Current through Register Vol. 47, No. 6, September 18, 2024
(1)
Purpose. The purpose of the redevelopment tax credits program
is to make tax credits available for a redevelopment project investment. The
authority may cooperate with the department of natural resources and local
governments in an effort to disseminate information regarding the redevelopment
tax credit.
(2)
Eligible
applicant. An individual, partnership, limited liability company, S
corporation, estate, or trust electing to have income taxed directly to the
individual may claim a redevelopment tax credit. Once an applicant is deemed
eligible, the applicant shall be considered a qualifying investor for a
redevelopment tax credit. A city or county may not apply for a redevelopment
tax credit.
(3)
Tax credit
certificate.
a.
Issuance. The authority shall issue a redevelopment tax credit
certificate upon completion of the project and submittal of proof of completion
by the qualified investor. The tax credit certificate shall contain the
qualified investor's name, address, and tax identification number; the amount
of the credit; the name of the qualifying investor; whether the taxpayer has
satisfied the requirements for the credit to be refundable; any other
information required by the department of revenue; and a place for the name and
tax identification number of a transferee and the amount of the tax credit
being transferred.
b.
Claims. To claim a tax credit under this rule, a qualified
investor shall file a claim with the department of revenue pursuant to the
department's applicable rules. The qualified investor must include one or more
tax credit certificates with the qualified investor's tax return. A tax credit
certificate shall not be used or included with a return filed for a taxable
year beginning prior to the tax year listed on the certificate. The tax credit
certificate or certificates included with the qualified investor's tax return
shall be issued in the qualified investor's name, expire on or after the last
day of the taxable year for which the qualified investor is claiming the tax
credit, and show a tax credit amount equal to or greater than the tax credit
claimed on the qualified investor's tax return.
c.
Transfer. Tax credit
certificates issued under this rule may be transferred to any person or entity
pursuant to the department of revenue's applicable rules, except a tax credit
certificate that is refundable pursuant to Iowa Code section
15.293A(1)"c"(2) as amended by 2022 Iowa Acts, House File
2317, shall not be transferable.
(4)
Tax credit amount and
limitations.
a.
Refundability. A tax credit in excess of the taxpayer's
liability for the tax year is refundable only to the extent indicated in Iowa
Code section 15.293A(1)
"c"(2) as amended by 2022 Iowa Acts, House File
2317.
b.
Percentage. The amount of the tax credit shall equal one of
the following:
(1) Twelve percent of the
taxpayer's qualifying investment in a grayfield site.
(2) Fifteen percent of the taxpayer's
qualifying investment in a grayfield site if the qualifying redevelopment
project meets the requirements of green development as defined in
261-65.2(15).
(3) Twenty-four
percent of the taxpayer's qualifying investment in a brownfield site.
(4) Thirty percent of the taxpayer's
qualifying investment in a brownfield site if the qualifying redevelopment
project meets the requirements of green development as defined in
261-65.2(15).
c.
Maximum credit per project. The maximum amount of a tax credit
for a qualifying investment in any one qualifying redevelopment project shall
not exceed 10 percent of the maximum amount of tax credits available in any one
fiscal year pursuant to paragraph 65.11(4)"d."
d.
Maximum credit total. For
the fiscal year beginning July 1, 2021, and for each subsequent fiscal year,
the maximum amount of tax credits allocated to the program by the authority
shall be an amount determined by the board but not in excess of the amount
established pursuant to Iowa Code section
15.119. Tax credits awarded
pursuant to paragraph 65.11(7)"b" shall not be counted against
the allocation determined by the board pursuant to this
paragraph.
(5)
Reduction of tax credit.
a.
Taxes imposed under Iowa Code section
422.11V, less the credits
allowed under Iowa Code sections
422.12,
422.33,
422.60,
432.12L, and moneys and credits
imposed under Iowa Code section
533.329 shall be reduced by a
redevelopment tax credit allowed under Iowa Code sections
15.291 to
15.294.
b. For purposes of individual and corporate
income taxes and the franchise tax, the increase in the basis of the
redeveloped property that would otherwise result from the qualified
redevelopment costs shall be reduced by the amount of the credit computed under
this rule.
(6)
Project completion.
a. An
investment shall be deemed to have been made on the date the qualifying
redevelopment project is completed. An investment made prior to January 1,
2009, shall not qualify for a tax credit under this rule.
b. A registered project shall be completed
within 30 months of the project's approval unless the authority, with the
approval of the board, provides additional time to complete the project. If the
registered project is not completed within the time required, the project is
not eligible to claim a tax credit.
c. Failure to comply. If a taxpayer receives
a tax credit pursuant to Iowa Code section
15.293A, but fails to comply
with any of the requirements, the taxpayer loses any right to the tax credit.
The Iowa department of revenue shall seek recovery of the value of the credit
the qualified investor received.
(7)
Tax credit carryover.
a. If the maximum amount of tax credits
available has not been issued at the end of the fiscal year, the remaining tax
credit amount may be carried over to a subsequent fiscal year or the authority
may prorate the remaining credit amount among other eligible
applicants.
b. Tax credits revoked
under subrule 65.8(4) including tax credits revoked up to five years prior to
July 1, 2021, and tax credits not awarded under subrules 65.8(5) and 65.8(6),
may be awarded in the next annual application period established in Iowa Code
section 15.293B(1)
"c."
(8)
Authority registration and authorization. The authority shall
develop a system for registration and authorization of tax credits. The
authority shall control distribution of all tax credits distributed to
investors, including developing and maintaining a list of tax credit applicants
from year to year to ensure that if the maximum aggregate amount of tax credits
is reached in one year, an applicant can be given priority consideration for a
tax credit in an ensuing year.
(9)
Other financial assistance considerations. If a qualified
investor has also applied to the authority, the board, or any other agency of
state government for additional financial assistance, the authority, the board,
or the agency of state government shall not consider the receipt of a tax
credit issued pursuant to this rule when considering the application for
additional financial assistance.
