Proyectos de ley › 89.ª Asamblea General
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- Hecho: Presentado2 de febrero de 2021
- Hecho: Subcomité2 de febrero de 2021
- Hecho: Comité del Senado9 de febrero de 2021
- Se saltó: Lo aprueba el SenadoSigue como SF 295
- Sigue: Comité de la Cámara
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Qué contiene
Resumen con IA Iowa is creating new tax credits and programs to help make housing more affordable and support people after natural disasters. The bill increases funding for workforce housing and removes limits on money sent to the state housing trust fund. It also starts a program to help downtown businesses with loans and provides grants or forgivable loans to homeowners and renters whose houses were damaged by disasters. (Todavía no está traducido al español.)1
Lea la explicación oficial (en inglés)
This bill relates to affordable housing, disaster housing assistance, and redevelopment tax credits by creating an Iowa housing tax credit program, modifying distribution of real estate transfer taxes, modifying workforce housing tax incentives, and creating a disaster housing recovery assistance program, modifying redevelopment tax credits, and including effective date and applicability provisions. IOWA HOUSING TAX CREDIT PROGRAM. The bill creates an Iowa 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 Iowa housing tax credits. A tax credit may be claimed by a taxpayer for a “qualified development” defined to mean a qualified low-income housing project under section 42(g) of the Internal Revenue Code that is financed by tax-exempt bonds. An Iowa 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 amount is allocated pursuant to a qualified allocation plan adopted by the authority; 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 qualified basis 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 certain number of years. The amount of an Iowa housing tax credit award is determined by the authority and may be claimed during the credit period (10 years), 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 revoked, canceled, or recaptured. A taxpayer shall claim the credit by including one or more tax 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. _____ days of receiving the transferred tax credit certificate. The bill allows the authority to recapture tax credit amounts from previously issued tax credits. The bill provides that if on the last day of a taxable year during the compliance period (15 years) 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, then the amount of the taxpayer’s liability shall be increased by the recapture amount determined using the method under section 42(j) of the Internal Revenue Code. If a recapture event occurs, the bill requires the taxpayer to include the recaptured amount on the return submitted for the tax year in which the recapture event is identified. The bill requires the authority to submit a report to the general assembly by January each year, detailing the Iowa housing tax credit program. The division takes effect January 1, 2022, and applies to tax years beginning on or after that date. HOUSING TRUST FUND. Currently, the treasurer of state transfers percent of real estate transfer tax receipts received by the treasurer of state to the housing trust fund up to $3 million. The bill removes the $3 million cap placed on the transfer of the real estate transfer tax receipts to the housing trust fund by the treasurer of state. WORKFORCE HOUSING TAX INCENTIVES.119 sets an aggregate tax credit amount limit for certain economic development programs.356 shall not be allocated more than $25 million in tax credits, and of the tax credits allocated to these programs, $10 million of the tax credits is reserved for allocation to qualified housing projects in small cities. The bill increases the workforce housing tax credit allocations from $25 million to $50 million. _____ to workforce housing tax credits, the bill increases the tax credits reserved for qualified housing projects in small cities from $10 million to $20 million. The increased amounts for workforce housing and small city tax credit allocations established in the bill are repealed July 1, 2024. The bill strikes the requirement that the average dwelling unit costs of a proposed housing development not exceed certain dollar amounts per dwelling unit in order to receive workforce housing tax incentives. The bill allows the authority to set the average dwelling unit costs by rule as a requirement for a project to receive workforce housing tax incentives, based upon building materials, labor, site development, and acquisition costs. Currently, upon completion of a housing project, a housing business (housing developer, contractor, or nonprofit that completes a housing project) submits an examination of the project in accordance with the American institute of certified public accountants to the authority.356. The bill also requires the authority to review the information submitted by the housing business prior to notifying the housing business of tax incentive awards. The bill permits the authority to establish a disaster housing recovery period following the declaration of a major disaster by the president of the United States. Currently, the authority may accept applications for disaster recovery housing projects on a continuous basis. DOWNTOWN LOAN GUARANTEE PROGRAM. _____ downtown loan