Current through Register Vol. 47, No. 6, September 18, 2024
The authority may approve a business to receive any
combination of applicable tax incentives allowed through the program pursuant
to Iowa Code section 15.331A,
15.331C,
15.332,
15.333,
15.333A, or
15.335. An approved business
shall not claim a tax incentive in excess of the amount specified in an
agreement entered into pursuant to Iowa Code section
15.330.
(1)
Sales and use tax refund or tax
credit for racks, shelving, and conveyor equipment. A business
approved to receive a refund of sales and use taxes attributable to racks,
shelving, and conveyor equipment in one fiscal year shall not be considered for
an additional award of a refund of sales and use taxes attributable to racks,
shelving, and conveyor equipment in a succeeding fiscal year. No business shall
receive more than $500,000 in refunds pursuant to this subrule. The limitations
in this subrule also apply to an approved business that receives tax credit up
to the amount of sales and use taxes paid by a third-party developer and
attributable to racks, shelving, and conveyor equipment pursuant to Iowa Code
section 15.331C.
(2)
Value-added property tax exemption. If a community approves an
exemption from taxation pursuant to Iowa Code section
15.332, the community shall
provide the authority and the local assessor with a copy of the resolution
adopted by the community's governing body that indicates the estimated value
and duration of the authorized exemption.
(3)
Investment tax credit-treatment
of rent. The annual base rent paid to a third-party developer by an
approved business may be considered new investment for the purpose of an
investment tax credit approved pursuant to Iowa Code section
15.333 or an insurance premium
tax credit approved pursuant to Iowa Code section
15.333A. Annual base rent may be
included as new investment for a period equal to the term of the lease
agreement but not to exceed the maximum term specified in a contract entered
into with the authority. Annual base rent shall be considered only when the
project includes the construction of a new building or the major renovation of
an existing building. The approved business shall enter into a lease agreement
with the third-party developer for a minimum of five years. For the purposes of
this subrule, "annual base rent" means the business's annual lease payment
minus taxes, insurance and operating or maintenance expenses.
(4)
Maximum tax incentives
available. Tax incentives awarded under this program are based upon
the number of jobs created or retained that pay the applicable wages as
established in Iowa Code section 15.329(1)"c" or 15.335C and
the amount of qualifying investment. The amount of tax incentives is subject to
negotiations based on the factors identified in subrule 68.3(5). The maximum
possible award is based on the following schedule:
a. The business is required to maintain the
base employment level, but no high quality jobs are created or retained and
economic activity is furthered by the qualifying investment. For purposes of
this paragraph, "economic activity" means a modernization project that will
result in increased skills and wages for the current employees.
(1) Less than $100,000 in qualifying
investment. Investment tax credit or insurance premium tax credit of up to 1
percent.
(2) $100,000 to $499,999
in qualifying investment.
1. Investment tax
credit or insurance premium tax credit of up to 1 percent.
2. Sales and use tax refund or third-party
developer tax credit, or both, if applicable.
(3) $500,000 or more in qualifying
investment.
1. Investment tax credit or
insurance premium tax credit of up to 1 percent.
2. Sales and use tax refund or third-party
developer tax credit, or both, if applicable.
3. Research activities credit.
b. One to five high
quality jobs are created or retained.
(1)
Less than $100,000 in qualifying investment. Investment tax credit or insurance
premium tax credit of up to 2 percent.
(2) $100,000 to $499,999 in qualifying
investment.
1. Investment tax credit or
insurance premium tax credit of up to 2 percent.
2. Sales and use tax refund or third-party
developer tax credit, or both, if applicable.
(3) $500,000 or more in qualifying
investment.
1. Investment tax credit or
insurance premium tax credit of up to 2 percent.
2. Sales and use tax refund or third-party
developer tax credit, or both, if applicable.
3. Research activities credit.
c. Six to ten high
quality jobs are created or retained.
(1)
Less than $100,000 in qualifying investment. Investment tax credit or insurance
premium tax credit of up to 3 percent.
(2) $100,000 to $499,999 in qualifying
investment.
1. Investment tax credit or
insurance premium tax credit of up to 3 percent.
2. Sales and use tax refund or third-party
developer tax credit, or both, if applicable.
(3) $500,000 or more in qualifying
investment.
1. Investment tax credit or
insurance premium tax credit of up to 3 percent.
2. Sales and use tax refund or third-party
developer tax credit, or both, if applicable.
3. Research activities credit.
d. 11 to 15 high
quality jobs are created or retained.
(1)
Less than $100,000 in qualifying investment. Investment tax credit or insurance
premium tax credit of up to 4 percent.
(2) $100,000 to $499,999 in qualifying
investment.
1. Investment tax credit or
insurance premium tax credit of up to 4 percent.
2. Sales and use tax refund or third-party
developer tax credit, or both, if applicable.
(3) $500,000 or more in qualifying
investment.
1. Investment tax credit or
insurance premium tax credit of up to 4 percent.
2. Sales and use tax refund or third-party
developer tax credit, or both, if applicable.
3. Research activities credit.
e. 16 to 30 high
quality jobs are created or retained.
(1)
Less than $100,000 in qualifying investment. Investment tax credit or insurance
premium tax credit of up to 5 percent.
(2) $100,000 to $499,999 in qualifying
investment.
1. Investment tax credit or
insurance premium tax credit of up to 5 percent.
2. Sales and use tax refund or third-party
developer tax credit, or both, if applicable.
(3) $500,000 or more in qualifying
investment.
1. Investment tax credit or
insurance premium tax credit of up to 4 percent.
2. Sales and use tax refund or third-party
developer tax credit, or both, if applicable.
3. Research activities credit.
f. 31 to 40 high
quality jobs are created or retained.
(1) $10
million or more in qualifying investment.
1.
Investment tax credit or insurance premium tax credit of up to 6
percent.
2. Sales and use tax
refund or third-party developer tax credit, or both, if applicable.
3. Research activities credit.
4. Value-added property tax
exemption.
(2)
Reserved.
g. 41 to 60
high quality jobs are created or retained.
(1)
$10 million or more in qualifying investment.
1. Investment tax credit or insurance premium
tax credit of up to 7 percent.
2.
Sales and use tax refund or third-party developer tax credit, or both, if
applicable.
3. Research activities
credit.
4. Value-added property tax
exemption.
(2)
Reserved.
h. 61 to 80
high quality jobs are created or retained.
(1)
$10 million or more in qualifying investment.
1. Investment tax credit or insurance premium
tax credit of up to 8 percent.
2.
Sales and use tax refund or third-party developer tax credit, or both, if
applicable.
3. Research activities
credit.
4. Value-added property tax
exemption.
(2)
Reserved.
i. 81 to 100
high quality jobs are created or retained.
(1)
$10 million or more in qualifying investment.
1. Investment tax credit or insurance premium
tax credit of up to 9 percent.
2.
Sales and use tax refund or third-party developer tax credit, or both, if
applicable.
3. Research activities
credit.
4. Value-added property tax
exemption.
(2)
Reserved.
j. 101 or more
high quality jobs are created or retained.
(1)
$10 million or more in qualifying investment.
1. Investment tax credit or insurance premium
tax credit of up to 10 percent.
2.
Sales and use tax refund or third-party developer tax credit, or both, if
applicable.
3. Research activities
credit.
4. Value-added property tax
exemption.
(2)
Reserved.
