Iowa Code § 404A.1
Definitions
Redline — January 1, 2012 → current.View current text →
Current — January 1, 2026
As of January 1, 2012
1. a. A historic preservation and cultural and entertainment district tax credit, subject to the availability of the credit, is granted against the tax imposed under chapter 422, division II, III, or V, or chapter 432, for the substantial rehabilitation of eligible property located in this state as provided in this chapter.
b. Tax credits in excess of tax liabilities shall be refunded or credited as provided in section 404A.4, subsection 3.
For purposes of this chapter, unless the context otherwise requires:
a. “Eligible property” means property for which a taxpayer may receive the historic preservation and cultural and entertainment district tax credit computed under this chapter and includes all of the following:
1. “Authority” means the economic development authority created in section 15.105.
2. “Eligible taxpayer” means the owner of the property that is the subject of a qualified rehabilitation project, or another person who will qualify for the federal rehabilitation credit allowed under section 47 of the Internal Revenue Code with respect to the property that is the subject of a qualified rehabilitation project.
3. “Nonprofit organization” means an organization described in section 501 of the Internal Revenue Code unless the exemption is denied under section 501, 502, 503, or 504 of the Internal Revenue Code. “Nonprofit organization” does not include a governmental body, as that term is defined in section 362.2.
4. “Program” shall mean the historic preservation tax credit program set forth in this chapter.
5. a. “Qualified rehabilitation expenditures” means the same as defined in section 47 of the Internal Revenue Code. Notwithstanding the foregoing sentence, expenditures incurred by an eligible taxpayer that is a nonprofit organization shall be considered “qualified rehabilitation expenditures” if they are any of the following:
(1) Expenditures made for structural components, as that term is defined in 26 C.F.R. §1.48-1(e)(2).
(2) Expenditures made for architectural and engineering fees, site survey fees, legal expenses, insurance premiums, and development fees.
b. “Qualified rehabilitation expenditures” does not include those expenditures financed by federal, state, or local government grants or forgivable loans unless otherwise allowed under section 47 of the Internal Revenue Code.
c. “Qualified rehabilitation expenditures” may include expenditures incurred prior to the date an agreement is entered into under section 404A.3, subsection 3.
6. “Qualified rehabilitation project” means a project for the rehabilitation of property in this state that meets all of the following criteria:
a. The property is at least one of the following:
(1) Property listed on the national register of historic places or eligible for such listing.
(1) Property listed on the national register of historic places or eligible for such listing.
(2) Property designated as of historic significance to a district listed in the national register of historic places or eligible for such designation.
(2) Property designated as of historic significance to a district listed in the national register of historic places or eligible for such designation.
(3) Property or district designated a local landmark by a city or county ordinance.
(3) Property or district designated a local landmark by a city or county ordinance.
(4) A barn constructed prior to 1937.
(4) A barn constructed prior to 1937.
b. “Placed in service” means the same as used in section 47 of the Internal Revenue Code.
c. “Qualified rehabilitation costs” means expenditures made for the rehabilitation of eligible property and includes qualified rehabilitation expenditures as defined in section 47 of the Internal Revenue Code.
(1) Qualified rehabilitation costs include amounts if they are properly includable in computing the basis for tax purposes of the eligible property.
(2) Amounts treated as an expense and deducted in the tax year in which they are paid or incurred and amounts that are otherwise not added to the basis for tax purposes of the eligible property are not qualified rehabilitation costs.
(3) Amounts incurred for architectural and engineering fees, site survey fees, legal expenses, insurance premiums, development fees, and other construction-related costs are qualified rehabilitation costs to the extent they are added to the basis for tax purposes of the eligible property.
(4) Costs of sidewalks, parking lots, and landscaping do not constitute qualified rehabilitation costs.
d. “Rehabilitation period” means the period of time during which an eligible property is rehabilitated commencing from the date on which the first qualified rehabilitation cost is incurred and ending with the end of the taxable year in which the property is placed in service. A project’s rehabilitation period may include dates that precede approval of a project under section 404A.3, but any costs incurred prior to such approval must be qualified rehabilitation costs.
b. The property meets the physical criteria and standards for rehabilitation established by the authority by rule. To the extent applicable, the physical standards and criteria shall be consistent with the United States secretary of the interior’s standards for rehabilitation.
c. The project has qualified rehabilitation expenditures that meet or exceed the following:
(1) In the case of commercial property, costs totaling at least fifty percent of the assessed value of the property, excluding the land, prior to the rehabilitation.
(1) In the case of commercial property, expenditures totaling at least fifty thousand dollars or fifty percent of the assessed value of the property, excluding the land, prior to rehabilitation, whichever is less.
(2) In the case of residential property or barns, costs totaling at least twenty-five thousand dollars or twenty-five percent of the assessed value, excluding the land, prior to rehabilitation, whichever is less.
(2) In the case of property other than commercial property, including but not limited to barns constructed prior to 1937, expenditures totaling at least twenty-five thousand dollars or twenty-five percent of the assessed value, excluding the land, prior to rehabilitation, whichever is less.
Referred to in
2007 amendment to subsection 1 applies to historic preservation and cultural and entertainment district tax credits applied for or reserved prior to July 1, 2007; 2007 Acts, ch 165, §9
2011 amendments to this section apply retroactively to July 1, 2009, for projects approved and tax credits reserved on or after that date; 2011 Acts, ch 99, §6; 2011 Acts, ch 130, §35
Section amended
d. The property is not a single-family dwelling unit, unless the project will result in two or more new single-family dwelling units that were not available for occupancy as residential housing during the immediately preceding consecutive six months prior to commencement of the project, and the dwelling units are located in the same neighborhood, as confirmed by the authority. The two or more new single-family dwelling units must be made available for occupancy as a result of the rehabilitation project. The authority may promulgate by rule criteria used by the authority to determine if a property is a single-family dwelling unit, and qualifies as a qualified rehabilitation project under this paragraph.
7. “Registration date” means the date on which the authority notifies an eligible taxpayer of successful registration of the taxpayer’s qualified rehabilitation project pursuant to section 404A.3, subsection 2.
Subsection 2 stricken and former subsections 3 – 7 renumbered as 2 – 6
Subsection 6, NEW paragraph d
NEW subsection 7
Official source: Iowa Legislature. Reproduced from public-domain Iowa statutes; confirm against the official source for the current text. Not legal advice.