Iowa Administrative Code › Agency 223 - Historical Division › Chapter 48 - Historic Preservation and Cultural and Entertainment District Tax Credits › Rule 223-48.32 - Agreement

Current through Register Vol. 47, No. 3, July 24, 2024
Upon successful registration of the project as described in
				subrule 48.31(8), the eligible taxpayer shall have 120 calendar days or until
				the end of the fiscal year, whichever is less, to purchase or lease the
				property, if applicable, and enter into an agreement with the department.
				Nothing in these rules shall affect the department's ability to comply with the
				annual award limitations described in Iowa Code section 404A. 4. A condition
				precedent to any agreement will be proof that the eligible taxpayer is the
				actual fee simple owner or has a binding qualified long-term lease that meets
				the requirements of the federal rehabilitation credit. An eligible taxpayer
				shall not be eligible for historic tax credits unless the eligible taxpayer
				enters into an agreement with the department concerning the qualifying
				rehabilitation project and satisfies the terms and conditions that must be met
				to receive the tax credit award.
(1)
Terms and conditions.
The agreement shall contain mutually
			 agreeable terms and conditions, which shall, at a minimum, provide for the
			 following:
a. The maximum amount of the tax
			 credit award. Notwithstanding anything in this chapter to the contrary, no tax
			 credit certificate shall be issued until the department and the department of
			 revenue verify the amount of final qualified rehabilitation expenditures and
			 compliance with all other requirements of the agreement, Iowa Code chapter
			 404A, and the applicable rules.
b.
			 The rehabilitation work to be performed.
c. The budget of the qualified rehabilitation
			 project, including the projected qualified rehabilitation expenditures, and
			 those expenditures not qualified, and allowable cost overruns. The amount of
			 allowable cost overruns provided for in the agreement shall not exceed the
			 following amounts:
(1) For a qualified
			 rehabilitation project with estimated final qualified rehabilitation
			 expenditures of not more than $750,000,15 percent of the projected qualified
			 rehabilitation expenditures provided for in the agreement.
(2) For a qualified rehabilitation project
			 with estimated final qualified rehabilitation expenditures of more than
			 $750,000 but not more than $6 million, 10 percent of the projected qualified
			 rehabilitation expenditures provided for in the agreement.
(3) For a qualified rehabilitation project
			 with estimated final qualified rehabilitation expenditures of more than $6
			 million, 5 percent of the projected qualified rehabilitation expenditures
			 provided for in the agreement.
d. A schedule of all funding sources received
			 or anticipated to be received that will be used to fund the project, including
			 those funding sources used or that will be used to finance or reimburse both
			 qualified rehabilitation expenditures and those expenditures not being claimed
			 as qualified rehabilitation expenditures, along with supporting documentation.
			 The schedule must identify all government funding as defined in rule
			 223-48.22 (404A),
			 including any funding that originated or will originate from any government,
			 whether federal, state, or local.
e. The commencement date.
f.The completion date.
g. The agreement termination date, which
			 shall not be earlier than five years from the date on which the tax credit
			 certificate is issued.
h. Such
			 other terms, conditions, representations, and warranties as the department may
			 determine are necessary or desirable to protect the interests of the
			 state.