House File 439 - 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 a,
2subparagraph (2), Code 2017, is amended to read as follows:
   3(2)  In allocating tax credits pursuant to this subsection
4for the fiscal year beginning July 1, 2016, and ending June 30,
52017, the authority shall not allocate more than one hundred
6five million dollars for purposes of this paragraph “a”. In
7allocating tax credits pursuant to this paragraph “a” for
each
8fiscal year of the fiscal period beginning July 1, 2016 2017,
9and ending June 30, 2021, the authority shall not allocate more
10than
 for the purposes of this paragraph “a” an amount that
11exceeds an amount equal to the difference of
one hundred five
12million dollars for purposes of this paragraph less the amount,
13if any, that the allocation for purposes of paragraph “g”
14 exceeds twenty million dollars for the same fiscal year
. This
15subparagraph (2) is repealed July 1, 2021.
16   Sec. 2.  Section 15.119, subsection 2, paragraph a,
17subparagraph (3), subparagraph division (a), Code 2017, is
18amended to read as follows:
   19(a)  In allocating tax credits pursuant to this subsection
20for the fiscal year beginning July 1, 2021, and ending June
2130, 2022, the authority shall not allocate more than for the
22purposes of this paragraph “a” an amount that exceeds an amount
23equal to the difference of
one hundred five million dollars for
24purposes of this paragraph
 less the amount, if any, that the
25allocation for purposes of paragraph “g” exceeds twenty million
26dollars for the same fiscal year
if the aggregate amount of
27renewable chemical production tax credits under section 15.319
28that were awarded on or after July 1, 2018, but before July 1,
292021, equals or exceeds twenty-seven million dollars.
30   Sec. 3.  Section 15.119, subsection 2, paragraph g, Code
312017, is amended to read as follows:
   32g.  The workforce housing tax incentives program administered
33pursuant to sections 15.351 through 15.356. In allocating
34tax credits pursuant to this subsection, the authority shall
35not allocate more than twenty thirty million dollars for
-1-1purposes of this paragraph. Of the moneys allocated under this
2paragraph, ten million dollars shall be reserved for allocation
3to qualified housing projects in small cities, as defined in
4section 15.352.

5   Sec. 4.  Section 15.352, Code 2017, is amended by adding the
6following new subsections:
7   NEW SUBSECTION.  3A.  “Greenfield site” means a site that
8does not meet the definition of a brownfield site or grayfield
9site. A project proposed at a site located on previously
10undeveloped land or agricultural land shall be presumed to be
11a greenfield site.
12   NEW SUBSECTION.  9.  “Small city” means any city or township
13located in this state, except those located within the eleven
14most populous counties in the state, as determined by the most
15recent federal decennial census. For the purposes of this
16part, a small city that is located in more than one county
17shall be considered to be located in the county having the
18greatest taxable base within the small city.
19   Sec. 5.  Section 15.353, subsection 1, paragraph a, Code
202017, is amended to read as follows:
   21a.  Four or more single-family dwelling units, except for a
22project located in a small city, then two or more single-family
23dwelling units
.
24   Sec. 6.  Section 15.353, subsection 2, Code 2017, is amended
25by adding the following new paragraph:
26   NEW PARAGRAPH.  0d.  For a housing project located in a
27small city that meets program requirements under subsection 1,
28paragraph “a”, development at a greenfield site.
29   Sec. 7.  Section 15.353, subsection 2, paragraph d,
30subparagraph (2), subparagraph division (c), Code 2017, is
31amended to read as follows:
   32(c)  The demand for projects applying under this paragraph
33“d” compared to the demand for projects applying under
34paragraphs “a” through “c” “0d”.
35   Sec. 8.  Section 15.354, subsection 4, paragraph c, Code
-2-12017, is amended to read as follows:
   2c.  (1)  The authority shall issue tax incentives under the
3program on a first-come, first-served basis until the maximum
4amount of tax incentives allocated pursuant to section 15.119,
5subsection 2, is reached. The authority shall maintain a list
6of registered housing projects under the program so that if
7the maximum aggregate amount of tax incentives is reached in
8a given fiscal year, registered housing projects that were
9completed but for which tax incentives were not issued shall
10be placed on a wait list in the order the registered housing
11projects were registered and shall be given priority for
12receiving tax incentives in succeeding fiscal years.
   13(2)  The authority shall administer allocations reserved for
14qualified housing projects in small cities separately from the
15general allocation in subparagraph (1). The authority shall
16issue tax incentives for small cities under the program on a
17first-come, first-served basis until the maximum amount of the
18allocation reserved for small cities under section 15.119,
19subsection 2, paragraph “g”, is reached. The authority shall
20maintain a list of registered housing projects in small cities
21under the program so that if the maximum aggregate amount
22of tax incentives reserved for small cities is reached in a
23given fiscal year, such registered housing projects that were
24completed but for which tax incentives were not issued shall
25be placed on a wait list in the order the registered housing
26projects were registered and shall be given priority for
27receiving tax incentives in succeeding fiscal years. If the
28maximum aggregate amount of tax incentives reserved for small
29cities is not reached in a given fiscal year, the authority may
30issue tax incentives reserved under this subparagraph (2) to
31other housing projects registered under subsection 2.
32   Sec. 9.  Section 15.355, subsection 3, paragraph a, Code
332017, is amended to read as follows:
   34a.  A housing business may claim a tax credit in an amount
35not to exceed the following:
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   1(1)  For a housing project not located in a small city,ten
2percent of the qualifying new investment of a housing project.
   3(2)  For a housing project located in a small city, twenty
4percent of the qualifying new investment of a housing project.
5EXPLANATION
6The inclusion of this explanation does not constitute agreement with
7the explanation’s substance by the members of the general assembly.
   8This bill relates to the workforce housing tax incentives
9program by increasing the maximum dollar amount that may be
10allocated to the program, by requiring that a certain dollar
11value of tax credits be allocated to housing projects in small
12cities, and by increasing the percentage for computing tax
13credits for such housing projects.
   14The bill raises the annual allowable tax credits allocation
15under the program from $20 million to $30 million, but
16maintains the economic development authority’s (authority)
17$170 million aggregate tax credit limit. The bill requires
18the authority to allocate at least $10 million in tax credits
19to housing projects in small cities and to administer such
20reserved allocations separately. If the authority does not
21reach the $10 million for such projects in a fiscal year, the
22bill provides that the authority may issue tax incentives from
23the reserved allocation to registered housing projects that
24are not located in small cities. Under the bill, a small city
25includes any city or township not located in one of the 11
26most populous counties in the state, as determined by the most
27recent federal decennial census. Under the bill, a small city
28that is located in more than one county is considered to be
29located in the county having the greatest taxable base within
30the small city.
   31The bill provides that a housing project in a small city
32that results in two or more new single-family dwelling units
33at a greenfield site, as defined in the bill, may receive tax
34incentives under the program, equaling up to 20 percent of the
35qualifying new investment.
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   1For the fiscal period beginning July 1, 2017, and ending
2June 30, 2022, the bill requires reductions in the authority’s
3allowable allocations to the high quality jobs program
4under the circumstances described in the bill relating to
5the increase in workforce housing tax incentive program tax
6credits.
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