Senate File 642 - Introduced SENATE FILE 642 BY COMMITTEE ON APPROPRIATIONS (SUCCESSOR TO SF 622) (SUCCESSOR TO SF 465) (SUCCESSOR TO SSB 1106) A BILL FOR An Act relating to matters under the purview of the 1 economic development authority and the Iowa finance 2 authority including the strategic infrastructure program, 3 brownfield, grayfield, and redevelopment tax credits, 4 community attraction and tourism, vision Iowa, sports 5 tourism marketing, the historic preservation tax credit, 6 homelessness, the title guaranty board, arts and culture, 7 and the Iowa reinvestment Act and including applicability 8 and retroactive applicability provisions. 9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 10 TLSB 1410SW (3) 91 nls/ko
S.F. 642 DIVISION I 1 STRATEGIC INFRASTRUCTURE PROGRAM 2 Section 1. Section 15.117A, subsection 6, paragraph c, Code 3 2025, is amended by striking the paragraph. 4 Sec. 2. Section 15.313, subsection 3, unnumbered paragraph 5 1, Code 2025, is amended to read as follows: 6 The Iowa innovation council A committee appointed pursuant 7 to section 15.117A, subsection 7, shall review each application 8 received by the economic development authority for financial 9 assistance under the program and shall make recommendations to 10 the board regarding all of the following: 11 DIVISION II 12 BROWNFIELDS, GRAYFIELDS, AND REDEVELOPMENT TAX CREDITS 13 Sec. 3. Section 15.291, subsections 3 and 11, Code 2025, are 14 amended by striking the subsections. 15 Sec. 4. Section 15.293A, subsection 3, unnumbered paragraph 16 1, Code 2025, is amended to read as follows: 17 The amount of the tax credit shall be determined by the board 18 in conjunction with the council. However, the tax credit and 19 shall not exceed the following amount, as applicable: 20 Sec. 5. Section 15.293B, subsection 1, paragraphs b, d, and 21 h, Code 2025, are amended to read as follows: 22 b. The authority shall accept and , in conjunction with 23 the council, review applications for tax credits provided in 24 section 15.293A and , with the approval of the council, make tax 25 credit award recommendations regarding the applications to the 26 board. The authority may engage outside experts to complete a 27 technical, financial, or other review. 28 d. Upon review of an application, the authority may 29 register the project with the redevelopment tax credits 30 program. If the authority registers the project, the authority 31 may , in conjunction with the council, make a preliminary 32 determination as to the amount of tax credit for which an award 33 recommendation will be made to the board. 34 h. If the applicant for a tax credit provided in section 35 -1- LSB 1410SW (3) 91 nls/ko 1/ 23
S.F. 642 15.293A has also applied to an agency of the federal government 1 or to the authority, the board, or any other agency of state 2 government for additional financial assistance, the authority , 3 the council, and the board shall consider the amount of funding 4 to be received from such public sources when making a tax 5 credit award pursuant to this section . 6 Sec. 6. Section 15.293B, subsection 1, paragraph f, 7 subparagraph (1), Code 2025, is amended to read as follows: 8 (1) All completed applications shall be reviewed and scored 9 on a competitive basis by the council and the board authority . 10 In reviewing and scoring applications, the council and the 11 board authority may consider any factors the council and board 12 deem authority deems appropriate for a competitive application 13 process, including but not limited to the financial need, 14 quality, and feasibility of a qualifying redevelopment project. 15 Sec. 7. Section 15.293B, subsection 2, paragraph c, Code 16 2025, is amended to read as follows: 17 c. Any other information deemed necessary by the board 18 and the council authority to review and score the application 19 pursuant to subsection 1 . 20 Sec. 8. Section 15.293B, subsections 4 and 5, Code 2025, are 21 amended to read as follows: 22 4. A registered project shall be completed within thirty 23 months of the date the project was registered unless the 24 authority, upon recommendation of the council and with the 25 approval of the board, provides additional time to complete the 26 project. If the registered project is not completed within 27 the time required, the project is not eligible to claim a 28 redevelopment tax credit provided in section 15.293A . 29 5. a. The investor shall engage a certified public 30 accountant authorized to practice in this state to conduct an 31 examination of the project in accordance with the American 32 institute of certified public accountants statements on 33 standards for attestation engagements. Upon completion of a 34 registered project, an audit of the project, completed by an 35 -2- LSB 1410SW (3) 91 nls/ko 2/ 23
S.F. 642 independent certified public accountant licensed in this state, 1 the examination, along with a statement of the amount of final 2 qualifying investment, shall be submitted to the authority. 3 b. Upon review of the audit and verification of the amount 4 of the qualifying investment, examination and statement 5 submitted pursuant to paragraph a , the authority may issue a 6 tax credit certificate to the investor stating the amount of 7 tax credit under section 15.293A the investor may claim. 8 Sec. 9. REPEAL. Sections 15.292, 15.293, 15.294, and 9 15.295, Code 2025, are repealed. 10 Sec. 10. TRANSFER OF MONEYS. On the effective date of this 11 division of this Act, any unencumbered or unobligated moneys 12 remaining in the brownfield redevelopment fund created in 13 section 15.293 are transferred to a fund or funds established 14 pursuant to section 15.335B, subsection 1, paragraph a, as 15 determined by the economic development authority. 16 DIVISION III 17 COMMUNITY ATTRACTION AND TOURISM, AND VISION IOWA REQUIRED 18 BENEFITS 19 Sec. 11. REPEAL. Section 15F.106, Code 2025, is repealed. 