House
File
642
-
Introduced
HOUSE
FILE
642
BY
COMMITTEE
ON
ECONOMIC
GROWTH
AND
TECHNOLOGY
(SUCCESSOR
TO
HSB
147)
A
BILL
FOR
An
Act
establishing
the
major
economic
growth
attraction
1
program
to
be
administered
by
the
economic
development
2
authority,
and
providing
penalties.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
1228HV
(2)
90
ko/jh
H.F.
642
Section
1.
Section
9I.3,
subsection
3,
Code
2023,
is
amended
1
by
adding
the
following
new
paragraph:
2
NEW
PARAGRAPH
.
f.
(1)
An
interest
in
agricultural
land
3
acquired
by
a
foreign
business
for
an
immediate
use
other
than
4
farming
if
all
of
the
following
requirements
are
met:
5
(a)
The
foreign
business
qualifies
as
an
eligible
business
6
pursuant
to
section
15.283.
7
(b)
The
foreign
business
is
incorporated
under
the
laws
of
8
a
foreign
country
that
is
an
allied
country
and
the
foreign
9
business
is
wholly
owned
directly
or
indirectly
by
nonresident
10
aliens
of
an
allied
country,
or
is
a
business
entity,
whether
11
or
not
incorporated,
which
is
wholly
owned
directly
or
12
indirectly
by
nonresident
aliens
of
an
allied
country.
As
part
13
of
the
foreign
business’s
application
under
section
15.284,
14
the
foreign
business
provides
documentation
to
the
authority,
15
as
deemed
necessary
by
the
authority,
to
establish
that
the
16
foreign
business
is
incorporated
under
the
laws
of
a
foreign
17
country
that
is
an
allied
country
and
the
foreign
business
is
18
wholly
owned
directly
or
indirectly
by
nonresident
aliens
of
19
an
allied
country;
or
is
a
business
entity,
whether
or
not
20
incorporated,
which
is
wholly
owned
directly
or
indirectly
by
21
nonresident
aliens
of
an
allied
country.
22
(c)
The
agricultural
land
is
a
mega
site,
or
included
in
a
23
mega
site.
24
(d)
The
foreign
business
is
not
actively
engaged
in
farming.
25
(e)
The
board
authorizes
the
acquisition
of
the
26
agricultural
land
under
the
MEGA
program
administered
by
the
27
economic
development
authority
pursuant
to
sections
15.281
28
through
15.289.
29
(2)
As
used
in
this
paragraph:
30
(a)
“Actively
engaged
in
farming”
means
the
same
as
defined
31
in
section
15.282.
32
(b)
“Allied
country”
means
the
same
as
defined
in
10
U.S.C.
33
§2350f(d)(1).
34
(c)
“Authority”
means
the
economic
development
authority.
35
-1-
LSB
1228HV
(2)
90
ko/jh
1/
20
H.F.
642
(d)
“Board”
means
the
members
of
the
authority
appointed
by
1
the
governor
and
in
whom
the
powers
of
the
authority
are
vested
2
pursuant
to
section
15.105.
3
(e)
“Certified
site”
means
a
site
that
has
been
issued
a
4
certificate
of
readiness
by
the
authority
pursuant
to
section
5
15E.18.
6
(f)
“Mega
site”
means
the
same
as
defined
in
section
15.282.
7
Sec.
2.
NEW
SECTION
.
15.281
Short
title.
8
This
part
shall
be
known
and
may
be
cited
as
the
“Major
9
Economic
Growth
Attraction
Program”
or
“MEGA
Program”
.
10
Sec.
3.
NEW
SECTION
.
15.282
Definitions.
11
As
used
in
this
part,
unless
the
context
otherwise
requires:
12
1.
“Actively
engaged
in
farming”
means
any
of
the
following:
13
a.
Performing
physical
work
which
significantly
contributes
14
to
crop
or
livestock
production.
15
b.
Regularly
and
frequently
making
or
taking
an
important
16
part
in
making
management
decisions
substantially
contributing
17
to
or
affecting
the
success
of
a
farm’s
operations.
18
2.
“Base
employment
level”
means
the
number
of
full-time
19
equivalent
positions
at
a
business,
as
established
by
the
20
authority
and
the
business
using
the
business’s
payroll
21
records,
as
of
the
date
the
business
applies
for
tax
incentives
22
under
the
program.
23
3.
“Benefit”
means
nonwage
compensation
provided
to
an
24
employee.
“Benefits”
include
medical
and
dental
insurance,
a
25
pension,
a
retirement
plan,
a
profit-sharing
plan,
child
care,
26
life
insurance,
vision
insurance,
and
disability
insurance.
27
4.
“Certified
site”
means
a
site
that
has
been
issued
a
28
certificate
of
readiness
by
the
authority
pursuant
to
section
29
15E.18.
30
5.
“Community”
means
a
city,
county,
or
entity
established
31
pursuant
to
chapter
28E.
32
6.
“Contract
completion”
means
the
date
of
completion
of
33
the
terms
of
a
contract
between
a
contractor
and
an
eligible
34
business.
35
-2-
LSB
1228HV
(2)
90
ko/jh
2/
20
H.F.
642
7.
“Contractor”
means
a
person
that
has
executed
a
contract
1
with
an
eligible
business
for
the
provision
of
property,
2
materials,
or
services
for
the
construction
or
equipping
of
a
3
facility
that
is
part
of
the
eligible
business’s
project.
4
8.
“Created
jobs”
or
“create
jobs”
means
new,
permanent,
5
full-time
equivalent
positions
added
to
an
eligible
business’s
6
payroll
in
excess
of
the
eligible
business’s
base
employment
7
level.
8
9.
“Data
center
business”
means
the
same
as
defined
in
9
section
423.3,
subsection
95.
10
10.
