House File 772 - Reprinted HOUSE FILE 772 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HSB 204) (As Amended and Passed by the House April 23, 2019 ) A BILL FOR An Act creating an empower rural Iowa Act to provide incentives 1 for broadband and workforce housing, and including effective 2 date and applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 HF 772 (3) 88 ko/jh/md
H.F. 772 DIVISION I 1 TITLE OF ACT 2 Section 1. TITLE OF ACT. This Act shall be known and may be 3 cited as the “Empower Rural Iowa Act”. 4 DIVISION II 5 BROADBAND 6 Sec. 2. Section 8B.1, Code 2019, is amended by adding the 7 following new subsection: 8 NEW SUBSECTION . 4A. “Facilitate” means a communication 9 service provider’s ability to provide broadband service at 10 or above the download and upload speeds specified in the 11 definition of targeted service area in this section to a home, 12 farm, school, or business within a commercially reasonable 13 time and at a commercially reasonable price upon request by a 14 consumer. 15 Sec. 3. Section 8B.1, subsection 12, Code 2019, is amended 16 to read as follows: 17 12. “Targeted service area” means a United States census 18 bureau census block located in this state, including any crop 19 operation located within the census block, within which no 20 communications service provider offers or facilitates broadband 21 service at or above twenty-five megabits per second of download 22 speed and three megabits per second of upload speed as of 23 July 1, 2015 the download and upload speeds identified by the 24 federal communications commission pursuant to section 706 of 25 the federal Telecommunications Act of 1996, as amended . 26 Sec. 4. Section 8B.1, Code 2019, is amended by adding the 27 following new subsection: 28 NEW SUBSECTION . 12A. “Underserved area” means any portion 29 of a targeted service area within which no communications 30 service provider offers or facilitates broadband service 31 meeting the download and upload speeds specified in the 32 definition of targeted service area in this section. 33 Sec. 5. Section 8B.10, subsection 1, Code 2019, is amended 34 to read as follows: 35 -1- HF 772 (3) 88 ko/jh/md 1/ 17
H.F. 772 1. The determination of whether a communications service 1 provider offers or facilitates broadband service meeting the 2 download or and upload speeds specified in the definition of 3 targeted service area in section 8B.1 shall be determined 4 or ascertained by reference to broadband availability maps 5 or data sources that are widely accepted for accuracy and 6 available for public review and comment and that are identified 7 by the office by rule. The office shall periodically make 8 renewed determinations of whether a communications service 9 provider offers or facilitates broadband service at or above 10 the download and upload speeds specified in the definition of 11 targeted service area in section 8B.1, which shall, to the 12 extent updated maps and data sources are available at the time, 13 include making such determinations prior to each round of grant 14 applications solicited by the office pursuant to section 8B.11. 15 Sec. 6. Section 8B.11, subsection 1, Code 2019, is amended 16 to read as follows: 17 1. The office shall administer a broadband grant program 18 designed to award reduce or eliminate unserved and underserved 19 areas in the state, leveraging federal funds and public and 20 private partnerships where possible, by awarding grants to 21 communications service providers that reduce or eliminate 22 targeted service areas by installing broadband infrastructure 23 that facilitates broadband service in targeted service areas 24 at or above the download and upload speeds specified in 25 the definition of targeted service area in section 8B.1, in 26 accordance with this section. 27 Sec. 7. Section 8B.11, subsection 2, paragraph c, Code 2019, 28 is amended to read as follows: 29 c. Notwithstanding section 8.33 , moneys in the fund 30 that remain unencumbered or unobligated at the close of the 31 fiscal year shall not revert but shall remain available for 32 expenditure for the purposes designated until the close of 33 the succeeding fiscal year three years following the last 34 day of the fiscal year in which the funds were originally 35 -2- HF 772 (3) 88 ko/jh/md 2/ 17
