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House File 468 - IntroducedA Bill ForAn Act 1requiring that a certain percentage of the tax
2incentives administered by the economic development
3authority be provided to projects located in small cities,
4and including applicability provisions.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 15.119, Code 2019, is amended by adding
2the following new subsection:
3 NEW SUBSECTION. 3A. a. Of the total amount of tax credits
4allocated for purposes of subsection 2, paragraph “a”, during
5each fiscal year, at least fifty percent shall be allocated for
6purposes of projects located in a small city that has all of
7the following located in the county in which the small city is
8located:
9(1) An accredited public or private postsecondary
10educational institution.
11(2) A federal highway or a divided, multilaned highway.
12(3) Sufficient housing to accommodate the project.
13b. In the event this small city allocation percentage is not
14satisfied in a given fiscal year, a shortfall is declared to
15exist, and the percentage of the total amount of tax credits
16allocated for purposes of subsection 2, paragraph “a”, during
17the succeeding fiscal year that shall be allocated for purposes
18of projects located in a small city shall be adjusted to equal
19an amount necessary to reach the fifty percent small city
20allocation percentage for that fiscal year, plus an amount
21equal to the shortfall for the prior fiscal year or years.
22c. For purposes of this subsection, “small city” means
23any city located in this state with a population of less than
24fifteen thousand. A small city that is located in more than
25one county shall be considered to be located in the county
26having the greatest taxable base within the city.
27 Sec. 2. APPLICABILITY. This Act applies to fiscal years
28beginning on or after the effective date of this Act.
29EXPLANATION
30The inclusion of this explanation does not constitute agreement with
31the explanation’s substance by the members of the general assembly.
32This bill relates to tax credits administered by the
33economic development authority (authority). Under the program,
34the authority provides various tax incentives to eligible
35businesses that complete projects in Iowa.
-1- 1The bill requires that at least 50 percent of the tax
2incentives awarded by the authority each fiscal year shall
3be allocated for projects located in a small city based upon
4certain criteria. The criteria for purposes of allocation
5of projects in a small city shall include the following:
6an accredited public or private postsecondary educational
7institution, a federal highway or divided, multilaned highway,
8and sufficient housing to accommodate the project.
9The bill defines “small city” to mean any city located in
10this state with a population of less than 15,000. If a small
11city is located in more than one county, it is considered to be
12located in the county having the greatest taxable base within
13the city.
14In the event this small city percentage is not satisfied in
15a given fiscal year, a shortfall is declared to exist, and the
16percentage of tax incentives awarded to projects in a small
17city in the succeeding fiscal year shall be adjusted to equal
18an amount necessary to reach the 50 percent requirement for
19that fiscal year, plus an amount equal to the shortfall for the
20prior fiscal year or years.
21The bill applies to fiscal years beginning on or after the
22effective date of the bill.
-2-jm/jh
2incentives administered by the economic development
3authority be provided to projects located in small cities,
4and including applicability provisions.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 15.119, Code 2019, is amended by adding
2the following new subsection:
3 NEW SUBSECTION. 3A. a. Of the total amount of tax credits
4allocated for purposes of subsection 2, paragraph “a”, during
5each fiscal year, at least fifty percent shall be allocated for
6purposes of projects located in a small city that has all of
7the following located in the county in which the small city is
8located:
9(1) An accredited public or private postsecondary
10educational institution.
11(2) A federal highway or a divided, multilaned highway.
12(3) Sufficient housing to accommodate the project.
13b. In the event this small city allocation percentage is not
14satisfied in a given fiscal year, a shortfall is declared to
15exist, and the percentage of the total amount of tax credits
16allocated for purposes of subsection 2, paragraph “a”, during
17the succeeding fiscal year that shall be allocated for purposes
18of projects located in a small city shall be adjusted to equal
19an amount necessary to reach the fifty percent small city
20allocation percentage for that fiscal year, plus an amount
21equal to the shortfall for the prior fiscal year or years.
22c. For purposes of this subsection, “small city” means
23any city located in this state with a population of less than
24fifteen thousand. A small city that is located in more than
25one county shall be considered to be located in the county
26having the greatest taxable base within the city.
27 Sec. 2. APPLICABILITY. This Act applies to fiscal years
28beginning on or after the effective date of this Act.
29EXPLANATION
30The inclusion of this explanation does not constitute agreement with
31the explanation’s substance by the members of the general assembly.
32This bill relates to tax credits administered by the
33economic development authority (authority). Under the program,
34the authority provides various tax incentives to eligible
35businesses that complete projects in Iowa.
-1- 1The bill requires that at least 50 percent of the tax
2incentives awarded by the authority each fiscal year shall
3be allocated for projects located in a small city based upon
4certain criteria. The criteria for purposes of allocation
5of projects in a small city shall include the following:
6an accredited public or private postsecondary educational
7institution, a federal highway or divided, multilaned highway,
8and sufficient housing to accommodate the project.
9The bill defines “small city” to mean any city located in
10this state with a population of less than 15,000. If a small
11city is located in more than one county, it is considered to be
12located in the county having the greatest taxable base within
13the city.
14In the event this small city percentage is not satisfied in
15a given fiscal year, a shortfall is declared to exist, and the
16percentage of tax incentives awarded to projects in a small
17city in the succeeding fiscal year shall be adjusted to equal
18an amount necessary to reach the 50 percent requirement for
19that fiscal year, plus an amount equal to the shortfall for the
20prior fiscal year or years.
21The bill applies to fiscal years beginning on or after the
22effective date of the bill.
-2-jm/jh