guarantee program to be administered by the economic development authority and the Iowa finance authority. The purpose of the program is to encourage downtown businesses and banks to reinvest and reopen following the COVID-19 pandemic. In order for a loan to be guaranteed under the program, numerous conditions apply, including the following: the loan finances an eligible downtown resources center community catalyst building remediation grant project or main street Iowa challenge grant within a designated district; the loan finances a rehabilitation project or acquisition or refinancing costs associated with the project; percent of the project cost is used for construction on the project or renovation; the financed project includes a housing component; the loan is used for the construction or permanent financing of a project; a federally insured financial lending institution issued the loan; the loan does not reimburse the borrower for working capital or operations; and the project meets certain design reviews. The bill requires the loan to be secured by a mortgage against the project property, prohibits the loan guarantee to be transferred, and charges the lender an annual loan guarantee fee as set forth by rule. The bill limits the amount of the loan guarantee as follows: for a loan amount of less than or equal to $500,000, the loan guarantee shall not exceed percent of the loan; for a loan amount greater than $500,000, the authority may provide a maximum loan guarantee of up to $250,000. The authority may guarantee the loan for up to five years, which may be extended by the authority for an additional five years. The authority may also deny a loan guarantee for any unreasonable bank loan fees or interest rate. In the event of a loss due to default, the bill requires the loan guarantee to proportionally pay the guarantee percentage of the loss to the lender.106A(1)(o). DISASTER RECOVERY HOUSING ASSISTANCE PROGRAM —— TRANSFERS.49 (community housing and services for persons with disabilities revolving loan program fund) to the disaster recovery housing assistance fund created in the bill.5(1)(s), for deposit in the fund. The bill waives the prior written consent and approval of the director of the department of management to transfer the unobligated moneys.106A(1)(o), for deposit in the fund. The bill requires any transfer to be reported to the legislative fiscal committee of the legislative council on a monthly basis. DISASTER RECOVERY HOUSING ASSISTANCE PROGRAM —— FUND. The bill creates a disaster recovery housing assistance fund (fund) within the authority. The purpose of the fund is for the development and operation of a forgivable loan and grant program for homeowners and renters with disaster-affected homes, and for an eviction prevention program created in the bill. _____ percent of the moneys in the fund on July of a fiscal year for purposes of administrative costs and other program support during the fiscal year. The bill directs the authority to establish and administer a disaster recovery assistance program (program) and to use the moneys in the fund to provide forgivable loans to eligible homeowners and grants to eligible renters with disaster-affected homes. “Disaster-affected home” is defined in the bill as a primary residence that is destroyed or damaged due to a natural disaster that occurs on or after the effective date of the division, and that is located in a county that due to the natural disaster is the subject of a state of disaster emergency proclamation by the governor that authorizes disaster recovery housing assistance; or a primary residence that is destroyed or damaged due to a natural disaster that occurred on or after March 12, 2019, but before the effective date of the division, and is located in a county that has been declared a major disaster by the president of the United States on or after March 12, 2019, but before the effective date of the division, and is located in a county where individuals are eligible for federal individual assistance. The authority may enter into an agreement with one or more local program administrators to administer the program and moneys in the fund may be expended following a state of disaster emergency proclamation by the governor that authorizes disaster recovery housing assistance or the eviction prevention program. _____ is the subject of the state of disaster emergency proclamation by the governor that authorizes disaster recovery housing assistance or the eviction prevention program; or a qualified local organization or governmental entity as determined by rule by the authority.20B. The disaster case manager may refer the homeowner or renter to the appropriate local program administrator. DISASTER RECOVERY HOUSING ASSISTANCE PROGRAM —— HOMEOWNERS. To be eligible for a forgivable loan under the program, the bill requires a homeowner to own a disaster-affected home located in a county that has been proclaimed a state of disaster emergency by the governor; the home must have sustained damage greater than the damage that is covered by the homeowner’s property and casualty insurance policy insuring the home plus any other state or federal disaster-related financial assistance that the homeowner is eligible to receive; an administrator must deem the home suitable for rehabilitation or damaged beyond reasonable repair; if the homeowner is seeking a forgivable loan for the repair or rehabilitation of