15.335A - TAX INCENTIVES.
15.335A TAX INCENTIVES.
1. Tax incentives are available to eligible businesses as
provided in this section. The incentives are based upon the number
of jobs created or retained that pay at least one hundred thirty
percent of the qualifying wage threshold as computed pursuant to
section 15G.112, subsection 4, and the amount of the qualifying
investment made according to the following schedule:
a. The number of jobs is zero and economic activity is
furthered by the qualifying investment and the amount of the
qualifying investment is one of the following:
(1) Less than one hundred thousand dollars, then the tax
incentive is the investment tax credit of up to one percent.
(2) At least one hundred thousand dollars but less than five
hundred thousand dollars, then the tax incentives are the investment
tax credit of up to one percent and the sales tax refund.
(3) At least five hundred thousand dollars, then the tax
incentives are the investment tax credit of up to one percent, the
sales tax refund, and the additional research and development tax
credit.
b. The number of jobs is one but not more than five and the
amount of the qualifying investment is one of the following:
(1) Less than one hundred thousand dollars, then the tax
incentive is the investment tax credit of up to two percent.
(2) At least one hundred thousand dollars but less than five
hundred thousand dollars, then the tax incentives are the investment
tax credit of up to two percent and the sales tax refund.
(3) At least five hundred thousand dollars, then the tax
incentives are the investment tax credit of up to two percent, the
sales tax refund, and the additional research and development tax
credit.
c. The number of jobs is six but not more than ten and the
amount of the qualifying investment is one of the following:
(1) Less than one hundred thousand dollars, then the tax
incentive is the investment tax credit of up to three percent.
(2) At least one hundred thousand dollars but less than five
hundred thousand dollars, then the tax incentives are the investment
tax credit of up to three percent and the sales tax refund.
(3) At least five hundred thousand dollars, then the tax
incentives are the investment tax credit of up to three percent, the
sales tax refund, and the additional research and development tax
credit.
d. The number of jobs is eleven but not more than fifteen and
the amount of the qualifying investment is one of the following:
(1) Less than one hundred thousand dollars, then the tax
incentive is the investment tax credit of up to four percent.
(2) At least one hundred thousand dollars but less than five
hundred thousand dollars, then the tax incentives are the investment
tax credit of up to four percent and the sales tax refund.
(3) At least five hundred thousand dollars, then the tax
incentives are the investment tax credit of up to four percent, the
sales tax refund, and the additional research and development tax
credit.
e. The number of jobs is sixteen but not more than thirty and
the amount of the qualifying investment is one of the following:
(1) Less than one hundred thousand dollars, then the tax
incentive is the investment tax credit of up to five percent.
(2) At least one hundred thousand dollars but less than five
hundred thousand dollars, then the tax incentives are the investment
tax credit of up to five percent and the sales tax refund.
(3) At least five hundred thousand dollars, then the tax
incentives are the investment tax credit of up to five percent, the
sales tax refund, and the additional research and development tax
credit.
f. The number of jobs is thirty-one but not more than forty
and the amount of the qualifying investment is at least ten million
dollars, then the tax incentives are the local property tax
exemption, the investment tax credit of up to six percent, the sales
tax refund, and the additional research and development tax credit.
g. The number of jobs is forty-one but not more than sixty
and the amount of the qualifying investment is at least ten million
dollars, then the tax incentives are the local property tax
exemption, the investment tax credit of up to seven percent, the
sales tax refund, and the additional research and development tax
credit.
h. The number of jobs is sixty-one but not more than eighty
and the amount of the qualifying investment is at least ten million
dollars, then the tax incentives are the local property tax
exemption, the investment tax credit of up to eight percent, the
sales tax refund, and the additional research and development tax
credit.
i. The number of jobs is eighty-one but not more than one
hundred and the amount of the qualifying investment is at least ten
million dollars, then the tax incentives are the local property tax
exemption, the investment tax credit of up to nine percent, the sales
tax refund, and the additional research and development tax credit.
j. The number of jobs is at least one hundred one and the
amount of the qualifying investment is at least ten million dollars,
then the tax incentives are the local property tax exemption, the
investment tax credit of up to ten percent, the sales tax refund, and
the additional research and development tax credit.
2. For purposes of this section:
a. "Additional research and development tax credit" means the
research activities credit as provided under section 15.335.
b. "Benefits" means the same as defined in section 15G.101.
c. "County wage" means the same as defined in section
15G.101.
d. "Investment tax credit" means the investment tax credit or
the insurance premium tax credit as provided under section 15.333 or
15.333A, respectively.
e. "Local property tax exemption" means the property tax
exemption as provided under section 15.332.
f. "Qualifying wage threshold" means the same as defined in
section 15G.101.
g. "Regional wage" means the same as defined in section
15G.101.
h. "Sales tax refund" means the sales and use tax refund as
provided under section 15.331A or the corporate tax credit for
certain sales taxes paid by third-party developers as provided under
section 15.331C.
3. A community may apply to the Iowa economic development board
for a project-specific waiver from the qualifying wage threshold
requirement provided in subsection 1 in order to seek tax incentives
for an eligible business. The board may grant a project-specific
waiver from the qualifying wage threshold requirement in subsection 1
for the remainder of a calendar year, based on county wage or
regional wage calculations brought forth by the applicant county
including but not limited to any of the following:
a. The county wage calculated without wage data from the
business in the county employing the greatest number of full-time
employees.
b. The regional wage calculated without wage data from up to
two adjacent counties.
c. The county wage calculated without wage data from the
largest city in the county.
d. A qualifying wage guideline for a specific project based
upon unusual economic circumstances present in the city or county.
e. The annualized, average hourly wage paid by all businesses
in the county located outside the largest city of the county.
f. The annualized, average hourly wage paid by all businesses
other than the largest employer in the entire county.
4. Each calendar year, the department shall not approve more than
three million six hundred thousand dollars worth of investment tax
credits for projects with qualifying investments of less than one
million dollars.
5. The department shall negotiate the amount of tax incentives
provided to an applicant under the program in accordance with this
section and section 15G.112, as applicable. Section History: Recent Form
2005 Acts, ch 150, §50, 69; 2008 Acts, ch 1191, § 160; 2009 Acts,
ch 123, §16
Referred to in § 15.119, 15.333, 15.333A
For aggregate limitations on amount of tax credits, see §15.119