H.F. 772 appropriated . 1 Sec. 8. Section 8B.11, subsection 3, Code 2019, is amended 2 to read as follows: 3 3. Communications service providers may apply to the office 4 for a grant pursuant to this section for the installation of 5 broadband infrastructure that facilitates broadband service 6 at or above twenty-five megabits per second of download speed 7 and three megabits per second of upload speed in targeted 8 service areas at or above the download and upload speeds 9 specified in the definition of targeted service area in 10 section 8B.1 . The office may, by rule, increase the minimum 11 download and upload speeds for grant eligibility pursuant to 12 this section. The office shall include representatives from 13 schools, communities, agriculture, industry, and other areas 14 as appropriate to review and recommend grant awards. The 15 office shall conduct an open application review process and 16 include that includes the opportunity for the public to submit 17 factual information as part of a validation process to address 18 claims that a targeted service area is currently served with 19 broadband service at or above the download and upload speeds 20 specified in the definition of targeted service area in section 21 8B.1. Upon completion of the validation process, the office 22 may modify a proposed targeted service area to account for 23 information received during the validation process. The office 24 shall make available a public internet site for identifying all 25 publicly available information contained in the applications, 26 the members of the review committee, a summary of the review 27 committee’s recommended results, and any results of performance 28 testing conducted after the project is completed . 29 Sec. 9. Section 8B.11, subsection 4, Code 2019, is amended 30 to read as follows: 31 4. a. The office shall award grants on a competitive 32 basis for the installation of broadband infrastructure that 33 facilitates broadband service in targeted service areas at 34 or above the download and upload speeds specified in the 35 -3- HF 772 (3) 88 ko/jh/md 3/ 17
H.F. 772 definition of targeted service area in section 8B.1, after 1 considering the following: 2 (1) The relative need for broadband infrastructure in the 3 area and the existing broadband service speeds , including 4 whether the project serves a rural area or areas . 5 (2) The applicant’s total proposed budget for the project, 6 including the amount or percentage of local or federal matching 7 funds, if any, any funding obligations shared between public 8 and private entities, and the percentage of funding provided 9 directly from the applicant. 10 (3) The relative download and upload speeds of proposed 11 projects for all applicants. 12 (4) The specific product attributes resulting from the 13 proposed project, including technologies that provide higher 14 qualities of service, such as service levels, latency, and 15 other service attributes as determined by the office. 16 (2) (5) The percentage of the homes, farms, schools, and 17 businesses in the targeted service area that will be provided 18 access to broadband service. 19 (3) (6) The geographic diversity of the project areas of 20 all the applicants. 21 (4) (7) The economic impact of the project to the area. 22 (5) The applicant’s total proposed budget for the project, 23 including the amount or percentage of local match, if any. 24 (6) (8) Other factors the office deems relevant. 25 b. In considering the factors listed in paragraph “a” 26 for awarding grants pursuant to this section, the office 27 shall afford the greatest weight to the factors described in 28 paragraph “a” , subparagraphs (1) through (3). 29 b. c. Except as otherwise provided in this section , the 30 office shall not evaluate applications based on the office’s 31 knowledge of the applicant except for the information provided 32 in obtained by the office during the application process or 33 period for public comment . 34 Sec. 10. Section 8B.11, subsections 7 and 8, Code 2019, are 35 -4- HF 772 (3) 88 ko/jh/md 4/ 17
H.F. 772 amended to read as follows: 1 7. The office shall not award a grant pursuant to this 2 section on or after July 1, 2020 2025 . 3 8. The office shall may adopt rules pursuant to chapter 17A 4 interpreting this chapter or necessary for administering this 5 chapter , including but not limited to rules relating to the 6 broadband grant program process, management, and measurements 7 as deemed necessary by the office. 8 Sec. 11. Section 8B.11, Code 2019, is amended by adding the 9 following new subsection: 10 NEW SUBSECTION . 9. The office shall adopt rules 11 establishing procedures to allow aggrieved applicants an 12 opportunity to challenge the office’s award of grants under 13 this section. 14 Sec. 12. Section 427.1, subsection 40, paragraphs a and b, 15 Code 2019, are amended to read as follows: 16 a. The owner of broadband infrastructure shall be entitled 17 to an exemption from taxation to the extent provided in this 18 subsection for assessment years beginning before January 1, 19 2022 2027 . For the purposes of Unless the context otherwise 20 requires, the words and phrases used in this subsection , 21 “broadband infrastructure” and “targeted service area” mean the 22 same as shall have the same meaning as the words and phrases 23 used in chapter 8B, including but not limited to the words and 24 phrases defined in section 8B.1 . 25 b. The exemption shall apply to the installation of 26 broadband infrastructure that facilitates broadband service 27 at or above twenty-five megabits per second of download speed 28 and three megabits per second of upload speed the download 29 and upload speeds specified in the definition of targeted 30 service area in section 8B.1 commenced and completed on or 31 after July 1, 2015, and before July 1, 2020 2025 , in a targeted 32 service area, and used to deliver internet services to the 33 public. A person claiming an exemption under this subsection 34 shall certify to the local assessor prior to commencement of 35 -5- HF 772 (3) 88 ko/jh/md 5/ 17
