Senate File 619 - Reprinted SENATE FILE 619 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO SSB 1276) (As Amended and Passed by the Senate May 17, 2021 ) A BILL FOR An Act relating to state and local revenue and finance by 1 modifying future tax contingencies, the state inheritance 2 tax, the sales and use tax relating to food banks, the tax 3 on promotional play receipts, the sales and use tax relating 4 to food banks, the tax on promotional play receipts, mental 5 health and disability services funding, school district 6 funding, commercial and industrial property tax replacement 7 payments, providing for housing incentives, providing for 8 other properly related matters, making appropriations, and 9 including effective date, applicability, and retroactive 10 applicability provisions. 11 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 12 SF 619 (2) 89 jm/jh/mb

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- SF 619 (2) 89 jm/jh/mb 1/ 64

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- SF 619 (2) 89 jm/jh/mb 2/ 64

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 STATE INHERITANCE TAX 34 Sec. 11. Section 450.10, Code 2021, is amended by adding the 35 -3- SF 619 (2) 89 jm/jh/mb 3/ 64

S.F. 619 following new subsection: 1 NEW SUBSECTION . 7. a. In lieu of each rate of tax imposed 2 in subsections 1 through 4, for property passing from the 3 estate of a decedent dying on or after January 1, 2021, but 4 before January 1, 2022, there shall be imposed a rate of tax 5 equal to the applicable tax rate in subsections 1 through 6 4, reduced by twenty percent, and rounded to the nearest 7 one-hundredth of one percent. 8 b. In lieu of each rate of tax imposed in subsections 1 9 through 4, for property passing from the estate of a decedent 10 dying on or after January 1, 2022, but before January 1, 2023, 11 there shall be imposed a rate of tax equal to the applicable 12 tax rate in subsections 1 through 4, reduced by forty percent, 13 and rounded to the nearest one-hundredth of one percent. 14 c. In lieu of each rate of tax imposed in subsections 1 15 through 4, for property passing from the estate of a decedent 16 dying on or after January 1, 2023, but before January 1, 2024, 17 there shall be imposed a rate of tax equal to the applicable 18 tax rate in subsections 1 through 4, reduced by sixty percent, 19 and rounded to the nearest one-hundredth of one percent. 20 d. In lieu of each rate of tax imposed in subsections 1 21 through 4, for property passing from the estate of a decedent 22 dying on or after January 1, 2024, but before January 1, 2025, 23 there shall be imposed a rate of tax equal to the applicable 24 tax rate in subsections 1 through 4, reduced by eighty percent, 25 and rounded to the nearest one-hundredth of one percent. 26 Sec. 12. NEW SECTION . 450.98 Tax repealed. 27 Effective January 1, 2025, this chapter shall not apply to 28 property of estates of decedents dying on or after January 1, 29 2025. The inheritance tax shall not be imposed under this 30 chapter in the event the decedent dies on or after January 1, 31 2025, and, to this extent, this chapter is repealed. 32 Sec. 13. NEW SECTION . 450B.8 Tax repealed. 33 Effective January 1, 2025, this chapter shall not apply to 34 property of estates of decedents dying on or after January 1, 35 -4- SF 619 (2) 89 jm/jh/mb 4/ 64

S.F. 619 2025. The qualified use inheritance tax shall not be imposed 1 under this chapter in the event the decedent dies on or after 2 January 1, 2025, and, to this extent, this chapter is repealed. 3 Sec. 14. DEPARTMENT OF REVENUE. The department of revenue 4 is directed to review references to Code chapters 450 and 450B 5 and submit proposed corrections to such references in bill form 6 to the general assembly by the 2022 regular session of the 7 eighty-ninth general assembly. 8 Sec. 15. EFFECTIVE DATE. This division of this Act, being 9 deemed of immediate importance, takes effect upon enactment. 10 Sec. 16. RETROACTIVE APPLICABILITY. This division of this 11 Act applies retroactively to the estates of decedents dying on 12 or after January 1, 2021. 13 DIVISION VI 14 HOUSING TRUST FUND 15 Sec. 17. Section 428A.8, subsection 3, Code 2021, is amended 16 to read as follows: 17 3. Notwithstanding subsection 2 , the amount of money that 18 shall be transferred pursuant to this section to the housing 19 trust fund in any one fiscal year shall not exceed three seven 20 million dollars. Any money that otherwise would be transferred 21 pursuant to this section to the housing trust fund in excess 22 of that amount shall be deposited in the general fund of the 23 state. 24 DIVISION VII 25 HIGH QUALITY JOBS PROGRAM —— DAY CARE CENTERS 26 Sec. 18. Section 15.327, Code 2021, is amended by adding the 27 following new subsection: 28 NEW SUBSECTION . 016. “Licensed center” means the same as 29 defined in section 237A.1. 30 Sec. 19. Section 15.329, Code 2021, is amended by adding the 31 following new subsection: 32 NEW SUBSECTION . 3A. In addition to the factors in 33 subsection 3, in determining the eligibility of a business to 34 participate in the program the authority may consider whether a 35 -5- SF 619 (2) 89 jm/jh/mb 5/ 64

