H.F. 131 Section 1. Section 15.293A, Code 2025, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 3A. Subject to subsection 3, paragraphs “a” 3 and “b” , a grayfield site of more than fifty thousand square 4 feet that is located in a community with a population of less 5 than thirty thousand may be awarded a redevelopment tax credit 6 under this section for a term of two years at the discretion of 7 the board. 8 Sec. 2. NEW SECTION . 15.339 Nuisance property —— greater 9 than fifty thousand square feet. 10 1. Subject to section 15.338, the authority may use moneys 11 in the nuisance property remediation fund established in 12 section 15.338, subsection 1, to provide financial assistance 13 not to exceed five hundred thousand dollars to cities for the 14 remediation of nuisance properties, abandoned buildings, and 15 other structures of fifty thousand square feet or more. 16 2. Financial assistance provided pursuant to this section 17 may include loans or forgivable loans and shall be for a 18 minimum term of one hundred twenty months and a maximum term 19 of one hundred eighty months. 20 3. Twenty-five percent of the loan or forgivable loan 21 shall be forgiven upon successful remediation of the nuisance 22 property, abandoned building, or other structure. More 23 than twenty-five percent of the loan or forgivable loan may 24 be forgiven at the discretion of the director. Successful 25 remediation shall be determined by the size of the remediation 26 project, the beginning condition of the nuisance property, 27 abandoned building, or other structure, and if there has a 28 been a meaningful change to the nuisance property, abandoned 29 building, or other structure, including but not limited to the 30 following: 31 a. The nuisance property, abandoned building, or other 32 structure has been cleared or cleaned. 33 b. The nuisance property, abandoned building, or other 34 structure is for sale. 35 -1- LSB 1148YH (2) 91 nls/ko 1/ 4

H.F. 131 c. The nuisance property, abandoned building, or other 1 structure has a proposed reuse plan. 2 d. The nuisance property, abandoned building, or other 3 structure has been repurposed, including but not limited to 4 repurposed for use as a park, housing, or a business. 5 Sec. 3. Section 455E.11, subsection 2, paragraph a, 6 subparagraph (1), subparagraph division (d), Code 2025, is 7 amended to read as follows: 8 (d) Not more than four hundred thousand dollars to the 9 department for purposes of providing funding assistance 10 to eligible communities to address abandoned buildings by 11 promoting waste abatement, diversion, selective dismantlement 12 of building components, and recycling. Eligible communities 13 include a city with a population of five thousand or fewer. 14 Eligible communities also include a city with a population 15 between five thousand and thirty thousand, for which the 16 department may provide funding assistance in an amount equal 17 to ten dollars per square foot of an abandoned building, not 18 to exceed one million dollars. An application for funding 19 assistance may be submitted by any county or municipal 20 government that meets the population requirements of an 21 eligible community, and the abandoned building that is the 22 subject of such application may be owned by any person. 23 Eligible costs for program assistance include but are not 24 limited to asbestos and other hazardous material abatement and 25 removal, the recovery processing of recyclable or reusable 26 material through the selective dismantlement of abandoned 27 buildings, and reimbursement for purchased recycled content 28 materials used in the renovation of buildings. 29 EXPLANATION 30 The inclusion of this explanation does not constitute agreement with 31 the explanation’s substance by the members of the general assembly. 32 This bill relates to the redevelopment tax credit program, 33 the nuisance property remediation assistance fund, and 34 assistance for communities to address abandoned buildings. 35 -2- LSB 1148YH (2) 91 nls/ko 2/ 4

H.F. 131 Under current law, a redevelopment tax credit may be 1 granted in an amount of 12 percent of a taxpayer’s qualifying 2 investment in a grayfield site, or 15 percent of a taxpayer’s 3 qualifying investment in a grayfield site if the qualifying 4 redevelopment project meets the requirements of a green 5 development. Under the bill, a grayfield site of more than 6 50,000 square feet that is located in a community with a 7 population of less than 30,000 may be awarded a redevelopment 8 tax credit for a term of two years at the discretion of the 9 board of the Iowa economic development authority (IEDA). 10 Under the bill, the IEDA may use moneys in the nuisance 11 property remediation assistance fund to provide financial 12 assistance, not to exceed $500,000, to cities for the 13 remediation of nuisance properties, abandoned buildings, and 14 other structures of 50,000 square feet. Financial assistance 15 may include loans or forgivable loans with a minimum term of 16 120 months and a maximum term of 180 months. Twenty-five 17 percent of the loan or forgivable loan shall be forgiven 18 upon successful remediation of the nuisance property. More 19 than 25 percent may be forgiven at the discretion of the 20 director. Successful remediation is determined by the size 21 of the remediation project, the beginning condition of the 22 nuisance property, and if there has been a meaningful change to 23 the nuisance property, such as the nuisance property has been 24 cleared or cleaned, is for sale, has a proposed reuse plan, has 25 been repurposed, or any other meaningful change. 26 Under current law, the groundwater protection fund includes 27 a solid waste account of which not more than $400,000 shall 28 be allocated to the department of natural resources (DNR) 29 for purposes of providing funding assistance to eligible 30 communities to address abandoned buildings by promoting waste 31 abatement, diversion, selective dismantlement of building 32 components, and recycling. Under current law, eligible 33 communities for funding assistance include a city with a 34 population of 5,000 or fewer. Under the bill, eligible 35 -3- LSB 1148YH (2) 91 nls/ko 3/ 4

H.F. 131 communities also include a city with a population between 1 5,000 and 30,000, for which the DNR may provide funding 2 assistance in an amount equal to $10 per square foot of the 3 abandoned building, not to exceed $1 million. Under the bill, 4 an application for funding assistance may be submitted by 5 any county or municipal government that meets the population 6 requirements of an eligible community, and the abandoned 7 building that is the subject of such application may be owned 8 by any person. 9 -4- LSB 1148YH (2) 91 nls/ko 4/ 4