. Have an assessment of the manufacturer’s proposed 30 manufacturing 4.0 technology investment completed by the center 31 for industrial research and service at Iowa state university of 32 science and technology. 33 g. Demonstrate the ability to provide matching financial 34 support for the manufacturer’s manufacturing 4.0 technology 35 -12- LSB 2832SV (1) 89 jm/jh 12/ 103

S.F. 619 investment on a one-to-one basis. The matching financial 1 support must be obtained from private sources. 2 6. Eligible manufacturers shall submit applications to the 3 manufacturing 4.0 technology investment program in the manner 4 prescribed by the authority by rule. 5 7. a. The authority may accept applications during one 6 or more application periods each fiscal year as determined by 7 the authority. All completed applications shall be reviewed 8 and scored on a competitive basis pursuant to rules adopted by 9 the authority. The authority may engage an outside technical 10 review panel to complete technical reviews of applications. 11 The board shall review the recommendations of the authority 12 and of the technical review panel, if applicable, and shall 13 approve, defer, or deny each application. 14 b. In making recommendations to the board, the authority and 15 the technical review panel, if applicable, shall consider all 16 of the following: 17 (1) The completeness of the manufacturer’s application. 18 (2) Whether the board should approve or deny an application. 19 (3) If the board approves an application, the type and 20 amount of financial assistance that should to be awarded to the 21 applicant. 22 (4) The percentage of the manufacturer’s gross revenue 23 that is derived from the sale of manufactured goods pursuant 24 to subsection 5, paragraph “d” . 25 (5) Whether the manufacturer’s proposed manufacturing 26 4.0 technology investment is consistent with the assessment 27 completed by the center for industrial research and service at 28 Iowa state university of science and technology pursuant to 29 subsection 5, paragraph “f” . 30 c. The board shall not approve an application for financial 31 assistance for a manufacturing 4.0 technology investment that 32 was made prior to the date of the application. 33 8. From moneys appropriated to the manufacturing 4.0 34 technology investment fund from the general fund of the state 35 -13- LSB 2832SV (1) 89 jm/jh 13/ 103

S.F. 619 and any other state moneys lawfully available to the authority 1 for the manufacturing 4.0 technology investment program, the 2 maximum amount of financial assistance awarded from such moneys 3 to an eligible manufacturer shall not exceed seventy-five 4 thousand dollars. 5 9. The authority shall adopt rules pursuant to chapter 17A 6 necessary to implement and administer this section. 7 DIVISION XIV 8 ENERGY INFRASTRUCTURE REVOLVING LOAN PROGRAM 9 Sec. 39. Section 476.10A, subsection 2, Code 2021, is 10 amended to read as follows: 11 2. Notwithstanding section 8.33 , any unexpended moneys 12 remitted to the treasurer of state under this section shall be 13 retained for the purposes designated. Notwithstanding section 14 12C.7, subsection 2 , interest or earnings on investments or 15 time deposits of the moneys remitted under this section shall 16 be retained and used for the purposes designated, pursuant to 17 section 476.46 . 18 Sec. 40. Section 476.46, subsection 2, paragraph e, 19 subparagraph (3), Code 2021, is amended to read as follows: 20 (3) Interest on the fund shall be deposited in the fund. 21 A portion of the interest on the fund, not to exceed fifty 22 percent of the total interest accrued, shall be used for 23 promotion and administration of the fund. 24 Sec. 41. Section 476.46, Code 2021, is amended by adding the 25 following new subsections: 26 NEW SUBSECTION . 3. The Iowa energy center shall not 27 initiate any new loans under this section after June 30, 2021. 28 NEW SUBSECTION . 4. Loan payments received under this 29 section on or after July 1, 2021, and any other moneys in the 30 fund on or after July 1, 2021, shall be deposited in the energy 31 infrastructure revolving loan fund created in section 476.46A. 32 Sec. 42. NEW SECTION . 476.46A Energy infrastructure 33 revolving loan program. 34 1. a. An energy infrastructure revolving loan fund is 35 -14- LSB 2832SV (1) 89 jm/jh 14/ 103