“Eligible
business”
means
a
business
that
meets
the
11
requirements
of
section
15.283.
12
11.
“Foreign
business”
means
the
same
as
defined
in
section
13
9I.1.
14
12.
“Full-time
equivalent
position”
means
a
non-part-time
15
position
for
the
number
of
hours
or
days
per
week
considered
16
to
be
full-time
work
for
the
kind
of
service
or
work
performed
17
for
an
employer.
Typically,
a
“full-time
equivalent
position”
18
requires
two
thousand
eighty
hours
of
work
in
a
calendar
year,
19
including
all
paid
holidays,
vacations,
sick
time,
and
other
20
paid
leave.
21
13.
“Maintenance
period”
means
the
period
of
time
between
22
the
project
completion
date
and
the
maintenance
period
23
completion
date
during
which
an
eligible
business
must
maintain
24
all
created
jobs
per
the
agreement
under
section
15.285.
25
14.
“Maintenance
period
completion
date”
means
the
date
on
26
which
the
maintenance
period
ends.
27
15.
“Mega
site”
means
a
certified
site
greater
than
one
28
thousand
acres.
29
16.
“Program”
means
the
major
economic
growth
attraction
30
program.
31
17.
“Project”
means
an
activity
or
set
of
activities
32
directly
related
to
the
start-up
or
location
of
an
eligible
33
business,
proposed
in
an
eligible
business’s
application
to
the
34
program,
that
will
accomplish
the
goals
of
the
program.
35
-3-
LSB
1228HV
(2)
90
ko/jh
3/
20
H.F.
642
18.
“Project
completion
date”
means
the
date
by
which
an
1
eligible
business
that
has
been
approved
by
the
authority
to
2
participate
in
the
program
agrees
to
complete
the
terms
and
3
conditions
of
the
agreement
under
section
15.285.
4
19.
“Project
completion
period”
means
the
period
of
time
5
between
the
date
the
authority
approves
an
eligible
business
to
6
participate
in
the
program
and
the
project
completion
date.
7
20.
“Qualifying
investment”
means
a
capital
investment
8
in
real
property
located
on
a
certified
site,
including
the
9
purchase
price
of
the
land,
site
preparation,
infrastructure,
10
and
building
construction.
“Qualifying
investment”
also
means
a
11
capital
investment
in
depreciable
assets.
12
21.
“Qualifying
wage
threshold”
means
the
wage
level
13
represented
by
the
wages
within
two
standard
deviations
of
14
the
mean
wage
within
the
laborshed
area
in
which
the
eligible
15
business
is
located,
as
calculated
by
the
authority
by
rule,
16
using
the
most
current
covered
wage
and
employment
data
17
available
from
the
department
of
workforce
development
for
the
18
laborshed
area
in
which
the
eligible
business
is
located.
19
22.
“Subcontractor”
means
a
person
that
contracts
with
20
a
contractor
for
the
provision
of
property,
materials,
or
21
services
for
the
construction
or
equipping
of
a
facility
that
22
is
part
of
an
eligible
business’s
project.
23
23.
“Tax
incentives”
means
tax
credits,
tax
refunds,
or
tax
24
exemptions
authorized
under
the
program
by
the
authority
for
an
25
eligible
business.
26
Sec.
4.
NEW
SECTION
.
15.283
Eligible
business.
27
1.
To
be
eligible
to
receive
tax
incentives
under
28
the
program,
a
business
must
meet
all
of
the
following
29
requirements:
30
a.
The
business’s
proposed
project
must
be
located
on
a
31
certified
site
greater
than
two
hundred
fifty
acres
that
the
32
authority
has
determined
is
suitable
for
the
project.
33
b.
The
business’s
qualifying
investment
in
the
proposed
34
project
must
exceed
one
billion
dollars.
35
-4-
LSB
1228HV
(2)
90
ko/jh
4/
20
H.F.
642
c.
The
community
in
which
the
proposed
project
is
located
1
must
approve
the
project
either
by
ordinance
or
resolution.
2
d.
(1)
The
business
must
be
primarily
engaged
in
advanced
3
manufacturing,
biosciences,
or
research
and
development.
4
The
business
shall
not
be
a
data
center
business,
a
retail
5
business,
or
a
business
where
a
cover
charge
or
membership
6
requirement
restricts
certain
individuals
from
entering
the
7
business.
8
(2)
Factors
the
authority
shall
consider
to
determine
if
9
a
business
is
primarily
engaged
in
advanced
manufacturing,
10
biosciences,
or
research
and
development
shall
include
but
are
11
not
limited
to
all
of
the
following:
12
(a)
The
business’s
North
American
industry
classification
13
system
code.
14
(b)
The
business’s
main
sources
of
revenue.
15
(c)
The
business’s
customer
base.
16
e.
(1)
The
business
must
not
be
solely
relocating
17
operations
from
one
area
of
the
state
to
another
area
of
18
the
state.
A
proposed
project
that
does
not
create
jobs
or
19
involve
a
substantial
amount
of
new
capital
investment
shall
20
be
presumed
to
be
a
relocation
of
operations.
For
purposes
of
21
this
subparagraph,
the
authority
shall
consider
a
letter
from
22
the
affected
local
community’s
government
officials
supporting
23
the
business’s
move
away
from
the
affected
local
community
24
in
making
a
determination
whether
the
business
is
solely
25
relocating
operations.
26
(2)
This
paragraph
shall
not
be
construed
to
prohibit
27
a
business
from
expanding
the
business’s
operations
in
a
28
community
if
the
business
has
similar
operations
in
this
state
29
that
are
not
closing
or
undergoing
a
substantial
reduction
in
30
operations.
31
f.
The
business
must
create
jobs
as
part
of
the
business’s
32
proposed
project.
