Current through Register Vol. 47, No. 6, September 18, 2024
(1)
Application.
a. Businesses
may be invited to submit applications for the program to the authority.
Businesses shall utilize a standardized application developed by the authority.
A signature from an official authorized to represent the affected local
community is required to indicate that the community supports the project. The
application shall include an ordinance or resolution of the community's
governing body approving the project.
b. An applicant shall provide any information
requested by a contractor selected by the authority to evaluate the economic
impact of the project pursuant to subrule 67.2(10). Such information will be
held confidential by the authority to the extent allowed by Iowa Code sections
15.118 and 22.7 or other applicable laws.
c. During the application process, the
authority will identify any assistance previously awarded for which an
applicant would no longer be eligible pursuant to Iowa Code section 15.499(1)
as enacted by 2024 Iowa Acts, Senate File 574, section 11. The authority may
also identify assistance the applicant may be prohibited from receiving in the
future pursuant to Iowa Code section 15.499(1) as enacted by 2024 Iowa Acts,
Senate File 574, section 11, during the application process or may identify
such prohibition at a later time.
(2)
Fee.
a. The application fee required by Iowa Code
section 15.493 as enacted by 2024 Iowa Acts, Senate File 574, section 5, shall
equal the sum of the following:
(1) The actual
cost incurred by the authority to conduct an independent analysis of the
economic impact of the project, not to exceed $50,000; and
(2) One half of 1 percent of the amount of
tax incentives approved.
b. The authority shall issue an invoice for
the portion of the fee assessed pursuant to subparagraph
67.3(2)"a"(1) following completion of the independent
analysis. Payment shall be due within 30 days after the date the invoice is
issued or a later date identified in writing by the authority.
c. The authority shall issue an invoice for
the portion of the fee assessed pursuant to subparagraph
67.3(2)"a"(2) following board approval of tax incentives.
Payment shall be equally divided over the term of the contract entered into
pursuant to Iowa Code section 15.494 as enacted by 2024 Iowa Acts, Senate File
574, section 6. Payments shall be due by the dates identified by the authority
in the invoice or a later date identified in writing by the
authority.
(3)
Applicability of wage requirements. The qualifying wage
threshold applicable to a project is the threshold in effect on the date the
fully completed project application is received by the authority. If such an
application is received but not acted upon by the board before the qualifying
wage thresholds are updated, the thresholds in effect on the date the
application was received will remain in effect for a period of three months
after the month the thresholds were updated. The authority shall have sole
discretion to determine whether an application is fully completed. Qualifying
wage thresholds will be calculated and applied as described in rule
261-67.8(15).
(4)
Job
requirements. Job requirements applicable to a project, identified as
described in rule 261-67.7 (15), will be established at the time of application.
Job requirements will be based on the base employment level as of the date the
application was fully completed and submitted to the authority and eligible
business's job projections and will be utilized to determine eligibility and
the amount of tax incentives.
(5)
Investment requirements. The investment requirements
applicable to a project will be established at the time of application.
Investment requirements are based on an eligible business's estimates of
project costs and will be utilized to determine eligibility and the amount of
tax incentives.
(6)
Negotiations. Authority staff and the board may negotiate with
an applicant concerning dollar amounts, terms, conditions of award, or any
other elements of the proposed award. All program benefits available under the
program are subject to negotiation. The board and the authority will attempt to
treat similarly situated applicants similarly. However, the amount, type, and
terms of program benefits are necessarily dependent on many factors, and awards
shall be entirely at the discretion of the board. The board, in consultation
with authority staff, will attempt to determine the appropriate program
benefits, and the board will make a good-faith effort to provide only the
amount of program benefits necessary to facilitate the project.
The authority shall consider all of the following factors in
negotiating with the business:
a.
Level of need. The authority will determine a project's level
of need based on the following factors:
(1)
Whether the likely returns of the project are inadequate to motivate a company
decision maker to proceed with the project in Iowa.
(2) Whether the business is deciding between
an Iowa site and a site in another state for its project and the cost of
completing the project at the out-of-state site is demonstrably lower,
including if any form of incentives have been offered by another state or local
government. Such a condition indicates that tax incentives may be needed to
equalize the cost differential between the two sites. The authority will
attempt to quantify the cost differential between the sites.
(3) The amount of state and local assistance
available to the business from sources other than the program.
b.
Number of and quality
of jobs. The authority will determine the quality of jobs consistent
with the factors listed in Iowa Code section 15.492(2)
"a"(1)
as enacted by 2024 Iowa Acts, Senate File 574, section 4.
c.
Percentage of created jobs that
are qualified jobs. The authority will consider the number of
qualifying jobs in proportion to the total number of created jobs.
d.
Amount of investment. The
authority will consider the total amount of qualifying investment proposed by
the business.
e.
Economic
impact. Economic impact will be primarily measured by an independent
analysis conducted by a contractor chosen by the authority.
f.
Effect on likely suppliers to the
applicant business. The authority will consider whether a project
increases demand for goods or services offered by other businesses in the
state.
(7)
Board
approval and notice.
a. Authority
staff will review applications to ensure program eligibility requirements are
satisfied. Authority staff may request additional information from the business
or may use other resources to obtain the needed information.
Complete and eligible applications and supporting
documentation will be submitted to the board for its consideration. Authority
staff will generate and submit to the board a report that summarizes the
project and provide a recommendation on the amount of tax incentives to be
offered to the business and whether the business should be offered an exemption
to restrictions on agricultural land holdings pursuant to Iowa Code section
15.498 as enacted by 2024 Iowa Acts, Senate File 574, section 10.
b. Staff may provide the board
additional information or documentation as determined by staff. The board may
offer an award in a lesser amount or that is structured in a manner different
from that requested or recommended by authority staff. Meeting eligibility
requirements does not guarantee that an award will be offered or provided in
the form sought by the applicant.
c. The due diligence committee of the board
established pursuant to 261-subrule 1.3(7) will review applications and make
recommendations regarding the size, combination of program benefits, and
conditions of awards. The board may accept or reject recommendations from the
due diligence committee.
d. If the
board approves an award, an applicant will be notified in writing, including
any conditions and terms of the approval. If the board approves an application
prior to certification of additional acres to qualify the project site pursuant
to subrule 67.2(1), such approval shall be contingent upon certification of the
additional acres.
(8)
Restrictions on board. The authority will reject any
application received that would violate the restrictions on the board in Iowa
Code section 15.501 as enacted by 2024 Iowa Acts, Senate File 574, section
13.