20 Sec. 12. APPLICABILITY. This division of this Act applies 21 to an applicant awarded financial assistance under both the 22 vision Iowa program established in section 15F.302, and the 23 community attraction and tourism program established in section 24 15F.202, on or after the effective date of this division of 25 this Act. 26 Sec. 13. RETROACTIVE APPLICABILITY. This division of this 27 Act applies retroactively to an applicant awarded financial 28 assistance under both the vision Iowa program established in 29 section 15F.302, and the community attraction and tourism 30 program established in section 15F.202, prior to the effective 31 date of this division of this Act. 32 DIVISION IV 33 COMMUNITY ATTRACTION AND TOURISM PROGRAM, AND SPORTS TOURISM 34 MARKETING AND INFRASTRUCTURE PROGRAM APPLICATION REVIEW 35 -3- LSB 1410SW (3) 91 nls/ko 3/ 23
S.F. 642 Sec. 14. Section 15F.203, subsection 2, Code 2025, is 1 amended to read as follows: 2 2. A The director of the authority shall appoint a review 3 committee composed of five members of the board shall with 4 relevant expertise to review community attraction and tourism 5 program applications forwarded to the board and . The review 6 committee shall make recommendations regarding the applications 7 to the board. 8 Sec. 15. Section 15F.402, subsection 2, Code 2025, is 9 amended to read as follows: 10 2. A The director of the authority shall appoint a review 11 committee composed of five members of the board shall with 12 relevant expertise to review sports tourism marketing and 13 infrastructure program applications forwarded to the board and . 14 The review committee shall make recommendations regarding the 15 applications to the authority. 16 DIVISION V 17 HISTORIC PRESERVATION TAX CREDIT 18 Sec. 16. Section 404A.1, subsection 2, Code 2025, is amended 19 by striking the subsection. 20 Sec. 17. Section 404A.1, subsection 7, Code 2025, is amended 21 by adding the following new paragraph: 22 NEW PARAGRAPH . d. The property is not a single-family 23 dwelling unit, unless the project will result in two or more 24 new single-family dwelling units that were not available 25 for occupancy as residential housing during the immediately 26 preceding consecutive six months prior to commencement of 27 the project, and the dwelling units are located in the same 28 neighborhood, as confirmed by the authority. The two or more 29 new single-family dwelling units must be made available for 30 occupancy as a result of the rehabilitation project. The 31 authority may promulgate by rule criteria used by the authority 32 to determine if a property is a single-family dwelling unit, 33 and qualifies as a qualified rehabilitation project under this 34 paragraph. 35 -4- LSB 1410SW (3) 91 nls/ko 4/ 23
S.F. 642 Sec. 18. Section 404A.1, Code 2025, is amended by adding the 1 following new subsection: 2 NEW SUBSECTION . 8. Registration date means the date on 3 which the authority notifies an eligible taxpayer of successful 4 registration of the taxpayers qualified rehabilitation project 5 pursuant to section 404A.3, subsection 2. 6 Sec. 19. Section 404A.2, subsection 3, paragraph a, Code 7 2025, is amended to read as follows: 8 a. Tax credit certificates issued under section 404A.3 9 may be transferred to any person , except that a tax credit 10 certificate shall not be transferred on or after January 1, 11 2026 . Within ninety days of any transfer occurring prior to 12 January 1, 2026 , the transferee shall submit the transferred 13 tax credit certificate to the department of revenue along 14 with a statement containing the transferees name, tax 15 identification number, address, the denomination that each 16 replacement tax credit certificate is to carry, and any other 17 information required by the department of revenue. However, 18 tax credit certificate amounts of less than the minimum amount 19 established by rule by the department of revenue shall not be 20 transferable. 21 Sec. 20. Section 404A.2, subsection 4, paragraph a, Code 22 2025, is amended to read as follows: 23 a. For a tax credit claimed by an eligible taxpayer or 24 a transferee for qualified rehabilitation projects with 25 agreements entered into on or after July 1, 2014, the following 26 percentage of any credit in excess of the taxpayers tax 27 liability for the tax year may be refunded: 28 (1) For the tax year beginning on or after January 1, 2023, 29 but before January 1, 2024, ninety-five percent. 30 (2) For the tax year beginning on or after January 1, 2024, 31 but before January 1, 2025, ninety percent. 32 (3) For the tax year beginning on or after January 1, 2025, 33 but before January 1, 2026, eighty-five percent. 34 (4) For the tax year beginning on or after January 1, 2026, 35 -5- LSB 1410SW (3) 91 nls/ko 5/ 23
S.F. 642 but before January 1, 2027, eighty percent. 1 (5) (4) For tax years beginning on or after January 1, 2 2027, seventy-five 2026, one hundred percent. 3 Sec. 21. Section 404A.3, subsection 3, paragraph b, 4 subparagraphs (4) and (5), Code 2025, are amended to read as 5 follows: 6 (4) The commencement date of by which the qualified 7 rehabilitation project must commence , which shall not be no 8 later than the end of the fiscal year in which the agreement 9 is entered into one calendar year from the registration date . 10 Upon application of the eligible taxpayer, the authority may, 11 at the discretion of the authority, extend the date by which 12 the qualified rehabilitation project must commence up to an 13 additional twelve consecutive months. 14 (5) (a) The completion date of by which the qualified 15 rehabilitation project , which shall be within thirty-six 16 months of the commencement date must be completed, which shall 17 be no later than three consecutive calendar years from the 18 registration date . The qualified rehabilitation project shall 19 be considered complete as of the date the property that is the 20 subject of the qualified rehabilitation project is placed in 21 service, as described in 26 U.S.C. 47. 