15.329 - ELIGIBLE BUSINESS.
15.329 ELIGIBLE BUSINESS.
1. To be eligible to receive incentives under this part, a
business shall meet all of the following requirements:
a. If the qualifying investment is ten million dollars or
more, the community has approved by ordinance or resolution the
start-up, location, or expansion of the business for the purpose of
receiving the benefits of this part.
b. The business has not closed or substantially reduced
operations in one area of this state and relocated substantially the
same operations in a community in another area of this state. This
paragraph shall not be construed to prohibit a business from
expanding its operation in a community if existing operations of a
similar nature in this state are not closed or substantially reduced.
c. The business shall create or retain jobs as part of a
project, and the jobs created or retained shall meet one of the
following qualifying wage thresholds:
(1) If the business is creating jobs, the business shall
demonstrate that the jobs will pay at least one hundred percent of
the qualifying wage threshold at the start of the project completion
period, at least one hundred thirty percent of the qualifying wage
threshold by the project completion date, and at least one hundred
thirty percent of the qualifying wage threshold until the maintenance
period completion date.
(2) If the business is retaining jobs, the business shall
demonstrate that the jobs retained will pay at least one hundred
thirty percent of the qualifying wage threshold throughout both the
project completion period and the maintenance period.
d. The business shall provide a sufficient package of
benefits to each employee holding a created or retained job. The
board, at the recommendation of the department, shall adopt rules
determining what constitutes a sufficient package of benefits.
e. The business shall demonstrate that the jobs created or
retained will have a sufficient impact on state and local government
revenues as determined by the department after calculating the fiscal
impact ratio of the project.
f. The business shall not be a retail business or a business
where entrance is limited by a cover charge or membership
requirement.
g. Notwithstanding the qualifying wage threshold requirements
in paragraph "c", if a business is also the recipient of
financial assistance under another program administered by the
department, and the other program requires the payment of higher
wages than the wages required under this subsection, the business
shall be required to pay the higher wages.
2. A business providing a sufficient package of benefits to each
employee holding a created or retained job shall qualify for a credit
against the qualifying wage threshold requirements described in
subsection 1, paragraph "c". The credit shall be calculated in
the manner described in section 15G.112, subsection 4, paragraph
"b".
3. Any business located in a quality jobs enterprise zone is
ineligible to receive the economic development incentives under the
program.
4. If the department finds that a business has a record of
violations of the law, including but not limited to environmental and
worker safety statutes, rules, and regulations, over a period of time
that tends to show a consistent pattern, the business shall not
qualify for economic development assistance under this part, unless
the department finds that the violations did not seriously affect
public health or safety, or the environment, or if it did, that there
were mitigating circumstances. In making the findings and
determinations regarding violations, mitigating circumstances, and
whether the business is disqualified for economic development
assistance under this part, the department shall be exempt from
chapter 17A.
5. The department shall also consider a variety of factors
including but not limited to the following in determining the
eligibility of a business to participate in the program:
a. The quality of the jobs to be created or retained. In
rating the quality of the jobs, the department shall place greater
emphasis on those jobs that have a higher wage scale, have a lower
turnover rate, are full-time or career-type positions, provide
comprehensive health benefits, or have other related factors which
could be considered to be higher in quality, than to other jobs.
Businesses that have wage scales substantially below that of existing
Iowa businesses in that area should be rated as providing the lowest
quality of jobs and should therefore be given the lowest ranking for
providing such assistance.
b. The impact of the proposed project on other businesses in
competition with the business being considered for assistance. The
department shall make a good faith effort to identify existing Iowa
businesses within an industry in competition with the business being
considered for assistance. The department shall make a good faith
effort to determine the probability that the proposed financial
assistance will displace employees of the existing businesses. In
determining the impact on businesses in competition with the business
being considered for assistance, jobs created or retained as a result
of other jobs being displaced elsewhere in the state shall not be
considered direct jobs created or retained.
c. The economic impact to this state of the proposed project.
In measuring the economic impact, the department shall place greater
emphasis on projects which can demonstrate the existence of one or
more of the following conditions:
(1) A business with a greater percentage of sales out-of-state or
of import substitution.
(2) A business with a higher proportion of in-state suppliers.
(3) A project which would provide greater diversification of the
state economy.
(4) A business with fewer in-state competitors.
(5) A potential for future job growth.
(6) A project which is not a retail operation.
6. The department may waive any of the requirements of this
section for good cause shown. Section History: Recent Form
94 Acts, ch 1008, §6; 99 Acts, ch 192, §33; 2005 Acts, ch 150,
§44, 68, 69; 2008 Acts, ch 1032, § 201; 2009 Acts, ch 82, §14; 2009
Acts, ch 123, §12; 2009 Acts, ch 184, §32
Referred to in § 15.119, 15.327
For aggregate limitations on amount of tax credits, see §15.119