S.F. 619 proposed project will provide a licensed center for use by the 1 business’s employees. 2 DIVISION VIII 3 TELEHEALTH 4 Sec. 20. Section 514C.34, subsection 1, Code 2021, is 5 amended by adding the following new paragraphs: 6 NEW PARAGRAPH . 0a. “Covered person” means the same as 7 defined in section 514J.102. 8 NEW PARAGRAPH . 00a. “Facility” means the same as defined in 9 section 514J.102. 10 NEW PARAGRAPH . 0c. “Health carrier” means the same as 11 defined in section 514J.102. 12 Sec. 21. Section 514C.34, subsection 1, paragraph c, Code 13 2021, is amended to read as follows: 14 c. “Telehealth” means the delivery of health care services 15 through the use of real-time interactive audio and video , or 16 other real-time interactive electronic media, regardless of 17 where the health care professional and the covered person are 18 each located . “Telehealth” does not include the delivery of 19 health care services delivered solely through an audio-only 20 telephone, electronic mail message, or facsimile transmission. 21 Sec. 22. Section 514C.34, Code 2021, is amended by adding 22 the following new subsection: 23 NEW SUBSECTION . 3A. a. A health carrier shall reimburse 24 a health care professional and a facility for health care 25 services provided by telehealth to a covered person for a 26 mental health condition, illness, injury, or disease on the 27 same basis and at the same rate as the health carrier would 28 apply to the same health care services for a mental health 29 condition, illness, injury, or disease provided in person to a 30 covered person by the health care professional or the facility. 31 b. As a condition of reimbursement pursuant to paragraph 32 “a” , a health carrier shall not require that an additional 33 health care professional be located in the same room as a 34 covered person while health care services for a mental health 35 -6- SF 619 (2) 89 jm/jh/mb 6/ 64

S.F. 619 condition, illness, injury, or disease are provided via 1 telehealth by another health care professional to the covered 2 person. 3 Sec. 23. EFFECTIVE DATE. This division of this Act, being 4 deemed of immediate importance, takes effect upon enactment. 5 Sec. 24. RETROACTIVE APPLICABILITY. This division of 6 this Act applies to health care services for a mental health 7 condition, illness, injury, or disease provided by a health 8 care professional or a facility to a covered person by 9 telehealth on or after January 1, 2021. 10 DIVISION IX 11 HIGH QUALITY JOBS AND RENEWABLE CHEMICAL PRODUCTION TAX CREDITS 12 Sec. 25. Section 15.119, subsection 2, paragraph a, 13 subparagraphs (2) and (3), Code 2021, are amended to read as 14 follows: 15 (2) In allocating tax credits pursuant to this subsection 16 for each fiscal year of the fiscal period beginning July 1, 17 2016, and ending June 30, 2021 the fiscal year beginning July 18 1, 2021, and for each fiscal year thereafter , the authority 19 shall not allocate more than one hundred five seventy million 20 dollars for purposes of this paragraph. This subparagraph (2) 21 is repealed July 1, 2021. 22 (3) (a) In allocating tax credits pursuant to this 23 subsection for the fiscal year beginning July 1, 2021, and 24 ending June 30, 2022, the authority shall not allocate more 25 than one hundred five million dollars for purposes of this 26 paragraph if the aggregate amount of renewable chemical 27 production tax credits under section 15.319 that were awarded 28 on or after July 1, 2018, but before July 1, 2021, equals or 29 exceeds twenty-seven million dollars. 30 (b) As soon as practicable after June 30, 2021, the 31 authority shall notify the general assembly of the aggregate 32 amount of renewable chemical production tax credits awarded 33 under section 15.319 on or after July 1, 2018, but before 34 July 1, 2021, and whether or not the tax credit allocation 35 -7- SF 619 (2) 89 jm/jh/mb 7/ 64

