Legislation brings more predictability to program; elevates project "readiness"

(DES MOINES) - Governor Terry Branstad today signed legislation that strengthens and brings more predictability to the State Historic Preservation and Cultural & Entertainment District Tax Credit Program overseen by the Department of Cultural Affairs (DCA). Lt. Governor Kim Reynolds, DCA Director Mary Cownie and Dubuque businessman John Gronen and others joined Branstad for the signing ceremony at the Salisbury House in Des Moines.

"This program plays a major role in revitalizing Iowa's communities, generating economic opportunities and creating jobs for Iowans," said Branstad. "Future generations of Iowans will have historic buildings available to connect with earlier generations that made Iowa a great place to live. I thank the Iowa Legislature for passing this bill and it is my great pleasure to sign it.  By signing this bill, I fully support the joint efforts of the Iowa Department of Cultural Affairs and the Iowa Legislature to improve the State Historic Preservation Tax Credit Program, which to date boasts more than one billion dollars of investments in Iowa's communities."

"This new legislation maintains the objectives of the program as originally introduced in 2001, while improving the Department of Cultural Affairs State Historic Preservation Office's ability to effectively distribute the tax credits," said Reynolds. "The changes to the current program all have one common end goal: more predictability."

The Iowa Legislature originally enacted the program to provide a state income tax credit of 25 percent of qualified costs for the rehabilitation of historic buildings. The goal was to encourage the private sector to protect historic properties, preserve the cultural heritage of Iowa communities and increase investment in local communities.

Since 2001, the state has invested $177 million in historic preservation tax credits, which have been the catalyst behind the rehabilitation of 283 historic buildings and the revitalization of 64 communities across Iowa. That investment has leveraged and attracted $890 million in investments, including $800 million for rehabilitation activities and an additional $90 million in related new construction.

Additionally, owners of historic properties, developers and community stakeholders have leveraged the program to reinvigorate mixed-used neighborhoods that attract entrepreneurs, small businesses and creative workforce seeking authentic and unique places to live and work.

"This program has been very popular among owners of historic properties and developers all across Iowa," said Cownie. "It has had a dramatic impact on retaining the authentic character-defining properties of our state and our overall quality of life, while also playing an important role in generating economic activity and creating job opportunities."

According to Iowa Department of Revenue survey results - for projects completed between July 1, 2009 and June 30, 2013:

• Projects employed over 9,200 workers during the various stages of the work, for an average of 2,300 jobs each of the four years for which data is available.

• Supported direct salaries and wages of $228.5 million and total spending on labor, materials, and other related expenses exceeding $537 million, with 84 percent of that spending occurring in Iowa.

• Property values at the time of project completion reflect a total of $205 million in increased assessed value.  Because some of the properties receive property tax exemptions or abatements, it is not possible to accurately estimate the resulting change in property tax collections.

• And 53 of Iowa's 99 counties have seen historic buildings rehabilitated using the Historic Tax Credit.

The changes were a result of feedback gathered by a Governor-appointed stakeholder group assigned to look at the program and suggest improvements.  The Governor's office worked with the Iowa Department of Cultural Affairs State Historic Preservation Office, the Iowa Legislature and the Stakeholders to improve the program.

Under the legislation signed today, Iowans will see a number of changes in the program:

• Elimination of a lottery-based tax credit reservation system in favor of a more predictable readiness-application process.

• Elevated emphasis on project pre-planning, financing and timeline.

• A transition from a three-year tax credit reservation system to a "use-when-you're-ready" system that offers more predictability for establishing project completion dates and submission of tax credit.

• Retools the review process to be more predictable for the applicant and the state.

• Uses an approach similar to other state tax incentive programs to promote consistency for tax preparers and for ease of administration.

The State Historic Preservation and Cultural & Entertainment District Tax Credit Program is overseen by the Department of Cultural Affairs State Historic Preservation Office (SHPO), a bureau of the State Historical Society of Iowa (SHSI).

The bill summary is as follows:

House File 2453: an Act relating to the administration of the historic preservation and cultural and entertainment district tax credit program by the Department of Cultural Affairs, providing for fees, and including applicability provisions.

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After releasing ideas on job growth; education, Jacobs now gives specific ideas for tackling Washington's spending problem

West Des Moines, Iowa - As a part of his nine day, 40-city "Real Solutions" Tour, U.S. Senate candidate Mark Jacobs today released "Private Sector Principles for Achieving a Balanced Budget," a set of specific principles for tackling both the nation's debt and deficits.

The United States is facing $17 trillion in debt and continued annual deficits projected to be in the hundreds of billions each year. The debate rages on in Washington about how to solve this issue.

"I've always said this was going to be a campaign about ideas and solutions. I want Iowans to know that I will focus on not only the intrinsically-linked issues of creating jobs and opportunity and tackling Washington's spending problem, but also how we can achieve these objectives. Iowa deserves better than talking points from career politicians. Iowans deserve results," said Mark Jacobs.

He added, "I am running for U.S. Senate to create an environment that will encourage and allow the private sector to grow more quickly. If we were able to grow our economy just one percent faster per year over the next decade, it would wipe out more than half of our annual budget deficits. More jobs, more opportunity and certainly more fiscal discipline will help Iowa families and businesses."

Jacobs detailed how he would begin reaching and maintaining fiscal sanity by offering four specific ideas:

• Passing a Balanced Budget Amendment. Congress has not demonstrated the ability to live within its means. Therefore, we need to provide a structural framework that requires them to do so. A balanced budget amendment creates a mechanism for ensuring that Congress meets and reaches this goal in a specific period of time. After ten years, the amendment would require Congress to set the budget at 99 percent of forecasted revenues, just as we do in Iowa.
• Reining In the Deficit through Meaningful Spending Reductions. Thoughtful ways to achieve meaningful spending reductions include reductions in discretionary spending; rooting out fraud in government programs; and building bipartisan consensus on entitlement reform.
• Increasing the Rate of Economic Growth. Spending cuts alone will not solve our financial challenges. Growing the economy at a faster rate must be a component of the plan. The federal government does not create jobs - but it does create the environment in which it is either easier or harder for the private sector to grow. Currently, the Administration is making job growth in the private sector harder. We need to pursue the five priorities I have previously put forth for creating an environment that will foster higher economic growth.
• Reducing the Debt. The first three ideas relate to achieving a balanced budget. However, we must also begin reducing our country's $17 trillion debt. Selling unused public assets will enable the country to make a near-term down payment on the debt. This, in turn, will reduce the amount of interest we pay on the debt in the long-term. Ideas include : selling mineral rights on federal lands, selling surplus federal land, and disposing of unused and under-utilized buildings.

Jacobs said, "The bottom line is Washington needs more leaders with real world common sense, whose focus is making headway - instead of headlines. I will continue to offer specifics, push for concrete results, and most importantly, I will show up to work every single day to work on behalf of Iowa's families and businesses."

To view or download "Private Sector Principles for Achieving a Balanced Budget," please click here.

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Washington, D.C. - Rep. Bruce Braley (IA-01) today released the following statement after an announcement that the Obama administration will support a plan to keep 9,800 troops stationed in Afghanistan beyond the end of the year.

"Thousands of our brave severicemembers have sacrificed their lives in Afghanistan, and tens of thousands more have sustained serious injury. We should be bringing all of our troops home, not continuing to put nearly 10,000 of them in harm's way halfway around the world. It's long-past time the Afghan people were in control of their own future."