HF 339 — A bill for an act relating to programs administered by the economic development authority, including tax credits for equity investments in qualifying businesses or innovation funds, tax incentives for eligible businesses in rural communities, and including effective date provisions. (Formerly HSB 84.)

(1) Less than fifty thousand dollars, then the tax incentive is the investment tax credit of up to five percent.

(2) At least fifty thousand dollars but less than two hundred fifty thousand dollars, then the tax incentives are the investment tax credit of up to five percent and the sales tax refund.

(3) At least two hundred fifty thousand dollars, then the tax incentives are the investment tax credit of up to five percent, the sales tax refund, and the additional research and development tax credit.

e.

The number of jobs is sixteen or more and the amount of the qualifying investment is one of the following:

(1) Less than fifty thousand dollars, then the tax incentive is the investment tax credit of up to six percent.

(2) At least fifty thousand dollars but less than two hundred fifty thousand dollars, then the tax incentives are the investment tax credit of up to six percent and the sales tax HF 339 (2) 88 -3- ko/jh/md 3/5 H.F.

339 refund.

(3) At least two hundred fifty thousand dollars, then the tax incentives are the investment tax credit of up to six percent, the sales tax refund, and the additional research and development tax credit.

f.

The number of jobs is thirty-one but not more than forty and the amount of the qualifying investment is at least five million dollars, then the tax incentives are the local property tax exemption, the investment tax credit of up to seven percent, the sales tax refund, and the additional research and development tax credit.

g.

The number of jobs is forty-one but not more than sixty and the amount of the qualifying investment is at least five million dollars, then the tax incentives are the local property tax exemption, the investment tax credit of up to eight percent, the sales tax refund, and the additional research and development tax credit.

h.

The number of jobs is sixty-one but not more than eighty and the amount of the qualifying investment is at least five million dollars, then the tax incentives are the local property tax exemption, the investment tax credit of up to nine percent, the sales tax refund, and the additional research and development tax credit.

i.

The number of jobs is eighty-one but not more than one hundred and the amount of the qualifying investment is at least five million dollars, then the tax incentives are the local property tax exemption, the investment tax credit of up to ten percent, the sales tax refund, and the additional research and development tax credit.

j.

The number of jobs is at least one hundred one and the amount of the qualifying investment is at least ten million dollars, then the tax incentives are the local property tax exemption, the investment tax credit of up to eleven percent, the sales tax refund, and the additional research and development tax credit.

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339 Sec.

6.

Section 15.335B, subsection 3, paragraph c, Code 2019, is amended to read as follows:

c.

(1) Consider the amount and type of the local community match.

as follows:

(a) In a community with a population of less than five thousand, a community match shall not be required.

(b) In a community with a population equal to or greater than five thousand but less than fifteen thousand, a community match of at least five percent of the projected funds to be expended shall be required.

(c) In a community with a population equal to or greater than fifteen thousand but less than thirty thousand, a community match of at least ten percent of the projected funds to be expended shall be required.

(d) In a community with a population equal to or greater than thirty thousand, a community match of at least twenty percent of the projected funds to be expended shall be required.

(2) The Notwithstanding subparagraph (1), the authority may provide assistance to an early-stage business in a high-growth industry regardless of the amount of local match involved.

Sec.

7.

EXPLANATIONHF The339 inclusion(2) of88 this-5- explanationko/jh/md does5/5 not constitute agreement with the explanation’s substance by the members of the general assembly.

This bill relates to certain tax credits awarded by the economic development authority for equity investments in a qualifying business or innovation fund.

The bill directs the economic development authority to determine on or before June 30 of each year the amount of tax credits that will be issued for the following fiscal year LSB 1250HV (1) 88 -1- ko/jh 1/2 H.F.

339 for equity investments in qualifying businesses pursuant to Code section 15E.43 and in innovation funds pursuant to Code section 15E.52.

The bill caps the aggregate amount of these tax credits at $10 million.

The bill takes effect upon enactment.

LSB 1250HV (1) 88 -2- ko/jh 2/2