Iowa Administrative Code › Agency 261 - Economic Development Authority › Part V - Innovation and Commercialization Activities › Chapter 115 - Tax Credits for Investments in Qualifying Businesses › Rule 261-115.6 - Approval, Issuance and Distribution of Investment Tax Credits

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Approval
				by the board.
Upon certification by the authority of a qualifying
				business and approval of the taxpayer's application, the board will approve the
				issuance of a tax credit certificate to the taxpayer applying for the tax
				credit.
(2)
Issuance by the
				authority.
Upon approval by the board, the authority shall issue a tax
				credit certificate to the applicant, provided, however, that such tax credit
				certificate shall be subject to rescission pursuant to rule
				261-115.9 (15E).
(3)
Preparation of
				certificate.
The tax credit certificate shall be prepared by the
				authority in a form approved by the board and shall contain the taxpayer's
				name, address, and tax identification number, the amount of credit, the name of
				the qualifying business, the year in which the credit may be redeemed and any
				other information that may be required by the department of revenue. In
				addition, the tax credit certificate shall contain the following statement:
Neither the authority nor the board has recommended or
				  approved this investment or passed on the merits or risks of such investment.
				  Investors should rely solely on their own investigation and analysis and seek
				  investment, financial, legal and tax advice before making their own decision
				  regarding investment in this enterprise.
(4)
Tax credit amount
				limitations.
The aggregate amount of tax credits issued per fiscal
				year pursuant to this chapter shall not exceed the amount allocated by the
				board pursuant to Iowa Code section
				15.119.
(5)
Waitlist for applications
				received on or before March 31, 2022.
a. If the maximum aggregate amount of tax
				credits is awarded in a given fiscal year, investors who are determined
				eligible for a tax credit but were not awarded a tax credit shall be placed on
				a waitlist in the order the applications are received. Applications that are
				placed on a waitlist shall be given priority for receiving tax credits in
				succeeding fiscal years. Placement on a waitlist pursuant to this paragraph
				shall not constitute a promise binding the state. The availability of a tax
				credit and issuance of a tax credit certificate pursuant to this rule in a
				future fiscal year is contingent upon the availability of tax credits in that
				particular fiscal year or years. This subrule shall apply only to applications
				received on or before March 31, 2022.
b. Any application that can be partially
				approved without exceeding the maximum aggregate amount of tax credits will be
				approved as to the portion less than the maximum aggregate amount and placed on
				a waitlist as to the portion greater than the maximum aggregate amount. For
				example, if an application is eligible for $50,000 of tax credits, but there is
				only $30,000 of the maximum aggregate amount available, the application will be
				approved for $30,000 and placed on a waitlist for $20,000.