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House Study Bill 65 - IntroducedA Bill ForAn Act 1relating to the workforce housing tax incentives
2program by increasing the maximum dollar amount that may be
3allocated to the program, by requiring allocation to certain
4housing projects, and by increasing the percentage of
5investment for tax incentives for certain housing projects.
6BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 15.119, subsection 2, paragraph g, Code
22017, is amended to read as follows:
3g. The workforce housing tax incentives program administered
4pursuant to sections 15.351 through 15.356. In allocating
5tax credits pursuant to this subsection, the authority shall
6not allocate more than twenty thirty million dollars for
7purposes of this paragraph. Of the moneys allocated under this
8paragraph, ten million dollars shall be reserved for allocation
9to qualified housing projects in small cities, as defined in
10section 15.352.
11 Sec. 2. Section 15.352, Code 2017, is amended by adding the
12following new subsections:
13 NEW SUBSECTION. 3A. “Greenfield site” means a site that
14does not meet the definition of a brownfield site or grayfield
15site. A project proposed at a site located on previously
16undeveloped land or agricultural land shall be presumed to be
17a greenfield site.
18 NEW SUBSECTION. 9. “Small city” means any city or township
19located in this state, except those located within the eleven
20most populous counties in the state, as determined by the most
21recent federal decennial census. For the purposes of this
22part, a small city that is located in more than one county
23shall be considered to be located in the county having the
24greatest taxable base within the small city.
25 Sec. 3. Section 15.353, subsection 1, paragraph a, Code
262017, is amended to read as follows:
27a. Four or more single-family dwelling units, except for a
28project located in a small city, then two or more single-family
29dwelling units.
30 Sec. 4. Section 15.353, subsection 2, Code 2017, is amended
31by adding the following new paragraph:
32 NEW PARAGRAPH. 0d. For a housing project located in a
33small city that meets program requirements under subsection 1,
34paragraph “a”, development at a greenfield site.
35 Sec. 5. Section 15.353, subsection 2, paragraph d,
-1-1subparagraph (2), subparagraph division (c), Code 2017, is
2amended to read as follows:
3(c) The demand for projects applying under this paragraph
4“d” compared to the demand for projects applying under
5paragraphs “a” through “c” “0d”.
6 Sec. 6. Section 15.354, subsection 4, paragraph c, Code
72017, is amended to read as follows:
8c. (1) The authority shall issue tax incentives under the
9program on a first-come, first-served basis until the maximum
10amount of tax incentives allocated pursuant to section 15.119,
11subsection 2, is reached. The authority shall maintain a list
12of registered housing projects under the program so that if
13the maximum aggregate amount of tax incentives is reached in
14a given fiscal year, registered housing projects that were
15completed but for which tax incentives were not issued shall
16be placed on a wait list in the order the registered housing
17projects were registered and shall be given priority for
18receiving tax incentives in succeeding fiscal years.
19(2) The authority shall administer allocations reserved for
20qualified housing projects in small cities separately from the
21general allocation in subparagraph (1). The authority shall
22issue tax incentives for small cities under the program on a
23first-come, first-served basis until the maximum amount of the
24allocation reserved for small cities under section 15.119,
25subsection 2, paragraph “g”, is reached. The authority shall
26maintain a list of registered housing projects in small cities
27under the program so that if the maximum aggregate amount
28of tax incentives reserved for small cities is reached in a
29given fiscal year, such registered housing projects that were
30completed but for which tax incentives were not issued shall
31be placed on a wait list in the order the registered housing
32projects were registered and shall be given priority for
33receiving tax incentives in succeeding fiscal years. If the
34maximum aggregate amount of tax incentives reserved for small
35cities is not reached in a given fiscal year, the authority may
-2-1issue tax incentives reserved under this subparagraph (2) to
2other housing projects registered under subsection 2.
3 Sec. 7. Section 15.355, subsection 3, paragraph a, Code
42017, is amended to read as follows:
5a. A housing business may claim a tax credit in an amount
6not to exceed the following:
7(1) For a housing project not located in a small city,ten
8percent of the qualifying new investment of a housing project.
9(2) For a housing project located in a small city, twenty
10percent of the qualifying new investment of a housing project.
11EXPLANATION
12The inclusion of this explanation does not constitute agreement with
13the explanation’s substance by the members of the general assembly.
14This bill relates to the workforce housing tax incentives
15program by increasing the maximum dollar amount that may be
16allocated to the program, by requiring that a certain dollar
17value of tax credits be allocated to housing projects in small
18cities, and by increasing the percentage for computing tax
19credits for such housing projects.
20The bill raises the annual allowable tax credits allocation
21under the program from $20 million to $30 million, but
22maintains the economic development authority’s (authority)
23$170 million aggregate tax credit limit. The bill requires
24the authority to allocate at least $10 million in tax credits
25to housing projects in small cities and to administer such
26reserved allocations separately. If the authority does not
27reach the $10 million for such projects in a fiscal year, the
28bill provides that the authority may issue tax incentives from
29the reserved allocation to registered housing projects that
30are not located in small cities. Under the bill, a small city
31includes any city or township not located in one of the 11
32most populous counties in the state, as determined by the most
33recent federal decennial census. Under the bill, a small city
34that is located in more than one county is considered to be
35located in the county having the greatest taxable base within
-3-1the small city.
2The bill provides that a housing project in a small city
3that results in two or more new single-family dwelling units
4at a greenfield site, as defined in the bill, may receive tax
5incentives under the program, equaling up to 20 percent of the
6qualifying new investment.
