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Senate File 606 - IntroducedA Bill ForAn Act 1relating to the transfer of investment tax credits
2issued to housing businesses under the enterprise zone
3program, and including effective date and retroactive
4applicability provisions.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. 2014 Iowa Acts, chapter 1130, section 27, is
2amended to read as follows:
3SEC. 27. INVESTMENT TAX CREDITS ISSUED TO ELIGIBLE
4HOUSING BUSINESSES UNDER THE ENTERPRISE ZONE PROGRAM
5TRANSFERABILITY. Notwithstanding the requirement in section
615E.193B, subsection 8, Code 2014, that not more than three
7million dollars worth of tax credits for housing developments
8located in a brownfield site or a blighted area shall be
9eligible for transfer in a calendar year unless the eligible
10housing business is also eligible for low-income housing tax
11credits authorized under section 42 of the Internal Revenue
12Code, and notwithstanding the requirement in section 15E.193B,
13subsection 8, Code 2014, that the economic development
14authority shall not approve more than one million five hundred
15thousand dollars in tax credit certificates for transfer to
16any one eligible housing business located on a brownfield
17site or in a blighted area in a calendar year, all investment
18tax credits determined under section 15E.193B, subsection 6,
19paragraph “a”, Code 2014, for housing developments located on
20a brownfield site or in a blighted area may be approved by
21the economic development authority for transfer in calendar
22year 2014, or any subsequent calendar year, provided the
23eligible housing business was awarded the investment tax credit
24before the effective date of this section of this division of
25this Act and notifies the economic development authority, in
26writing, before July 1, 2014, of its intent to transfer such
27tax credits, or provided the eligible housing business was
28awarded the investment tax credit before July 1, 2015, for a
29housing development located in a blighted area and in a county
30with a total population of less than one hundred five thousand
31as determined by the most recent federal decennial census, and
32submits a written request to the economic development authority
33before June 1, 2019, for approval to transfer such tax credits
34 and provided the eligible housing business and the related
35housing development meet all other applicable requirements
-1-1under section 15E.193B, Code 2014. Notwithstanding any other
2provision of law to the contrary, a tax credit transferred
3pursuant to this section shall not be claimed by a transferee
4prior to January 1, 2016.
5 Sec. 2. EFFECTIVE DATE. This Act, being deemed of immediate
6importance, takes effect upon enactment.
7 Sec. 3. RETROACTIVE APPLICABILITY. This Act applies
8retroactively to May 30, 2014.
9EXPLANATION
10The inclusion of this explanation does not constitute agreement with
11the explanation’s substance by the members of the general assembly.
12This bill relates to the transfer of investment tax credits
13issued to housing businesses under the enterprise zone program.
14Under current law, the economic development authority
15can approve a transfer of an investment tax credit awarded
16to a housing business under the enterprise zone program if
17an eligible business was awarded the tax credit before May
1830, 2014, and notified the authority before July 1, 2014, of
19its intent to transfer the tax credit. The bill allows the
20authority to also approve the transfer of tax credits that were
21awarded to an eligible housing business before July 1, 2015,
22for a housing development in a blighted area in a county with
23a population of less than 105,000, if the housing business
24submitted a request for approval to the authority before June
251, 2019.
26The bill is effective upon enactment and is retroactive to
27May 30, 2014.
-2-ko/jh
2issued to housing businesses under the enterprise zone
3program, and including effective date and retroactive
4applicability provisions.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. 2014 Iowa Acts, chapter 1130, section 27, is
2amended to read as follows:
3SEC. 27. INVESTMENT TAX CREDITS ISSUED TO ELIGIBLE
4HOUSING BUSINESSES UNDER THE ENTERPRISE ZONE PROGRAM
5TRANSFERABILITY. Notwithstanding the requirement in section
615E.193B, subsection 8, Code 2014, that not more than three
7million dollars worth of tax credits for housing developments
8located in a brownfield site or a blighted area shall be
9eligible for transfer in a calendar year unless the eligible
10housing business is also eligible for low-income housing tax
11credits authorized under section 42 of the Internal Revenue
12Code, and notwithstanding the requirement in section 15E.193B,
13subsection 8, Code 2014, that the economic development
14authority shall not approve more than one million five hundred
15thousand dollars in tax credit certificates for transfer to
16any one eligible housing business located on a brownfield
17site or in a blighted area in a calendar year, all investment
18tax credits determined under section 15E.193B, subsection 6,
19paragraph “a”, Code 2014, for housing developments located on
20a brownfield site or in a blighted area may be approved by
21the economic development authority for transfer in calendar
22year 2014, or any subsequent calendar year, provided the
23eligible housing business was awarded the investment tax credit
24before the effective date of this section of this division of
25this Act and notifies the economic development authority, in
26writing, before July 1, 2014, of its intent to transfer such
27tax credits, or provided the eligible housing business was
28awarded the investment tax credit before July 1, 2015, for a
29housing development located in a blighted area and in a county
30with a total population of less than one hundred five thousand
31as determined by the most recent federal decennial census, and
32submits a written request to the economic development authority
33before June 1, 2019, for approval to transfer such tax credits
34 and provided the eligible housing business and the related
35housing development meet all other applicable requirements
-1-1under section 15E.193B, Code 2014. Notwithstanding any other
2provision of law to the contrary, a tax credit transferred
3pursuant to this section shall not be claimed by a transferee
4prior to January 1, 2016.
5 Sec. 2. EFFECTIVE DATE. This Act, being deemed of immediate
6importance, takes effect upon enactment.
7 Sec. 3. RETROACTIVE APPLICABILITY. This Act applies
8retroactively to May 30, 2014.
9EXPLANATION
10The inclusion of this explanation does not constitute agreement with
11the explanation’s substance by the members of the general assembly.
12This bill relates to the transfer of investment tax credits
13issued to housing businesses under the enterprise zone program.
14Under current law, the economic development authority
15can approve a transfer of an investment tax credit awarded
16to a housing business under the enterprise zone program if
17an eligible business was awarded the tax credit before May
1830, 2014, and notified the authority before July 1, 2014, of
19its intent to transfer the tax credit. The bill allows the
20authority to also approve the transfer of tax credits that were
21awarded to an eligible housing business before July 1, 2015,
22for a housing development in a blighted area in a county with
23a population of less than 105,000, if the housing business
24submitted a request for approval to the authority before June
251, 2019.
26The bill is effective upon enactment and is retroactive to
27May 30, 2014.
-2-ko/jh