S.F. 619 limitation described in subparagraph division (a) is 1 applicable. 2 (c) This subparagraph (3) is repealed July 1, 2022. 3 Sec. 26. Section 15.119, subsection 2, paragraph h, Code 4 2021, is amended to read as follows: 5 h. The renewable chemical production tax credit program 6 administered pursuant to sections 15.315 through 15.322 . In 7 allocating tax credits pursuant to this subsection for the 8 fiscal year beginning July 1, 2021, and for each fiscal year 9 thereafter , the authority shall not allocate more than ten five 10 million dollars for purposes of this paragraph. This paragraph 11 is repealed July 1, 2030. 12 Sec. 27. EFFECTIVE DATE. This division of this Act, being 13 deemed of immediate importance, takes effect upon enactment. 14 DIVISION X 15 HIGH QUALITY JOBS —— ELIGIBILITY REQUIREMENTS 16 Sec. 28. HIGH QUALITY JOBS —— REDUCTIONS IN OPERATIONS. 17 1. Notwithstanding section 15.329, subsection 1, paragraph 18 “b”, subparagraph (2), the economic development authority shall 19 not presume that a reduction in operations is a reduction in 20 operations while simultaneously applying for assistance with 21 regard to a business that submits an application on or before 22 June 30, 2022, if the business demonstrates to the satisfaction 23 of the authority all of the following: 24 a. That the reduction in operations occurred after March 1, 25 2020. 26 b. That the reduction in operations was caused by the 27 COVID-19 pandemic. 28 2. The economic development authority shall consider 29 whether the benefit of the project proposed by a business 30 under subsection 1 outweighs any negative impact related to 31 the business’s reduction in operations. The business shall 32 remain subject to all other eligibility requirements pursuant 33 to section 15.329. 34 3. This section is repealed July 1, 2022. 35 -8- SF 619 (2) 89 jm/jh/mb 8/ 64

S.F. 619 DIVISION XI 1 MANUFACTURING 4.0 2 Sec. 29. NEW SECTION . 15.371 Manufacturing 4.0 technology 3 investment program. 4 1. This section shall be known as and may be cited as the 5 “Manufacturing 4.0 Technology Investment Program” . 6 2. For purposes of this section unless the context otherwise 7 requires: 8 a. “Financial assistance” means the same as defined in 9 section 15.102. 10 b. “Manufacturing 4.0 technology investments” means projects 11 that are intended to lead to the adoption of, and integration 12 of, smart technologies into existing manufacturing operations 13 located in the state by mitigating the risk to the manufacturer 14 of significant technology investments. Projects may include 15 investments in specialized hardware, software, or other 16 equipment intended to assist a manufacturer in increasing the 17 manufacturer’s productivity, efficiency, and competitiveness. 18 3. a. A manufacturing 4.0 technology investment fund 19 is created within the state treasury under the control of 20 the authority for the purpose of financing manufacturing 4.0 21 technology investments as described in this section. 22 b. The fund may be administered as a revolving fund and 23 may consist of any moneys appropriated by the general assembly 24 for purposes of this section and any other moneys that are 25 lawfully available to the authority. Any moneys appropriated 26 to the fund shall be used for purposes of the manufacturing 27 4.0 technology investment program. The authority may use all 28 other moneys in the fund, including interest, earnings, and 29 recaptures, for purposes of this section. 30 c. Notwithstanding section 8.33, moneys appropriated in this 31 section that remain unencumbered or unobligated at the close of 32 the fiscal year shall not revert but shall remain available for 33 expenditure for the purposes designated until the close of the 34 succeeding fiscal year. 35 -9- SF 619 (2) 89 jm/jh/mb 9/ 64

