Bill > SF465

Introduced Session

This bill relates to matters under the purview of the economic development authority and the Iowa finance authority including the strategic infrastructure program, brownfield, grayfield, and redevelopment tax credits, community attraction and tourism, vision Iowa, sports tourism marketing, the historic preservation tax credit, homelessness, the title guaranty board, and arts and culture. Division I eliminates the requirement that the Iowa innovation council review and make recommendations on all applications received by the Iowa economic development authority (IEDA) for financial assistance under the Iowa strategic infrastructure program, and instead requires a committee appointed by the IEDA director to conduct a review and make recommendations. Division II repeals the brownfield redevelopment program, fund, and advisory council (council). The bill requires that the amount of a redevelopment tax credit be determined by members of the IEDA appointed by the governor (the board), rather than determined by the board in conjunction with the council as required under current law. The IEDA shall accept and review applications for the redevelopment tax credit and make award recommendations to the board, rather than accept and review applications in conjunction with the council as required under current law. IEDA may engage outside experts to complete a technical, financial, or other review. The bill makes conforming changes related to elimination of the council. Under current law, upon completion of a registered project for redevelopment tax credits, an audit of the project completed by an independent certified public accountant (CPA) shall be submitted to the IEDA. Under the bill, the investor shall engage a CPA to conduct an examination of the project and submit the examination, and a statement of the amount of final qualifying investments, to the IEDA. Upon review of the examination and statement, the IEDA may issue a tax credit certificate to the investor. On the effective date of the bill, all unencumbered and unobligated moneys remaining in the brownfield redevelopment fund are transferred to a fund or funds established pursuant to Code section 15.335B, as determined by the IEDA. Division III eliminates the requirement that an applicant awarded financial assistance under both the vision Iowa program and the community attraction and tourism program provide and pay at least 50 percent of the cost of a standard medical insurance plan for all full-time employees after the completion of the project for which financial assistance was received. This division applies to applicants awarded financial assistance under both programs on or after the effective date of the bill, and applies retroactively to applicants awarded financial assistance under both programs prior to the effective date of the bill. Under division IV, the director of the IEDA shall appoint a review committee composed of members with relevant expertise to review community attraction and tourism program applications and sports tourism marketing and infrastructure program applications. Under current law, the review committee is composed of five members of the IEDA board. Division V requires, in addition to existing requirements for the historic preservation tax credit program (historic tax program) under current law, for a project for the rehabilitation of property to be considered a “qualified rehabilitation project” (project), that the property not be a single-family dwelling unit, unless the project will result in two or more new single-family dwelling units that were not available for occupancy for at least six months prior to the project, and the dwelling units are located in the same neighborhood as confirmed by the IEDA. The single-family dwelling units must be made available for occupancy as a result of the project. The IEDA may promulgate rules that specify the criteria used to determine if a property is a single-family dwelling unit, and to determine if a property is a qualified rehabilitation project. Under current law, upon successful registration of a project under the historic tax program, the eligible taxpayer (taxpayer) shall enter into an agreement with the IEDA that contains mutually agreeable terms and conditions including the commencement date of the project, which shall not be later than the end of the fiscal year in which the agreement is entered into, and the completion date of the project, which shall be within 36 months of the commencement date. Under the bill, the date by which the project must commence shall be no later than one calendar year from the registration date, except that upon application of the taxpayer the IEDA may extend the date of commencement up to 12 additional months. The date by which the project must be completed shall be no later than three consecutive calendar years from the registration date, except that upon application of the taxpayer, the IEDA may extend the date of commencement up to another 12 months. The project is complete as of the date the property is placed in service. Upon application of the taxpayer made prior to the expiration of the 12-month extension, the IEDA may extend the date by which the project must be completed up to an additional 12 months. The taxpayer must substantiate that the requested extension is warranted due to extenuating circumstances. Under the bill, the IEDA may grant historic preservation tax credits beyond the aggregate tax credit award limit in one fiscal year if, during that fiscal year, the IEDA receives an application for a project