15E.232 - ECONOMIC DEVELOPMENT REGION REVOLVING FUNDS -- TAX CREDITS.
15E.232 ECONOMIC DEVELOPMENT REGION REVOLVING FUNDS
-- TAX CREDITS.
1. An economic development region may create an economic
development region revolving fund.
2. a. A nongovernmental entity making a contribution to an
economic development region revolving fund, except those described in
paragraph "b", may claim a tax credit equal to twenty percent of
the amount contributed to the revolving fund. The tax credit shall
be allowed against 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. An individual may claim under this
subsection the tax credit 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. Any tax credit in excess of the
taxpayer's liability for the tax year may be credited to the tax
liability for the following ten years or until depleted, whichever
occurs first. A tax credit shall not be carried back to a tax year
prior to the tax year in which the taxpayer redeems the tax credit.
A tax credit under this section is not transferable.
b. Subject to the provisions of paragraph "c", an
organization exempt from federal income tax pursuant to section
501(c) of the Internal Revenue Code making a contribution to an
economic development region revolving fund, shall be paid from the
general fund of the state an amount equal to twenty percent of such
contributed amount within thirty days after the end of the fiscal
year during which the contribution was made.
c. The total amount of tax credits and payments to
contributors, referred to as the credit amount, authorized during a
fiscal year shall not exceed two million dollars plus any unused
credit amount carried over from previous years. Any credit amount
which remains unused for a fiscal year may be carried forward to the
succeeding fiscal year. The maximum credit amount that may be
authorized in a fiscal year for contributions made to a specific
economic development region revolving fund is equal to two million
dollars plus any unused credit amount carried over from previous
years divided by the number of economic development region revolving
funds existing in the state.
d. The department of economic development shall administer
the authorization of tax credits under this section and payments to
contributors described in paragraph "b" and shall, in cooperation
with the department of revenue, adopt rules pursuant to chapter 17A
necessary for the administration of this section.
3. An economic development region may apply for financial
assistance from the grow Iowa values fund to assist with the
installation of physical infrastructure needs including, but not
limited to, horizontal infrastructure, water and sewer
infrastructure, and telecommunications infrastructure, related to the
development of fully served business and industrial sites by one or
more of the region's economic development partners or for the
installation of infrastructure related to a new business location or
expansion. In order to receive financial assistance pursuant to this
subsection, the economic development region must demonstrate all of
the following:
a. The ability to provide matching moneys on a basis of a one
dollar contribution of local matching moneys for every two dollars
received from the grow Iowa values fund.
b. The commitment of the specific business partner including,
but not limited to, a letter of intent defining a capital commitment
or a percentage of equity.
c. That all other funding alternatives have been exhausted.
4. The department may establish and administer a regional
economic development revenue sharing pilot project for one or more
regions. The department shall take into consideration the
geographical dispersion of the pilot projects. The department shall
provide technical assistance to the regions participating in a pilot
project.
5. An economic development region may apply for financial
assistance from the grow Iowa values fund to assist an existing
business threatened with closure due to a potential consolidation to
an out-of-state location. The economic development region may apply
for financial assistance from the grow Iowa values fund for the
purchase, rehabilitation, or marketing of a building that has become
available due to the closing of an existing business due to a
consolidation to an out-of-state location. In order to receive
financial assistance under this subsection, an economic development
region must demonstrate the ability to provide local matching moneys
on a basis of a one dollar contribution of local moneys for every
three dollars received from the grow Iowa values fund.
6. An economic development region may apply for financial
assistance from the grow Iowa values fund to establish and operate an
entrepreneurial initiative. In order to receive financial assistance
under this subsection, an economic development region must
demonstrate the ability to provide local matching moneys on a basis
of a one dollar contribution of local moneys for every two dollars
received from the grow Iowa values fund.
7. a. An economic development region may apply for financial
assistance from the grow Iowa values fund to establish and operate a
business succession assistance program for the region.
b. In order to receive financial assistance under this
subsection, an economic development region must demonstrate the
ability to provide local matching moneys on a basis of a one dollar
contribution of local moneys for every two dollars received from the
grow Iowa values fund.
8. An economic development region may apply for financial
assistance from the grow Iowa values fund to implement economic
development initiatives that are either unique to the region or
innovative in design and implementation. In order to receive
financial assistance under this subsection, an economic development
region must demonstrate the ability to provide local matching moneys
on a one-to-one basis.
9. Financial assistance under subsections 3, 5, 6, 7, and 8, and
section 15E.233 shall be limited to a total of one million dollars
each fiscal year for the fiscal period beginning July 1, 2005, and
ending June 30, 2015, and shall not be provided to assist in the
establishment, operation, or installation of a project, initiative,
or activity that may result in the provision, lease, or sale of goods
or services by a government body that competes with private
enterprise. Section History: Recent Form
2005 Acts, ch 150, §10; 2007 Acts, ch 174, §88
Referred to in § 15E.231, 15G.111, 422.11K, 422.33, 422.60,
432.12F, 533.329