Bill Text: IA HF2418 | 2013-2014 | 85th General Assembly | Introduced
Bill Title: A bill for an act relating to the targeted jobs withholding tax credit program by modifying the number and qualification of cities that may participate in the program.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Introduced - Dead) 2014-03-04 - Subcommittee, Moore, Rogers, and Wood. H.J. 417. [HF2418 Detail]
Download: Iowa-2013-HF2418-Introduced.html
House
File
2418
-
Introduced
HOUSE
FILE
2418
BY
LYKAM
,
THEDE
,
WOOD
,
and
WINCKLER
A
BILL
FOR
An
Act
relating
to
the
targeted
jobs
withholding
tax
credit
1
program
by
modifying
the
number
and
qualification
of
cities
2
that
may
participate
in
the
program.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
Section
403.19A,
subsection
2,
Code
2014,
is
1
amended
to
read
as
follows:
2
2.
a.
An
eligible
city
may
apply
for
designation
as
a
pilot
3
project
city
pursuant
to
this
subsection
.
An
eligible
city
is
4
a
city
that
wholly
contains
three
or
more
census
tracts
and
is
5
located
in
a
county
meeting
one
of
the
following
requirements:
6
(1)
A
county
that
borders
Nebraska.
7
(2)
A
county
that
borders
South
Dakota.
8
(3)
A
county
that
borders
a
state
other
than
Nebraska
or
9
South
Dakota.
10
(4)
A
county
that
borders
Illinois.
11
b.
(1)
The
department
of
economic
development
shall
12
approve
four
five
eligible
cities
as
pilot
project
cities,
one
13
pursuant
to
paragraph
“a”
,
subparagraph
(1),
one
pursuant
to
14
paragraph
“a”
,
subparagraph
(2),
and
two
pursuant
to
paragraph
15
“a”
,
subparagraph
(3)
,
and
one
pursuant
to
paragraph
“a”
,
16
subparagraph
(4)
.
The
city
approved
pursuant
to
paragraph
17
“a”
,
subparagraph
(4),
shall
have
a
population
of
at
least
18
eighty-five
thousand
six
hundred
residents
but
not
more
than
19
one
hundred
ten
thousand
residents,
which
city
shall
be
located
20
in
a
county
with
a
population
of
at
least
one
hundred
twenty
21
thousand
residents
but
not
more
than
one
hundred
seventy
22
thousand
residents,
as
determined
by
the
2010
certified
federal
23
census.
If
two
eligible
cities
are
approved
which
are
located
24
in
the
same
county
and
the
county
has
a
population
of
less
than
25
forty-five
thousand,
the
two
approved
eligible
cities
shall
be
26
considered
one
pilot
project
city.
If
more
than
two
cities
27
meeting
the
requirements
of
paragraph
“a”
,
subparagraph
(3),
28
apply
to
be
designated
as
a
pilot
project
city,
the
department
29
of
economic
development
shall
determine
which
two
cities
hold
30
the
most
potential
to
create
new
jobs
or
generate
the
greatest
31
capital
within
their
areas.
Applications
from
eligible
32
cities
seeking
approval
under
paragraph
“a”
,
subparagraph
(1),
33
(2),
or
(3),
filed
on
or
after
October
1,
2006,
shall
not
be
34
considered.
Applications
from
eligible
cities
seeking
approval
35
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under
paragraph
“a”
,
subparagraph
(4),
filed
on
or
after
January
1
1,
2015,
shall
not
be
considered.
2
(2)
If
a
pilot
project
city
does
not
enter
into
a
3
withholding
agreement
within
one
year
of
its
approval
as
a
4
pilot
project
city,
the
city
shall
lose
its
status
as
a
pilot
5
project
city.
If
two
pilot
project
cities
are
located
in
the
6
same
county,
the
loss
of
status
by
one
pilot
project
city
shall
7
not
cause
the
second
pilot
project
city
in
the
county
to
lose
8
its
status
as
a
pilot
project
city.
Upon
such
occurrence,
the
9
department
of
economic
development
shall
take
applications
from
10
other
eligible
cities
to
replace
that
city.
Another
city
shall
11
be
designated
within
six
months.
12
(3)
On
July
1,
2011,
the
economic
development
authority
13
shall
assume
responsibility
for
the
administration
of
this
14
subsection
.
15
EXPLANATION
16
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
17
the
explanation’s
substance
by
the
members
of
the
general
assembly.
18
This
bill
relates
to
the
targeted
jobs
withholding
tax
19
credit
pilot
project,
which
is
a
program
that
allows
pilot
20
project
cities
to
enter
into
withholding
agreements
with
21
businesses
that
meet
certain
job
creation,
capital
investment,
22
and
private
financial
support
requirements
within
the
city.
23
Withholding
agreements
provide
for
the
diversion
of
a
certain
24
percentage
of
the
gross
wages
paid
by
the
business
to
the
pilot
25
project
city
for
a
project
related
to
the
employer
pursuant
to
26
the
agreement.
27
Under
current
law,
the
program
is
restricted
to
four
pilot
28
project
cities;
one
in
a
county
bordering
Nebraska,
one
in
a
29
county
bordering
South
Dakota,
and
two
in
counties
bordering
30
states
other
than
Nebraska
or
South
Dakota.
However,
a
county
31
with
a
population
of
less
than
45,000
residents
may
count
32
two
cities
as
one
pilot
project
city.
The
current
pilot
33
project
cities
are
Sioux
City,
Fort
Madison,
Council
Bluffs,
34
Burlington,
and
Keokuk.
35
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The
bill
amends
the
requirement
that
eligible
cities
contain
1
three
or
more
census
tracts
to
specify
that
eligible
cities
2
wholly
contain
three
or
more
census
tracts.
3
The
bill
allows
an
additional
eligible
city
from
a
county
4
that
borders
Illinois
to
be
designated
as
a
pilot
project
5
city.
In
order
to
qualify,
the
city
must
have
a
population
6
of
86,500
to
110,000
residents,
and
must
be
located
in
a
7
county
with
a
population
of
120,000
to
170,000
residents,
as
8
determined
by
the
2010
certified
federal
census.
The
bill
9
allows
applications
from
eligible
cities
for
designation
as
10
this
pilot
project
city
to
be
filed
before
January
1,
2015.
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