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Senate File 176 - IntroducedA Bill ForAn Act 1permitting businesses’ new onsite daycare facilities or
2businesses’ expansion of existing onsite daycare facilities
3to qualify as projects under the high quality jobs program,
4and making penalties applicable.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 15.329A Eligible business — onsite
2daycare facilities.
31. As used in this section, unless the context otherwise
4requires:
5a. “Child” or “children” means a person or persons twelve
6years of age or younger.
7b. “Child care” means the care, supervision, and guidance of
8a child or children by a person other than the child’s parent,
9guardian, or custodian.
10c. “Project completion” means the first date upon which the
11business’s onsite daycare facility begins offering child care
12for the business’s employees’ children.
132. Notwithstanding section 15.327, subsection 20, the
14authority may provide tax incentives or project completion
15assistance under this part to a business for a project that
16involves a new onsite child care facility, or the expansion of
17an existing onsite child care facility, that offers low-cost
18child care for the business’s employees.
193. Notwithstanding section 15.329, subsection 1, paragraphs
20“c” and “g”, the authority may provide tax incentives or
21project completion assistance under this part to a business
22for a project pursuant to this section if the project creates
23or retains jobs that will pay a percent of the qualifying
24wage threshold as determined pursuant to rules adopted by the
25authority.
264. Notwithstanding section 15.329, subsection 1, paragraph
27“e”, the authority may, pursuant to rules adopted by the
28authority, determine alternative metrics, other than the fiscal
29impact ratio, to qualify a business to be eligible for tax
30incentives or project completion assistance for a project under
31this section.
325. Notwithstanding section 15.329, subsection 3, the
33authority shall consider a variety of factors, including but
34not limited to the following, in determining the eligibility
35of a business to participate in the program pursuant to this
-1-1section:
2a. The quality of the jobs to be created or retained.
3In rating the quality of the jobs, the authority shall
4place greater emphasis on those jobs that are full-time or
5career-type positions, that provide comprehensive health
6benefits, and that pay a wage equal to or higher than similar
7jobs within a twenty-five-mile radius of the proposed project.
8b. The impact of the proposed project on other businesses
9in competition with the business’s proposed project. The
10authority shall make a good-faith effort to identify existing
11child care providers in competition with the business’s
12proposed project. The authority shall make a good-faith effort
13to determine the probability that the proposed tax incentives
14or project completion assistance will displace workers at
15existing child care providers. In determining the impact
16on child care providers in competition with the business’s
17proposed project, jobs created or retained as a result of
18similar jobs being displaced elsewhere in a twenty-five-mile
19radius shall not be considered direct jobs created or retained.
20c. The economic impact to the state of the proposed project.
21In measuring the economic impact, the authority shall place
22greater emphasis on projects that meet one or more of the
23following conditions:
24(1) Are located in an economically distressed area. For
25purposes of this section, “economically distressed area” means
26a county that ranks among the bottom thirty-three of all Iowa
27counties, as measured by one of the following:
28(a) Average monthly unemployment level for the most recent
29twelve-month period.
30(b) Average annualized unemployment level for the most
31recent five-year period.
32(2) Will have the capacity to care for twenty or more
33children.
34(3) Are located in an area that has an inadequate number
35of existing child care providers based on the population of
-2-1children in the area.
2(4) Will provide child care to a business’s employees at a
3low-cost rate as determined pursuant to rules adopted by the
4authority.
56. If a business that is approved to receive tax incentives
6or project completion assistance under this section closes or
7reduces the capacity of the child care facility for which the
8tax incentives or project completion assistance was received,
9the authority shall have the discretion to reduce or eliminate
10some or all of the tax incentives or project completion
11assistance, and the business may be subject to repayment of
12all or a portion of the tax incentives or project completion
13assistance that the business has received.