H.F. 772 the installation that the broadband installation of broadband 1 infrastructure will take place facilitate broadband service 2 at or above the download and upload speeds specified in the 3 definition of targeted service area in section 8B.1 within a 4 targeted service area and shall specify the current number of 5 homes, farms, schools, and businesses in the targeted service 6 area that were offered broadband service and the download and 7 upload speeds available prior to the broadband infrastructure 8 installation for which the exemption is claimed and the number 9 of homes, farms, schools, and businesses in the targeted 10 service area that will be offered broadband service and the 11 download and upload speeds that will be available as a result 12 of installation of the broadband infrastructure for which the 13 exemption is claimed. 14 Sec. 13. Section 427.1, subsection 40, paragraph f, 15 subparagraph (1), subparagraph division (d), Code 2019, is 16 amended to read as follows: 17 (d) Certification from the office of the chief information 18 officer pursuant to section 8B.10 that the installation is 19 being performed or was completed will facilitate broadband 20 service at or above the download and upload speeds specified 21 in the definition of targeted service area in section 8B.1 in 22 a targeted service area. Certification from the office of 23 the chief information officer that broadband infrastructure 24 installed in a targeted service area facilitates broadband 25 service at or above twenty-five megabits per second of download 26 speed and three megabits per second of upload speed. 27 Sec. 14. Section 427.1, subsection 40, paragraph i, Code 28 2019, is amended to read as follows: 29 i. This subsection is repealed July 1, 2024 2030 . 30 DIVISION III 31 WORKFORCE HOUSING TAX INCENTIVE PROGRAM 32 Sec. 15. Section 15.119, subsection 2, paragraph g, Code 33 2019, is amended to read as follows: 34 g. The workforce housing tax incentives program administered 35 -6- HF 772 (3) 88 ko/jh/md 6/ 17
H.F. 772 pursuant to sections 15.351 through 15.356 . In allocating 1 tax credits pursuant to this subsection , the authority shall 2 not allocate more than twenty twenty-five million dollars for 3 purposes of this paragraph. Of the moneys allocated under 4 this paragraph, five ten million dollars shall be reserved for 5 allocation to qualified housing projects in small cities, as 6 defined in section 15.352 , that are registered on or after July 7 1, 2017. 8 Sec. 16. Section 15.119, Code 2019, is amended by adding the 9 following new subsection: 10 NEW SUBSECTION . 5. Notwithstanding subsection 1, and 11 in addition to amounts allocated pursuant to subsection 2, 12 paragraph “g” , the authority shall allocate ten million dollars 13 to the workforce housing tax incentives program administered 14 pursuant to sections 15.351 through 15.356, for qualified 15 housing projects located in a county that has been declared 16 a major disaster by the president of the United States on 17 or after March 12, 2019, and that is also a county in which 18 individuals are eligible for federal individual assistance. 19 In allocating tax credits pursuant to this subsection for the 20 period beginning July 1, 2019, and ending June 30, 2024, the 21 authority shall not allocate more than ten million dollars for 22 purposes of this subsection. This subsection is repealed July 23 1, 2024. 24 Sec. 17. Section 15.352, subsection 10, Code 2019, is 25 amended to read as follows: 26 10. “Small city” means any city or township located in this 27 state, except those located wholly within one or more of the 28 eleven most populous counties in the state, as determined by 29 the most recent federal decennial census population estimates 30 issued by the United States bureau of census . For the purposes 31 of this part, a small city that is located in more than one 32 county shall be considered to be located in the county having 33 the greatest taxable base within the small city. 34 Sec. 18. Section 15.353, subsection 2, Code 2019, is amended 35 -7- HF 772 (3) 88 ko/jh/md 7/ 17