the homeowner’s disaster-affected home, the home cannot be proposed for buyout by the county or city in which the home is located, or the disaster-affected home is eligible for a buyout, but the homeowner is requesting a forgivable loan for the repair or rehabilitation of the homeowner’s disaster-affected home in lieu of a buyout; and the assistance does not duplicate benefits provided by other disaster assistance programs. _____ replacement housing to render it decent, safe, sanitary, and in good repair. Replacement housing purchased by a homeowner cannot be located in a 100-year floodplain.703. “Replacement housing” is defined in the bill as housing purchased by a homeowner to replace a disaster-affected home that is destroyed or damaged beyond reasonable repair as determined by a local program administrator. The authority shall determine the interest rate for the forgivable loan. If a homeowner who has been awarded a forgivable loan sells a disaster-affected home or replacement housing for which the homeowner received the forgivable loan prior to the end of the loan term, the remaining principal on the forgivable loan shall be due and payable. DISASTER RECOVERY HOUSING ASSISTANCE PROGRAM —— RENTERS. To be eligible for a grant under the program, the bill requires the local program administrator to either deem the disaster-affected home of the renter suitable for rehabilitation but unsuitable for current short-term habitation, or damaged beyond reasonable repair; and the assistance does not duplicate benefits provided by any other disaster assistance program. DISASTER RECOVERY HOUSING ASSISTANCE PROGRAM —— REPORT. The bill requires the authority to annually submit a report to the general assembly detailing the disaster recovery housing assistance program. EVICTION PREVENTION PROGRAM. The bill requires the authority to establish and administer an eviction prevention program. Under the eviction prevention program, the authority awards grants from the disaster recovery housing assistance fund to eligible renters and eviction prevention partners. _____ prevention program. The bill defines “eligible renter” to mean a renter whose income meets the qualifications of the program, who is at risk of eviction, and who resides in a county that is the subject of a state of disaster emergency proclamation by the governor that also authorizes the eviction prevention program. The bill defines “eviction prevention partner” to mean a qualified local organization or governmental entity as determined by rule by the authority. The bill requires grants awarded to eligible renters to be used for short-term financial rent assistance to keep eligible renters in the current residence of the renter. Grants awarded to eviction prevention partners are to be used to pay for rent or services provided to eligible renters for the purpose of preventing the eviction of eligible renters. DISASTER RECOVERY HOUSING ASSISTANCE PROGRAM —— RULES. The authority shall adopt rules pursuant to Code chapter 17A to implement and administer the program including establishing the maximum forgivable loan and grant amounts, the terms of forgivable loans, and income qualifications of eligible renters in the eviction prevention program. BROWNFIELD REDEVELOPMENT PROGRAM. Current law provides that the economic development authority (authority) cannot allocate more than $10 million in tax credits in a fiscal year to the brownfield redevelopment program (brownfields). The division increases the maximum allocation to $20 million. The division provides that tax credits that are not awarded or that are revoked (including revoked within the previous five years) under brownfields may be awarded during the next annual application period, and those tax credits do not count against the $20 million tax credit maximum.293A, redevelopment tax credits, is repealed on June 30, 2021. The division changes the repeal date to June 30, 2031, and the repeal date is effective upon enactment of the division. _____ projects awarded tax credits under brownfields is repealed on June 30, 2021. The division changes the repeal date to June 30, 2031, and the repeal date is effective upon enactment of the division.
Senate subcommittee
Named February 2, 2021. On February 4, 2021 it recommended passage.
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Nota fiscal
Resumen con IA This bill creates several programs to encourage housing development, including a new Iowa Housing Tax Credit, a downtown loan guarantee, and disaster recovery assistance. It also increases limits for the Workforce Housing Tax Credit and the Redevelopment Tax Credit, and removes a cap on real estate transfer tax revenue sent to the Housing Trust Fund. The new Iowa Housing Tax Credit is projected to reduce net General Fund revenue by $0.3 million in fiscal year 2023, $1.2 million in fiscal year 2024, $2.6 million in fiscal year 2025, $4.1 million in fiscal year 2026, and $5.6 million in fiscal year 2027. Removing the real estate transfer tax limit is estimated to increase Housing Trust Fund revenue and reduce net General Fund revenue by $4.7 million in fiscal year 2022, $4. (en inglés)3
Lea la nota fiscal (en inglés)
Description
Senate File 295 expands upon and creates new tax credit, loan, and grant programs to incentivize housing options. A brief description by division is below and the following pages include assumptions and fiscal impact where it can be estimated.