The
business
must
demonstrate
that
the
33
created
jobs
will
pay
at
least
one
hundred
forty
percent
of
the
34
qualifying
wage
threshold
by
the
project
completion
date,
and
35
-5-
LSB
1228HV
(2)
90
ko/jh
5/
20
H.F.
642
through
the
maintenance
period
completion
date.
1
g.
The
business
must
provide
comprehensive
benefits
to
2
each
employee
employed
in
a
created
job.
The
authority
may
3
adopt
rules
under
chapter
17A
to
determine
the
requirements
for
4
comprehensive
benefits.
5
h.
(1)
The
business
must
not
have
a
record
of
violations
6
of
the
law
or
of
regulations,
including
but
not
limited
to
7
antitrust,
environmental,
trade,
or
worker
safety,
that
over
8
a
period
of
time
show
a
consistent
pattern
or
that
establish
9
the
business’s
intentional,
criminal,
or
reckless
conduct
in
10
violation
of
such
laws
or
regulations.
11
(2)
If
the
authority
determines
that
the
business
has
a
12
record
of
violations
described
in
subparagraph
(1),
and
the
13
authority
finds
that
the
violations
did
not
seriously
affect
14
public
health,
public
safety,
or
the
environment,
the
business
15
may
be
eligible
to
qualify
for
tax
incentives
under
the
16
program.
17
(3)
If
the
authority
determines
that
the
business
has
18
a
record
of
violations
described
in
subparagraph
(1),
and
19
the
authority
finds
that
there
were
mitigating
circumstances
20
related
to
the
violations,
the
business
may
be
eligible
to
21
qualify
for
tax
incentives
under
the
program.
22
(4)
In
making
determinations
and
findings
under
23
subparagraphs
(2)
and
(3),
and
making
a
determination
whether
a
24
business
is
disqualified
from
the
program,
the
authority
shall
25
be
exempt
from
chapter
17A.
26
2.
a.
In
determining
if
a
business
is
eligible
to
27
participate
in
the
program,
the
authority
shall
consider
a
28
variety
of
factors,
including
but
not
limited
to
all
of
the
29
following:
30
(1)
The
quality
of
the
business’s
proposed
project’s
31
created
jobs.
The
authority
shall
place
greater
emphasis
on
32
created
jobs
that
are
high
wage,
low
turnover,
that
provide
33
comprehensive
benefits,
and
that
expose
employees
to
minimal
34
occupational
hazards.
A
business
that
pays
wages
substantially
35
-6-
LSB
1228HV
(2)
90
ko/jh
6/
20
H.F.
642
below
that
of
similar
businesses
located
in
the
same
geographic
1
area
shall
not
be
given
priority
under
the
program.
2
(2)
The
impact
of
the
business’s
proposed
project
on
3
businesses
that
are
in
competition
with
the
business.
4
The
authority
shall
make
a
good-faith
effort
to
identify
5
existing
Iowa
businesses
in
competition
with
the
business
6
being
considered
for
the
program.
The
authority
shall
make
7
a
good-faith
effort
to
determine
the
probability
that
any
8
proposed
tax
incentives
will
displace
employees
of
the
9
competing
businesses.
In
determining
the
impact
on
the
10
competing
businesses,
created
jobs
resulting
from
employees
11
being
displaced
from
the
competing
businesses
shall
not
be
12
counted
as
created
jobs
for
the
applying
business’s
project.
13
(3)
The
business’s
proposed
project’s
economic
impact
14
on
the
state.
The
authority
shall
place
greater
emphasis
15
on
businesses
and
proposed
projects
that
meet
the
following
16
requirements:
17
(a)
The
business
has
a
high
proportion
of
in-state
18
suppliers.
19
(b)
The
proposed
project
will
diversify
the
state
economy.
20
(c)
The
business
has
few
in-state
competitors.
21
(d)
The
proposed
project
has
the
potential
to
create
jobs
on
22
an
ongoing
basis.
23
(e)
Any
other
factors
the
authority
deems
relevant
in
24
determining
the
economic
impact
of
a
proposed
project.
25
Sec.
5.
NEW
SECTION
.
15.284
Applications
——
authorization
26
of
tax
credits
and
exemptions.
27
1.
Applications
for
the
program
shall
be
submitted
to
the
28
authority
in
the
form
and
manner
prescribed
by
the
authority
by
29
rule.
Each
application
must
be
accompanied
by
an
application
30
fee
in
an
amount
determined
by
the
authority
by
rule.
31
2.
In
determining
the
eligibility
of
a
business
to
32
participate
in
the
program,
the
authority
may
engage
outside
33
experts
to
complete
a
technical,
financial,
or
other
review
34
of
an
application
submitted
by
a
business
if
such
review
is
35
-7-
LSB
1228HV
(2)
90
ko/jh
7/
20
H.F.
642
outside
the
expertise
of
the
authority.
1
3.
a.
The
authority
and
the
board
may
negotiate
with
an
2
eligible
business
regarding
the
terms
of,
and
the
aggregate
3
value
of,
the
tax
incentives
the
eligible
business
may
receive
4
under
the
program.
5
b.
The
board
may
authorize
any
combination
of
tax
incentives
6
available
under
the
program
for
an
eligible
business.
7
4.
The
board
may
authorize
an
exemption
to
restrictions
on
8
agricultural
land
holdings
pursuant
to
section
9I.3,
subsection
9
3,
paragraph
“f”
.
10
Sec.
6.
NEW
SECTION
.
15.285
Agreement.
11
1.
An
eligible
business
that
is
approved
by
the
authority
to
12
participate
in
the
program
shall
enter
into
an
agreement
with
13
the
authority
that
specifies
the
criteria
for
the
successful
14
completion
of
all
requirements
of
the
program.
The
agreement
15
must
contain,
at
a
minimum,
provisions
related
to
all
of
the
16
following:
17
a.
