Amendment H-1353 to SF 559

Filed May 3, 2023 in the House by

What it changes

1. Page 25, after line 27 by inserting: “DIVISION ___ NEIGHBORHOOD HOUSING RENOVATION Sec. ___. NEW SECTION . 16.230 Neighborhood housing renovation grant program —— fund.
2. a. A neighborhood housing renovation grant fund is created in the state treasury under the control of the authority. Moneys in the fund are appropriated to the authority to award grants under the neighborhood housing renovation grant program. b. There is appropriated to the authority for deposit in the neighborhood housing renovation grant fund for the fiscal year beginning July 1, 2023, from the moneys available to the state pursuant to the federal American Rescue Plan Act of 2021, Pub. L. No. 117-2, the sum of five million dollars. c. Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys in the neighborhood housing renovation grant fund shall accrue to the authority and shall be used for purposes of this section. Notwithstanding section 8.33, moneys in the neighborhood housing renovation grant fund at the end of each fiscal year shall not revert to any other fund but shall remain in the neighborhood housing renovation grant fund for expenditure for subsequent fiscal years. All repayments or recaptures of grants awarded under this section shall accrue to the authority and shall be used for purposes of this section. d. The authority shall not use more than three percent of the moneys in the neighborhood housing renovation grant fund at the beginning of the fiscal year for purposes of administrative costs, marketing, and other program support.
3. a. The authority shall establish and administer a neighborhood housing renovation grant program for purposes of awarding grants to eligible homeowners for qualifying exterior home improvements, repairs, or renovations. b. To qualify for the neighborhood housing renovation grant program, a homeowner’s household income shall not exceed one hundred nine thousand dollars. c. The property at which the qualifying exterior home improvements, repairs, or renovations will occur must be occupied by the homeowner. d. A grant awarded under the neighborhood housing renovation grant program shall not exceed twenty thousand dollars. e. Exterior improvements, repairs, and renovations that qualify for the neighborhood housing renovation grant program shall include all of the following: (1) Roof repair or replacement. (2) Foundation repair. (3) Exterior siding repair or replacement. (4) Exterior paint. (5) Window and door repair or replacement. (6) Garage repair or replacement. (7) Exterior energy efficiency-related repairs or upgrades. (8) Exterior wheelchair or mobility assistive device accessibility. (9) Sidewalk and driveway repair or replacement.
4. The authority shall adopt rules pursuant to chapter 17A to administer this section. DIVISION ___ IOWA HOUSING TAX CREDIT PROGRAM Sec. ___. NEW SECTION . 16.37A Definitions. For purposes of this part, unless the context otherwise requires:
5. “Compliance period” means the period of fifteen years beginning with the first taxable year of the credit period.
6. “Credit period” means the period of ten tax years beginning with the tax year in which a qualified development is placed in service and the Iowa housing tax credit may be claimed. If a qualified development consists of more than one building, the qualified development is placed in service in the tax year in which the last building of the qualified development is placed in service.
7. “Department” means the Iowa department of revenue.
8. “Qualified allocation plan” means the qualified allocation plan adopted by the authority pursuant to section 42(m) of the Internal Revenue Code.
9. “Qualified basis” means the qualified basis determined under section 42(c)(1) of the Internal Revenue Code.
10. “Qualified development” means a qualified low-income housing project under section 42(g) of the Internal Revenue Code that is financed with tax-exempt bonds, pursuant to section 42(i)(2) of the Internal Revenue Code, and located in this state.
11. “Taxpayer” means an individual, a person, firm, corporation, or other entity that owns an interest, direct or indirect, in a qualified development and who claims a tax credit under section 16.37C. Sec. ___. NEW SECTION . 16.37B Application —— review —— authorization.
12. The authority shall develop a system for the application, review, and authorization of Iowa housing tax credits awarded pursuant to this part and shall control the issuance of all tax credit certificates to taxpayers pursuant to this part.
13. Applications for Iowa housing tax credits shall be accepted during an annual application period established by the authority.