22 (b) Upon application of the eligible taxpayer, the 23 authority may, at the discretion of the authority, extend the 24 date by which the qualified rehabilitation project must be 25 complete up to an additional twelve consecutive months. 26 (c) Upon application of the eligible taxpayer made prior 27 to the expiration of an extension under subparagraph (b), the 28 authority may, at the discretion of the authority, extend 29 the date by which the qualified rehabilitation project must 30 be complete up to an additional twelve consecutive months. 31 The qualified eligible taxpayer must substantiate to the 32 satisfaction of the authority that the requested extension is 33 warranted due to extenuating circumstances outside the control 34 of the eligible taxpayer. 35 -6- LSB 1410SW (3) 91 nls/ko 6/ 23
S.F. 642 (d) An application by an eligible taxpayer under 1 subparagraph division (b) or (c) shall be made in the manner 2 and form prescribed by the authority by rule. 3 Sec. 22. Section 404A.4, subsection 1, paragraph a, 4 unnumbered paragraph 1, Code 2025, is amended to read as 5 follows: 6 Except as provided in subsections 2 , and 3 , and 4, the 7 authority shall not award in any one fiscal year an amount of 8 tax credits provided in section 404A.2 in excess of forty-five 9 million dollars. 10 Sec. 23. Section 404A.4, Code 2025, is amended by adding the 11 following new subsection: 12 NEW SUBSECTION . 4. a. If, during the fiscal year beginning 13 July 1, 2025, or any fiscal year thereafter, the authority 14 receives an application for a qualified rehabilitation project 15 with qualified rehabilitation expenditures that, if registered 16 by the authority, makes the eligible taxpayer eligible for tax 17 credits of ten million dollars or more, the authority may award 18 tax credits during the fiscal year in which the application 19 is received in an amount not to exceed twenty percent more 20 than the maximum aggregate tax credit award limit specified in 21 subsection 1. 22 b. Tax credits awarded pursuant to this subsection shall be 23 considered for purposes of calculating the maximum aggregate 24 tax credits awarded pursuant to subsection 1 in the immediately 25 succeeding fiscal year. 26 DIVISION VI 27 HOMELESSNESS IOWA FINANCE AUTHORITY 28 Sec. 24. Section 16.5F, subsection 3, Code 2025, is amended 29 to read as follows: 30 3. a. The authority shall may adopt rules pursuant to 31 chapter 17A for carrying out the duties of the authority 32 pursuant to this section . 33 b. The authority shall may establish internal rules of 34 procedure consistent with the provisions of this section . 35 -7- LSB 1410SW (3) 91 nls/ko 7/ 23
S.F. 642 c. Rules adopted or internal rules of procedure established 1 pursuant to paragraph a or b shall be consistent with the 2 requirements of the federal McKinney-Vento Homeless Assistance 3 Act, 42 U.S.C. 11301 et seq. 4 DIVISION VII 5 TITLE GUARANTY BOARD ELIMINATION 6 Sec. 25. Section 16.1A, subsection 5, Code 2025, is amended 7 to read as follows: 8 5. The board may, by resolution, delegate to the 9 agricultural development board , title guaranty division board , 10 director, or other authority employee such of its powers, under 11 such terms and conditions, as it deems appropriate. 12 Sec. 26. Section 16.2A, Code 2025, is amended by striking 13 the section and inserting in lieu thereof the following: 14 16.2A Title guaranty division. 15 A title guaranty division is created within the authority. 16 The division may also be referred to as Iowa title guaranty. 17 The powers of the division relating to the issuance of 18 title guaranties are vested in and shall be exercised by the 19 board. The director shall appoint an attorney as director 20 of the division. The appointment of, and compensation for, 21 the division director shall be exempt from the merit system 22 under chapter 8A, subchapter IV, part 2. The net earnings of 23 the division, beyond that necessary for reserves, backing, 24 guaranties issued, or to otherwise implement the public 25 purposes and programs authorized, shall not inure to the 26 benefit of any person other than the state and are subject to 27 section 16.2, subsection 9. 28 Sec. 27. Section 16.91, subsections 1, 3, and 6, Code 2025, 29 are amended to read as follows: 30 1. The authority , through the Iowa title guaranty division , 31 shall initiate and operate a program in which the division 32 shall offer guaranties of real property titles in this state. 33 The terms, conditions, and form of the guaranty contract shall 34 be forms approved by the division board. The division shall 35 -8- LSB 1410SW (3) 91 nls/ko 8/ 23
S.F. 642 fix a charge for the guaranty in an amount sufficient to permit 1 the program to operate on a self-sustaining basis, including 2 payment of administrative costs and the maintenance of an 3 adequate reserve against claims under the Iowa title guaranty 4 program. A title guaranty fund is created in the office of 5 the treasurer of state. Funds collected under this program 6 shall be placed in the title guaranty fund and are available 7 to pay all claims, necessary reserves and all administrative 8 costs of the Iowa title guaranty program. Moneys in the fund 9 shall not revert to the general fund and interest on the moneys 10 in the fund shall be deposited in the housing trust fund 11 established created in section 16.181 and shall not accrue to 12 the general fund. If the authority board in consultation with 13 the division board determines that there are surplus funds in 14 the title guaranty fund after providing for adequate reserves 15 and operating expenses of the division, the surplus funds shall 16 be transferred to the housing assistance fund created pursuant 17 to section 16.40 . 