147. a. A business that is awarded tax incentives pursuant
15to this section shall be entitled to a refund of the sales
16and use taxes paid under chapter 423 for gas, electricity,
17water, or sewer utility services, goods, wares, or merchandise,
18or on services rendered, furnished, or performed to or for a
19contractor or subcontractor and used in the fulfillment of a
20written contract relating to the construction or equipping
21of a child care facility that is part of the project of the
22eligible business. Taxes attributable to intangible property,
23furniture, and furnishings shall not be refunded.
24b. To receive a refund, a claim shall be filed by the
25eligible business with the department as follows:
26(1) The contractor or subcontractor shall state under oath,
27on forms provided by the department, the amount of the sales
28of goods, wares, or merchandise, or the services rendered,
29furnished, or performed, including gas, electric, water, and
30sewer utility services upon which sales or use tax has been
31paid prior to project completion, and shall file the forms with
32the eligible business before final settlement is made between
33the business and the contractor or subcontractor.
34(2) The eligible business shall, not more than one year
35after project completion, make application to the department
-3-1for any refund of the amount of the sales and use taxes paid
2pursuant to chapter 423 upon any sales of goods, wares, or
3merchandise, or the services rendered, furnished, or performed,
4including gas, electric, water, and sewer utility services
5prior to project completion. The application shall be made in
6the manner and upon forms to be provided by the department.
7The department shall audit the claim and, if approved, issue
8a warrant to the eligible business in the amount of the sales
9or use tax approved by the department. A claim filed by an
10eligible business in accordance with this subsection shall not
11be denied by reason of a limitation provision set forth in
12chapter 421 or 423.
13(3) The eligible business shall inform the department of
14revenue of the project completion in writing within two weeks
15of the project completion.
16(4) A contractor or subcontractor who willfully makes a
17false report of the sales or tax paid under the provisions of
18this subsection commits a simple misdemeanor and is liable for
19the payment of the sales and use tax and any applicable penalty
20and interest.
218. The authority shall adopt rules pursuant to chapter 17A
22as necessary to administer this section.
239. The department of revenue may adopt rules pursuant to
24chapter 17A as necessary to administer this section.
25EXPLANATION
26The inclusion of this explanation does not constitute agreement with
27the explanation’s substance by the members of the general assembly.
28This bill permits businesses’ new onsite daycare facilities
29or businesses’ expansion of existing onsite daycare facilities
30to qualify as projects under the high quality jobs program, and
31makes penalties applicable.
32The bill permits the economic development authority
33(authority) to provide tax incentives (incentives) or project
34completion assistance (assistance) under the high quality jobs
35program (program) to a business for a project that involves a
-4-1new onsite child care facility or the expansion of an existing
2onsite facility that offers low-cost child care for the
3business’s employees. The authority may provide incentives
4or assistance under the program to a business for a project
5that creates or retains jobs that will pay a percent of the
6qualifying wage threshold as determined pursuant to rules
7adopted by the authority. The bill permits the authority,
8pursuant to rules adopted by the authority, to determine
9metrics to qualify a business to be eligible for the program.
10In determining the eligibility of a business’s project under
11the program, the bill requires the authority to consider the
12quality of the jobs to be created or retained, with an emphasis
13placed on jobs that are full-time or career-type positions,
14that provide comprehensive health benefits, and that pay wages
15equal to or higher than similar jobs within a 25-mile radius
16of the business’s proposed project. The authority is also
17required to consider the impact of the proposed project on
18other child care providers in competition with the proposed
19project.
20The authority must make a good-faith effort to identify
21existing child care providers in competition with the
22business’s proposed project and the probability that the
23proposed project will displace employees of the existing child
24care providers. Jobs created or retained by the proposed
25project as a result of similar jobs being displaced in a
2625-mile radius from the business cannot be considered by the
27authority as jobs created or retained.