H.F. 772 by adding the following new paragraph: 1 NEW PARAGRAPH . f. For a housing project located in any 2 county that has been declared a major disaster by the president 3 of the United States on or after March 12, 2019, and that is 4 also a county in which individuals are eligible for federal 5 individual assistance, development at a greenfield site. 6 Sec. 19. Section 15.354, subsection 1, paragraph a, Code 7 2019, is amended to read as follows: 8 a. A housing business seeking workforce housing tax 9 incentives provided in section 15.355 shall make application to 10 the authority in the manner prescribed by the authority. The 11 authority may accept applications on a continuous basis during 12 one or more annual application periods to be determined by the 13 authority by rule . 14 Sec. 20. Section 15.354, subsection 1, Code 2019, is amended 15 by adding the following new paragraph: 16 NEW PARAGRAPH . c. In addition to complying with all 17 applicable requirements in paragraph “b” , a housing business 18 that chooses to be considered as an applicant for tax credits 19 reserved pursuant to section 15.119, subsection 5, shall also 20 submit a certification that the applicant’s housing project is 21 located in a county that has been declared a major disaster by 22 the president of the United States on or after March 12, 2019, 23 and is also a county in which individuals are eligible for 24 federal individual assistance. The housing business must also 25 submit documentation that provides evidence that the qualified 26 housing project is needed due to impact of the disaster that is 27 the subject of the presidential major disaster declaration. 28 Sec. 21. Section 15.354, subsection 2, Code 2019, is amended 29 to read as follows: 30 2. Registration. Application review —— tax incentive award. 31 a. All completed applications shall be reviewed and scored 32 on a competitive basis by the authority pursuant to rules 33 adopted by the authority. 34 a. b. Upon review of the application, the authority 35 -8- HF 772 (3) 88 ko/jh/md 8/ 17
H.F. 772 may register the housing project under the program. If the 1 authority registers the housing project, the authority shall 2 make a preliminary determination as to the amount of tax 3 incentives for which the housing project qualifies and scoring 4 of all applications received during an application period, the 5 authority may make a tax incentive award to a housing project, 6 which tax incentive award shall represent the maximum amount of 7 tax incentives the housing project may qualify for under the 8 program . In determining a tax incentive award, the authority 9 shall not use an amount of project costs that exceeds the 10 amount included in the application of the housing business. 11 Tax incentive awards shall be approved by the director of the 12 authority. 13 b. c. After registering the housing project making a 14 tax incentive award , the authority shall notify the housing 15 business of successful registration under the program its tax 16 incentive award . The notification shall include the amount 17 of tax incentives under section 15.355 for which the housing 18 business has received preliminary approval an award and a 19 statement that the amount is a preliminary determination only 20 housing business has no right to receive a tax incentive 21 certificate or claim a tax incentive until all requirements 22 of the program, including all requirements imposed by the 23 agreement entered into pursuant to subsection 3, are satisfied . 24 The amount of tax credits included on a tax credit certificate 25 issued pursuant to this section , or a claim for refund of sales 26 and use taxes, shall be contingent upon completion of the all 27 requirements in subsection 3 . 28 d. An applicant that does not receive a tax incentive award 29 during an application period may make additional applications 30 during subsequent application periods. Such applicant shall be 31 required to submit a new application and shall be competitively 32 reviewed and scored in the same manner as other applicants in 33 that application period. 34 Sec. 22. Section 15.354, subsection 3, paragraphs a and e, 35 -9- HF 772 (3) 88 ko/jh/md 9/ 17
H.F. 772 Code 2019, are amended to read as follows: 1 a. Upon successful registration of receipt of a tax 2 incentive award by the housing project, the housing business 3 shall enter into an agreement with the authority for the 4 successful completion of all requirements of the program. The 5 agreement shall identify the tax incentive award amount, the 6 tax incentive award date, the project completion deadline, and 7 the total costs of the housing project. 8 e. (1) Upon review of the examination and verification 9 of the amount of the qualifying new investment, the authority 10 may notify the housing business of the amount that the housing 11 business may claim as a refund of the sales and use tax under 12 section 15.355, subsection 2, and may issue a tax credit 13 certificate to the housing business stating the amount of 14 workforce housing investment tax credits under section 15.355 , 15 subsection 3, the eligible housing business may claim. The 16 sum of the amount that the housing business may claim as a 17 refund of the sales and use tax and the amount of the tax credit 18 certificate shall not exceed the amount of the tax incentive 19 award. 