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2program by increasing the maximum dollar amount that may be
3allocated to the program, by requiring allocation to certain
4housing projects, and by increasing the percentage of
5investment for tax incentives for certain housing projects.
6BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 15.119, subsection 2, paragraph g, Code
22017, is amended to read as follows:
3g. The workforce housing tax incentives program administered
4pursuant to sections 15.351 through 15.356. In allocating
5tax credits pursuant to this subsection, the authority shall
6not allocate more than twenty thirty million dollars for
7purposes of this paragraph. Of the moneys allocated under this
8paragraph, ten million dollars shall be reserved for allocation
9to qualified housing projects in small cities, as defined in
10section 15.352.
11 Sec. 2. Section 15.352, Code 2017, is amended by adding the
12following new subsections:
13 NEW SUBSECTION. 3A. “Greenfield site” means a site that
14does not meet the definition of a brownfield site or grayfield
15site. A project proposed at a site located on previously
16undeveloped land or agricultural land shall be presumed to be
17a greenfield site.
18 NEW SUBSECTION. 9. “Small city” means any city or township
19located in this state, except those located within the eleven
20most populous counties in the state, as determined by the most
21recent federal decennial census. For the purposes of this
22part, a small city that is located in more than one county
23shall be considered to be located in the county having the
24greatest taxable base within the small city.
25 Sec. 3. Section 15.353, subsection 1, paragraph a, Code
262017, is amended to read as follows:
27a. Four or more single-family dwelling units, except for a
28project located in a small city, then two or more single-family
29dwelling units.
30 Sec. 4. Section 15.353, subsection 2, Code 2017, is amended
31by adding the following new paragraph:
32 NEW PARAGRAPH. 0d. For a housing project located in a
33small city that meets program requirements under subsection 1,
34paragraph “a”, development at a greenfield site.
35 Sec. 5. Section 15.353, subsection 2, paragraph d,
-1-1subparagraph (2), subparagraph division (c), Code 2017, is
2amended to read as follows:
3(c) The demand for projects applying under this paragraph
4“d” compared to the demand for projects applying under
5paragraphs “a” through “c” “0d”.
6 Sec. 6. Section 15.354, subsection 4, paragraph c, Code
72017, is amended to read as follows:
8c. (1) The authority shall issue tax incentives under the
9program on a first-come, first-served basis until the maximum
10amount of tax incentives allocated pursuant to section 15.119,
11subsection 2, is reached. The authority shall maintain a list
12of registered housing projects under the program so that if
13the maximum aggregate amount of tax incentives is reached in
14a given fiscal year, registered housing projects that were
15completed but for which tax incentives were not issued shall
16be placed on a wait list in the order the registered housing
17projects were registered and shall be given priority for
18receiving tax incentives in succeeding fiscal years.
19(2) The authority shall administer allocations reserved for
20qualified housing projects in small cities separately from the
21general allocation in subparagraph (1). The authority shall
22issue tax incentives for small cities under the program on a
23first-come, first-served basis until the maximum amount of the
24allocation reserved for small cities under section 15.119,
25subsection 2, paragraph “g”, is reached. The authority shall
26maintain a list of registered housing projects in small cities
27under the program so that if the maximum aggregate amount
28of tax incentives reserved for small cities is reached in a
29given fiscal year, such registered housing projects that were
30completed but for which tax incentives were not issued shall
31be placed on a wait list in the order the registered housing
32projects were registered and shall be given priority for
33receiving tax incentives in succeeding fiscal years. If the
34maximum aggregate amount of tax incentives reserved for small
35cities is not reached in a given fiscal year, the authority may
-2-1issue tax incentives reserved under this subparagraph (2) to
2other housing projects registered under subsection 2.
3 Sec. 7. Section 15.355, subsection 3, paragraph a, Code
42017, is amended to read as follows:
5a. A housing business may claim a tax credit in an amount
6not to exceed the following:
7(1) For a housing project not located in a small city,ten
8percent of the qualifying new investment of a housing project.
9(2) For a housing project located in a small city, twenty
10percent of the qualifying new investment of a housing project.
11EXPLANATION
12The inclusion of this explanation does not constitute agreement with
13the explanation’s substance by the members of the general assembly.
14This bill relates to the workforce housing tax incentives
15program by increasing the maximum dollar amount that may be
16allocated to the program, by requiring that a certain dollar
17value of tax credits be allocated to housing projects in small
18cities, and by increasing the percentage for computing tax
19credits for such housing projects.
20The bill raises the annual allowable tax credits allocation
21under the program from $20 million to $30 million, but
22maintains the economic development authority’s (authority)
23$170 million aggregate tax credit limit. The bill requires
24the authority to allocate at least $10 million in tax credits
25to housing projects in small cities and to administer such
26reserved allocations separately. If the authority does not
27reach the $10 million for such projects in a fiscal year, the
28bill provides that the authority may issue tax incentives from
29the reserved allocation to registered housing projects that
30are not located in small cities. Under the bill, a small city
31includes any city or township not located in one of the 11
32most populous counties in the state, as determined by the most
33recent federal decennial census. Under the bill, a small city
34that is located in more than one county is considered to be
35located in the county having the greatest taxable base within
-3-1the small city.
2The bill provides that a housing project in a small city
3that results in two or more new single-family dwelling units
4at a greenfield site, as defined in the bill, may receive tax
5incentives under the program, equaling up to 20 percent of the
6qualifying new investment.
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