18 3. With the approval of the authority board , the division 19 and its board shall consult with the insurance division of the 20 department of insurance and financial services in developing 21 a guaranty contract acceptable to the secondary market and 22 developing any other feature of the program with which the 23 insurance division may have special expertise. Except as 24 provided in this subsection , the Iowa title guaranty program 25 is not subject to the jurisdiction of or regulation by the 26 insurance division or the commissioner of insurance. 27 6. Prior to the issuance of a title guaranty, the division 28 shall require evidence that an abstract of title to the 29 property in question has been brought up-to-date and certified 30 by a participating abstractor in a form approved by division 31 rules acceptable to the division, and a title opinion issued by 32 a participating attorney in the form approved in the rules a 33 form acceptable to the division stating the attorneys opinion 34 as to the title. The division shall require evidence of the 35 -9- LSB 1410SW (3) 91 nls/ko 9/ 23
S.F. 642 abstract being brought up-to-date and the abstractor shall 1 retain evidence of the abstract as determined by the board 2 division . 3 Sec. 28. Section 16.92, subsection 1, paragraph d, Code 4 2025, is amended by striking the paragraph. 5 Sec. 29. Section 16.92, subsection 1, paragraph e, Code 6 2025, is amended to read as follows: 7 e. Mortgage means a mortgage or mortgage lien on an 8 interest in real property in this state given to secure a loan 9 in an original principal amount equal to or less than the 10 maximum principal amount as determined by the division board 11 and adopted by the authority pursuant to rules promulgated 12 under chapter 17A . 13 Sec. 30. Section 16.93, subsection 1, unnumbered paragraph 14 1, Code 2025, is amended to read as follows: 15 The authority , through the Iowa title guaranty division , 16 may issue a closing protection letter to a person to whom a 17 proposed title guaranty is to be issued, upon the request of 18 the person, if the division issues a commitment for title 19 guaranty or title guaranty certificate. The closing protection 20 letter shall conform to the terms of coverage and form of the 21 instrument as approved by the division board and may indemnify 22 a person to whom a proposed title guaranty is to be issued 23 against loss of settlement funds due to only the following acts 24 of the divisions named participating attorney, participating 25 abstractor, or closer: 26 Sec. 31. Section 16.93, subsection 3, Code 2025, is amended 27 to read as follows: 28 3. The division board shall establish the amount of coverage 29 to be provided and may distinguish between classes of property 30 including, but not limited to, residential, agricultural, or 31 commercial, provided that the total amount of coverage provided 32 by the closing protection letter shall not exceed the amount 33 of the commitment or title guaranty to be issued. Liability 34 under the closing protection letter shall be coextensive with 35 -10- LSB 1410SW (3) 91 nls/ko 10/ 23
S.F. 642 liability under the certificate to be issued in connection with 1 a transaction such that payments under the terms of the closing 2 protection letter shall reduce by the same amount the liability 3 under the title guaranty certificate and payment under the 4 title guaranty certificate shall reduce the liability under the 5 terms of the closing protection letter. 6 DIVISION VIII 7 ARTS AND CULTURE 8 Sec. 32. Section 15.108, subsection 7, Code 2025, is amended 9 to read as follows: 10 7. Cultural affairs. To develop the states interest in 11 the areas of the arts, history, and other cultural matters. To 12 carry out this responsibility, the authority shall: 13 a. Accept, receive, and administer grants or other funds or 14 gifts from public or private agencies, including the federal 15 government, for the authority. 16 b. Administer the Iowa cultural trust, as advised and 17 assisted by the Iowa arts council, as provided in subchapter 18 II, part 30 , and do all of the following: 19 (1) Develop and adopt by rule criteria for the issuance 20 of trust fund credits by measuring the efforts of qualified 21 organizations to increase their endowment or other resources 22 for the promotion of the arts, history, or the sciences and 23 humanities in Iowa. For purposes of this paragraph, qualified 24 organization means a tax-exempt, nonprofit organization 25 whose primary mission is to promote the arts, history, or the 26 sciences and humanities in Iowa. If the authority determines 27 that a qualified organization has increased the amount of the 28 qualified organizations endowment and other resources, the 29 authority shall certify the amount of increase in the form of 30 trust fund credits to the treasurer, who shall deposit in the 31 Iowa cultural trust fund, from moneys received for purposes 32 of the trust fund as provided in section 15.479, subsection 33 2 , an amount equal to the trust fund credits. If the amount 34 of the trust fund credits issued by the authority exceeds the 35 -11- LSB 1410SW (3) 91 nls/ko 11/ 23