The
eligible
business
must
certify
to
the
authority
18
annually
that
the
business
is
in
compliance
with
the
agreement.
19
b.
If
the
eligible
business
fails
to
comply
with
any
20
requirements
of
the
program
or
the
agreement,
the
eligible
21
business
may
be
required
to
repay
any
tax
incentives
the
22
authority
issued
to
the
eligible
business.
A
required
23
repayment
of
a
tax
incentive
shall
be
considered
a
tax
payment
24
due
and
payable
to
the
department
of
revenue
by
any
taxpayer
25
that
claimed
the
tax
incentive,
and
the
failure
to
make
the
26
repayment
may
be
treated
by
the
department
of
revenue
in
the
27
same
manner
as
a
failure
to
pay
the
tax
shown
due,
or
required
28
to
be
shown
due,
with
the
filing
of
a
return
or
deposit
form.
29
c.
If
the
eligible
business
undergoes
a
layoff
or
30
permanently
closes
any
of
its
facilities
within
the
state,
the
31
eligible
business
may
be
subject
to
all
of
the
following:
32
(1)
A
reduction
or
elimination
of
some
or
all
of
the
tax
33
incentives
the
authority
issued
to
the
eligible
business.
34
(2)
Repayment
of
any
tax
incentives
that
the
business
35
-8-
LSB
1228HV
(2)
90
ko/jh
8/
20
H.F.
642
has
claimed,
and
payment
of
any
penalties
assessed
by
the
1
department
of
revenue.
2
d.
The
project
completion
date,
the
maintenance
period
3
completion
date,
the
required
number
of
created
jobs,
the
4
qualifying
wage
threshold
that
is
applicable
to
the
project,
5
the
amount
of
qualifying
investment,
the
maximum
aggregate
6
value
of
the
tax
incentives
authorized
by
the
board,
and
any
7
other
terms
and
obligations
the
authority
deems
necessary.
8
e.
The
eligible
business
shall
only
employ
individuals
9
legally
authorized
to
work
in
this
state.
If
the
eligible
10
business
is
found
to
knowingly
employ
individuals
who
are
11
not
legally
authorized
to
work
in
this
state,
in
addition
12
to
any
penalties
provided
by
law,
all
or
a
portion
of
any
13
tax
incentives
issued
by
the
authority
shall
be
subject
to
14
recapture
by
the
authority
or
the
department
of
revenue.
15
f.
Any
terms
deemed
necessary
by
the
authority
to
effect
the
16
eligible
business’s
ongoing
compliance
with
section
15.283.
17
2.
The
business
shall
satisfy
all
applicable
terms
of
18
the
agreement
by
the
project
completion
date;
however,
the
19
board
may
for
good
cause
extend
the
project
completion
date
or
20
otherwise
amend
the
terms
of
the
agreement.
The
board
shall
21
not
amend
the
terms
of
the
agreement
to
allow
an
increase
in
22
the
maximum
aggregate
value
of
the
tax
incentives
authorized
by
23
the
board
under
section
15.284,
subsection
3.
24
3.
The
eligible
business
shall
not
assign
the
agreement
25
to
another
entity
without
the
advance
written
approval
of
the
26
board.
27
4.
The
authority
may
enforce
the
terms
of
the
agreement
as
28
necessary
and
appropriate.
29
Sec.
7.
NEW
SECTION
.
15.286
Sales
and
use
tax
refund.
30
1.
An
eligible
business
that
has
been
issued
a
tax
incentive
31
certificate
under
the
program
shall
be
entitled
to
a
refund
32
of
the
sales
and
use
taxes
paid
under
chapter
423
for
gas,
33
electricity,
water,
and
sewer
utility
services,
tangible
34
personal
property,
or
on
services
rendered,
furnished,
or
35
-9-
LSB
1228HV
(2)
90
ko/jh
9/
20
H.F.
642
performed
to
or
for
a
contractor
or
subcontractor
and
used
1
in
the
fulfillment
of
the
contract
for
the
construction
or
2
equipping
of
a
facility
that
is
part
of
the
eligible
business’s
3
project.
Taxes
attributable
to
intangible
property
and
4
furniture
and
furnishings
shall
not
be
refunded.
5
2.
To
receive
the
sales
and
use
tax
refund,
the
eligible
6
business
shall
file
a
claim
with
the
department
of
revenue
as
7
follows:
8
a.
The
contractor
or
subcontractor
shall
state
under
oath,
9
on
forms
provided
by
the
department
of
revenue,
the
amount
of
10
the
sales
of
tangible
personal
property
or
services
rendered,
11
furnished,
or
performed
including
water,
sewer,
gas,
and
12
electric
utility
services
upon
which
sales
or
use
tax
has
been
13
paid
prior
to
contract
completion,
and
shall
submit
the
forms
14
to
the
eligible
business
before
contract
completion.
15
b.
The
eligible
business
shall
inform
the
department
of
16
revenue
in
writing
of
contract
completion.
The
eligible
17
business
shall,
after
contract
completion,
submit
an
18
application
to
the
department
of
revenue
for
a
refund
of
the
19
amount
of
the
sales
and
use
taxes
paid
pursuant
to
chapter
423
20
upon
any
tangible
personal
property,
or
services
rendered,
21
furnished,
or
performed,
including
water,
sewer,
gas,
and
22
electric
utility
services.
The
application
shall
be
submitted
23
in
the
form
and
manner
prescribed
by
the
department
of
revenue.
24
The
department
of
revenue
shall
audit
the
application
and,
25
if
approved,
issue
a
warrant
to
the
eligible
business
in
the
26
amount
of
the
sales
or
use
tax
which
has
been
paid
to
the
27
state
of
Iowa
under
subsection
1.
The
eligible
business’s
28
application
must
be
submitted
to
the
department
of
revenue
29
within
one
year
after
the
project
completion
date.