that has qualified rehabilitation expenditures that, if registered, would make the taxpayer eligible for tax credits of $10 million or more. The IEDA is then permitted to award tax credits during that fiscal year not to exceed 20 percent more than the maximum aggregate tax credit award limit. Such tax credits awarded shall be considered for purposes of calculating the maximum aggregate tax credit award limit in the immediately succeeding fiscal year. Under division VI, the Iowa finance authority (IFA) may adopt rules to carry out the duties of IFA related to homelessness, and may establish internal rules of procedure, consistent with the requirements of the federal McKinney-Vento Homeless Assistance Act. Under current law, IFA must adopt rules. Division VII eliminates the title guaranty division board. The powers of the title guaranty division relating to the issuance of title guaranties are vested in the IFA board of directors. The director of the IFA shall appoint an attorney as director of the division, and the division director’s appointment and compensation shall be exempt from the merit system. The bill makes conforming changes to Code sections 16.1A, 16.91, 16.92, and 16.93. Division VIII is related to arts and culture. Under current law, the IEDA is responsible for the Iowa cultural trust, including the issuance of trust fund credits for the promotion of the arts, history, or the sciences and humanities; the issuance of grants for qualified organizations; developing and implementing fee-based educational programming opportunities; conducting surveys of existing art and cultural programs and activities within the state; and the establishment and administration of a film office. The bill maintains the responsibility for the IEDA to accept, receive, and administer grants or other funds or gifts from public or private agencies; to design and carry out a comprehensive, statewide, long-range plan (plan) with the assistance of the Iowa arts council to develop the arts in Iowa; and to establish advisory groups for the receipt of federal funds or grants or the administration of the IEDA’s programs. Under the bill, the IEDA is no longer required to establish and administer a film office. Instead, the IEDA is responsible for providing technical assistance for the production of film, television, and video projects in the state. The bill eliminates certified cultural and entertainment districts. The bill eliminates the cultural grant programs under current law, which requires the IEDA to establish a grant program for cities and nonprofit, tax-exempt community organizations for the development of community programs that provide local jobs for Iowa residents and promote Iowa’s historic, ethnic, and cultural heritages through the development of festivals, music, drama, cultural programs, or tourist attractions. Additionally, the IEDA is required to establish a grant program which provides general operating budget support to major, multidisciplinary cultural organizations that demonstrate cultural and managerial excellence on a continuing basis to the citizens of Iowa. Instead, the bill creates the arts and culture enhancement fund (enhancement fund), under which the IEDA shall allocate moneys to the fund to provide support to municipal and nonprofit arts and cultural organizations that serve as significant attractions or community resources; to support artists and entities that foster artistic and cultural expression, promote lifelong learning and engagement in the arts, advance community development goals, or emphasize Iowa’s diverse heritage through artwork; to increase access to arts and culture in rural and underserved communities; for the promotion of and investment in film, television, and video projects produced in the state; and to address other goals and priorities in the plan designed by the IEDA. The enhancement fund consists of moneys appropriated by the general assembly and any other moneys that are lawfully available to the IEDA. Each fiscal year, $520,000 is appropriated from gambling and sports wagering taxes to the IEDA for deposit in the enhancement fund. The IEDA may establish and adopt by rule eligibility and priority criteria for allocation of moneys in the enhancement fund. The Iowa arts council (arts council) may elect a chairperson and vice chairperson from the members of the arts council, rather than being designated by the governor under current law. In addition to duties under current law, the arts council is required to recommend programs to ensure that Iowa citizens and communities have access to the cultural, civic, economic, and educational benefits of the arts. The bill repeals Code sections 15.437 through 15.441, 15.476 through 15.479, 15.481, and 15.482, eliminating the Iowa cultural trust Act, including the Iowa cultural trust, trust fund, grant account, and board of trustees, and eliminates the arts and cultural conferences and caucuses, the cultural and entertainment districts, the Iowa great places program and fund, and the culture, history, and arts teams program. On the effective date of this division of the bill, all unencumbered and unobligated moneys remaining in the Iowa great places program fund, Iowa cultural trust fund, and Iowa cultural trust grant account are transferred to the arts and culture enhancement fund established in the bill. Division IX makes conforming changes to Code sections 16.6 and 16.64.

Committee Categories

No sponsors listed

Other Sponsors (1)

Committee report approving bill, renumbered as SF 622. S.J. 781. (on 04/14/2025)

Official Document