S.F. 619 created in the office of the treasurer of state and shall be 1 administered by the Iowa energy center established in section 2 15.120. 3 b. The fund may be administered as a revolving fund and may 4 consist of any moneys appropriated by the general assembly for 5 purposes of this section and any other moneys that are lawfully 6 directed to the fund. 7 c. Moneys in the fund shall be used to provide financial 8 assistance for the development and construction of energy 9 infrastructure, including projects that support electric or gas 10 generation transmission, storage, or distribution; electric 11 grid modernization; energy-sector workforce development; 12 emergency preparedness for rural and underserved areas; the 13 expansion of biomass, biogas, and renewable natural gas; 14 innovative technologies; and the development of infrastructure 15 for alternative fuel vehicles. 16 d. Notwithstanding section 8.33, moneys appropriated in this 17 section that remain unencumbered or unobligated at the close of 18 the fiscal year shall not revert but shall remain available for 19 expenditure for the purposes designated until the close of the 20 succeeding fiscal year. 21 e. Notwithstanding section 12C.7, subsection 2, interest or 22 earnings on moneys in the fund shall be credited to the fund. 23 2. a. The Iowa energy center shall establish and administer 24 an energy infrastructure revolving loan program to encourage 25 the development of energy infrastructure within the state. 26 b. An individual, business, rural electric cooperative, or 27 municipal utility located and operating in this state shall be 28 eligible for financial assistance under the program. With the 29 approval of the Iowa energy center governing board established 30 under section 15.120, subsection 2, the economic development 31 authority shall determine the amount and the terms of all 32 financial assistance awarded to an individual, business, rural 33 electric cooperative, or municipal utility under the program. 34 All agreements and administrative authority sha11 be vested in 35 -15- LSB 2832SV (1) 89 jm/jh 15/ 103

S.F. 619 the Iowa energy center governing board. 1 c. The economic development authority may use not more than 2 five percent of the moneys in the fund at the beginning of each 3 fiscal year for purposes of administrative costs, marketing, 4 technical assistance, and other program support. 5 3. For the purposes of this section: 6 a. “Energy infrastructure” means land, buildings, physical 7 plant and equipment, and services directly related to the 8 development of projects used for, or useful for, electricity or 9 gas generation, transmission, storage, or distribution. 10 b. “Financial assistance” means the same as defined in 11 section 15.102. 12 Sec. 43. ALTERNATE ENERGY REVOLVING LOAN FUND —— MONEYS 13 TRANSFERRED AND APPROPRIATED. Any unencumbered or unobligated 14 moneys remaining after June 30, 2021, in the alternate energy 15 revolving loan fund created pursuant to section 476.46, are 16 transferred and appropriated to the energy infrastructure 17 revolving loan fund created pursuant to section 476.46A, to be 18 used for purposes of the energy infrastructure revolving loan 19 program. 20 DIVISION XV 21 WORKFORCE HOUSING TAX INCENTIVES 22 Sec. 44. Section 15.119, subsection 2, paragraph g, Code 23 2021, is amended to read as follows: 24 g. (1) The workforce housing tax incentives program 25 administered pursuant to sections 15.351 through 15.356 . 26 In allocating tax credits pursuant to this subsection , the 27 authority shall not allocate more than twenty-five thirty 28 million dollars for purposes of this paragraph. Of the moneys 29 allocated under this paragraph, ten fifteen million dollars 30 shall be reserved for allocation to qualified housing projects 31 in small cities, as defined in section 15.352 , that are 32 registered on or after July 1, 2017. 33 (2) (a) Notwithstanding subparagraph (1), in allocating 34 tax credits pursuant to this subsection for the fiscal year 35 -16- LSB 2832SV (1) 89 jm/jh 16/ 103

S.F. 619 beginning July 1, 2021, and ending June 30, 2022, the authority 1 shall not allocate more than forty million dollars for the 2 purposes of this paragraph. Of the moneys allocated under 3 this paragraph for the fiscal year beginning July 1, 2021, and 4 ending June 30, 2022, twelve million dollars shall be reserved 5 for allocation to qualified housing projects in small cities, 6 as defined in section 15.352, that are registered on or after 7 July 1, 2017. 8 (b) Notwithstanding subparagraph (1), in allocating 9 tax credits pursuant to this subsection for the fiscal year 10 beginning July 1, 2022, and ending June 30, 2023, the authority 11 shall not allocate more than thirty-five million dollars for 12 the purposes of this paragraph. Of the moneys allocated under 13 this paragraph for the fiscal year beginning July 1, 2022, 14 and ending June 30, 2023, fifteen million dollars shall be 15 reserved for allocation to qualified housing projects in small 16 cities, as defined in section 15.352, that are registered on or 17 after July 1, 2017, and five million dollars shall be reserved 18 for qualified housing projects in areas of the state with 19 the largest wait list or greatest need as determined by the 20 authority. 21 (c) This subparagraph is repealed July 1, 2023. 22 Sec. 45. Section 15.354, subsection 3, paragraph d, Code 23 2021, is amended to read as follows: 24 d. Upon completion of a housing project, an a housing 25 business shall submit all of the following to the authority: 26 (1) An examination of the project in accordance with the 27 American institute of certified public accountants’ statements 28 on standards for attestation engagements, completed by a 29 certified public accountant authorized to practice in this 30 state , shall be submitted to the authority . 31 (2) A statement of the final amount of qualifying new 32 investment for the housing project. 33 (3) Any information the authority deems necessary to ensure 34 compliance with the agreement signed by the housing business 35 -17- LSB 2832SV (1) 89 jm/jh 17/ 103

