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.
(2)
Amendments. The
department may for good cause amend an agreement. However, the department may
not amend an agreement to allow cost overruns in excess of the amount described
in paragraph 48.32(1)"c." In addition, the commencement date,
completion date, and agreement termination date may not be amended if such an
amendment would violate the statutorily prescribed time limits as described in
Iowa Code section 404A.3(3). Any
amendment approved by the department shall be signed by both parties.
(3)
Authority. Only the
director or deputy director may enter into agreements on behalf of the
department. Any agreement entered into on behalf of the department by a person
other than the director or deputy director shall be void.
This rule is intended to implement Iowa Code section
404A.3 as amended by 2014 Iowa
Acts, House File 2453.
Notes
Iowa Code r. 223-48.32
ARC 1970C,
IAB 4/15/15, effective 5/20/15
Adopted
by
IAB
April 15, 2015/Volume XXXVII, Number 21, effective
5/20/2015
