Iowa Administrative Code › Agency 261 - Economic Development Authority › Part IV - Business Development Division › Chapter 68 - High Quality Jobs Program (HQJP) › Rule 261-68.4 - Tax Incentives

Current through Register Vol. 47, No. 3, July 24, 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.