Iowa Admin. Code r. 261-65.8
Current through Register Vol. 47, No. 11, December 11, 2024
Rule 261-65.8 - Application to the redevelopment tax credits program-registration of projects-agreements(1)System for application, review, registration, and authorization of projects. The authority will administer a system for application, review, registration, and authorization of projects as described in this subrule and will only issue tax credit certificates pursuant to subrule 65.11(3). a. The authority will accept and, in conjunction with the council, review applications for tax credits provided in Iowa Code section 15.293A and, with the approval of the council, make tax credit award recommendations regarding the applications to the board.b. Applications for redevelopment tax credits will only be accepted during the established application period as provided in subrule 65.6(2).c. Upon review of an application, the authority may register the project with the redevelopment tax credits program. If the authority registers the project, the authority may, in conjunction with the council, make a preliminary determination as to the amount of tax credit for which an award recommendation will be made to the board.d. After registering the project, the authority will notify the investor of successful registration under the redevelopment tax credits program. The notification may include the amount of tax credit for which an award recommendation will be made to the board. If an award recommendation is included in the notification, such notification will include a statement that the award recommendation is a recommendation only. The amount of tax credit included on a tax credit certificate issued pursuant to this rule shall be contingent upon an award by the board and upon completion of the requirements in this rule.e.(1) All completed applications will be reviewed and scored, pursuant to subrule 65.8(2), on a competitive basis by the council and the board. In reviewing and scoring applications, the council and the board may consider any factors the council and board deem appropriate for a competitive application process, including but not limited to the financial need, quality, and feasibility ofa qualifying redevelopment project.(2) For purposes of this rule: 1."Feasibility" means the likelihood that the project will obtain the financing necessary to allow for full completion of the project and the likelihood that the proposed redevelopment or improvement that is the subject of the project will be fully completed.2."Financial need" means the difference between the total costs of the project less the total financing that will be received for the project.3."Quality" means the merit of the project after considering and evaluating its total characteristics and measuring those characteristics in a uniform, objective manner against the total characteristics of other projects that have applied for the tax credit provided in this chapter during the same established application period.f. Upon reviewing and scoring all applications that are part of an annual application period, the board may award tax credits provided in this chapter.g. If the applicant for a tax credit provided in this chapter has also applied to an agency of the federal government or to the authority, the board, or any other agency of state government for additional financial assistance, the authority, the council, and the board will consider the amount of funding to be received from such public sources when making a tax credit award pursuant to this rule.h. An applicant that is unsuccessful in receiving a tax credit award during an established application period may make additional applications during subsequent application periods. Such applicants must submit a new application and must be competitively reviewed and scored in the same manner as other applicants in that same application period.(2)Scoring criteria.a. Each application for tax credits during each established application period will be scored according to criteria set forth in this paragraph. Points will be added together and the resulting score averaged with the scores of applications evaluated by all council members. Scoring criteria include:(1) The project's feasibility: 25 points.(2) The project's financial need: 25 points.(3) The project's quality: 25 points.b. There is no minimum score required for a project to receive a recommendation for funding, but a higher score indicates that the council views a project more favorably. The council's funding recommendation will reflect its overall view of the project in relation to other applying projects.(3)Required information. An investor applying for a tax credit shall provide the authority with all of the following:a. Information showing the total costs of the qualifying redevelopment project, including the costs of land acquisition, cleanup, and redevelopment.b. Information about the financing sources of the investment which are directly related to the qualifying redevelopment project for which the investor is seeking approval for a tax credit, as provided in this chapter.c. Any other information deemed necessary by the board and the council to review and score the application pursuant to this rule.(4)Agreement required-recapture of credits. If an investor is awarded a tax credit pursuant to this rule, the authority and the investor shall enter into an agreement concerning the qualifying redevelopment project. If the investor fails to comply with any of the requirements of the agreement, the authority may find the investor in default under the agreement and may revoke all or a portion of the tax credit award. The department of revenue, upon notification by the authority of an event of default, shall seek repayment of the value of any such tax credit already claimed in the same manner as provided in Iowa Code section 15.330(2).(5)Project completion. A registered project shall be completed within 30 months of the date the project was registered unless the authority provides additional time to complete the project. If the registered project is not completed within the time required, the project is not eligible to claim a tax credit pursuant to this chapter.(6)Audit required.a. Upon completion of a registered project, an audit of the project, completed by an independent certified public accountant licensed in this state, must be submitted to the authority.b. Upon review of the audit and verification of the amount of the qualifying investment, the authority will issue a tax credit certificate to the investor stating the amount of tax credit that the investor may claim.Iowa Admin. Code r. 261-65.8
ARC 7844B, lAB 6/17/09, effective 7/22/09; ARC 9746B, lAB 9/7/11, effective 8/19/11; ARC 0007C, lAB 2/8/12, effective 3/14/12Amended by IAB January 21, 2015/Volume XXXVII, Number 15, effective 2/25/2015Amended by IAB June 19, 2019/Volume XLI, Number 26, effective 7/24/2019Amended by IAB November 17, 2021/Volume XLIV, Number 10, effective 12/22/2021