15.293A - REDEVELOPMENT TAX CREDITS.
15.293A REDEVELOPMENT TAX CREDITS.
1. a. A redevelopment tax credit shall be allowed against the
taxes imposed in chapter 422, divisions II, III, and V, and in
chapter 432, and against the moneys and credits tax imposed in
section 533.329, for a portion of a taxpayer's equity investment, as
provided in subsection 3, in a qualifying redevelopment project.
b. 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.
c. 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. A tax credit shall not be carried back to a tax year
prior to the tax year in which the taxpayer first receives the tax
credit.
2. a. To claim a redevelopment tax credit under this section,
a taxpayer must attach one or more tax credit certificates to the
taxpayer's tax return. A tax credit certificate shall not be used or
attached to a return filed for a taxable year beginning prior to July
1, 2009. The tax credit certificate or certificates attached to the
taxpayer's tax return shall be issued in the taxpayer's name, expire
on or after the last day of the taxable year for which the taxpayer
is claiming the tax credit, and show a tax credit amount equal to or
greater than the tax credit claimed on the taxpayer's tax return.
b. After verifying the eligibility of a qualifying investor
for a tax credit pursuant to this section, the department of economic
development shall issue a redevelopment tax credit certificate to be
attached to the investor's tax return. The tax credit certificate
shall contain the taxpayer's name, address, tax identification
number, the amount of the credit, the name of the qualifying
investor, 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c. The tax credit certificate, unless rescinded by the board,
shall be accepted by the department of revenue as payment for taxes
imposed pursuant to chapter 422, divisions II, III, and V, and in
chapter 432, and for the moneys and credits tax imposed in section
533.329, subject to any conditions or restrictions placed by the
board upon the face of the tax credit certificate and subject to the
limitations of this section.
d. 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 department of revenue 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.
e. Within thirty days of receiving the transferred tax credit
certificate and the transferee's statement, the department of revenue
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 department of economic
development shall not be transferable.
f. 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, divisions 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, divisions
II, III, and V, under chapter 432, or against the moneys and credits
tax imposed in section 533.329. Any consideration paid for the
transfer of the tax credit shall not be deducted from income under
chapter 422, divisions II, III, and V, under chapter 432, or against
the moneys and credits tax imposed in section 533.329.
3. The amount of the tax credit shall equal one of the following:
a. Twelve percent of the taxpayer's qualifying investment in
a grayfield site.
b. Fifteen percent of the taxpayer's qualifying investment in
a grayfield site if the qualifying redevelopment project meets the
requirements of a green development.
c. Twenty-four percent of the taxpayer's qualifying
investment in a brownfield site.
d. Thirty percent of the taxpayer's qualifying investment in
a brownfield site if the qualifying redevelopment project meets the
requirements of a green development.
4. For purposes of individual and corporate income taxes and the
franchise tax, the increase in the basis of the redeveloped property
that would otherwise result from the qualified redevelopment costs
shall be reduced by the amount of the credit computed under this
part.
5. The maximum amount of a tax credit for a qualifying investment
in any one qualifying redevelopment project shall not exceed ten
percent of the maximum amount of tax credits available in any one
fiscal year pursuant to subsection 6.
6. For the fiscal year beginning July 1, 2009, the maximum amount
of tax credits issued by the department shall not exceed one million
dollars. The department shall not issue tax credits pursuant to this
section in subsequent fiscal years unless authorized pursuant to this
subsection.
7. An investment shall be deemed to have been made on the date
the qualifying redevelopment project is completed. An investment
made prior to January 1, 2009, or after June 30, 2010, shall not
qualify for a tax credit under this part.
8. A qualifying redevelopment project that is not completed
within thirty months after issuance of an approval for the project by
the board shall cease to be eligible for a tax credit pursuant to
this section, however, the board in its discretion may provide for an
additional twelve-month period in which to complete a project.
9. The department shall develop a system for registration and
authorization of tax credits authorized pursuant to this part and
shall control distribution of all tax credits distributed to
investors pursuant to this part. In developing the system, the
department shall provide for a list of applicants for the tax credit
and maintain it from year to year so that if the maximum aggregate
amount of tax credits is reached in one year, an applicant can be
given priority consideration for the credit in an ensuing year.
10. The department shall develop rules for the qualification of
qualifying redevelopment projects and qualifying investments. The
department of revenue shall adopt these criteria as administrative
rules and shall adopt any other rules pursuant to chapter 17A
necessary for the administration of this part.
11. The department may cooperate with the department of natural
resources and local governments in an effort to disseminate
information regarding the availability of tax credits for investments
in qualifying redevelopment projects under this part.
12. If the maximum amount of tax credits available has not been
issued at the end of a fiscal year, the remaining tax credit amount
may be carried over to a subsequent fiscal year or may be issued in
advance to qualifying redevelopment projects for a subsequent fiscal
year. Whenever the council approves a tax credit which has not been
allocated at the end of a fiscal year, the department may prorate the
remaining credit amount to more than one eligible applicant.
13. If the recipient of a tax credit issued pursuant to this
section has also applied to the department, the board, or any other
agency of state government for additional financial assistance, the
department, the board, or agency of state government shall not
consider the receipt of a tax credit issued pursuant to this section
when considering the application for additional financial assistance.
Section History: Recent Form
2008 Acts, ch 1173, §2
Referred to in § 15.293B, 15.294