28The bill also requires the authority to consider the
29economic impact of the proposed project on the state. In
30measuring economic impact, the authority must place greater
31emphasis on projects that are located in economically
32distressed areas, that will have the capacity to care for
3320 or more children, that are located in areas that have an
34inadequate number of existing child care providers, and that
35will provide child care to the business’s employees at a
-5-1low-cost rate as determined pursuant to rules adopted by the
2authority. The bill defines “economically distressed area” as
3a county that ranks among the bottom 33 of all Iowa counties,
4as measured by either the average monthly unemployment level
5for the most recent 12-month period, or the average annualized
6unemployment level for the most recent five-year period.
7If a business that is approved by the authority to receive
8incentives or assistance for its project either closes or
9reduces the capacity of the child care facility for which the
10incentives or assistance was received, the authority has the
11discretion to reduce or eliminate some or all of the incentives
12or assistance, and the business may be subject to repayment of
13all or a portion of the incentives or assistance that it has
14received.
15A business that is awarded tax incentives for a child care
16facility is entitled to a refund of the sales and use taxes
17paid under Code chapter 423 for gas, electricity, water, or
18sewer utility services, goods, wares, or merchandise, or
19on services rendered, furnished, or performed to or for a
20contractor or subcontractor and used in the fulfillment of a
21written contract relating to the construction or equipping
22of a child care facility that is part of the project of the
23eligible business. Taxes attributable to intangible property,
24furniture, and furnishings cannot be refunded. The process
25by which a business may receive a refund of the sales and use
26taxes paid is outlined in the bill. A business that is awarded
27tax incentives for a child care facility may also be eligible
28for a value-added property tax exemption pursuant to Code
29section 15.332.
30A contractor or subcontractor who willfully makes a false
31report of sales and use taxes paid under the provisions of the
32bill commits a simple misdemeanor and is liable for the payment
33of the taxes and any applicable penalties and interest. A
34simple misdemeanor is punishable by confinement for no more
35than 30 days or a fine of at least $105 but not more than $855
-6-1or by both.
2The bill directs the authority to adopt rules as necessary
3to administer the provisions of the bill. The bill allows the
4department of revenue to adopt rules as necessary to administer
5the provisions of the bill.
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2businesses’ expansion of existing onsite daycare facilities
3to qualify as projects under the high quality jobs program,
4and making penalties applicable.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 15.329A Eligible business — onsite
2daycare facilities.
31. As used in this section, unless the context otherwise
4requires:
5a. “Child” or “children” means a person or persons twelve
6years of age or younger.
7b. “Child care” means the care, supervision, and guidance of
8a child or children by a person other than the child’s parent,
9guardian, or custodian.
10c. “Project completion” means the first date upon which the
11business’s onsite daycare facility begins offering child care
12for the business’s employees’ children.
132. Notwithstanding section 15.327, subsection 20, the
14authority may provide tax incentives or project completion
15assistance under this part to a business for a project that
16involves a new onsite child care facility, or the expansion of
17an existing onsite child care facility, that offers low-cost
18child care for the business’s employees.
193. Notwithstanding section 15.329, subsection 1, paragraphs
20“c” and “g”, the authority may provide tax incentives or
21project completion assistance under this part to a business
22for a project pursuant to this section if the project creates
23or retains jobs that will pay a percent of the qualifying
24wage threshold as determined pursuant to rules adopted by the
25authority.
264. Notwithstanding section 15.329, subsection 1, paragraph
27“e”, the authority may, pursuant to rules adopted by the
28authority, determine alternative metrics, other than the fiscal
29impact ratio, to qualify a business to be eligible for tax
30incentives or project completion assistance for a project under
31this section.
325. Notwithstanding section 15.329, subsection 3, the
33authority shall consider a variety of factors, including but
34not limited to the following, in determining the eligibility
35of a business to participate in the program pursuant to this
-1-1section:
2a. The quality of the jobs to be created or retained.
3In rating the quality of the jobs, the authority shall
4place greater emphasis on those jobs that are full-time or
5career-type positions, that provide comprehensive health
6benefits, and that pay a wage equal to or higher than similar
7jobs within a twenty-five-mile radius of the proposed project.