S.F. 619 d. Notwithstanding any law to the contrary, the authority 1 may transfer any unobligated and unencumbered moneys in the 2 fund, except for moneys appropriated for purposes of this 3 section, to any fund created pursuant to section 15.106A, 4 subsection 1, paragraph “o” . 5 4. The authority shall establish and administer a 6 manufacturing 4.0 technology investment program and shall use 7 moneys in the fund to award financial assistance to eligible 8 manufacturers for manufacturing 4.0 technology investments. 9 5. To be eligible for a financial assistance award under the 10 manufacturing 4.0 technology investment program, a manufacturer 11 must do all of the following: 12 a. Manufacture goods at a facility located in this state. 13 b. Have a North American industry classification system 14 number within the manufacturing sector range of 31-33. 15 c. Have been an established business for a minimum of three 16 years prior to the date of application to the program. 17 d. Derive a minimum of fifty-one percent of the 18 manufacturer’s gross revenue from the sale of manufactured 19 goods. 20 e. Employ a minimum of three full-time employees and no 21 more than seventy-five full-time employees across all of the 22 manufacturer’s locations. 23 f. Have an assessment of the manufacturer’s proposed 24 manufacturing 4.0 technology investment completed by the center 25 for industrial research and service at Iowa state university of 26 science and technology. 27 g. Demonstrate the ability to provide matching financial 28 support for the manufacturer’s manufacturing 4.0 technology 29 investment on a one-to-one basis. The matching financial 30 support must be obtained from private sources. 31 6. Eligible manufacturers shall submit applications to the 32 manufacturing 4.0 technology investment program in the manner 33 prescribed by the authority by rule. 34 7. a. The authority may accept applications during one 35 -10- SF 619 (2) 89 jm/jh/mb 10/ 64

S.F. 619 or more application periods each fiscal year as determined by 1 the authority. All completed applications shall be reviewed 2 and scored on a competitive basis pursuant to rules adopted by 3 the authority. The authority may engage an outside technical 4 review panel to complete technical reviews of applications. 5 The board shall review the recommendations of the authority 6 and of the technical review panel, if applicable, and shall 7 approve, defer, or deny each application. 8 b. In making recommendations to the board, the authority and 9 the technical review panel, if applicable, shall consider all 10 of the following: 11 (1) The completeness of the manufacturer’s application. 12 (2) Whether the board should approve or deny an application. 13 (3) If the board approves an application, the type and 14 amount of financial assistance that should to be awarded to the 15 applicant. 16 (4) The percentage of the manufacturer’s gross revenue 17 that is derived from the sale of manufactured goods pursuant 18 to subsection 5, paragraph “d” . 19 (5) Whether the manufacturer’s proposed manufacturing 20 4.0 technology investment is consistent with the assessment 21 completed by the center for industrial research and service at 22 Iowa state university of science and technology pursuant to 23 subsection 5, paragraph “f” . 24 c. The board shall not approve an application for financial 25 assistance for a manufacturing 4.0 technology investment that 26 was made prior to the date of the application. 27 8. From moneys appropriated to the manufacturing 4.0 28 technology investment fund from the general fund of the state 29 and any other state moneys lawfully available to the authority 30 for the manufacturing 4.0 technology investment program, the 31 maximum amount of financial assistance awarded from such moneys 32 to an eligible manufacturer shall not exceed seventy-five 33 thousand dollars. 34 9. The authority shall adopt rules pursuant to chapter 17A 35 -11- SF 619 (2) 89 jm/jh/mb 11/ 64

S.F. 619 necessary to implement and administer this section. 1 DIVISION XII 2 ENERGY INFRASTRUCTURE REVOLVING LOAN PROGRAM 3 Sec. 30. Section 476.10A, subsection 2, Code 2021, is 4 amended to read as follows: 5 2. Notwithstanding section 8.33 , any unexpended moneys 6 remitted to the treasurer of state under this section shall be 7 retained for the purposes designated. Notwithstanding section 8 12C.7, subsection 2 , interest or earnings on investments or 9 time deposits of the moneys remitted under this section shall 10 be retained and used for the purposes designated, pursuant to 11 section 476.46 . 12 Sec. 31. Section 476.46, subsection 2, paragraph e, 13 subparagraph (3), Code 2021, is amended to read as follows: 14 (3) Interest on the fund shall be deposited in the fund. 15 A portion of the interest on the fund, not to exceed fifty 16 percent of the total interest accrued, shall be used for 17 promotion and administration of the fund. 18 Sec. 32. Section 476.46, Code 2021, is amended by adding the 19 following new subsections: 20 NEW SUBSECTION . 3. The Iowa energy center shall not 21 initiate any new loans under this section after June 30, 2021. 22 NEW SUBSECTION . 4. Loan payments received under this 23 section on or after July 1, 2021, and any other moneys in the 24 fund on or after July 1, 2021, shall be deposited in the energy 25 infrastructure revolving loan fund created in section 476.46A. 26 Sec. 33. NEW SECTION . 476.46A Energy infrastructure 27 revolving loan program. 28 1. a. An energy infrastructure revolving loan fund is 29 created in the office of the treasurer of state and shall be 30 administered by the Iowa energy center established in section 31 15.120. 32 b. The fund may be administered as a revolving fund and may 33 consist of any moneys appropriated by the general assembly for 34 purposes of this section and any other moneys that are lawfully 35 -12- SF 619 (2) 89 jm/jh/mb 12/ 64