20 (2) If upon review of the examination in subparagraph 21 (1) the authority determines that a housing project has 22 incurred project costs in excess of the amount submitted in the 23 application made pursuant to subsection 1 and identified in the 24 agreement , the authority shall do one of the following: 25 (a) If the project costs do not cause the housing project’s 26 average dwelling unit cost to exceed the applicable maximum 27 amount authorized in section 15.353, subsection 3 , the 28 authority may consider the agreement fulfilled and may issue a 29 tax credit certificate. 30 (b) If the project costs cause the housing project’s 31 average dwelling unit cost to exceed the applicable maximum 32 amount authorized in section 15.353, subsection 3 , but does not 33 cause the average dwelling unit cost to exceed one hundred ten 34 percent of such applicable maximum amount, the authority may 35 -10- HF 772 (3) 88 ko/jh/md 10/ 17
H.F. 772 consider the agreement fulfilled and may issue a tax credit 1 certificate. In such case, the authority shall reduce the tax 2 incentive award and the corresponding amount of tax incentives 3 the eligible housing project may claim under section 15.355, 4 subsections 2 and 3 , by the same percentage that the housing 5 project’s average dwelling unit cost exceeds the applicable 6 maximum amount under section 15.353, subsection 3 , and such 7 tax incentive reduction shall be reflected on the tax credit 8 certificate. If the authority issues a certificate pursuant 9 to this subparagraph division, the department of revenue 10 shall accept the certificate notwithstanding that the housing 11 project’s average dwelling unit costs exceeds the maximum 12 amount specified in section 15.353, subsection 3 . 13 (c) If the project costs cause the housing project’s 14 average dwelling unit cost to exceed one hundred ten percent 15 of the applicable maximum amount authorized in section 15.353, 16 subsection 3 , the authority shall determine the eligible 17 housing business to be in default under the agreement , shall 18 revoke the tax incentive award, and shall not issue a tax 19 credit certificate. The housing business shall not be allowed 20 a refund of sales and use tax under section 15.355, subsection 21 2. 22 Sec. 23. Section 15.354, subsection 4, Code 2019, is amended 23 by striking the subsection and inserting in lieu thereof the 24 following: 25 4. Maximum tax incentives amount. 26 a. (1) For fiscal years beginning on or after July 1, 2019, 27 the authority shall not award in any fiscal year an amount of 28 tax incentives for housing projects located in small cities, or 29 for other housing projects, in excess of the amounts allocated 30 for each category in section 15.119, subsection 2, paragraph 31 “g” . This paragraph “a” applies to housing projects awarded tax 32 incentives pursuant to subsection 2 on or after July 1, 2019, 33 and to housing projects registered prior to July 1, 2019, under 34 section 15.354, subsection 2, Code 2019. 35 -11- HF 772 (3) 88 ko/jh/md 11/ 17
H.F. 772 (2) Notwithstanding subparagraph (1), and section 15.119, 1 subsection 2, paragraph “g” , if the sum of the amount of tax 2 incentives applied for in valid applications submitted in a 3 given fiscal year beginning on or after July 1, 2019, for 4 housing projects located in small cities, plus the amount 5 of tax incentives eligible for issuance to housing projects 6 located in small cities that were registered prior to July 7 1, 2019, under section 15.354, subsection 2, Code 2019, does 8 not exceed the amount reserved for housing projects located 9 in small cities pursuant to section 15.119, subsection 2, 10 paragraph “g” , the authority may award the remaining amount of 11 tax incentives reserved for housing projects located in small 12 cities to other housing projects during that same fiscal year. 13 (3) Notwithstanding subparagraph (1), and section 15.119, 14 subsection 2, paragraph “g” , the authority may award during a 15 fiscal year an aggregate amount of tax incentives to housing 16 projects located in small cities that is less than the amount 17 reserved for allocation to small cities under section 15.119, 18 subsection 2, paragraph “g” , provided the difference between 19 the amount of the small city reservation and the aggregate 20 amount actually awarded to small cities during that fiscal year 21 is awarded during that same fiscal year to housing projects 22 registered prior to July 1, 2018. 23 b. With regard to a housing project registered prior to 24 July 1, 2019, a tax incentive shall be considered awarded for 25 purposes of paragraph “a” when the authority enters into an 26 agreement with the housing business for that housing project 27 as provided under section 15.354, subsection 3, Code 2019. 28 Notwithstanding any provision of law to the contrary, a housing 29 business shall have no right to enter into an agreement with 30 the authority for a housing project registered prior to July 1, 31 2019, until the authority allocates an amount of tax incentives 32 to the housing project and notifies the housing business 33 that the authority is prepared to execute the agreement 34 and make a tax incentive award for the housing project. A 35 -12- HF 772 (3) 88 ko/jh/md 12/ 17