An
30
application
filed
by
the
eligible
business
in
accordance
with
31
this
section
shall
not
be
denied
by
reason
of
a
limitation
set
32
forth
in
chapter
421
or
423.
33
c.
The
refund
shall
be
remitted
by
the
department
of
revenue
34
to
the
eligible
business
equally
over
five
tax
years.
35
-10-
LSB
1228HV
(2)
90
ko/jh
10/
20
H.F.
642
3.
A
contractor
or
subcontractor
that
willfully
makes
a
1
false
report
of
tax
paid
under
this
section
is
guilty
of
an
2
aggravated
misdemeanor,
and
shall
be
liable
for
payment
of
the
3
tax
and
any
applicable
penalty
and
interest.
4
Sec.
8.
NEW
SECTION
.
15.286A
Qualifying
investment
tax
5
credit.
6
1.
The
authority
may
authorize
a
tax
credit
for
an
eligible
7
business
that
is
up
to
five
percent
of
the
eligible
business’s
8
qualifying
investment
in
a
certified
site.
The
eligible
9
business
shall
not
claim
the
tax
credit
until
the
eligible
10
business’s
project
has
been
placed
in
service,
and
at
least
11
fifty
percent
of
the
created
jobs
the
eligible
business
12
agreed
to
in
the
agreement
under
section
15.285,
and
that
13
pay
at
least
one
hundred
forty
percent
of
the
qualifying
14
wage
threshold,
have
been
added
to
the
eligible
business’s
15
payroll.
The
department
of
revenue
shall
remit
the
tax
credit
16
to
the
eligible
business
equally
over
five
tax
years.
The
tax
17
credit
shall
be
allowed
against
taxes
imposed
under
chapter
18
422,
subchapter
II,
III,
or
V,
and
against
the
moneys
and
19
credits
tax
imposed
in
section
533.329.
If
the
eligible
20
business
is
a
partnership,
S
corporation,
limited
liability
21
company,
cooperative
organized
under
chapter
501
and
filing
22
as
a
partnership
for
federal
tax
purposes,
or
estate
or
trust
23
electing
to
have
the
income
taxed
directly
to
the
individual,
24
an
individual
may
claim
the
tax
credit
allowed.
The
amount
25
claimed
by
the
individual
shall
be
based
upon
the
pro
rata
26
share
of
the
individual’s
earnings
of
the
partnership,
S
27
corporation,
limited
liability
company,
cooperative
organized
28
under
chapter
501
and
filing
as
a
partnership
for
federal
tax
29
purposes,
or
estate
or
trust.
Any
tax
credit
in
excess
of
30
the
eligible
business’s
tax
liability
for
the
tax
year
may
be
31
refunded
or,
at
the
eligible
business’s
election,
credited
to
32
the
eligible
business’s
tax
liability
in
any
of
the
following
33
five
consecutive
tax
years
or
until
depleted,
whichever
occurs
34
first.
A
tax
credit
shall
not
be
carried
back
to
a
tax
year
35
-11-
LSB
1228HV
(2)
90
ko/jh
11/
20
H.F.
642
prior
to
the
tax
year
in
which
the
tax
credit
is
first
claimed
1
by
the
eligible
business.
2
2.
If
within
five
years
of
the
date
the
authority
issues
3
an
eligible
business
a
tax
credit
under
subsection
1,
the
4
eligible
business
sells,
disposes
of,
razes,
or
otherwise
5
renders
unusable
all
or
a
part
of
the
land,
buildings,
or
6
other
structures
for
which
the
tax
credit
was
claimed
under
7
this
section,
the
tax
liability
of
the
eligible
business
for
8
the
year
in
which
all
or
part
of
the
land,
buildings,
or
other
9
existing
structures
are
sold,
disposed
of,
razed,
or
otherwise
10
rendered
unusable
shall
be
increased
by
one
of
the
following
11
amounts:
12
a.
One
hundred
percent
of
the
tax
credit
claimed
under
13
this
section
if
all
or
a
part
of
the
land,
buildings,
or
other
14
structures
for
which
the
tax
credit
was
claimed
under
this
15
section
cease
to
be
eligible
for
the
tax
credit
within
one
16
year
after
the
date
the
authority
issued
the
tax
credit
to
the
17
eligible
business.
18
b.
Eighty
percent
of
the
tax
credit
claimed
under
this
19
section
if
all
or
a
part
of
the
land,
buildings,
or
other
20
structures
for
which
the
tax
credit
was
claimed
under
this
21
section
cease
to
be
eligible
for
the
tax
credit
within
two
22
years
after
the
date
the
authority
issued
the
tax
credit
to
the
23
eligible
business.
24
c.
Sixty
percent
of
the
tax
credit
claimed
under
this
25
section
if
all
or
a
part
of
the
land,
buildings,
or
other
26
structures
for
which
the
tax
credit
was
claimed
under
this
27
section
cease
to
be
eligible
for
the
tax
credit
within
three
28
years
after
the
date
the
authority
issued
the
tax
credit
to
the
29
eligible
business.
30
d.
Forty
percent
of
the
tax
credit
claimed
under
this
31
section
if
all
or
a
part
of
the
land,
buildings,
or
other
32
structures
for
which
the
tax
credit
was
claimed
under
this
33
section
cease
to
be
eligible
for
the
tax
credit
within
four
34
years
after
the
date
the
authority
issued
the
tax
credit
to
the
35
-12-
LSB
1228HV
(2)
90
ko/jh
12/
20
H.F.
642
eligible
business.
1
e.
Twenty
percent
of
the
tax
credit
claimed
under
this
2
section
if
all
or
a
part
of
the
land,
buildings,
or
other
3
structures
for
which
the
tax
credit
was
claimed
under
this
4
section
cease
to
be
eligible
for
the
tax
credit
within
five
5
years
after
the
date
the
authority
issued
the
tax
credit
to
the
6
eligible
business.
