Tax Increment Financing
"There will be a TIF Bill this session," House Ways and Means Chairman Tom Sands said at the first Ways & Means Committee meeting of the session. We do not yet know what will be in it, but most likely some combination of a ban on the use of TIF for public buildings, a limitation on TIF debt that goes above and beyond the constitutional debt limit, and maybe some other pieces.
PDI members should be sure to reach out to their legislators in the days ahead and talk to them about the TIF projects that have been vital to your area. When we see a bill and can assess what changes it proposes, it will be easier at that point to go back to legislators to talk to them about the legislation.
In the next few days, we should see an Enterprise Zone bill introduced by the IEDA. The program is set to expire at the end of June, and action is needed to be able to extend the program. The IEDA engaged PDI through the last year in trying to put together a proposal that keeps the major elements of the program that PDI supports while still fixing some of the administrative nightmares the IEDA deals with in trying to keep tabs on 1,400+ zones. The IEDA produced a summary of the proposal that you can view HERE.
In a nutshell, the PDI members involved in the helping the IEDA arrive at this proposal believe the IEDA did a good job of coming up with an Enterprise Zone bill that represents a middle ground between all the parties involved. PDI brought several changes to the table that the IEDA has been gracious about accepting. At the end of the day, while there are still a couple of things we would push even farther, we are satisfied that the IEDA proposal strikes a good balance between value to the users of the program, manageability by the IEDA, and something we think we can get the Legislature to pass. Please take some time to look over the proposal yourself and weigh in if you have thoughts about improving it even further.
During his Condition of the State address, the Governor talked about his goal to extend broadband access across Iowa. Days later, he introduced comprehensive legislation (HSB 515) to do just that. Please take a moment to look over the legislation and weigh in with your legislators with your thoughts. They will want to hear your feedback as they move this bill through the process.
Another goal the Governor outlined in his Condition of the State deals with expanding apprenticeships. This bill (SSB 3052) was just introduced and will undoubtedly be looked at closely, as it makes some major changes to the 260F program. The IEDA has prepared a document that summarizes the proposal that is available HERE.
Brownfield and Grayfield Redevelopment
The IEDA has introduced legislation (SSB 3050) to make several enhancements to the Brownfield and Grayfield Redevelopment Tax Credit program, including adding eligibility for public buildings. You can view a summary of this proposal HERE.