8b. The impact of the proposed project on other businesses
9in competition with the business’s proposed project. The
10authority shall make a good-faith effort to identify existing
11child care providers in competition with the business’s
12proposed project. The authority shall make a good-faith effort
13to determine the probability that the proposed tax incentives
14or project completion assistance will displace workers at
15existing child care providers. In determining the impact
16on child care providers in competition with the business’s
17proposed project, jobs created or retained as a result of
18similar jobs being displaced elsewhere in a twenty-five-mile
19radius shall not be considered direct jobs created or retained.
20c. The economic impact to the state of the proposed project.
21In measuring the economic impact, the authority shall place
22greater emphasis on projects that meet one or more of the
23following conditions:
24(1) Are located in an economically distressed area. For
25purposes of this section, “economically distressed area” means
26a county that ranks among the bottom thirty-three of all Iowa
27counties, as measured by one of the following:
28(a) Average monthly unemployment level for the most recent
29twelve-month period.
30(b) Average annualized unemployment level for the most
31recent five-year period.
32(2) Will have the capacity to care for twenty or more
33children.
34(3) Are located in an area that has an inadequate number
35of existing child care providers based on the population of
-2-1children in the area.
2(4) Will provide child care to a business’s employees at a
3low-cost rate as determined pursuant to rules adopted by the
4authority.
56. If a business that is approved to receive tax incentives
6or project completion assistance under this section closes or
7reduces the capacity of the child care facility for which the
8tax incentives or project completion assistance was received,
9the authority shall have the discretion to reduce or eliminate
10some or all of the tax incentives or project completion
11assistance, and the business may be subject to repayment of
12all or a portion of the tax incentives or project completion
13assistance that the business has received.
147. a. A business that is awarded tax incentives pursuant
15to this section shall be entitled to a refund of the sales
16and use taxes paid under chapter 423 for gas, electricity,
17water, or sewer utility services, goods, wares, or merchandise,
18or on services rendered, furnished, or performed to or for a
19contractor or subcontractor and used in the fulfillment of a
20written contract relating to the construction or equipping
21of a child care facility that is part of the project of the
22eligible business. Taxes attributable to intangible property,
23furniture, and furnishings shall not be refunded.
24b. To receive a refund, a claim shall be filed by the
25eligible business with the department as follows:
26(1) The contractor or subcontractor shall state under oath,
27on forms provided by the department, the amount of the sales
28of goods, wares, or merchandise, or the services rendered,
29furnished, or performed, including gas, electric, water, and
30sewer utility services upon which sales or use tax has been
31paid prior to project completion, and shall file the forms with
32the eligible business before final settlement is made between
33the business and the contractor or subcontractor.
34(2) The eligible business shall, not more than one year
35after project completion, make application to the department
-3-1for any refund of the amount of the sales and use taxes paid
2pursuant to chapter 423 upon any sales of goods, wares, or
3merchandise, or the services rendered, furnished, or performed,
4including gas, electric, water, and sewer utility services
5prior to project completion. The application shall be made in
6the manner and upon forms to be provided by the department.
7The department shall audit the claim and, if approved, issue
8a warrant to the eligible business in the amount of the sales
9or use tax approved by the department. A claim filed by an
10eligible business in accordance with this subsection shall not
11be denied by reason of a limitation provision set forth in
12chapter 421 or 423.
13(3) The eligible business shall inform the department of
14revenue of the project completion in writing within two weeks
15of the project completion.
16(4) A contractor or subcontractor who willfully makes a
17false report of the sales or tax paid under the provisions of
18this subsection commits a simple misdemeanor and is liable for
19the payment of the sales and use tax and any applicable penalty
20and interest.
218. The authority shall adopt rules pursuant to chapter 17A
22as necessary to administer this section.
239. The department of revenue may adopt rules pursuant to
24chapter 17A as necessary to administer this section.