7
Sec.
9.
NEW
SECTION
.
15.286B
Withholding
tax
credit.
8
1.
From
the
remittance
due
to
the
department
of
revenue
9
pursuant
to
section
422.16,
subsection
2,
an
eligible
business
10
may
withhold
an
amount
not
to
exceed
three
percent
of
the
gross
11
wages
paid
to
each
employee
in
a
created
job
that
pays
at
least
12
the
qualifying
wage
threshold
pursuant
to
the
agreement
under
13
section
15.285.
14
2.
If
the
amount
withheld
under
subsection
1
is
less
than
15
three
percent
of
the
gross
wages
paid
to
each
employee
in
a
16
created
job
that
pays
at
least
one
hundred
forty
percent
of
17
the
qualifying
wage
threshold,
the
eligible
business
shall
18
receive
a
credit
against
the
remaining
withholding
taxes
due
19
from
the
eligible
business,
or
the
eligible
business
may
carry
20
the
credit
forward
up
to
five
consecutive
tax
years
or
until
21
depleted,
whichever
is
earlier.
22
3.
In
any
tax
year,
the
aggregate
amount
of
withholding
tax
23
credit
under
this
section
and
under
any
other
program
for
which
24
an
eligible
business
is
receiving
a
withholding
tax
credit
25
shall
not
exceed
the
amount
the
eligible
business
is
required
26
to
deduct
and
remit
to
the
department
of
revenue
under
section
27
422.16,
subsection
2,
for
that
tax
year.
28
Sec.
10.
NEW
SECTION
.
15.287
Foreign
businesses
——
29
acquisition
of
agricultural
land.
30
1.
If
a
foreign
business’s
proposed
project
is
located
on
a
31
mega
site
that
includes
agricultural
land,
the
requirements
of
32
section
9I.3,
subsection
3,
paragraph
“f”
,
must
be
satisfied
in
33
order
for
the
foreign
business
to
be
eligible
for
the
program.
34
2.
a.
A
foreign
business
under
subsection
1
that
is
35
-13-
LSB
1228HV
(2)
90
ko/jh
13/
20
H.F.
642
approved
by
the
authority
to
participate
in
the
program
shall
1
enter
into
an
agreement
with
the
authority
pursuant
to
section
2
15.285.
The
agreement
shall
include
a
provision
that
requires
3
the
foreign
business
to
comply
with
chapter
9I,
and
specifies
4
that
failure
to
do
so
may
result
in
revocation
of
all
tax
5
incentives
issued
by
the
authority
to
the
foreign
business.
6
b.
The
authority
may
grant
the
foreign
business
one
or
7
more
one-year
extensions
in
which
the
foreign
business
must
8
comply
with
section
9I.4.
The
authority
shall
not
grant
9
more
than
five
one-year
extensions.
The
community
in
which
10
the
agricultural
land
is
located
must
approve
each
one-year
11
extension
by
ordinance
or
resolution
prior
to
the
authority
12
granting
each
extension.
The
foreign
business
shall
comply
13
with
the
remaining
provisions
of
chapter
9I
to
the
extent
the
14
provisions
do
not
conflict
with
this
section.
15
Sec.
11.
NEW
SECTION
.
15.288
Other
incentives.
16
1.
Except
for
the
high
quality
jobs
program
administered
17
by
the
authority
pursuant
to
sections
15.326
through
15.336,
18
and
the
targeted
jobs
withholding
credit
pursuant
to
section
19
403.19A,
an
eligible
business
may
apply
for
and
be
eligible
to
20
receive
other
federal,
state,
and
local
incentives
in
addition
21
to
the
tax
incentives
issued
by
the
authority
to
the
eligible
22
business
under
the
program.
23
2.
The
authority,
in
its
discretion,
may
prohibit
an
24
eligible
business
that
has
been
issued
tax
incentives
under
25
the
program
from
receiving
any
additional
tax
incentive,
tax
26
credit,
grant,
loan,
or
other
financial
assistance
under
any
27
program
administered
by
the
authority.
28
Sec.
12.
NEW
SECTION
.
15.289
Property
tax
exemption.
29
1.
A
community
in
which
an
eligible
business’s
project
30
is
located
may
grant
the
eligible
business
a
property
tax
31
exemption
for
all
of,
or
a
portion
of,
the
actual
value
added
32
by
improvements
to
real
property
directly
related
to
the
33
eligible
business’s
created
jobs.
The
community
may
allow
a
34
property
tax
exemption
for
a
period
not
to
exceed
twenty
years
35
-14-
LSB
1228HV
(2)
90
ko/jh
14/
20
H.F.
642
beginning
the
year
that
the
improvements
to
real
property
are
1
first
assessed
for
taxation.
2
2.
For
purposes
of
this
section,
“improvements”
means
new
3
construction,
and
rehabilitation
of
and
additions
to
existing
4
structures.
5
3.
A
property
tax
exemption
granted
under
subsection
1
shall
6
apply
to
all
taxing
districts,
except
for
school
districts,
in
7
which
the
real
property
is
located.
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
establishes
a
major
economic
growth
attraction
12
program
(program)
to
be
administered
by
the
economic
13
development
authority
(authority).
14
To
be
eligible
to
receive
tax
incentives
(incentives)
under
15
the
program,
a
business’s
proposed
project
(project)
must
16
be
located
on
a
certified
site
greater
than
250
acres
that
17
the
authority
has
determined
is
suitable
for
the
project,
18
and
the
business’s
qualifying
investment
in
the
project
must
19
exceed
$1
billion.
Other
requirements
for
a
business
to
be
20
eligible
for
the
program
are
detailed
in
the
bill.
