Iowa Admin. Code r. 261-49.4

Current through Register Vol. 47, No. 13, December 25, 2024

Rule 261-49.4 - Qualified rehabilitation expenditures

(1)Expenditures incurred by nonprofit organizations. Notwithstanding the definition in rule 261-49.3 (404A), expenditures incurred by an eligible taxpayer that is a nonprofit organization shall be considered "qualified rehabilitation expenditures" if they are any of the following:

a. Expenditures made for structural components, as that term is defined in Treasury Regulation §1.48-1(e)(2).

b. Expenditures made for architectural and engineering fees, site survey fees, legal expenses, insurance premiums, and development fees.

(2)What expenditures qualify. "Qualified rehabilitation expenditures" may include:

a. For projects registered on or after January 1, 2023, expenditures incurred within five years prior to the date an agreement is entered into under Iowa Code section 404A.3(3).

b. Reasonable developer fees. The authority may establish limits on developer fees and may adjust those limits. Any adjustment made to the established limit shall take effect 24 months after the adjustment is published on the authority's website. Developer fees that are qualified rehabilitation expenditures and that meet the limits effective at the time the Part 2B application is submitted shall be deemed reasonable by the authority.

(3)Government financing. "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. For an eligible taxpayer that is not eligible for the federal rehabilitation credit, expenditures financed with federal, state, or local government grants or forgivable loans are not qualified rehabilitation expenditures.

Iowa Admin. Code r. 261-49.4

Adopted by IAB February 15, 2017/Volume XXXIX, Number 17, effective 3/22/2017

Amended by IAB December 14, 2022/Volume XLV, Number 12, effective 1/18/2023