HSB 193

The division requires the authority to determine on or before June of each fiscal year the amount of tax credits to be allocated to each. In addition, any amount of tax credits allocated and not awarded in that fiscal year must be reallocated to either investments in qualifying businesses or to equity investments for the next fiscal year, and those tax credits do not count towards the maximum aggregate of $10 million. This applies to tax credits allocated on or after the fiscal year beginning July 1, 2021, and for each fiscal year thereafter. The division modifies the maximum amount of an investment tax credit that may be issued to a natural person and the person’s spouse or dependent from a calendar year basis to a fiscal year basis. The maximum amount of tax credits that may be issued for equity investments in any one qualifying business is also modified from a calendar year to a fiscal year. The division is effective upon enactment. DIVISION II —— GROW IOWA PROGRAM. _____ direction and approval by the board to administer, a grow Iowa program (program) to assist communities in the development of regionally significant quality of life projects that leverage local community assets in coordination with economic development and workforce attraction and retention planning. An applicant may submit a coordinated application to the board for financial assistance for the applicant’s project under the program. “Applicant” is defined in the bill. Financial assistance may include but is not limited to grants, loans, forgivable loans, pledges, credit enhancements, and financing instruments. “Coordinated application” is defined as an application submitted by an applicant that includes input from all municipalities impacted by the proposed project, input from a nongovernmental organization that supports the proposed project, and a statement regarding coordination with local stakeholders. The coordinated application must include specific information as detailed in the division. The aggregate cost of an applicant’s project must be at least $10 million for an applicant to be eligible to receive financial assistance under the program. An applicant, or the board, may divide an applicant’s project into component parts and the board may award financial assistance under the program to one or more component parts of an applicant’s project. An applicant must demonstrate financial and nonfinancial support for the applicant’s project, which may be from public or private sources. “Nonfinancial support” is defined in the division and must not total more than percent of the aggregate cost of the project. The financial and nonfinancial support for the applicant’s project must equal at least percent of the aggregate cost of the project if the project is located in a county with a population equal to or greater than 50,000, and at least percent of the aggregate cost of the project if the project is located in a county with a population of less than 50,000. _____ financial assistance is detailed in the division. The board cannot approve a coordinated application that seeks financial assistance to refinance any loan, or pay off any promissory note, that has been executed prior to the date of submission of the coordinated application. The board also cannot approve a coordinated application for a project for which financial assistance has previously been awarded under the program, unless the applicant can demonstrate that any additional financial assistance approved by the board will be used for a significant expansion of that project. The process for review, consideration, and approval of applications is detailed in the division. The division creates a grow Iowa fund (fund) and the moneys in the fund are appropriated to the board for purposes of the program. The Iowa finance authority is designated as the custodian of the fund and must disburse moneys contained in the fund as directed by the board. The fund must be administered by the board. An applicant cannot receive more than $50 million in financial assistance from the fund. Revenue for the fund must include but is not limited to the proceeds of bonds issued to capitalize and pay the costs of the fund and investment earnings on the proceeds, interest attributable to investment of money in the fund or an account of the fund, and moneys in the form of a devise, gift, bequest, donation, federal grant or other grant, reimbursement, repayment, judgment, transfer, payment, or appropriation from any source intended to be used for purposes of the fund. The division provides that the authority may create and establish one or more special funds, to be known as “bond reserve funds”, to secure one or more issues of bonds or notes. The requirements related to the bond reserve funds are detailed in the division. _____ fund. The authority’s general and specific bonding powers are detailed in the division. DIVISION III —— COMMUNITY ATTRACTION AND TOURISM. The division requires the enhance Iowa board (board) to establish, oversee, and provide approval of the administration of the grow Iowa program. Current law requires the board to oversee and provide approval of the administration of the vision Iowa program and the division eliminates that requirement. Current law requires an applicant that is awarded financial assistance by the board under both the vision Iowa program and the community attraction and tourism program (tourism program) to provide and pay at least percent of the cost of a standard medical insurance plan for all full-time employees working at the applicant’s project after the completion of the project for which financial assistance was received. The division modifies this to require an applicant that is awarded financial assistance under the tourism program to provide and pay at least percent of the cost of a standard medical insurance plan for all full-time employees working at the applicant’s project after the completion of the project, and this requirement applies to an applicant awarded financial assistance under the tourism program on or after July 1, 2021.2 to