“Qualifying
21
investment”
is
defined
in
the
bill
as
a
capital
investment
22
in
real
property
located
on
a
certified
site,
including
the
23
purchase
price
of
the
land,
site
preparation,
infrastructure,
24
and
building
construction.
“Qualifying
investment”
also
means
25
a
capital
investment
in
depreciable
assets.
“Certified
site”
26
is
defined
as
a
site
that
has
been
issued
a
certificate
of
27
readiness
by
the
authority
pursuant
to
Code
section
15E.18.
28
“Tax
incentives”
and
“project”
are
also
defined
in
the
bill.
29
In
determining
if
a
business
is
eligible
to
participate
30
in
the
program,
the
authority
shall
consider
a
variety
of
31
factors,
including
but
not
limited
to
whether
the
jobs
created
32
by
the
business’s
project
are
high
wage,
low
turnover,
provide
33
comprehensive
benefits,
and
expose
employees
to
minimal
34
occupational
hazards;
the
impact
of
the
project
on
businesses
35
-15-
LSB
1228HV
(2)
90
ko/jh
15/
20
H.F.
642
that
compete
with
the
business
applying
to
the
program;
and
1
the
project’s
economic
impact
on
the
state.
The
bill
requires
2
the
authority
to
place
greater
emphasis
on
businesses
that
3
have
a
high
proportion
of
in-state
suppliers
and
few
in-state
4
competitors;
and
on
projects
that
diversify
the
state
economy
5
and
have
the
potential
to
create
jobs
on
an
ongoing
basis.
6
Applications
for
the
program
shall
be
submitted
in
the
7
form
and
manner
prescribed
by
the
authority
by
rule
and
be
8
accompanied
by
an
application
fee
in
an
amount
determined
by
9
the
authority
by
rule.
In
determining
a
business’s
eligibility
10
for
the
program,
the
authority
may
engage
outside
experts
11
to
complete
a
technical,
financial,
or
other
review
of
an
12
application
if
such
review
is
outside
the
expertise
of
the
13
authority.
The
authority
and
the
authority’s
board
(board)
14
may
negotiate
with
an
eligible
business
regarding
the
terms
15
of,
and
the
aggregate
value
of,
the
incentives
the
eligible
16
business
may
receive
under
the
program.
The
board
may
17
authorize
any
combination
of
incentives
available
under
the
18
program
for
an
eligible
business.
The
board
may
authorize
an
19
exemption
to
restrictions
on
agricultural
land
holdings
for
a
20
foreign
business
that
qualifies
for
the
program
pursuant
to
21
the
requirements
detailed
in
the
bill.
“Foreign
business”
is
22
defined
in
the
bill.
23
The
bill
requires
an
eligible
business
that
is
approved
to
24
participate
in
the
program
to
enter
into
an
agreement
with
25
the
authority
that
specifies
the
criteria
for
the
successful
26
completion
of
all
requirements
of
the
program.
The
agreement
27
shall
contain,
at
a
minimum,
the
provisions
as
detailed
in
28
the
bill.
The
business
shall
satisfy
all
applicable
terms
of
29
the
agreement
by
the
project
completion
date;
however,
the
30
board
may
for
good
cause
extend
the
project
completion
date
or
31
otherwise
amend
the
terms
of
the
agreement.
The
board
shall
32
not
amend
the
agreement
to
allow
an
increase
in
the
maximum
33
aggregate
value
of
the
incentives
originally
authorized
by
34
the
board.
“Project
completion
date”
is
defined
in
the
bill.
35
-16-
LSB
1228HV
(2)
90
ko/jh
16/
20
H.F.
642
The
bill
permits
the
authority
to
enforce
the
terms
of
the
1
agreement
as
necessary
and
appropriate.
2
An
eligible
business
that
has
been
issued
a
certificate
3
under
the
program
shall
be
entitled
to
a
refund
of
the
sales
4
and
use
taxes
(refund)
paid
under
Code
chapter
423
for
gas,
5
electricity,
water,
and
sewer
utility
services,
tangible
6
personal
property,
or
on
services
rendered,
furnished,
or
7
performed
to
or
for
a
contractor
or
subcontractor
and
used
in
8
the
fulfillment
of
the
contract
relating
to
the
construction
or
9
equipping
of
a
facility
that
is
part
of
the
eligible
business’s
10
project.
Taxes
attributable
to
intangible
property
and
11
furniture
and
furnishings
shall
not
be
refunded.
The
procedure
12
for
the
business
to
receive
the
refund
is
detailed
in
the
13
bill.
The
refund
shall
be
remitted
by
the
department
to
the
14
eligible
business
equally
over
five
tax
years.
A
contractor
or
15
subcontractor
that
willfully
makes
a
false
report
of
tax
paid
16
is
guilty
of
an
aggravated
misdemeanor,
and
shall
be
liable
for
17
payment
of
the
tax
and
any
applicable
penalty
and
interest.
An
18
aggravated
misdemeanor
is
punishable
by
confinement
for
no
more
19
than
two
years
and
a
fine
of
at
least
$855
but
not
more
than
20
$8,540.
21
The
authority
may
authorize
a
tax
credit
for
an
eligible
22
business
that
is
up
to
5
percent
of
the
business’s
qualifying
23
investment
in
a
certified
site.
The
eligible
business
24
shall
not
claim
the
tax
credit
until
the
eligible
business’s
25
project
has
been
placed
in
service,
and
at
least
50
percent
26
of
the
created
jobs
the
eligible
business
agreed
to
in
the
27
agreement,
and
that
pay
at
least
140
percent
of
the
qualifying
28
wage
threshold,
have
been
added
to
the
eligible
business’s
29
payroll.
The
department
shall
remit
the
tax
credit
to
the
30
eligible
business
equally
over
five
tax
years.
