Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 501 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-501.39 - Redevelopment Tax Credit

Current through Register Vol. 47, No. 3, July 24, 2024
The economic development authority is authorized by the
				  general assembly and the governor to oversee the implementation and
				  administration of the redevelopment tax credit program. Effective for tax years
				  beginning on or after July 1, 2009, a taxpayer whose project has been approved
				  by the Iowa brownfield redevelopment advisory council and the economic
				  development authority may claim a redevelopment tax credit once the taxpayer
				  has been issued a tax credit certificate for the project by the economic
				  development authority. The credit is based on the taxpayer's qualifying
				  investment in a brownfield or grayfield site. The administrative rules for the
				  economic development authority's administration of this program, including
				  definitions of brownfield and grayfield sites, may be found in rules
				  261-65.11 (15) and
				  261-65.12 (15).
(1)
Eligibility for the
				credit.
The economic development authority is responsible for
				developing a system for registration and authorization of projects receiving
				redevelopment tax credits. For more information, see Iowa Administrative Code
				261-Chapter 65.
(2)
Amount
				of the credit.
a.
Maximum
				credit total.
For the fiscal year beginning July 1, 2009, the maximum
				amount of tax credits allowed is $1 million, and the amount of credit
				authorized for any one redevelopment project cannot exceed $100,000. For the
				fiscal year beginning July 1, 2011, the maximum amount of tax credits allowed
				cannot exceed $5 million, and the amount of credit authorized for any one
				redevelopment project cannot exceed $500,000. For the fiscal year beginning
				July 1, 2012, the maximum amount of tax credits allowed cannot exceed $10
				million, and the amount of credit authorized for any one redevelopment project
				cannot exceed $1 million. For the fiscal year beginning July 1, 2013, and for
				each subsequent fiscal year, the maximum amount of tax credits issued by the
				authority shall be an amount determined by the economic development authority
				board but not in excess of the amount established pursuant to Iowa Code section
				15.119.
b.
Maximum credit per
				project.
The maximum amount of a tax credit for a qualifying
				investment in any one qualifying redevelopment project shall not exceed 10
				percent of the maximum amount of tax credits available in any one fiscal year
				pursuant to paragraph 52.39(2)
"a."
c.
Percentage computation.
The amount of the tax credit shall equal one of the following:
(1) Twelve percent of the taxpayer's
				qualifying investment in a grayfield site.
(2) Fifteen percent of the taxpayer's
				qualifying investment in a grayfield site if the qualifying redevelopment
				project meets the requirements of green development as defined in rule
				261-65.2(15).
(3) Twenty-four
				percent of the taxpayer's qualifying investment in a brownfield site.
(4) Thirty percent of the taxpayer's
				qualifying investment in a brownfield site if the qualifying redevelopment
				project meets the requirements of green development as defined in rule
				261-65.2(15).