DIVISION I — Creates an Iowa Housing Tax Credit Program to be administered by the Iowa Finance Authority (IFA). The new credit is subject to award by the IFA and is available to developers of qualified low-income housing projects under Internal Revenue Code section 42(g) that are financed with tax-exempt bonds. The transferable tax credits may be applied to corporate income tax, individual income tax, bank franchise tax, insurance premium tax, or credit union moneys and credits tax. The maximum amount of credits that may be issued is $15.0 million per calendar year, plus an amount equal to any unused or otherwise returned credits from previous award years. The Division takes effect January 1, 2022. DIVISION II — Removes the $3.0 million cap placed on the transfer of the real estate transfer tax receipts to the Housing Trust Fund effective July 1, 2022.
DIVISION III — Increases the annual limit on awarded Workforce Housing Tax Credits from $25.0 million to $50.0 million and increases the amount reserved for projects in small cities from $10.0 million to $20.0 million. The credit limit and reservation changes are effective for FY 2022 through FY 2024.
DIVISION IV — Creates a Downtown Loan Guarantee Program to be administered by the Iowa Economic Development Authority (IEDA) and the IFA. The Program is to encourage downtown businesses and banks to reinvest and reopen following the COVID-19 pandemic. The loan must finance an eligible downtown resources center Community Catalyst Building Remediation Program grant project or Main Street Iowa Challenge Grant within a designated district, and at least 25.0% of the project cost must be used for construction on the project or renovation. The loan must also contain a housing component. The Bill allows loan guarantee limits of 50.0% or less for a loan amount less than or equal to $500,000, or a maximum guarantee of $250,000 if a loan is more than $500,000. The program can be funded through an appropriation or a transfer from any fund created and controlled by IEDA through Iowa Code section 15.106A. Division IV is effective July 1, 2022.
DIVISION V — Creates a Disaster Recovery Housing Assistance Program and related Fund to be administered by the IFA. The program is for a forgivable loan and grant program for homeowners and renters with disaster-affected homes that are destroyed or damaged due to a natural disaster in a county that is the subject of a state of disaster emergency proclamation by the Governor. The Program also includes major disasters in Iowa recognized by the United States President after March 12, 2019, but before the effective date of the legislation. Administrative rules will determine the amount of assistance for eligible applicants. The Disaster Recovery Housing Assistance Program can be funded through an appropriation, a transfer of unobligated moneys from any fund created and controlled by IFA through Iowa Code section 16.5(1)(s), a transfer from any fund created and controlled by IEDA through Iowa Code section 15.106A, and from the Senior Living Revolving Loan Program Fund, the Home and Community-Based Services Revolving Loan Program Fund, the Transitional Housing Revolving Loan Program Fund, and the Community Housing and Services for Persons with Disabilities Revolving Loan Program Fund.
The Disaster Recovery Housing Assistance Fund administered by the IFA may also allocate grants to the Eviction Prevention Program, created in the Bill, which can make rental assistance grants.
Division V is effective upon enactment.
DIVISION VI — Extends the Redevelopment Tax Credit Program (Brownfields and Grayfields) for 10 years and increases the annual award maximum from the current level of $10.0 million to $20.0 million. The changes also allow the Authority to award credits in excess of the $20.0 million limit under certain circumstances. The program extension and the authority to exceed the annual award limit are effective upon enactment. The Bill extends the repeal date of the program from June 30, 2021, to June 30, 2031.
Division I
Background
The Iowa Finance Authority currently administers a federal low-income housing program pursuant to 26 U.S.C. § 42. Projects approved for the Iowa Housing Tax Credit must meet the requirements of the federal program. The Authority is required to submit a report to the General Assembly by January 31 of each year that includes the number of qualified developments for which the Authority issued tax certificates the prior year, along with a description and relevant statistics for each qualified development.
Assumptions
Iowa Housing Tax Credit Program:
- The IEDA will award $15.0 million in Iowa Housing Tax Credits each calendar year (CY), beginning with CY 2022.