H.F. 772 housing business shall have no right to receive a tax credit 1 certificate or claim a tax incentive for a housing project 2 registered prior to July 1, 2019, until the housing business 3 enters into an agreement with the authority. 4 c. In making tax incentive awards during any fiscal year 5 in which there are housing projects registered prior to July 6 1, 2019, which are eligible to receive tax incentives under 7 the program, the authority shall give priority in making tax 8 incentive awards to housing projects registered prior to July 9 1, 2019. The authority shall create and maintain a wait list 10 of housing projects registered prior to July 1, 2019, and such 11 housing projects shall be placed on the wait list in the order 12 the housing projects were registered. 13 d. The maximum aggregate amount of tax incentives that 14 may be awarded and issued under section 15.355 to a housing 15 business for a housing project shall not exceed one million 16 dollars. 17 e. If a housing business qualifies for a higher amount 18 of tax incentives under section 15.355 than is allowed by 19 the limitation imposed in paragraph “d” , the authority and 20 the housing business may negotiate an apportionment of the 21 reduction in tax incentives between the sales tax refund 22 provided in section 15.355, subsection 2, and the workforce 23 housing investment tax credits provided in section 15.355, 24 subsection 3, provided the total aggregate amount of tax 25 incentives after the apportioned reduction does not exceed the 26 amount in paragraph “d” . 27 f. The authority shall issue tax incentives under the 28 program on a first-come, first-served basis until the maximum 29 amount of tax incentives allocated under section 15.119, 30 subsection 2, paragraph “g” , is reached. The authority shall 31 maintain a list of housing projects registered prior to July 32 1, 2019, and of housing projects awarded tax incentives on or 33 after July 1, 2019, so that if the maximum aggregate amount 34 of tax incentives is reached in a given fiscal year, such 35 -13- HF 772 (3) 88 ko/jh/md 13/ 17
H.F. 772 registered housing projects that were completed but for which 1 tax incentives were not issued, and such housing projects that 2 were completed and are awarded tax incentives but for which tax 3 incentives have not been issued, shall be placed on a wait list 4 in the order the housing projects were registered or awarded 5 tax incentives and shall be given priority for receiving tax 6 incentives in succeeding fiscal years. 7 Sec. 24. Section 15.354, subsection 5, Code 2019, is amended 8 to read as follows: 9 5. Termination and repayment. The failure by a housing 10 business in completing a housing project to comply with any 11 requirement of this program or any of the terms and obligations 12 of an agreement entered into pursuant to this section may 13 result in the revocation, reduction, termination, or rescission 14 of the tax incentive award or the approved tax incentives and 15 may subject the housing business to the repayment or recapture 16 of tax incentives claimed under section 15.355 . The repayment 17 or recapture of tax incentives pursuant to this section shall 18 be accomplished in the same manner as provided in section 19 15.330, subsection 2 . 20 Sec. 25. Section 15.354, Code 2019, is amended by adding the 21 following new subsection: 22 NEW SUBSECTION . 6. Disaster recovery housing projects. 23 a. For purposes of this subsection, “disaster recovery 24 housing project” means a qualified housing project located in a 25 county that has been declared a major disaster by the president 26 of the United States on or after March 12, 2019, and that is 27 also a county in which individuals are eligible for federal 28 individual assistance. 29 b. Notwithstanding subsection 1, the authority may accept 30 applications for disaster recovery housing projects on a 31 continuous basis. 32 c. Notwithstanding subsection 2, paragraphs “a” , “b” , and 33 “d” , upon review of a housing business’s application, the 34 authority may make a tax incentive award to a disaster recovery 35 -14- HF 772 (3) 88 ko/jh/md 14/ 17