14. The authority may authorize the tax credit if all of the following conditions are satisfied: a. The tax credit certificate is issued to a taxpayer who has an ownership interest in the qualified development. b. The tax credit amount is allocated pursuant to a qualified allocation plan. c. The tax credit is necessary for the financial feasibility of the qualified development. d. The amount of the tax credit allocated to an owner does not exceed thirty percent of the qualified basis of the qualified development. e. The qualified development is the subject of a recorded restrictive covenant requiring that, for the compliance period or for a longer period agreed to by the authority and the owner of the qualified development, the development shall be maintained and operated as a qualified development and shall be in compliance with Tit. VIII of the federal Civil Rights Act of 1968, as amended.
15. Upon review of an application, the authority may approve the qualified development for the tax credit program provided in section 16.37C, and issue a tax credit certificate stating the amount of the tax credit the authority determines the applicant is eligible to claim for each year of the credit period.
16. Unless otherwise provided in this section or the context clearly requires otherwise, the authority shall determine eligibility for a credit and allocate credits in accordance with the standards and requirements set forth in section 42 of the Internal Revenue Code.
17. An applicant that is unsuccessful in receiving a tax credit award during an annual application period may make additional applications during subsequent annual application periods. Such applicants shall be required to submit a new application which shall be reviewed in the same manner as other applications in that annual application period. Sec. ___. NEW SECTION . 16.37C Iowa housing tax credits —— limits.
18. An Iowa housing tax credit shall be allowed against the taxes imposed in chapter 422, subchapters II, III, and V, and in chapter 432, and against the moneys and credits tax imposed in section 533.329, in the amount determined by the authority pursuant to this part. Any tax credit in excess of the taxpayer’s liability for the tax year is not refundable but may be credited to the tax liability for the following five years or until depleted, whichever is earlier.
19. An individual may claim a tax credit under this subsection of a partnership, limited liability company, S corporation, estate, or trust electing to have income taxed directly to the individual. The amount claimed by the individual shall be based upon the pro rata share of the individual’s earnings from the partnership, limited liability company, S corporation, estate, or trust.
20. In any calendar year, the aggregate amount of all tax credits allocated by the authority shall not exceed fifteen million dollars, plus the sum of the following amounts: a. The total of all unallocated tax credits, if any, for the preceding calendar years. b. The total amount of all previously allocated tax credits that have been recaptured, revoked, canceled, or otherwise recovered by the authority.
21. a. To claim a tax credit under this section, a taxpayer shall include one or more tax credit certificates issued by the authority with the taxpayer’s tax return. b. The tax credit certificate shall contain the taxpayer’s name, address, tax identification number, the amount of the credit including the amount the authority determines the taxpayer is eligible to claim for each year of the credit period, the name of the qualified development, any other information required by the department of revenue, and a place for the name and tax identification number of a transferee and the amount of the tax credit being transferred. c. Tax credit certificates issued under this section may be transferred to any person or entity. Within ninety days of transfer, the transferee shall submit the transferred tax credit certificate to the authority along with a statement containing the transferee’s name, tax identification number, and address, the denomination that each replacement tax credit certificate is to carry, and any other information required by the department of revenue. d. Within thirty days of receiving the transferred tax credit certificate and the transferee’s statement, the authority shall issue one or more replacement tax credit certificates to the transferee. Each replacement tax credit certificate must contain the information required for the original tax credit certificate and must have the same expiration date that appeared in the transferred tax credit certificate. Tax credit certificate amounts of less than the minimum amount established by rule of the Iowa finance authority shall not be transferable. e. A tax credit shall not be claimed by a transferee under this section until a replacement tax credit certificate identifying the transferee as the proper holder has been issued. The transferee may use the amount of the tax credit transferred against the taxes imposed in chapter 422, subchapters II, III, and V, and in chapter 432, and against the moneys and credits tax imposed in section 533.329, for any tax year the original transferor could have claimed the tax credit. Any consideration received for the transfer of the tax credit shall not be included as income under chapter 422, subchapters II, III, and V. Any consideration paid for the transfer of the tax credit shall not be deducted from income under chapter 422, subchapters II, III, and V. Sec. ___. NEW SECTION . 16.37D Recapture.