S.F. 619 directed to the fund. 1 c. Moneys in the fund shall be used to provide financial 2 assistance for the development and construction of energy 3 infrastructure, including projects that support electric or gas 4 generation transmission, storage, or distribution; electric 5 grid modernization; energy-sector workforce development; 6 emergency preparedness for rural and underserved areas; the 7 expansion of biomass, biogas, and renewable natural gas; 8 innovative technologies; and the development of infrastructure 9 for alternative fuel vehicles. 10 d. Notwithstanding section 8.33, moneys appropriated in this 11 section that remain unencumbered or unobligated at the close of 12 the fiscal year shall not revert but shall remain available for 13 expenditure for the purposes designated until the close of the 14 succeeding fiscal year. 15 e. Notwithstanding section 12C.7, subsection 2, interest or 16 earnings on moneys in the fund shall be credited to the fund. 17 2. a. The Iowa energy center shall establish and administer 18 an energy infrastructure revolving loan program to encourage 19 the development of energy infrastructure within the state. 20 b. An individual, business, rural electric cooperative, or 21 municipal utility located and operating in this state shall be 22 eligible for financial assistance under the program. With the 23 approval of the Iowa energy center governing board established 24 under section 15.120, subsection 2, the economic development 25 authority shall determine the amount and the terms of all 26 financial assistance awarded to an individual, business, rural 27 electric cooperative, or municipal utility under the program. 28 All agreements and administrative authority sha11 be vested in 29 the Iowa energy center governing board. 30 c. The economic development authority may use not more than 31 five percent of the moneys in the fund at the beginning of each 32 fiscal year for purposes of administrative costs, marketing, 33 technical assistance, and other program support. 34 3. For the purposes of this section: 35 -13- SF 619 (2) 89 jm/jh/mb 13/ 64

S.F. 619 a. “Energy infrastructure” means land, buildings, physical 1 plant and equipment, and services directly related to the 2 development of projects used for, or useful for, electricity or 3 gas generation, transmission, storage, or distribution. 4 b. “Financial assistance” means the same as defined in 5 section 15.102. 6 Sec. 34. ALTERNATE ENERGY REVOLVING LOAN FUND —— MONEYS 7 TRANSFERRED AND APPROPRIATED. Any unencumbered or unobligated 8 moneys remaining after June 30, 2021, in the alternate energy 9 revolving loan fund created pursuant to section 476.46, are 10 transferred and appropriated to the energy infrastructure 11 revolving loan fund created pursuant to section 476.46A, to be 12 used for purposes of the energy infrastructure revolving loan 13 program. 14 DIVISION XIII 15 WORKFORCE HOUSING TAX INCENTIVES 16 Sec. 35. Section 15.119, subsection 2, paragraph g, Code 17 2021, is amended to read as follows: 18 g. (1) The workforce housing tax incentives program 19 administered pursuant to sections 15.351 through 15.356 . 20 In allocating tax credits pursuant to this subsection , the 21 authority shall not allocate more than twenty-five thirty-five 22 million dollars for purposes of this paragraph. Of the moneys 23 allocated under this paragraph, ten seventeen million five 24 hundred thousand dollars shall be reserved for allocation to 25 qualified housing projects in small cities, as defined in 26 section 15.352 , that are registered on or after July 1, 2017. 27 (2) (a) Notwithstanding subparagraph (1), in allocating 28 tax credits pursuant to this subsection for the fiscal year 29 beginning July 1, 2021, and ending June 30, 2022, the authority 30 shall not allocate more than forty million dollars for the 31 purposes of this paragraph. Of the moneys allocated under 32 this paragraph for the fiscal year beginning July 1, 2021, and 33 ending June 30, 2022, twelve million dollars shall be reserved 34 for allocation to qualified housing projects in small cities, 35 -14- SF 619 (2) 89 jm/jh/mb 14/ 64