H.F. 772 housing project. The tax incentive award shall represent the 1 maximum amount of tax incentives that the disaster recovery 2 housing project may qualify for under the program. In 3 determining a tax incentive award, the authority shall not use 4 an amount of project costs that exceeds the amount included in 5 the application of the housing business. Tax incentive awards 6 shall be approved by the director of the authority. 7 d. The authority shall administer tax credit allocations 8 for disaster recovery housing projects separately from the 9 general allocation and separately from the allocation reserved 10 for small cities in section 15.119, subsection 2, paragraph 11 “g” . The authority shall issue tax incentives under the 12 program for disaster recovery housing projects on a first-come, 13 first-served basis until the maximum amount of tax incentives 14 allocated under section 15.119, subsection 5, is reached. The 15 authority shall maintain a list of disaster recovery housing 16 projects awarded tax incentives under the program, so that if 17 the maximum aggregate amount of tax incentives allocated for 18 disaster recovery housing projects under the program is reached 19 in a given fiscal year, such disaster recovery housing projects 20 that were completed but for which tax incentives were not 21 issued shall be placed on a wait list in the order the disaster 22 recovery housing projects were awarded tax incentives pursuant 23 to paragraph “c” , and shall be given priority for receiving tax 24 incentives in succeeding fiscal years. 25 Sec. 26. Section 15.355, subsection 2, Code 2019, is amended 26 to read as follows: 27 2. A housing business may claim a refund of the sales and 28 use taxes paid under chapter 423 that are directly related to 29 a housing project and specified in the agreement . The refund 30 available pursuant to this subsection shall be as provided in 31 section 15.331A , excluding subsection 2 , paragraph “c” , of 32 that section. For purposes of the program, the term “project 33 completion” , as used in section 15.331A , shall mean the date on 34 which the authority notifies the department of revenue that all 35 -15- HF 772 (3) 88 ko/jh/md 15/ 17
H.F. 772 applicable requirements of an agreement entered into pursuant 1 to section 15.354 are satisfied. 2 Sec. 27. Section 15.355, subsection 3, paragraph a, 3 subparagraphs (1) and (2), Code 2019, are amended to read as 4 follows: 5 (1) For a housing project not located in a small city, ten 6 percent of the qualifying new investment of a housing project 7 specified in the agreement . 8 (2) For a housing project located in a small city, twenty 9 percent of the qualifying new investment of a housing project 10 specified in the agreement . 11 Sec. 28. Section 15.355, subsection 3, paragraph a, Code 12 2019, is amended by adding the following new subparagraph: 13 NEW SUBPARAGRAPH . (3) For a housing project located in a 14 county that has been declared a major disaster by the president 15 of the United States on or after March 12, 2019, and that is 16 also a county in which individuals are eligible for federal 17 individual assistance, twenty percent of the qualifying new 18 investment of a housing project. 19 Sec. 29. WORKFORCE HOUSING TAX INCENTIVES PROGRAM —— FISCAL 20 YEAR 2019-2020. Notwithstanding section 15.119, subsection 2, 21 paragraph “g”, for the fiscal year beginning July 1, 2019, and 22 ending June 30, 2020, all moneys allocated pursuant to section 23 15.119, subsection 2, paragraph “g”, shall be allocated by the 24 economic development authority to qualified housing projects 25 in small cities, as defined in section 15.352, that were 26 registered prior to July 1, 2019. If the sum of the amount of 27 tax incentives allocated in the fiscal year beginning July 1, 28 2019, and ending June 30, 2020, for housing projects located in 29 small cities that were registered prior to July 1, 2019, does 30 not exceed the moneys that may be allocated pursuant to section 31 15.119, subsection 2, paragraph “g”, the authority may allocate 32 the remaining moneys to other qualified housing projects that 33 were registered prior to July 1, 2019. 34 Sec. 30. EMERGENCY RULES. The economic development 35 -16- HF 772 (3) 88 ko/jh/md 16/ 17
H.F. 772 authority may adopt emergency rules under section 17A.4, 1 subsection 3, and section 17A.5, subsection 2, paragraph “b”, 2 to implement the provisions of this division of this Act and 3 the rules shall be effective immediately upon filing unless 4 a later date is specified in the rules. Any rules adopted 5 in accordance with this section shall also be published as a 6 notice of intended action as provided in section 17A.4. 7 Sec. 31. EFFECTIVE DATE. This division of this Act, being 8 deemed of immediate importance, takes effect upon enactment. 9 Sec. 32. APPLICABILITY. 10 1. Except as provided in subsection 2, this division of 11 this Act applies to housing projects awarded tax incentives by 12 the authority under the program on or after July 1, 2019, and 13 housing projects registered by the authority under the program 14 prior to July 1, 2019, shall be governed by sections 15.352, 15 15.354, and 15.355, Code 2019. 16 2. The provision of this division of this Act amending 17 section 15.354, subsection 4, applies to housing projects 18 registered by the authority under the program prior to July 1, 19 2019, and to housing projects awarded tax incentives by the 20 authority under the program on or after July 1, 2019. 21 -17- HF 772 (3) 88 ko/jh/md 17/ 17