22. As of the last day of any tax year during the compliance period, if the amount of the qualified basis of a qualified development owned by a taxpayer claiming the credit is less than the amount of the qualified basis as of the last day of the immediately preceding tax year, the amount of the taxpayer’s liability under this part shall be increased by the recapture amount determined using the method under section 42(j) of the Internal Revenue Code.
23. If a recapture event occurs, the taxpayer shall include the recaptured proportion of the credit on the return submitted for the tax year in which the recapture event is identified. Sec. ___. NEW SECTION . 16.37E Compliance monitoring. The authority shall monitor and oversee compliance with sections 16.37A through 16.37D and shall report specific occurrences of noncompliance to the department. Sec. ___. NEW SECTION . 16.37F Report to the general assembly. On or before January 31 of each year, the authority shall submit to the general assembly a report that includes all of the following:
24. A statement of the number of qualified developments for which the authority issued tax certificates that year.
25. A description of each qualified development for which the authority issued a tax certificate that year, including the geographic location of the development, the household type and any specific demographic information available concerning the residents intended to be served by the development, the income levels of residents intended to be served by the development, and the rents or set-asides authorized for each development.
26. An analysis of housing market and demographic information that shows how the qualified developments for which the authority has issued tax certificates at any time are addressing the need for affordable housing within the communities those developments are intended to serve, and an analysis of any remaining disparities in the affordability of housing within those communities. Sec. ___. NEW SECTION . 16.37G Rules. The authority and the department shall adopt rules pursuant to chapter 17A as necessary for the implementation and administration of this part. Sec. ___. NEW SECTION . 422.10C Iowa housing tax credit. The taxes imposed under this subchapter, less the credits allowed under section 422.12, shall be reduced by an Iowa housing tax credit allowed under section 16.37C. Sec. ___. Section 422.33, Code 2023, is amended by adding the following new subsection: NEW SUBSECTION .
27. The taxes imposed under this subchapter shall be reduced by an Iowa housing tax credit as allowed under section 16.37C. Sec. ___. Section 422.60, Code 2023, is amended by adding the following new subsection: NEW SUBSECTION .
28. The taxes imposed under this subchapter shall be reduced by an Iowa housing tax credit as allowed under section 16.37C. Sec. ___. NEW SECTION . 432.12P Iowa housing tax credit. The taxes imposed under this chapter shall be reduced by an Iowa housing tax credit allowed under section 16.37C. Sec. ___. Section 533.329, subsection 2, Code 2023, is amended by adding the following new paragraph: NEW PARAGRAPH . n. The moneys and credits tax imposed under this section shall be reduced by an Iowa housing tax credit allowed under section 16.37C. Sec. ___. CODE EDITOR DIRECTIVE. The Code editor shall designate sections 16.37A through 16.37G, as enacted by this division of this Act, as a new part within chapter 16, subchapter VII, and may redesignate the new and preexisting parts, replace references to sections 16.37A through 16.37G with references to the new part, and correct internal references as necessary, including references in subchapter or part headnotes. Sec. ___. EFFECTIVE DATE. This division of this Act takes effect January 1,
29. Sec. ___. APPLICABILITY. This division of this Act applies to tax years beginning on or after January 1,
30. DIVISION ___ FIRST-TIME HOMEBUYER SAVINGS ACCOUNTS Sec. ___. Section 422.7, subsection 27, paragraph a, subparagraph (1), subparagraph division (a), subparagraph subdivisions (i) and (ii), Code 2023, are amended to read as follows: (i) For married taxpayers who file a joint return and maintain a joint first-time homebuyer savings account, four ten thousand dollars. (ii) For any other account holder, two five thousand dollars.”
31. Title page, by striking line 9 and inserting “program, new job training agreements, and first-time homebuyer accounts, and creating the neighborhood housing renovation grant and Iowa housing tax credit programs.”
32. By renumbering as necessary.

Official amendment (PDF) · In the Bill Book