Current through Register Vol. 47, No. 6, September 18, 2024
(1)
Execution. Successful applicants will be required to execute
an agreement with the authority within 180 days of the award date. The time
limit for execution may be extended by the authority director for an additional
180 days for good cause shown. Upon expiration of the time limit, including any
extensions approved pursuant to this subrule, the board may approve additional
extensions or rescind the award.
(2)
Requirements. An
agreement shall meet all requirements of and be administered pursuant to Iowa
Code section 15.494 as enacted by 2024 Iowa Acts, Senate File 574, section
6.
(3)
Jobs. An
agreement will specify the number of created jobs the business has pledged to
create in addition to the base employment level and the number of qualified
jobs. Job obligations will be established and monitored pursuant to subrule
67.2(5) and rule 261-67.7 (15).
(4)
Investment. An agreement will describe the project and specify
the qualifying investment the business proposes to make.
(5)
Project completion date.
An agreement will specify the project completion date. The project completion
date will be the date on which a program recipient has agreed to meet all the
terms and obligations contained in an agreement with the authority, including
but not limited to completing the project and creating jobs. The project
completion period will be at least three years. The project completion date is
calculated by the authority from the end of the month during which an award is
made. For example, if an award is made on June 13, 2024, the three-year project
completion date will be calculated from June 30, 2024. The project completion
date for this award would be June 30, 2027.
(6)
Maintenance period completion
date. An agreement will specify the maintenance period completion
date. The maintenance period completion date will be used to establish the
period during which the project and the created jobs must be maintained. The
total contract length, including the maintenance period, will be at least five
years.
(7)
Conditions to
issuance of tax credit certificate. An agreement will specify the
conditions of issuance of a tax credit certificate, including but not limited
to compliance with the requirements of Iowa Code section
15A.1(3)"b" regarding solid and hazardous waste and
verification that the project completion and qualified job threshold specified
in Iowa Code section 15.496 as enacted by 2024 Iowa Acts, Senate File 574,
section 8, has been met, if applicable.
(8)
Monitoring and reports.
The authority shall ensure that program recipients comply with contracts
entered into pursuant to this rule. An agreement will specify the reports a
program recipient must submit to the authority and due dates for such reports.
Reports shall be provided in form and content acceptable to the authority.
a. Recipients shall report annually to the
authority about the status of the funded project, including but not limited to
employment, wages, benefits, project costs, qualifying investment, and
compliance with the contract. The authority will use the data it collects in
the authority's annual report to the general assembly.
b. Recipients shall submit a report to the
authority following the project completion date and the maintenance period
completion date to verify compliance with the agreement. On-site or remote
monitoring may be conducted following the project completion date as deemed
appropriate by the authority. On-site or remote monitoring may be conducted
following the maintenance period completion date as deemed appropriate by the
authority.
(9)
Default. An agreement will specify events of default and the
remedies available to the authority.
a.
Tax incentives. If the authority determines that a recipient
is in default, the authority may seek recovery of all state tax incentives by
notifying the department of revenue of the event of default and the required
repayment amount. The repayment amount is subject to applicable interest and
penalties as determined by the department of revenue. Negotiated settlements
are subject to approval by the board. The department of revenue will undertake
collection efforts. If the business is an entity that has elected passthrough
taxation status for income tax purposes, the department of revenue may
undertake collection efforts against members, individuals, or shareholders to
whom the tax incentives were passed through. If the agreement provides for
local tax incentives, the authority will notify the community that provided
incentives.
b.
Calculation
of repayment due or reduction of tax incentives.
(1) Job shortfall. If a business does not
meet its job requirements, the repayment amount or reduction of tax incentives
shall be the same proportion as the amount of the job shortfall. For example,
if the business creates 50 percent of the jobs required, the business shall
repay 50 percent of the tax incentives received or incentives will be reduced
by 50 percent.
(2) Qualifying
investment shortfall. If a business does not meet the qualifying investment
requirement, the repayment amount or reduction of tax incentives shall be the
same proportion as the amount of the shortfall in required qualifying
investment. For example, if the business meets 75 percent of the amount of
required qualifying investment, the business shall repay 25 percent of the
amount of the tax incentives received or incentives will be reduced by 25
percent.
(3) Job and qualifying
investment shortfalls. If a business has a shortfall in both qualifying
investment and job requirements, the repayment amount or reduction of tax
incentives shall be the same proportion as the greater of the two shortfalls.
For example, if a business creates 50 percent of the required jobs and meets 75
percent of the required qualifying investment, the business shall repay 50
percent of the amount of the tax incentives received or tax incentives will be
reduced by 50 percent.
(4)
Benefits. Notwithstanding any other provision in this subrule, if a business
fails to comply with the benefit requirements of the agreement, the business
shall repay all of the tax incentives received or tax incentives will be fully
revoked.
(5) Minimum eligibility.
Notwithstanding any other provision in this subrule, if a business fails to
maintain eligibility for the program, the business shall repay all of the tax
incentives received or tax incentives will be fully revoked.
c.
Notification of
default. The authority will notify a business and community of an
event of default as described in the agreement.
(10)
Amendments. Agreement
amendments must comply with Iowa Code sections 15.490 through 15.501 as enacted
by 2024 Iowa Acts, Senate File 574, and this chapter. Recipients may submit
requests for amendments to authority staff.
a.
Except as provided in paragraph 67.6(10)"b," requests for
amendments shall not be effective unless approved by the due diligence
committee established pursuant to 261-subrule 1.3(7) and the board.
b. Authority staff may approve nonsubstantive
changes, including but not limited to the following:
(1) Recipient name, address and similar
changes.
(2) Line item budget
changes that do not reduce overall total project costs.
(3) Changes to tax credit amortization
schedules.
