Text: HF2424            Text: HF2426
Complete Bill History


House File 2425

HOUSE FILE BY COMMITTEE ON ECONOMIC GROWTH (SUCCESSOR TO HSB 653) Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to moneys and tax credits for economic 2 development. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 6375HV 80 5 tm/sh/8 PAG LIN 1 1 Section 1. Section 15.109, subsection 2, Code 2003, is 1 2 amended to read as follows: 1 3 2. Apply for, receive, administer, and use federal or 1 4 other funds available for achieving the purposes of this 1 5 chapter. For purposes of this subsection, the term "federal 1 6 funds" includes federal tax credits, grants, or other economic 1 7 benefits allocated or provided by the United States government 1 8 to encourage investment in low=income or other specified areas 1 9 or to otherwise promote economic development. The department 1 10 may enter into an agreement pursuant to chapter 28E, or any 1 11 other agreement, with a person, including for=profit and 1 12 nonprofit legal entities, in order to directly or indirectly 1 13 apply for, receive, administer, and use federal funds. As 1 14 part of such agreements and in furtherance of this public 1 15 purpose and in addition to powers and duties conferred under 1 16 other provisions of law, the department may, including for or 1 17 on behalf of for=profit or nonprofit legal entities, appoint, 1 18 remove, and replace board members and advisors; provide 1 19 oversight; make its personnel and resources available to 1 20 perform administrative, management, and compliance functions; 1 21 coordinate investments; and engage in other acts as reasonable 1 22 and necessary to encourage investment in low=income or other 1 23 areas or to promote economic development. The department, 1 24 including department officials and employees in their official 1 25 and personal capacities, are immune from liability for all 1 26 acts or omissions under this subsection. 1 27 Sec. 2. Section 15E.43, subsection 4, Code Supplement 1 28 2003, is amended to read as follows: 1 29 4. The aggregate amount of tax credits issued pursuant to 1 30 this division shall not exceed a total of ten million dollars. 1 31 The total amount of tax credits issued during the fiscal year 1 32 beginning July 1, 2002, shall not exceed three million 1 33 dollars. The total amount of tax credits issued during the 1 34 fiscal year beginning July 1, 2003, shall not exceed three 1 35 million dollars. The total amount of tax credits issued 2 1 during the fiscal year beginning July 1, 2004, shall not 2 2 exceed four million dollars. If the total amount of tax 2 3 credits allowed for a particular fiscal year are not issued, 2 4 any remaining amount may be issued in succeeding years. Tax 2 5 credits shall not be issued pursuant to this division after 2 6 June 30, 2008. 2 7 Sec. 3. Section 15E.65, subsection 2, paragraph c, Code 2 8 2003, is amended to read as follows: 2 9 c. The Iowa fund of funds shall establish and administer a 2 10 program to provide loan guarantees and other related credit 2 11 enhancements on loans to rural and small business borrowers 2 12 within the state of Iowa, including rural small business 2 13 investment companies formed under the federal Farm Security 2 14 and Rural Investment Act of 2002, Pub. L. No. 107=171. The 2 15 Iowa fund of funds shall invest five percent of its assets in 2 16 investments for this program. 2 17 EXPLANATION 2 18 This bill relates to moneys and tax credits for economic 2 19 development. 2 20 The bill provides that the department of economic 2 21 development may enter into an agreement pursuant to Code 2 22 chapter 28E, or any other agreement, with a person, including 2 23 for=profit and nonprofit legal entities, in order to directly 2 24 or indirectly apply for, receive, administer, and use certain 2 25 federal funds. The bill provides for powers and duties that 2 26 the department may exercise under such agreements. The bill 2 27 provides that the department, including department officials 2 28 and employees in their official and personal capacities, are 2 29 immune from liability for all acts or omissions under such 2 30 agreements. 2 31 The bill provides that the Iowa fund of funds, as part of a 2 32 program to provide loan guarantees and other related credit 2 33 enhancements on loans to rural and small business borrowers 2 34 within the state of Iowa, may provide such financial 2 35 assistance to rural small business investment companies formed 3 1 under the federal Farm Security and Rural Investment Act of 3 2 2002. 3 3 The bill extends the number of years in which tax credits 3 4 equal to a portion of an equity investment in a qualifying 3 5 business or in a community=based seed capital fund may be 3 6 issued. The tax credits are issued by the Iowa capital 3 7 investment board. Currently, the aggregate amount of tax 3 8 credits issued shall not exceed a total of $10 million. The 3 9 total amount of tax credits issued during the fiscal year 3 10 beginning July 1, 2002, shall not exceed $3 million. The 3 11 total amount of tax credits issued during the fiscal year 3 12 beginning July 1, 2003, shall not exceed $3 million. The 3 13 total amount of tax credits issued during the fiscal year 3 14 beginning July 1, 2004, shall not exceed $4 million. The bill 3 15 provides that if the total amount of tax credits allowed for a 3 16 particular fiscal year are not issued, any remaining amount 3 17 may be issued in succeeding years. The bill provides that tax 3 18 credits shall not be issued after June 30, 2008. 3 19 LSB 6375HV 80 3 20 tm/sh/8
Text: HF2424            Text: HF2426 Complete Bill History