25EXPLANATION
26The inclusion of this explanation does not constitute agreement with
27the explanation’s substance by the members of the general assembly.
28This bill permits businesses’ new onsite daycare facilities
29or businesses’ expansion of existing onsite daycare facilities
30to qualify as projects under the high quality jobs program, and
31makes penalties applicable.
32The bill permits the economic development authority
33(authority) to provide tax incentives (incentives) or project
34completion assistance (assistance) under the high quality jobs
35program (program) to a business for a project that involves a
-4-1new onsite child care facility or the expansion of an existing
2onsite facility that offers low-cost child care for the
3business’s employees. The authority may provide incentives
4or assistance under the program to a business for a project
5that creates or retains jobs that will pay a percent of the
6qualifying wage threshold as determined pursuant to rules
7adopted by the authority. The bill permits the authority,
8pursuant to rules adopted by the authority, to determine
9metrics to qualify a business to be eligible for the program.
10In determining the eligibility of a business’s project under
11the program, the bill requires the authority to consider the
12quality of the jobs to be created or retained, with an emphasis
13placed on jobs that are full-time or career-type positions,
14that provide comprehensive health benefits, and that pay wages
15equal to or higher than similar jobs within a 25-mile radius
16of the business’s proposed project. The authority is also
17required to consider the impact of the proposed project on
18other child care providers in competition with the proposed
19project.
20The authority must make a good-faith effort to identify
21existing child care providers in competition with the
22business’s proposed project and the probability that the
23proposed project will displace employees of the existing child
24care providers. Jobs created or retained by the proposed
25project as a result of similar jobs being displaced in a
2625-mile radius from the business cannot be considered by the
27authority as jobs created or retained.
28The bill also requires the authority to consider the
29economic impact of the proposed project on the state. In
30measuring economic impact, the authority must place greater
31emphasis on projects that are located in economically
32distressed areas, that will have the capacity to care for
3320 or more children, that are located in areas that have an
34inadequate number of existing child care providers, and that
35will provide child care to the business’s employees at a
-5-1low-cost rate as determined pursuant to rules adopted by the
2authority. The bill defines “economically distressed area” as
3a county that ranks among the bottom 33 of all Iowa counties,
4as measured by either the average monthly unemployment level
5for the most recent 12-month period, or the average annualized
6unemployment level for the most recent five-year period.
7If a business that is approved by the authority to receive
8incentives or assistance for its project either closes or
9reduces the capacity of the child care facility for which the
10incentives or assistance was received, the authority has the
11discretion to reduce or eliminate some or all of the incentives
12or assistance, and the business may be subject to repayment of
13all or a portion of the incentives or assistance that it has
14received.
15A business that is awarded tax incentives for a child care
16facility is entitled to a refund of the sales and use taxes
17paid under Code chapter 423 for gas, electricity, water, or
18sewer utility services, goods, wares, or merchandise, or
19on services rendered, furnished, or performed to or for a
20contractor or subcontractor and used in the fulfillment of a
21written contract relating to the construction or equipping
22of a child care facility that is part of the project of the
23eligible business. Taxes attributable to intangible property,
24furniture, and furnishings cannot be refunded. The process
25by which a business may receive a refund of the sales and use
26taxes paid is outlined in the bill. A business that is awarded
27tax incentives for a child care facility may also be eligible
28for a value-added property tax exemption pursuant to Code
29section 15.332.
30A contractor or subcontractor who willfully makes a false
31report of sales and use taxes paid under the provisions of the
32bill commits a simple misdemeanor and is liable for the payment
33of the taxes and any applicable penalties and interest. A
34simple misdemeanor is punishable by confinement for no more
35than 30 days or a fine of at least $105 but not more than $855
-6-1or by both.
2The bill directs the authority to adopt rules as necessary
3to administer the provisions of the bill. The bill allows the
4department of revenue to adopt rules as necessary to administer
5the provisions of the bill.
-7-ko/jh