S.F. 642 amount of moneys available to be deposited in the trust fund as 1 provided in section 15.479, subsection 2 , the outstanding trust 2 fund credits shall not expire but shall be available to draw 3 down additional moneys which become available to be deposited 4 in the trust fund as provided in section 15.479, subsection 2 . 5 (2) Develop and implement, in accordance with subchapter 6 II, part 30 , a grant application process for grants issued to 7 qualified organizations. 8 (3) Develop and adopt by rule criteria for the approval of 9 Iowa cultural trust grants. The criteria shall include but 10 shall not be limited to the future stability and sustainability 11 of a qualified organization. 12 (4) Compile, in consultation with the Iowa arts council, 13 a list of grant applications recommended for funding in 14 accordance with the amount available for distribution as 15 provided in section 15.481, subsection 3 . 16 (5) Monitor the allocation and use of grant moneys by all 17 qualified organizations to determine whether moneys are used 18 in accordance with the provisions of this paragraph b and 19 subchapter II, part 30 . 20 c. b. Design a comprehensive, statewide, long-range plan 21 with the assistance of the Iowa arts council to develop the 22 arts in Iowa. The authority is designated as the state agency 23 for carrying out the plan. 24 d. c. By rule, establish Establish advisory groups as 25 necessary for the receipt of federal funds or grants or the 26 administration of any of the authoritys programs. 27 e. Develop and implement fee-based educational programming 28 opportunities, including preschool programs, related to arts, 29 history, and other cultural matters for Iowans of all ages. 30 f. Conduct surveys of existing art and cultural programs 31 and activities within the state, including but not limited to 32 music, theater, dance, painting, sculpture, architecture, and 33 allied arts and crafts. The authority shall submit, or include 34 as part of the annual report under section 15.107B , a report 35 -12- LSB 1410SW (3) 91 nls/ko 12/ 23
S.F. 642 on the survey to the governor and to the general assembly no 1 later than ten calendar days after the commencement of each 2 first session of the general assembly recommending appropriate 3 legislation or other action as the authority deems appropriate. 4 g. d. Establish and administer a film office. The purpose 5 of the film office is to assist legitimate film, television, 6 and video producers in Provide technical assistance for the 7 production of film, television, and video projects in the 8 state , and to increase the fiscal impact on the states economy 9 of film, television, and video projects produced in the state . 10 Sec. 33. Section 15.274, Code 2025, is amended to read as 11 follows: 12 15.274 Promotional program for national historic landmarks 13 and cultural and entertainment districts. 14 The economic development authority, in cooperation with 15 the state department of transportation, shall establish 16 and administer a program designed to promote knowledge of 17 and access to buildings, sites, districts, structures, and 18 objects located in this state that have been designated by the 19 secretary of the interior of the United States as a national 20 historic landmark, unless the national historic landmark is 21 protected under section 22.7, subsection 20 , and certified 22 cultural and entertainment districts, as established pursuant 23 to section 15.438 . The program shall be designed to maximize 24 the visibility and visitation of national historic landmarks 25 in this state and buildings, sites, structures, and objects 26 located in certified cultural and entertainment districts, 27 as established pursuant to section 15.438 . Methods used to 28 maximize the visibility and visitation of such locations may 29 include the use of tourism literature, signage on highways, 30 maps of the state and cities, and internet sites. For purposes 31 of this section , highway means the same as defined in section 32 325A.1 . 33 Sec. 34. Section 15.436, Code 2025, is amended by striking 34 the section and inserting in lieu thereof the following: 35 -13- LSB 1410SW (3) 91 nls/ko 13/ 23
S.F. 642 15.436 Arts and culture enhancement fund. 1 1. The economic development authority shall, pursuant 2 to section 15.106A, subsection 1, paragraph o , establish 3 the arts and culture enhancement fund to be used for the 4 purposes of this section. The fund shall consist of any moneys 5 appropriated by the general assembly for purposes of this 6 section and any other moneys that are lawfully available to 7 the authority. Notwithstanding section 12C.7, subsection 2, 8 interest or earnings on moneys in the fund shall accrue to 9 the authority and shall be used for purposes of this section. 10 Notwithstanding section 8.33, moneys in the fund at the end of 11 each fiscal year shall not revert to any other fund but shall 12 remain in the fund for expenditure for subsequent fiscal years. 13 2. The authority shall allocate moneys in the arts and 14 culture enhancement fund in appropriate amounts to be used for 15 the following purposes: 16 a. To provide support to municipal and nonprofit arts and 17 cultural organizations that serve as significant attractions 18 or community resources. 19 b. To support artists and entities that foster artistic and 20 cultural expression, promote lifelong learning and engagement 21 in the arts, advance community development goals, or emphasize 22 Iowas diverse heritage through the creation, performance, or 23 presentation of artworks. 24 c. To increase access to arts and culture in rural and 25 underserved communities in the state. 26 d. For the promotion of and investment in film, television, 27 and video projects produced in the state. 28 e. To address other goals and priorities as reflected in 29 the comprehensive, statewide, long-range plan designed by the 30 authority with the assistance of the Iowa arts council pursuant 31 to section 15.108, subsection 7. 32 f. For administrative costs related to this section. 33 3. The authority may adopt by rule eligibility and priority 34 criteria for allocation of moneys in the arts and culture 35 -14- LSB 1410SW (3) 91 nls/ko 14/ 23