S.F. 619 pursuant to paragraph “a” , the requirements of this part, 1 and rules the authority and the department of revenue adopt 2 pursuant to section 15.356. 3 Sec. 46. Section 15.354, subsection 3, paragraph e, 4 subparagraph (1), Code 2021, is amended to read as follows: 5 (1) Upon review of the examination , and verification of 6 the amount of the qualifying new investment, and review of 7 any other information submitted pursuant to paragraph “d” , 8 subparagraph (3), the authority may notify the housing business 9 of the amount that the housing business may claim as a refund 10 of the sales and use tax under section 15.355, subsection 2 , 11 and may issue a tax credit certificate to the housing business 12 stating the amount of workforce housing investment tax credits 13 under section 15.355 , subsection 3 , the eligible housing 14 business may claim. The sum of the amount that the housing 15 business may claim as a refund of the sales and use tax and 16 the amount of the tax credit certificate shall not exceed the 17 amount of the tax incentive award. 18 Sec. 47. Section 15.354, subsection 6, paragraphs b and c, 19 Code 2021, are amended to read as follows: 20 b. Notwithstanding subsection 1 , the authority may accept 21 applications for disaster recovery housing projects on a 22 continuous basis establish a disaster recovery application 23 period following the declaration of a major disaster by the 24 president of the United States for a county in Iowa . 25 c. Notwithstanding subsection 2 , paragraphs “a” , “b” , and 26 “d” , upon Upon review of a housing business’s application , 27 and scoring of all applications received during a disaster 28 recovery application period, the authority may make a tax 29 incentive award to a disaster recovery housing project. The 30 tax incentive award shall represent the maximum amount of tax 31 incentives that the disaster recovery housing project may 32 qualify for under the program. In determining a tax incentive 33 award, the authority shall not use an amount of project costs 34 that exceeds the amount included in the application of the 35 -18- LSB 2832SV (1) 89 jm/jh 18/ 103

S.F. 619 housing business. Tax incentive awards shall be approved by 1 the director of the authority. 2 Sec. 48. Section 15.355, subsection 2, Code 2021, is amended 3 to read as follows: 4 2. A housing business may claim a refund of the sales and 5 use taxes paid under chapter 423 that are directly related to 6 a housing project and specified in the agreement. The refund 7 available pursuant to this subsection shall be as provided in 8 section 15.331A , excluding subsection 2 , paragraph “c” , of 9 that section. For purposes of the program, the term “project 10 completion” , as used in section 15.331A , shall mean the date 11 on which the authority notifies the department of revenue that 12 all applicable requirements of an the agreement entered into 13 pursuant to section 15.354 , subsection 3, paragraph “a” , and 14 all applicable requirements of this part, including the rules 15 the authority and the department of revenue adopted pursuant to 16 section 15.356, are satisfied. 17 DIVISION XVI 18 BROWNFIELDS AND GRAYFIELDS 19 Sec. 49. Section 15.119, subsection 3, Code 2021, is amended 20 to read as follows: 21 3. In allocating the amount of tax credits authorized 22 pursuant to subsection 1 among the programs specified in 23 subsection 2 , the authority shall not allocate more than ten 24 fifteen million dollars for purposes of subsection 2 , paragraph 25 “f” . 26 Sec. 50. Section 15.293A, subsection 8, Code 2021, is 27 amended to read as follows: 28 8. This section is repealed on June 30, 2021 2031 . 29 Sec. 51. Section 15.293B, Code 2021, is amended by adding 30 the following new subsection: 31 NEW SUBSECTION . 5A. a. Tax credits revoked under 32 subsection 3 including tax credits revoked up to five years 33 prior to the effective date of this division of this Act, and 34 tax credits not awarded under subsection 4 or 5, may be awarded 35 -19- LSB 2832SV (1) 89 jm/jh 19/ 103