S.F. 619 as defined in section 15.352, that are registered on or after 1 July 1, 2017. 2 (b) This subparagraph is repealed July 1, 2022. 3 Sec. 36. Section 15.354, subsection 3, paragraph d, Code 4 2021, is amended to read as follows: 5 d. Upon completion of a housing project, an a housing 6 business shall submit all of the following to the authority: 7 (1) An examination of the project in accordance with the 8 American institute of certified public accountants’ statements 9 on standards for attestation engagements, completed by a 10 certified public accountant authorized to practice in this 11 state , shall be submitted to the authority . 12 (2) A statement of the final amount of qualifying new 13 investment for the housing project. 14 (3) Any information the authority deems necessary to ensure 15 compliance with the agreement signed by the housing business 16 pursuant to paragraph “a” , the requirements of this part, 17 and rules the authority and the department of revenue adopt 18 pursuant to section 15.356. 19 Sec. 37. Section 15.354, subsection 3, paragraph e, 20 subparagraph (1), Code 2021, is amended to read as follows: 21 (1) Upon review of the examination , and verification of 22 the amount of the qualifying new investment, and review of 23 any other information submitted pursuant to paragraph “d” , 24 subparagraph (3), the authority may notify the housing business 25 of the amount that the housing business may claim as a refund 26 of the sales and use tax under section 15.355, subsection 2 , 27 and may issue a tax credit certificate to the housing business 28 stating the amount of workforce housing investment tax credits 29 under section 15.355 , subsection 3 , the eligible housing 30 business may claim. The sum of the amount that the housing 31 business may claim as a refund of the sales and use tax and 32 the amount of the tax credit certificate shall not exceed the 33 amount of the tax incentive award. 34 Sec. 38. Section 15.354, subsection 6, paragraphs b and c, 35 -15- SF 619 (2) 89 jm/jh/mb 15/ 64

S.F. 619 Code 2021, are amended to read as follows: 1 b. Notwithstanding subsection 1 , the authority may accept 2 applications for disaster recovery housing projects on a 3 continuous basis establish a disaster recovery application 4 period following the declaration of a major disaster by the 5 president of the United States for a county in Iowa . 6 c. Notwithstanding subsection 2 , paragraphs “a” , “b” , and 7 “d” , upon Upon review of a housing business’s application , 8 and scoring of all applications received during a disaster 9 recovery application period, the authority may make a tax 10 incentive award to a disaster recovery housing project. The 11 tax incentive award shall represent the maximum amount of tax 12 incentives that the disaster recovery housing project may 13 qualify for under the program. In determining a tax incentive 14 award, the authority shall not use an amount of project costs 15 that exceeds the amount included in the application of the 16 housing business. Tax incentive awards shall be approved by 17 the director of the authority. 18 Sec. 39. Section 15.355, subsection 2, Code 2021, is amended 19 to read as follows: 20 2. A housing business may claim a refund of the sales and 21 use taxes paid under chapter 423 that are directly related to 22 a housing project and specified in the agreement. The refund 23 available pursuant to this subsection shall be as provided in 24 section 15.331A , excluding subsection 2 , paragraph “c” , of 25 that section. For purposes of the program, the term “project 26 completion” , as used in section 15.331A , shall mean the date 27 on which the authority notifies the department of revenue that 28 all applicable requirements of an the agreement entered into 29 pursuant to section 15.354 , subsection 3, paragraph “a” , and 30 all applicable requirements of this part, including the rules 31 the authority and the department of revenue adopted pursuant to 32 section 15.356, are satisfied. 33 DIVISION XIV 34 BROWNFIELDS AND GRAYFIELDS 35 -16- SF 619 (2) 89 jm/jh/mb 16/ 64

