Current through Register Vol. 47, No. 6, September 18, 2024
(1)
System for application, review, registration, and authorization of
projects. The authority will administer a system for application,
review, registration, and authorization of projects as described in this
subrule and will only issue tax credit certificates pursuant to subrule
65.11(3).
a. The authority will accept and,
in conjunction with the council, review applications for tax credits provided
in Iowa Code section
15.293A
and, with the approval of the council, make tax credit award recommendations
regarding the applications to the board.
b. Applications for redevelopment tax credits
will only be accepted during the established application period as provided in
subrule 65.6(2).
c. Upon review of
an application, the authority may register the project with the redevelopment
tax credits program. If the authority registers the project, the authority may,
in conjunction with the council, make a preliminary determination as to the
amount of tax credit for which an award recommendation will be made to the
board.
d. After registering the
project, the authority will notify the investor of successful registration
under the redevelopment tax credits program. The notification may include the
amount of tax credit for which an award recommendation will be made to the
board. If an award recommendation is included in the notification, such
notification will include a statement that the award recommendation is a
recommendation only. The amount of tax credit included on a tax credit
certificate issued pursuant to this rule shall be contingent upon an award by
the board and upon completion of the requirements in this rule.
e.
(1) All
completed applications will be reviewed and scored, pursuant to subrule
65.8(2), on a competitive basis by the council and the board. In reviewing and
scoring applications, the council and the board may consider any factors the
council and board deem appropriate for a competitive application process,
including but not limited to the financial need, quality, and feasibility ofa
qualifying redevelopment project.
(2) For purposes of this rule:
1.
"Feasibility" means the
likelihood that the project will obtain the financing necessary to allow for
full completion of the project and the likelihood that the proposed
redevelopment or improvement that is the subject of the project will be fully
completed.
2.
"Financial
need" means the difference between the total costs of the project less
the total financing that will be received for the project.
3.
"Quality" means the merit
of the project after considering and evaluating its total characteristics and
measuring those characteristics in a uniform, objective manner against the
total characteristics of other projects that have applied for the tax credit
provided in this chapter during the same established application
period.
f.
Upon reviewing and scoring all applications that are part of an annual
application period, the board may award tax credits provided in this
chapter.
g. If the applicant for a
tax credit provided in this chapter has also applied to an agency of the
federal government or to the authority, the board, or any other agency of state
government for additional financial assistance, the authority, the council, and
the board will consider the amount of funding to be received from such public
sources when making a tax credit award pursuant to this rule.
h. An applicant that is unsuccessful in
receiving a tax credit award during an established application period may make
additional applications during subsequent application periods. Such applicants
must submit a new application and must be competitively reviewed and scored in
the same manner as other applicants in that same application period.
(2)
Scoring
criteria.
a. Each application for
tax credits during each established application period will be scored according
to criteria set forth in this paragraph. Points will be added together and the
resulting score averaged with the scores of applications evaluated by all
council members. Scoring criteria include:
(1)
The project's feasibility: 25 points.
(2) The project's financial need: 25
points.
(3) The project's quality:
25 points.
b. There is
no minimum score required for a project to receive a recommendation for
funding, but a higher score indicates that the council views a project more
favorably. The council's funding recommendation will reflect its overall view
of the project in relation to other applying projects.
(3)
Required information. An
investor applying for a tax credit shall provide the authority with all of the
following:
a. Information showing the total
costs of the qualifying redevelopment project, including the costs of land
acquisition, cleanup, and redevelopment.
b. Information about the financing sources of
the investment which are directly related to the qualifying redevelopment
project for which the investor is seeking approval for a tax credit, as
provided in this chapter.
c. Any
other information deemed necessary by the board and the council to review and
score the application pursuant to this rule.
(4)
Agreement required-recapture of
credits. If an investor is awarded a tax credit pursuant to this rule,
the authority and the investor shall enter into an agreement concerning the
qualifying redevelopment project. If the investor fails to comply with any of
the requirements of the agreement, the authority may find the investor in
default under the agreement and may revoke all or a portion of the tax credit
award. The department of revenue, upon notification by the authority of an
event of default, shall seek repayment of the value of any such tax credit
already claimed in the same manner as provided in Iowa Code section
15.330(2).
(5)
Project
completion. A registered project shall be completed within 30 months
of the date the project was registered unless the authority 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 pursuant
to this chapter.
(6)
Audit
required.
a. Upon completion of a
registered project, an audit of the project, completed by an independent
certified public accountant licensed in this state, must be submitted to the
authority.
b. Upon review of the
audit and verification of the amount of the qualifying investment, the
authority will issue a tax credit certificate to the investor stating the
amount of tax credit that the investor may claim.