S.F. 642 enhancement fund. 1 Sec. 35. Section 15.465, subsection 2, Code 2025, is amended 2 to read as follows: 3 2. The term of office of each member of the Iowa arts 4 council is three years. The governor shall designate council 5 may elect a chairperson and a vice chairperson from the members 6 of the council to serve at the pleasure of the governor . All 7 vacancies shall be filled for the balance of any unexpired term 8 in the same manner as original appointments. The members of 9 the council shall not receive compensation for their services, 10 but shall be reimbursed for their actual and necessary expenses 11 incurred in the performance of their duties as members of the 12 council. Members may also be eligible for compensation as 13 provided in section 7E.6 . 14 Sec. 36. Section 15.466, Code 2025, is amended to read as 15 follows: 16 15.466 Duties of Iowa arts council. 17 The Iowa arts council shall review programs to be supported 18 and make recommendations on the programs to the director to 19 ensure that Iowa citizens and communities have access to the 20 cultural, civic, economic, and educational benefits of the 21 arts . The council may solicit public input including but not 22 limited to input on the comprehensive, statewide, long-range 23 plan created by the authority with the assistance of the Iowa 24 arts council pursuant to section 15.108, subsection 7. 25 Sec. 37. Section 15H.6, subsection 3, Code 2025, is amended 26 to read as follows: 27 3. The capacity building activities shall be targeted in 28 communities that are already working with existing community 29 improvement programs, including but not limited to the Iowa 30 great places program established under section 15.439 , the 31 green streets and main street Iowa programs administered by 32 the economic development authority, and disaster remediation 33 activities by communities located within an area declared to be 34 a disaster area in a declaration issued by the president of the 35 -15- LSB 1410SW (3) 91 nls/ko 15/ 23
S.F. 642 United States or the governor. 1 Sec. 38. Section 99F.11, subsection 4, paragraph d, 2 subparagraph (1), Code 2025, is amended to read as follows: 3 (1) Five hundred twenty thousand dollars is appropriated 4 each fiscal year to the economic development authority with 5 one-half of the moneys allocated for operational support grants 6 and the remaining one-half allocated for the community cultural 7 grants program established under for deposit in the arts and 8 culture enhancement fund established in section 15.436 . 9 Sec. 39. REPEAL. Sections 15.437, 15.438, 15.439, 15.440, 10 15.441, 15.476, 15.477, 15.478, 15.479, 15.481, and 15.482, 11 Code 2025, are repealed. 12 Sec. 40. TRANSFER OF MONEYS. On the effective date of this 13 division of this Act, all unencumbered and unobligated moneys 14 remaining in the Iowa great places program fund created in 15 section 15.440, the Iowa cultural trust fund created in section 16 15.479, and the Iowa cultural trust grant account created 17 in section 15.482 are transferred to the arts and culture 18 enhancement fund established pursuant to section 15.436, as 19 amended by this division of this Act. 20 DIVISION IX 21 CONFORMING CHANGES 22 Sec. 41. Section 16.6, subsection 4, Code 2025, is amended 23 to read as follows: 24 4. The director may establish administrative divisions 25 within the authority in order to most efficiently and 26 effectively carry out the authoritys responsibilities, 27 provided that any creation or modification of authority 28 divisions be established only after consultation with the board 29 of the authority . 30 Sec. 42. Section 16.64, subsection 1, Code 2025, is amended 31 to read as follows: 32 1. The authority shall publish a notice of intention to 33 issue bonds or notes. After sixty days from the date of 34 publication of the notice, an action shall not be brought 35 -16- LSB 1410SW (3) 91 nls/ko 16/ 23
S.F. 642 questioning the legality of any bonds or notes or the power of 1 the authority to issue any bonds or notes or to the legality 2 of any proceedings in connection with the authorization or 3 issuance of the bonds or notes after determination by the board 4 of the authority to proceed with the issuance of the bonds or 5 notes. 6 DIVISION X 7 IOWA REINVESTMENT ACT DISTRICT ESTABLISHMENT 8 Sec. 43. Section 15J.4, subsection 1, paragraph c, Code 9 2025, is amended to read as follows: 10 c. For districts approved before July 1, 2018, the area 11 consists of contiguous parcels and does not exceed twenty-five 12 acres in total. For districts approved on or after July 1, 13 2020, the area consists of contiguous parcels and does not 14 exceed seventy-five one hundred twenty-five acres in total. 15 Sec. 44. RETROACTIVE APPLICABILITY. This division of this 16 Act applies retroactively to July 1, 2020. 17 EXPLANATION 18 The inclusion of this explanation does not constitute agreement with 19 the explanations substance by the members of the general assembly. 20 This bill relates to matters under the purview of the 21 economic development authority and the Iowa finance authority 22 including the strategic infrastructure program, brownfield, 23 grayfield, and redevelopment tax credits, community attraction 24 and tourism, vision Iowa, sports tourism marketing, the 25 historic preservation tax credit, homelessness, the title 26 guaranty board, arts and culture, and the Iowa reinvestment 27 Act. 28 Division I eliminates the requirement that the Iowa 29 innovation council review and make recommendations on all 30 applications received by the Iowa economic development 31 authority (IEDA) for financial assistance under the Iowa 32 strategic infrastructure program, and instead requires a 33 committee appointed by the IEDA director to conduct a review 34 and make recommendations. 35 -17- LSB 1410SW (3) 91 nls/ko 17/ 23
