Iowa Administrative Code › Agency 261 - Economic Development Authority › Part III - Community Development Division › Chapter 49 - Historic Preservation and Cultural and Entertainment District Tax Credits › Rule 261-49.14 - Agreement

Current through Register Vol. 47, No. 3, July 24, 2024
Upon successful registration of the project as described in
				  subrule 49.13(7) or 49.13(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
				  authority. Nothing in these rules shall affect the authority's ability to
				  comply with the annual award limitations described in Iowa Code section
				  404A4..
				  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 authority 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 authority verifies 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. An eligible taxpayer shall perform the rehabilitation work
				consistent with the U.S. Secretary of the Interior's standards for
				rehabilitation, as determined by the department.
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
				261-49.3(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 authority may
				determine are necessary or desirable to protect the interests of the
				state.