House
File
339
-
Reprinted
HOUSE
FILE
339
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
HSB
84)
(As
Amended
and
Passed
by
the
House
April
25,
2019
)
A
BILL
FOR
An
Act
relating
to
programs
administered
by
the
economic
1
development
authority,
including
tax
credits
for
equity
2
investments
in
qualifying
businesses
or
innovation
funds,
3
tax
incentives
for
eligible
businesses
in
rural
communities,
4
and
including
effective
date
provisions.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
6
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339
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Section
1.
Section
15.102,
Code
2019,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
08.
“Rural
community”
means
any
city
3
located
in
this
state
with
a
population
of
thirty
thousand
4
or
less
in
a
county
with
a
population
of
fifty
thousand
or
5
less.
A
rural
community
located
in
more
than
one
county
shall
6
be
considered
to
be
located
in
the
county
having
the
greatest
7
taxable
base
within
the
city.
8
Sec.
2.
Section
15.119,
subsection
2,
paragraphs
d
and
e,
9
Code
2019,
are
amended
to
read
as
follows:
10
d.
The
tax
credits
for
investments
in
qualifying
businesses
11
issued
pursuant
to
section
15E.43
.
In
allocating
tax
credits
12
pursuant
to
this
subsection
,
the
authority
shall
allocate
at
13
least
two
million
and
not
more
than
four
million
dollars
for
14
purposes
of
this
paragraph,
unless
the
authority
determines
15
that
the
tax
credits
awarded
will
be
less
than
that
amount.
16
e.
The
tax
credits
for
investments
in
an
innovation
fund
17
pursuant
to
section
15E.52
.
In
allocating
tax
credits
pursuant
18
to
this
subsection
,
the
authority
shall
allocate
at
least
six
19
million
and
not
more
than
eight
million
dollars
for
purposes
of
20
this
paragraph,
unless
the
authority
determines
that
the
tax
21
credits
awarded
will
be
less
than
that
amount.
22
Sec.
3.
Section
15.119,
Code
2019,
is
amended
by
adding
the
23
following
new
subsection:
24
NEW
SUBSECTION
.
2A.
On
or
before
June
30
of
each
year,
25
the
authority
shall
determine
the
amount
of
tax
credits
that
26
shall
be
issued
pursuant
to
sections
15E.43
and
15E.52
for
27
the
following
fiscal
year.
In
allocating
the
amount
of
tax
28
credits
authorized
pursuant
to
subsection
1
among
the
programs
29
specified
in
subsection
2,
the
aggregate
amount
allocated
by
30
the
authority
for
purposes
of
subsection
2,
paragraphs
“d”
and
31
“e”
,
shall
not
exceed
ten
million
dollars.
32
Sec.
4.
Section
15.335A,
subsection
1,
unnumbered
paragraph
33
1,
Code
2019,
is
amended
to
read
as
follows:
34
Tax
Except
as
provided
in
subsection
1A,
tax
incentives
are
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available
to
eligible
businesses
as
provided
in
this
section
1
subsection
.
The
incentives
are
based
upon
the
number
of
jobs
2
created
or
retained
that
pay
at
least
one
hundred
twenty
3
percent
of
the
qualifying
wage
threshold
and
the
amount
of
the
4
qualifying
investment
made
according
to
the
following
schedule:
5
Sec.
5.
Section
15.335A,
Code
2019,
is
amended
by
adding
the
6
following
new
subsection:
7
NEW
SUBSECTION
.
1A.
Tax
incentives
are
available
to
8
eligible
businesses
in
rural
communities
as
provided
in
this
9
subsection.
The
incentives
are
based
upon
the
number
of
10
jobs
created
or
retained
that
pay
at
least
one
hundred
ten
11
percent
of
the
qualifying
wage
threshold
and
the
amount
of
the
12
qualifying
investment
made
according
to
the
following
schedule:
13
a.
The
number
of
jobs
is
zero
and
economic
activity
is
14
furthered
by
the
qualifying
investment
and
the
amount
of
the
15
qualifying
investment
is
one
of
the
following:
16
(1)
Less
than
fifty
thousand
dollars,
then
the
tax
incentive
17
is
the
investment
tax
credit
of
up
to
two
percent.
18
(2)
At
least
fifty
thousand
dollars
but
less
than
two
19
hundred
fifty
thousand
dollars,
then
the
tax
incentives
are
the
20
investment
tax
credit
of
up
to
two
percent
and
the
sales
tax
21
refund.
22
(3)
At
least
two
hundred
fifty
thousand
dollars,
then
the
23
tax
incentives
are
the
investment
tax
credit
of
up
to
two
24
percent,
the
sales
tax
refund,
and
the
additional
research
and
25
development
tax
credit.
26
b.
The
number
of
jobs
is
one
but
not
more
than
five
and
the
27
amount
of
the
qualifying
investment
is
one
of
the
following:
28
(1)
Less
than
fifty
thousand
dollars,
then
the
tax
incentive
29
is
the
investment
tax
credit
of
up
to
three
percent.
30
(2)
At
least
fifty
thousand
dollars
but
less
than
two
31
hundred
fifty
thousand
dollars,
then
the
tax
incentives
are
the
32
investment
tax
credit
of
up
to
three
percent
and
the
sales
tax
33
refund.
34
(3)
At
least
two
hundred
fifty
thousand
dollars,
then
the
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tax
incentives
are
the
investment
tax
credit
of
up
to
three
1
percent,
the
sales
tax
refund,
and
the
additional
research
and
2
development
tax
credit.
3
c.
The
number
of
jobs
is
six
but
not
more
than
ten
and
the
4
amount
of
the
qualifying
investment
is
one
of
the
following:
5
(1)
Less
than
fifty
thousand
dollars,
then
the
tax
incentive
6
is
the
investment
tax
credit
of
up
to
four
percent.