S.F. 642 Division II repeals the brownfield redevelopment program, 1 fund, and advisory council (council). 2 The bill requires that the amount of a redevelopment tax 3 credit be determined by members of the IEDA appointed by the 4 governor (the board), rather than determined by the board 5 in conjunction with the council as required under current 6 law. The IEDA shall accept and review applications for the 7 redevelopment tax credit and make award recommendations to 8 the board, rather than accept and review applications in 9 conjunction with the council as required under current law. 10 The IEDA may engage outside experts to complete a technical, 11 financial, or other review. The bill makes conforming changes 12 related to elimination of the council. 13 Under current law, upon completion of a registered project 14 for redevelopment tax credits, an audit of the project 15 completed by an independent certified public accountant (CPA) 16 shall be submitted to the IEDA. Under the bill, the investor 17 shall engage a CPA to conduct an examination of the project 18 and submit the examination, and a statement of the amount of 19 final qualifying investments, to the IEDA. Upon review of the 20 examination and statement, the IEDA may issue a tax credit 21 certificate to the investor. 22 On the effective date of the bill, all unencumbered and 23 unobligated moneys remaining in the brownfield redevelopment 24 fund are transferred to a fund or funds established pursuant to 25 Code section 15.335B, as determined by the IEDA. 26 Division III eliminates the requirement that an applicant 27 awarded financial assistance under both the vision Iowa program 28 and the community attraction and tourism program provide and 29 pay at least 50 percent of the cost of a standard medical 30 insurance plan for all full-time employees after the completion 31 of the project for which financial assistance was received. 32 This division applies to applicants awarded financial 33 assistance under both programs on or after the effective date 34 of the bill, and applies retroactively to applicants awarded 35 -18- LSB 1410SW (3) 91 nls/ko 18/ 23
S.F. 642 financial assistance under both programs prior to the effective 1 date of the bill. 2 Under division IV, the director of the IEDA shall appoint a 3 review committee composed of members with relevant expertise to 4 review community attraction and tourism program applications 5 and sports tourism marketing and infrastructure program 6 applications. Under current law, the review committee is 7 composed of five members of the IEDA board. 8 Division V requires, in addition to existing requirements 9 for the historic preservation tax credit program (historic 10 tax program) under current law, for a project for the 11 rehabilitation of property to be considered a qualified 12 rehabilitation project (project), that the property not be a 13 single-family dwelling unit, unless the project will result 14 in two or more new single-family dwelling units that were 15 not available for occupancy for at least six months prior to 16 the project, and the dwelling units are located in the same 17 neighborhood as confirmed by the IEDA. The single-family 18 dwelling units must be made available for occupancy as a result 19 of the project. The IEDA may promulgate rules that specify the 20 criteria used to determine if a property is a single-family 21 dwelling unit, and to determine if a property is a qualified 22 rehabilitation project. 23 Currently, the refundability of a historic preservation tax 24 credit in excess of tax liability is gradually reduced until 25 the tax credit is 75 percent refundable for tax years beginning 26 on or after January 1, 2027. The bill strikes the gradual 27 reduction of the tax credit refundability and makes the tax 28 credit 100 percent refundable for tax years beginning on or 29 after January 1, 2026. The historic preservation tax credit 30 certificate is also currently transferable to another taxpayer. 31 The bill prohibits such a transfer to another taxpayer on or 32 after January 1, 2026. 33 Under current law, upon successful registration of a 34 project under the historic tax program, the eligible taxpayer 35 -19- LSB 1410SW (3) 91 nls/ko 19/ 23
S.F. 642 (taxpayer) shall enter into an agreement with the IEDA that 1 contains mutually agreeable terms and conditions including the 2 commencement date of the project, which shall not be later than 3 the end of the fiscal year in which the agreement is entered 4 into, and the completion date of the project, which shall be 5 within 36 months of the commencement date. Under the bill, 6 the date by which the project must commence shall be no later 7 than one calendar year from the registration date, except 8 that upon application of the taxpayer the IEDA may extend the 9 date of commencement up to 12 additional months. The date by 10 which the project must be completed shall be no later than 11 three consecutive calendar years from the registration date, 12 except that upon application of the taxpayer, the IEDA may 13 extend the date of commencement up to another 12 months. The 14 project is complete as of the date the property is placed in 15 service. Upon application of the taxpayer made prior to the 16 expiration of the 12-month extension, the IEDA may extend the 17 date by which the project must be completed up to an additional 18 12 months. The taxpayer must substantiate that the requested 19 extension is warranted due to extenuating circumstances. 20 Under the bill, the IEDA may grant historic preservation 21 tax credits beyond the aggregate tax credit award limit in one 22 fiscal year if, during that fiscal year, the IEDA receives an 23 application for a project that has qualified rehabilitation 24 expenditures that, if registered, would make the taxpayer 25 eligible for tax credits of $10 million or more. The IEDA is 26 then permitted to award tax credits during that fiscal year not 27 to exceed 20 percent more than the maximum aggregate tax credit 28 award limit. Such tax credits awarded shall be considered for 29 purposes of calculating the maximum aggregate tax credit award 30 limit in the immediately succeeding fiscal year. 31 Under division VI, the Iowa finance authority (IFA) may 32 adopt rules to carry out the duties of the IFA related to 33 homelessness, and may establish internal rules of procedure, 34 consistent with the requirements of the federal McKinney-Vento 35 -20- LSB 1410SW (3) 91 nls/ko 20/ 23