S.F. 619 Sec. 40. Section 15.119, subsection 3, Code 2021, is amended 1 to read as follows: 2 3. In allocating the amount of tax credits authorized 3 pursuant to subsection 1 among the programs specified in 4 subsection 2 , the authority shall not allocate more than ten 5 fifteen million dollars for purposes of subsection 2 , paragraph 6 “f” . 7 Sec. 41. Section 15.293A, subsection 8, Code 2021, is 8 amended to read as follows: 9 8. This section is repealed on June 30, 2021 2031 . 10 Sec. 42. Section 15.293B, Code 2021, is amended by adding 11 the following new subsection: 12 NEW SUBSECTION . 5A. a. Tax credits revoked under 13 subsection 3 including tax credits revoked up to five years 14 prior to the effective date of this division of this Act, and 15 tax credits not awarded under subsection 4 or 5, may be awarded 16 in the next annual application period established in subsection 17 1, paragraph “c” . 18 b. Tax credits awarded pursuant to paragraph “a” shall not 19 be counted against the limit under section 15.119, subsection 20 3. 21 Sec. 43. Section 15.293B, subsection 7, Code 2021, is 22 amended to read as follows: 23 7. This section is repealed on June 30, 2021 2031 . 24 Sec. 44. EFFECTIVE DATE. The following, being deemed of 25 immediate importance, take effect upon enactment: 26 1. The section of this division of this Act amending section 27 15.293A, subsection 8. 28 2. The section of this division of this Act amending section 29 15.293B, subsection 7. 30 DIVISION XV 31 DOWNTOWN LOAN GUARANTEE PROGRAM 32 Sec. 45. NEW SECTION . 15.431 Downtown loan guarantee 33 program. 34 1. The economic development authority, in partnership with 35 -17- SF 619 (2) 89 jm/jh/mb 17/ 64

S.F. 619 the Iowa finance authority, shall establish and administer a 1 downtown loan guarantee program to encourage Iowa downtown 2 businesses and banks to reinvest and reopen following the 3 COVID-19 pandemic. 4 2. In order for a loan to be guaranteed, all of the 5 following conditions must be true: 6 a. The loan finances an eligible downtown resource center 7 community catalyst building remediation grant project or main 8 street Iowa challenge grant within a designated district. 9 b. The loan finances a rehabilitation project, or finances 10 acquisition or refinancing costs associated with the project. 11 c. At least twenty-five percent of the project costs are 12 used for construction on the project or renovation. 13 d. The project includes a housing component. 14 e. The loan is used for construction of the project, 15 permanent financing of the project, or both. 16 f. A federally insured financial lending institution issued 17 the loan. 18 g. The loan does not reimburse the borrower for working 19 capital, operations, or similar expenses. 20 h. The project meets downtown resource center and main 21 street Iowa design review. 22 3. a. For a loan amount less than or equal to five hundred 23 thousand dollars, the economic development authority may 24 guarantee up to fifty percent of the loan amount. 25 b. For a loan amount greater than five hundred thousand 26 dollars, the economic development authority may provide a 27 maximum loan guarantee of up to two hundred fifty thousand 28 dollars. 29 4. A project loan must be secured by a mortgage against the 30 project property. 31 5. The economic development authority may guarantee loans 32 for up to five years. The economic development authority 33 may extend the loan guarantee for an additional five years 34 if an underwriting review finds that an extension would be 35 -18- SF 619 (2) 89 jm/jh/mb 18/ 64

S.F. 619 beneficial. 1 6. The lender shall pay an annual loan guarantee fee as set 2 forth by rule. 3 7. The economic development authority reserves the right 4 to deny a loan guarantee for unreasonable bank loan fees or 5 interest rate. 6 8. The loan must not be insured or guaranteed by another 7 local, state, or federal guarantee program. 8 9. The loan guarantee is not transferable if the loan or the 9 project is sold or transferred. 10 10. In the event of a loss due to default, the loan 11 guarantee proportionally pays the guarantee percentage of the 12 loss to the lender. 13 11. Moneys for the program may consist of any moneys 14 appropriated by the general assembly for purposes of this 15 section, and any other moneys that are lawfully available 16 to the economic development authority, including moneys 17 transferred or deposited from other funds created pursuant to 18 section 15.106A, subsection 1, paragraph “o” . 19 DIVISION XVI 20 DISASTER RECOVERY HOUSING ASSISTANCE 21 Sec. 46. NEW SECTION . 16.57A Transfer of unobligated or 22 unencumbered funds —— report. 23 1. Notwithstanding any other provision of law to the 24 contrary, the authority may transfer any unobligated and 25 unencumbered moneys in any revolving loan program fund created 26 pursuant to section 16.46, 16.47, 16.48, or 16.49, for deposit 27 in the disaster recovery housing assistance fund created in 28 section 16.57B. 29 2. Notwithstanding section 8.39, and any other law to 30 the contrary, with the prior written consent and approval of 31 the governor, the executive director of the authority may 32 transfer any unobligated and unencumbered moneys in any fund 33 created pursuant to section 16.5, subsection 1, paragraph 34 “s” , for deposit in the disaster recovery housing assistance 35 -19- SF 619 (2) 89 jm/jh/mb 19/ 64