The
tax
credit
31
shall
be
allowed
against
taxes
imposed
under
Code
chapter
32
422,
subchapter
II,
III,
or
V,
and
against
the
moneys
and
33
credits
tax
imposed
in
Code
section
533.329.
Any
tax
credit
34
in
excess
of
the
eligible
business’s
tax
liability
for
the
tax
35
-17-
LSB
1228HV
(2)
90
ko/jh
17/
20
H.F.
642
year
may
be
refunded
or,
at
the
eligible
business’s
election,
1
credited
to
the
eligible
business’s
tax
liability
in
each
of
2
the
following
five
consecutive
tax
years
or
until
depleted,
3
whichever
occurs
first.
A
tax
credit
shall
not
be
carried
back
4
to
a
tax
year
prior
to
the
tax
year
in
which
the
tax
credit
5
is
first
claimed
by
the
eligible
business.
If
within
five
6
years
of
the
date
the
authority
issues
an
eligible
business
a
7
qualifying
investment
tax
credit
the
eligible
business
sells,
8
disposes
of,
razes,
or
otherwise
renders
unusable
all
or
a
part
9
of
the
land,
buildings,
or
other
structures
for
which
the
tax
10
credit
was
claimed,
the
tax
liability
of
the
eligible
business
11
for
the
year
in
which
all
or
part
of
the
land,
buildings,
or
12
other
existing
structures
are
sold,
disposed
of,
razed,
or
13
otherwise
rendered
unusable
shall
be
increased
by
an
amount
as
14
detailed
in
the
bill.
15
From
the
remittance
due
to
the
department
of
revenue
16
pursuant
to
Code
section
422.16(2),
an
eligible
business
may
17
withhold
an
amount
not
to
exceed
3
percent
of
the
gross
wages
18
paid
to
each
employee
in
a
created
job
that
pays
at
least
19
the
qualifying
wage
threshold
specified
in
the
agreement
the
20
business
entered
into
with
the
authority.
“Created
job”
and
21
“qualifying
wage
threshold”
are
defined
in
the
bill.
If
the
22
amount
withheld
is
less
than
3
percent
of
the
gross
wages
23
paid
to
each
employee
in
a
created
job
that
pays
at
least
140
24
percent
of
the
qualifying
wage
threshold,
the
eligible
business
25
shall
receive
a
credit
against
the
remaining
withholding
26
taxes
due
from
the
business,
or
the
business
may
carry
the
27
credit
forward
up
to
five
consecutive
tax
years
or
until
28
depleted,
whichever
is
earlier.
In
any
tax
year,
the
aggregate
29
amount
of
withholding
tax
credit
under
this
program,
and
any
30
other
program
for
which
an
eligible
business
is
receiving
31
a
withholding
tax
credit,
shall
not
exceed
the
amount
the
32
eligible
business
is
required
to
deduct
and
remit
to
the
33
department
of
revenue
under
Code
section
422.16(2)
for
that
tax
34
year.
35
-18-
LSB
1228HV
(2)
90
ko/jh
18/
20
H.F.
642
If
a
foreign
business’s
proposed
project
is
located
on
a
1
mega
site
that
includes
agricultural
land,
the
requirements
as
2
detailed
in
the
bill
must
be
satisfied
for
the
foreign
business
3
to
be
eligible
for
the
program.
“Mega
site”
is
defined
in
the
4
bill
as
a
certified
site
greater
than
1,000
acres.
A
foreign
5
business
that
is
approved
by
the
authority
to
participate
in
6
the
program
shall
enter
into
an
agreement
with
the
authority
7
that
includes
a
provision
that
requires
the
foreign
business
8
to
comply
with
Code
chapter
9I,
and
specifies
that
failure
to
9
do
so
may
result
in
revocation
of
incentives
issued
by
the
10
authority
to
the
foreign
business.
The
authority
may
grant
the
11
foreign
business
one
or
more
one-year
extensions
in
which
the
12
foreign
business
must
come
into
compliance
with
Code
section
13
9I.4.
The
authority
shall
not
grant
a
business
more
than
five
14
one-year
extensions.
The
community
in
which
the
agricultural
15
land
is
located
must
approve
each
extension
by
ordinance
or
16
resolution
prior
to
the
authority
granting
each
extension.
17
Except
for
the
high
quality
jobs
program,
and
the
targeted
18
jobs
withholding
credit,
an
eligible
business
may
apply
19
for
and
be
eligible
to
receive
other
federal,
state,
and
20
local
incentives
in
addition
to
the
incentives
the
authority
21
issues
to
the
business
under
the
program.
The
authority,
in
22
its
discretion,
may
prohibit
an
eligible
business
that
has
23
been
issued
incentives
under
the
program
from
receiving
any
24
additional
tax
incentive,
tax
credit,
grant,
loan,
or
other
25
financial
assistance
under
any
program
administered
by
the
26
authority.
27
The
bill
allows
a
community
in
which
an
eligible
business’s
28
project
is
located
to
grant
the
eligible
business
a
property
29
tax
exemption
(exemption)
for
all
of,
or
a
portion
of,
the
30
actual
value
added
by
improvements
to
real
property
directly
31
related
to
the
eligible
business’s
created
jobs.
The
community
32
may
allow
an
exemption
for
a
period
not
to
exceed
20
years
33
beginning
the
year
that
the
improvements
are
first
assessed
34
for
taxation.
“Improvements”
is
defined
as
new
construction,
35
-19-
LSB
1228HV
(2)
90
ko/jh
19/
20
H.F.
642
and
rehabilitation
of
and
additions
to
existing
structures.
1
An
exemption
granted
by
a
community
shall
apply
to
all
taxing
2
districts,
except
for
school
districts,
in
which
the
real
3
property
is
located.
4
-20-
LSB
1228HV
(2)
90
ko/jh
20/
20