- The IEDA is not required to award tax credits to every project in equal increments over the 10-year credit period. However, for this projection, it is assumed that the IEDA will choose to do so.
- Tax certificates are issued after projects are complete. It is assumed that 50.0% of projects will be completed in the fiscal year after the award and 50.0% will be completed in the following fiscal year.
- Since the tax credit amounts for a completed project are assumed to be divided into 10 annual allotments, the annual amounts for a project are assumed to be relatively small and therefore should be redeemed in a shorter time frame than other investment tax credits. It is assumed that once issued, the tax credits will be redeemed 40.0% in the year of issuance, 40.0% in the year after issuance, and 20.0% in the second year after issuance.
Fiscal Impact
Iowa Housing Tax Credit Program — The creation of a new Iowa Housing Tax Credit is projected to reduce net General Fund revenue by the following amounts:
- FY 2023 = $0.3 million
- FY 2024 = $1.2 million
- FY 2025 = $2.6 million
- FY 2026 = $4.1 million
- FY 2027 = $5.6 million
The projected revenue reduction is estimated to continue to increase, reaching $15.0 million for FY 2035 and after.
The IFA currently administers a similar federal housing tax incentive program. The IFA expects the administrative costs associated with administering awards under this new program to be covered by application fees.
Division II
Background
Real Estate Transfer Tax — The real estate transfer tax is imposed on the transfer of real estate in the State. The tax is equal to $0.80 per $500 (or any fractional part of $500) of consideration paid as part of or a condition of the property transfer. As examples, the transfer of a $1,200 property would incur a tax of $2.40, while the transfer of a $1.0 million property would incur a tax of $1,600.
The tax is paid to the county. Iowa Code section 428A.8 controls the division of the tax revenue. The county retains 17.25% of the tax revenue for deposit in the county general fund. The county remits the remaining 82.75% to the State. The State portion is deposited as follows:
- 30.0% to the Housing Trust Fund up to a limit of $3.0 million each fiscal year.
- 5.0% to the Shelter Assistance Fund.
- 65.0% to the State General Fund plus any Housing Trust Fund revenue in excess of $3.0 million.
The following table provides a history of real estate transfer tax deposits to State funds for the past four fiscal years.
Assumptions
Real Estate Transfer Tax — Over the past 13 fiscal years (FY 2007 through FY 2020), the average annual rate of growth in real estate transfer tax has equaled 2.3%. That rate of growth is assumed for FY 2021 and future fiscal years.Fund FY 2017 FY 2018 FY 2019 FY 2020 Housing Trust Fund 3.0$ 3.0$ 3.0$ 3.0$ Shelter Assistance Fund 1.1 1.2 1.2 1.2 State General Fund 18.6 19.2 19.1 20.3 Total 22.7$ 23.4$ 23.3$ 24.5$ Real Estate Transfer Tax Revenue, State Portion
In Millions
Fiscal Impact
Real Estate Transfer Tax — Removing the Housing Trust Fund annual $3.0 million real estate tax revenue limit is estimated to increase Housing Trust Fund revenue and reduce net General Fund revenue by the following amounts:
- FY 2022 = $4.7 million
- FY 2023 = $4.9 million
- FY 2024 = $5.1 million
- FY 2025 = $5.3 million
- FY 2026 = $5.4 million
- FY 2027 = $5.4 million
Division III
Background
Workforce Housing Tax Credits — The Workforce Housing Tax Credit provides tax incentives for the development of housing projects in Iowa. The credit was first available beginning July 1, 2014. The program has been expanded several times. The credit is administered and awarded by the IEDA. Tax credits under the program take the form of sales tax refunds and transferable investment tax credits.
Assumptions
Workforce Housing Tax Credits:
- The IEDA will award the $50.0 million in allowed Workforce Housing Tax Credits for FY 2022 through FY 2024 (three years).
- Based on program history with previous projects, the additional $25.0 million in credits for each of the three years is assumed to be distributed as $5.5 million (22.0%) of sales tax refunds and $19.5 million of investment tax credits. Of the credits awarded, 72.0% of the sales tax refunds is assumed to be redeemed, while 100.0% of the investment tax credits is assumed to be redeemed.
- The first fiscal year of tax redemptions will be FY 2022.