S.F. 642 Homeless Assistance Act. Under current law, the IFA must adopt 1 rules. 2 Division VII eliminates the title guaranty division board. 3 The powers of the title guaranty division relating to the 4 issuance of title guaranties are vested in the IFA board of 5 directors. The director of the IFA shall appoint an attorney 6 as director of the division, and the division directors 7 appointment and compensation shall be exempt from the merit 8 system. The bill makes conforming changes to Code sections 9 16.1A, 16.91, 16.92, and 16.93. 10 Division VIII is related to arts and culture. Under current 11 law, the IEDA is responsible for the Iowa cultural trust, 12 including the issuance of trust fund credits for the promotion 13 of the arts, history, or the sciences and humanities; the 14 issuance of grants for qualified organizations; developing and 15 implementing fee-based educational programming opportunities; 16 conducting surveys of existing art and cultural programs 17 and activities within the state; and the establishment and 18 administration of a film office. The bill maintains the 19 responsibility for the IEDA to accept, receive, and administer 20 grants or other funds or gifts from public or private agencies; 21 to design and carry out a comprehensive, statewide, long-range 22 plan (plan) with the assistance of the Iowa arts council to 23 develop the arts in Iowa; and to establish advisory groups for 24 the receipt of federal funds or grants or the administration 25 of the IEDAs programs. Under the bill, the IEDA is no longer 26 required to establish and administer a film office. Instead, 27 the IEDA is responsible for providing technical assistance for 28 the production of film, television, and video projects in the 29 state. 30 The bill eliminates certified cultural and entertainment 31 districts. The bill eliminates the cultural grant programs 32 under current law, which requires the IEDA to establish 33 a grant program for cities and nonprofit, tax-exempt 34 community organizations for the development of community 35 -21- LSB 1410SW (3) 91 nls/ko 21/ 23
S.F. 642 programs that provide local jobs for Iowa residents and 1 promote Iowas historic, ethnic, and cultural heritages 2 through the development of festivals, music, drama, cultural 3 programs, or tourist attractions. Additionally, the IEDA 4 is required to establish a grant program which provides 5 general operating budget support to major, multidisciplinary 6 cultural organizations that demonstrate cultural and managerial 7 excellence on a continuing basis to the citizens of Iowa. 8 Instead, the bill creates the arts and culture enhancement 9 fund (enhancement fund), under which the IEDA shall allocate 10 moneys to the fund to provide support to municipal and 11 nonprofit arts and cultural organizations that serve as 12 significant attractions or community resources; to support 13 artists and entities that foster artistic and cultural 14 expression, promote lifelong learning and engagement in the 15 arts, advance community development goals, or emphasize Iowas 16 diverse heritage through artwork; to increase access to arts 17 and culture in rural and underserved communities; for the 18 promotion of and investment in film, television, and video 19 projects produced in the state; and to address other goals and 20 priorities in the plan designed by the IEDA. The enhancement 21 fund consists of moneys appropriated by the general assembly 22 and any other moneys that are lawfully available to the IEDA. 23 Each fiscal year, $520,000 is appropriated from gambling 24 and sports wagering taxes to the IEDA for deposit in the 25 enhancement fund. The IEDA may establish and adopt by rule 26 eligibility and priority criteria for allocation of moneys in 27 the enhancement fund. 28 The Iowa arts council (arts council) may elect a chairperson 29 and vice chairperson from the members of the arts council, 30 rather than being designated by the governor under current law. 31 In addition to duties under current law, the arts council is 32 required to recommend programs to ensure that Iowa citizens and 33 communities have access to the cultural, civic, economic, and 34 educational benefits of the arts. 35 -22- LSB 1410SW (3) 91 nls/ko 22/ 23
S.F. 642 The bill repeals Code sections 15.437 through 15.441, 15.476 1 through 15.479, 15.481, and 15.482, eliminating the Iowa 2 cultural trust Act, including the Iowa cultural trust, trust 3 fund, grant account, and board of trustees, and eliminates the 4 arts and cultural conferences and caucuses, the cultural and 5 entertainment districts, the Iowa great places program and 6 fund, and the culture, history, and arts teams program. 7 On the effective date of this division of the bill, all 8 unencumbered and unobligated moneys remaining in the Iowa 9 great places program fund, Iowa cultural trust fund, and Iowa 10 cultural trust grant account are transferred to the arts and 11 culture enhancement fund established in the bill. 12 Division IX makes conforming changes to Code sections 16.6 13 and 16.64. 14 Under division X, if in addition to meeting the other 15 requirements under current law, a district approved on or after 16 July 1, 2020, consists of contiguous parcels and no more than 17 125 acres, the district may be eligible to be designated as 18 a reinvestment district. This division of the bill applies 19 retroactively to July 1, 2020. 20 -23- LSB 1410SW (3) 91 nls/ko 23/ 23