7
(2)
At
least
fifty
thousand
dollars
but
less
than
two
8
hundred
fifty
thousand
dollars,
then
the
tax
incentives
are
the
9
investment
tax
credit
of
up
to
four
percent
and
the
sales
tax
10
refund.
11
(3)
At
least
two
hundred
fifty
thousand
dollars,
then
the
12
tax
incentives
are
the
investment
tax
credit
of
up
to
four
13
percent,
the
sales
tax
refund,
and
the
additional
research
and
14
development
tax
credit.
15
d.
The
number
of
jobs
is
eleven
but
not
more
than
fifteen
16
and
the
amount
of
the
qualifying
investment
is
one
of
the
17
following:
18
(1)
Less
than
fifty
thousand
dollars,
then
the
tax
incentive
19
is
the
investment
tax
credit
of
up
to
five
percent.
20
(2)
At
least
fifty
thousand
dollars
but
less
than
two
21
hundred
fifty
thousand
dollars,
then
the
tax
incentives
are
the
22
investment
tax
credit
of
up
to
five
percent
and
the
sales
tax
23
refund.
24
(3)
At
least
two
hundred
fifty
thousand
dollars,
then
the
25
tax
incentives
are
the
investment
tax
credit
of
up
to
five
26
percent,
the
sales
tax
refund,
and
the
additional
research
and
27
development
tax
credit.
28
e.
The
number
of
jobs
is
sixteen
or
more
and
the
amount
of
29
the
qualifying
investment
is
one
of
the
following:
30
(1)
Less
than
fifty
thousand
dollars,
then
the
tax
incentive
31
is
the
investment
tax
credit
of
up
to
six
percent.
32
(2)
At
least
fifty
thousand
dollars
but
less
than
two
33
hundred
fifty
thousand
dollars,
then
the
tax
incentives
are
the
34
investment
tax
credit
of
up
to
six
percent
and
the
sales
tax
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refund.
1
(3)
At
least
two
hundred
fifty
thousand
dollars,
then
the
2
tax
incentives
are
the
investment
tax
credit
of
up
to
six
3
percent,
the
sales
tax
refund,
and
the
additional
research
and
4
development
tax
credit.
5
f.
The
number
of
jobs
is
thirty-one
but
not
more
than
forty
6
and
the
amount
of
the
qualifying
investment
is
at
least
five
7
million
dollars,
then
the
tax
incentives
are
the
local
property
8
tax
exemption,
the
investment
tax
credit
of
up
to
seven
9
percent,
the
sales
tax
refund,
and
the
additional
research
and
10
development
tax
credit.
11
g.
The
number
of
jobs
is
forty-one
but
not
more
than
sixty
12
and
the
amount
of
the
qualifying
investment
is
at
least
five
13
million
dollars,
then
the
tax
incentives
are
the
local
property
14
tax
exemption,
the
investment
tax
credit
of
up
to
eight
15
percent,
the
sales
tax
refund,
and
the
additional
research
and
16
development
tax
credit.
17
h.
The
number
of
jobs
is
sixty-one
but
not
more
than
18
eighty
and
the
amount
of
the
qualifying
investment
is
at
least
19
five
million
dollars,
then
the
tax
incentives
are
the
local
20
property
tax
exemption,
the
investment
tax
credit
of
up
to
nine
21
percent,
the
sales
tax
refund,
and
the
additional
research
and
22
development
tax
credit.
23
i.
The
number
of
jobs
is
eighty-one
but
not
more
than
one
24
hundred
and
the
amount
of
the
qualifying
investment
is
at
least
25
five
million
dollars,
then
the
tax
incentives
are
the
local
26
property
tax
exemption,
the
investment
tax
credit
of
up
to
ten
27
percent,
the
sales
tax
refund,
and
the
additional
research
and
28
development
tax
credit.
29
j.
The
number
of
jobs
is
at
least
one
hundred
one
and
the
30
amount
of
the
qualifying
investment
is
at
least
ten
million
31
dollars,
then
the
tax
incentives
are
the
local
property
32
tax
exemption,
the
investment
tax
credit
of
up
to
eleven
33
percent,
the
sales
tax
refund,
and
the
additional
research
and
34
development
tax
credit.
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Sec.
6.
Section
15.335B,
subsection
3,
paragraph
c,
Code
1
2019,
is
amended
to
read
as
follows:
2
c.
(1)
Consider
the
amount
and
type
of
the
local
community
3
match
.
as
follows:
4
(a)
In
a
community
with
a
population
of
less
than
five
5
thousand,
a
community
match
shall
not
be
required.
6
(b)
In
a
community
with
a
population
equal
to
or
greater
7
than
five
thousand
but
less
than
fifteen
thousand,
a
community
8
match
of
at
least
five
percent
of
the
projected
funds
to
be
9
expended
shall
be
required.
10
(c)
In
a
community
with
a
population
equal
to
or
greater
11
than
fifteen
thousand
but
less
than
thirty
thousand,
a
12
community
match
of
at
least
ten
percent
of
the
projected
funds
13
to
be
expended
shall
be
required.
14
(d)
In
a
community
with
a
population
equal
to
or
greater
15
than
thirty
thousand,
a
community
match
of
at
least
twenty
16
percent
of
the
projected
funds
to
be
expended
shall
be
17
required.
18
(2)
The
Notwithstanding
subparagraph
(1),
the
authority
may
19
provide
assistance
to
an
early-stage
business
in
a
high-growth
20
industry
regardless
of
the
amount
of
local
match
involved.
21
Sec.
7.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
immediate
22
importance,
takes
effect
upon
enactment.
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