- 50.0% of the sales tax refund redemptions will occur in the year of award and 50.0% in the following year.
- For the transferable investment tax credit portion of awards, 30.0% will be redeemed in the year of award and 30.0% in each of the next two years. The remaining 10.0% is assumed to be redeemed in the third year after the year of award.
Fiscal Impact
Workforce Housing Tax Credits — The three-year increase in the annual award amount under the Workforce Housing Tax Credit program is projected to reduce net General Fund revenue by the following amounts:
- FY 2022 = $7.8 million
- FY 2023 = $15.7 million
- FY 2024 = $21.5 million
- FY 2025 = $15.6 million
- FY 2026 = $7.8 million
- FY 2027 = $2.0 million
The increase in the program limit will be repealed July 1, 2024. The projected revenue reduction is not projected to continue past FY 2027. The changes double the dollar amount of projects that can qualify under the program for the next three years. This can be expected to increase the administrative workload of the IEDA.
Division IV
Background
Downtown Loan Guarantee Program — The Community Catalyst Building Remediation Program awards grants to cities to redevelop, rehabilitate, or deconstruct buildings to stimulate economic growth or reinvestment in a downtown community. The Program had a budget of $4.9 million in FY 2020 and has a $4.3 million budget in FY 2021, funded from internal discretionary sources.
The Main Street Iowa Challenge Grant Program funds local improvement projects, including upper story renovations, critical building stabilization, and façade restoration and upgrades. The Program is funded through a transfer from the High Quality Jobs Program within IEDA, which is funded through the Skilled Worker and Job Creation Fund. In FY 2021, up to $1.0 million was designated to be transferred to the Main Street Iowa Challenge Grant Program.
Assumptions
Downtown Loan Guarantee Program — There are no General Fund appropriations into the Downtown Loan Guarantee Program for FY 2022 or FY 2023.
Fiscal Impact
Downtown Loan Guarantee Program — Costs from the creation of a Downtown Loan Guarantee Program cannot be estimated, as no appropriation or transfer has been made to the Program. If appropriations or transfers are made to the Program, IEDA is expected to receive annual fee revenue from mortgage lenders as a result of the Downtown Loan Guarantee Program. This fee revenue cannot be estimated.
Division V
Background
Disaster Recovery Housing Assistance Program — Beginning March 13, 2019, historic flooding impacted the State of Iowa. Thousands of homes were destroyed, causing hundreds of millions of dollars in damages. On March 23, 2019, the President declared a major disaster in the State of Iowa and signed the presidential declaration FEMA-4421-DR-IA. With the declaration, the President authorized federal funds from Public Assistance Programs for 56 Iowa counties (see Map 1 below). FEMA-4421-DR-IA also authorized federal funds from Individual Assistance grants in Fremont, Harrison, Mills, Monona, and Woodbury Counties. A total of 1,735 individual assistance applications from the Federal Emergency Management Agency (FEMA) were approved for reimbursement, totaling $15.3 million. Funding from federal public assistance totaled $194.8 million and was allocated to debris removal, infrastructure, and recreational facilities. State appropriations for flood mitigation from 2019 Iowa Acts, SF 638 (Standing Appropriations Act), and 2020 Iowa Acts, SF 2144 (Supplemental Appropriations Act), totaled $36.0 million.
Map 1: FEMA-4421-DR, Iowa Disaster Declaration as of 07/18/2019 On August 10, 2020, a derecho hit central and eastern Iowa, causing both significant structural and crop damage across a large part of the State. President Trump issued a major disaster declaration for 16 counties on August 17, 2020. The declaration has been amended on multiple occasions to add additional counties and to make individual assistance available in the counties most impacted by the storm. Map 2 below shows that, as of October 5, 2020, 23 counties qualify for public assistance and 12 counties qualify for both public assistance and individual assistance. As of February 3, 2021, FEMA has approved 3,063 individual assistance applications totaling $11.1 million to rebuild after the storm.
Map 2: Iowa Severe Storms (DR-4557-IA) The IFA administered the COVID-19 Iowa Eviction and Foreclosure Prevention Program, funded through $37.4 million in Iowa Coronavirus Relief Fund allocations. The Program provided up to four months of actual rent or $3,200, whichever was lower, in grants to income-eligible renters and homeowners who were at risk of eviction or foreclosure due to the pandemic. As of January 11, 2021, nearly 15,000 applications have received $33.4 million in assistance from the Program.