conform to the repeal. DIVISION IV —— STATEWIDE TOURISM MARKETING CAMPAIGN FUNDING.17, to transfer to the economic development authority from the beer and liquor control fund and before any other transfer to the general fund, an amount not to exceed $5 million annually for a statewide tourism marketing campaign.0.0 technology investment fund (fund).0 technology investments” is defined as projects that are intended to lead to the adoption of, and integration of, smart technologies into existing manufacturing operations located in the state by mitigating the risk to the manufacturer of significant technology investments. The fund may be administered as a revolving fund and may consist of any moneys appropriated for purposes of the program and any other moneys that are lawfully available to the authority.0 technology investments. Financial assistance may include but is not limited to grants, loans, and forgivable loans.0 review committee. The committee must review each application received by the authority and make recommendations to the members of the authority appointed by the governor and in whom the powers of the authority are vested (board), whether the board should approve or deny an application, and the type and amount of financial assistance to be awarded to an applicant. The authority must adopt rules as necessary to implement and administer the program. The division permits the authority to approve a manufacturing business located in this state to claim additional first-year depreciation (depreciation) for certain investments made by the business to transition to a smart manufacturing environment that leverages joint capabilities of hardware, software, and workers in an integrated way. To claim depreciation, a business must make an eligible investment. “Eligible investment” is defined as an investment in smart manufacturing equipment that is digitized and interconnected, and that modernizes a business’s operations by supporting interconnectivity, decision support, customization, and flexibility of production runs, or that decentralizes low-level decision making. _____ The application process and the process for the authority to notify the applicant of its eligibility for depreciation are detailed in the division. An eligible business is required to enter into an agreement with the authority that specifies the terms and conditions that must be satisfied for the business to claim depreciation on its eligible investment. An eligible business is required to file a written report with the authority that states the actual date of completion of the business’s eligible investment, the actual dollar amount of the business’s eligible investment, and the actual placed-in-service date for the business’s eligible investment. After reviewing the report and verifying the actual dollar amount of the business’s eligible investment, the authority must notify the business of the amount of eligible investment the business may claim as depreciation. The authority must also notify the department of revenue of the amount of eligible investment the business may claim as depreciation and submit a list to the department of the assets deemed to be part of the business’s eligible investment.35. If a business fails to complete the installation of its eligible investment or to comply with the terms and conditions of the agreement, the authority may revoke, reduce, terminate, or rescind the depreciation the business may claim, or if the business has already filed a tax return in which the business computed net income under section 168(k), require the business to file an amended return with net income computed without the application of section 168(k). The authority and the department of revenue must adopt rules as necessary for the implementation and administration of the program. DIVISION VI —— ENERGY INFRASTRUCTURE REVOLVING LOAN PROGRAM.46, alternate energy revolving loan program, to prohibit the Iowa energy center from initiating any new loans after June 30, 2021. The division also requires that all loan payments received after June 30, 2021, be deposited, and any moneys remaining in the alternate energy revolving loan fund after June 30, 2021, be transferred, to the newly created energy infrastructure revolving loan fund. The division creates an energy infrastructure revolving fund (fund) in the office of the treasurer of state to be administered by the Iowa energy center (center). Moneys in the fund are to be used to provide financial assistance for the development and construction of energy infrastructure, including projects that support electric or gas generation transmission, storage, or distribution; electric grid modernization; energy-sector workforce development; emergency preparedness for rural and underserved areas; the expansion of biomass, biogas, and renewable natural gas; innovative technologies; and the development of infrastructure for alternative fuel vehicles. “Energy infrastructure” is defined as land, buildings, physical plant and equipment, and services directly related to the development of projects used for, or useful for, electricity or gas generation, transmission, storage, or distribution. “Financial assistance” is also defined in the bill. The center is required to establish and administer an energy infrastructure revolving loan program (program) to encourage the development of energy infrastructure within the state. An individual, business, rural electric cooperative, or municipal utility located and operating in this state is eligible for financial assistance under the program. With the approval of the center’s governing board, the economic development authority (authority) must determine the amount and the terms of all financial assistance awarded to an individual, business, rural electric cooperative, or municipal utility under the program. _____ vested in the center’s governing board. The authority may use not more than percent of the moneys in the fund at the beginning of each fiscal year for purposes of administrative costs, marketing, technical assistance, and other program support.