Creating a senior housing tax credit program, and including effective date and applicability provisions

This bill creates a senior housing tax credit program available against the individual and corporate income taxes, franchise tax, insurance premium tax, and moneys and credits tax. The bill requires the Iowa finance authority (authority) to develop a system for the application, review, and authorization of senior housing tax credits. A tax credit may be claimed by a taxpayer for a “qualified development” defined to mean a senior housing project located in this state approved by the authority. The bill defines “senior housing project” to mean the development and construction of single-family or multiresidential housing for persons years of age or older with an emphasis on safety, accessibility, and adaptability. A senior housing tax credit may be authorized by the authority if all of the following apply: the tax credit is issued to a taxpayer who has an ownership interest in the qualified development; the tax credit is necessary for the financial feasibility of the qualified development; the amount of the tax credit allocated to an owner does not exceed percent of the cost of the qualified development; and the qualified development is the subject of a recorded restrictive covenant requiring the qualified development be maintained and operated as a qualified development for a compliance period of years. The amount of a senior housing tax credit award is determined by the authority and any 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. In any calendar year, the bill limits the aggregate amount of the tax credit to $15 million plus the sum of the total of unallocated tax credits from the preceding calendar year and the previously allocated tax credits that have been canceled or recaptured. A taxpayer shall claim the credit by including one or more tax credit certificates issued by the authority with the taxpayer’s return. The bill allows a tax credit certificate to be transferred to any person or entity. The bill requires the transferee to submit the transferred tax credit certificate to the authority within days of the transfer, and requires the authority to issue a replacement tax credit certificate within days of receiving the transferred tax credit certificate. The bill takes effect January 1, 2022, and applies to tax years on or after that date.