Assumptions
Disaster Recovery Housing Assistance Program — There are no General Fund appropriations into the Disaster Recovery Housing Assistance Fund for FY 2022 or FY 2023. The Program may be funded from unobligated revenues transferred from other programs administered by the IFA, which shall be reported monthly to the Legislative Fiscal Committee.
Fiscal Impact
Disaster Recovery Housing Assistance Program — Costs or expenditures from the creation of a Disaster Recovery Housing Assistance Program and an Eviction Prevention Program cannot be estimated, as no appropriation or transfer has been made to fund the Program. In the event a future disaster produces a disaster declaration by the Governor, activating the Disaster Recovery Housing Assistance Program, 0.25 full-time equivalent (FTE) positions will be necessary to assist the IFA Housing Program Manager to administer the Program. Costs will be funded through an annual 5.0% administrative allowance cap in the Disaster Recovery Housing Assistance Fund or from other internal resources.
Division VI
Background
Redevelopment Tax Credit Program — This Program provides tax incentives for the development of contaminated, abandoned, or otherwise underutilized property in Iowa. The credit was available beginning July 1, 2009. The Program has been expanded several times. The credit is administered and awarded by the IEDA. Tax credit awards are based on the amount of qualified redevelopment expenditures from the project.
Assumptions
Redevelopment Tax Credit Program:
- The changes allow the Redevelopment Tax Credit Program to continue at a $20.0 million annual level past its current statutory end date of July 1, 2021. The changes also allow credits that were not awarded or were otherwise recovered during the past five years to be awarded as an addition to the annual limit. It is assumed that the five-year lookback for unused tax credits will add $2.0 million to the FY 2022 limit, and it is further assumed that all tax credits will be approved for all future years.
- Tax credit certificates are issued after a project is complete. For each fiscal year of award, it is assumed that 50.0% of certificates are issued in the fiscal year after project approval and the remaining certificates are issued in the following fiscal year.
- Once certificates are issued, 8.0% of the redemption value is assumed to occur in the fiscal year the certificates are issued and 22.0% in each of the succeeding four fiscal years. Four percent of issued tax certificates are assumed to expire without redemption.
Fiscal Impact
Redevelopment Tax Credit Program — The extension and expansion of the Redevelopment Tax Credit Program is projected to reduce net General Fund revenue by the following amounts:
- FY 2023 = $0.9 million
- FY 2024 = $4.1 million
- FY 2025 = $8.6 million
- FY 2026 = $13.0 million
- FY 2027 = $17.4 million
- FY 2028 = $19.2 million
The General Fund revenue reduction is projected to continue at the $19.2 million level through FY 2032, and then be reduced to zero by FY 2037. The changes double the dollar amount of projects that can qualify under the Program for the next 10 years. This can be expected to increase the administrative workload of the Authority.
FISCAL IMPACT SUMMARY
Additional Potential Fiscal Impact
Existing Iowa law provides for a significant change to Iowa’s individual income tax system once two General Fund revenue triggers are met. The first year that the triggers may be met is at the conclusion of FY 2022. Once implemented, this contingent income tax system is projected to reduce Iowa individual income tax by roughly $300.0 million per tax year. Since this Bill is projected to reduce General Fund revenue in FY 2022 and after, the Bill’s changes will moderately reduce the possibility of achieving both revenue triggers; as a consequence, the Bill could result in delayed implementation of the income tax reduction.
Sources
- Department of Revenue
- Legislative Services Agency
- Iowa Economic Development Authority
- Iowa Finance Authority
- Federal Emergency Management Agency
- Economic Assistance, Housing · 23 de marzo de 2021
Lo que cambia del Código de Iowa (Iowa Code)
Crea§15.431§16.37A§16.37B§16.37C§16.37D§16.37E§16.37F§16.37G§16.57A§16.57B§16.57C§16.57D§422.10C§432.12N
Modifica§15.119§15.293A§15.293B§15.353§15.354§15.355§422.33§422.60§428A.8§533.329
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