Iowa Administrative Code
Agency 261 - Economic Development Authority
Part IV - Business Development Division
Chapter 68 - High Quality Jobs Program (HQJP)
Rule 261-68.9 - Authority Procedure for Establishing Investment Requirements
Current through Register Vol. 47, No. 6, September 18, 2024
(1) Capital investment. The authority reports on the amount of capital investment involved with funded projects. This rule lists the categories of expenditures that are included when the authority determines the amount of capital investment associated with a project.
(2) Qualifying investment for tax credit programs. Minimum investment thresholds must be met for the project to be considered to receive an award. Not all expenditures count toward meeting the investment threshold. This rule identifies the categories of expenditures that can be included when the amount of investment is calculated for purposes of meeting program eligibility threshold requirements.
(3) Investment qualifying for tax credits. Not all of the expenditures categories used to calculate the investment amount needed to meet program threshold requirements qualify for purposes of claiming the tax credits. The following table identifies the expenditures that do not qualify for tax credits.
|
Capital Investment1 |
Qualifying Investment2 |
Investment Qualifying for Tax Credits3 |
|
|
Land acquisition |
Yes |
Yes |
Yes |
|
Site preparation |
Yes |
Yes |
Yes |
|
Building acquisition |
Yes |
Yes |
Yes |
|
Building construction |
Yes |
Yes |
Yes |
|
Building remodeling |
Yes |
Yes |
Yes |
|
Mfg. machinery & equip. |
Yes |
Yes |
Yes |
|
Other machinery & equip. |
Yes |
No |
No |
|
Racking, shelving, etc. |
Yes |
No |
No |
|
Computer hardware |
Yes |
Yes |
Yes |
|
Computer software |
No |
No |
No |
|
Furniture & fixtures |
Yes |
Yes |
No |
|
Working capital |
No |
No |
No |
|
Research & development |
No |
No |
No |
|
Job training |
No |
No |
No |
|
Capital or synthetic lease |
No |
Yes |
Yes |
|
Rail improvements4 |
Yes |
Yes |
Yes |
|
Public infrastructure5 |
Yes |
Yes |
Yes |
1"Capital investment" is used to calculate project investment on depreciable assets.
2"Qualifying investment" is used to determine eligibility for the program.
3"Investment qualifying for tax credits" is used to calculate the maximum available tax credit award for a project.
4"Rail improvements" includes hard construction costs for rail improvements. (These costs are included as part of construction or site preparation costs.)
5"Public infrastructure" includes any publicly owned utility service, such as water, sewer, storm sewer or roadway construction and improvements. (These costs are included as part of construction costs.)
