About the 2008 Contract Compliance Report on Iowa Values Fund and Business Assistance Programs

Reporting on Progress as of June 30, 2008

The Department is committed to transparent, accountable administration of its direct financial assistance and tax credit programs. This Report was prepared with the goal of providing information in a clear, consistent, and easily understandable format.

Measuring progress, not contract compliance
A primary purpose of this Report is to share with the legislature, the Governor, and the public the progress as of June 30, 2008 of projects funded through the State’s job creation programs and funding sources.

The job creation, wages and investment amounts reported annually by businesses are not used by the Department to determine final contract compliance. The Annual Reports submitted during the contract period are progress reports that are used to gauge how the funded projects are progressing in reaching the contracted numbers. The reports are also used as a guide for the Legal and Compliance staff to determine if follow-up may be needed to provide technical assistance to a business. Contract compliance will be measured at two points: the Project Completion Date and if applicable, the End of the Maintenance Period.

Direct financial assistance – state programs
When a business receives a “direct financial assistance” it means that the award is in the form of a loan, forgivable loan, grant or royalty agreement.

This Report includes awards from these programs:

• Community Economic Betterment Account (CEBA) Program
  
  
• Value-Added Agricultural Products and Processes Financial Assistance Program (VAAPFAP)
  
  
• Physical Infrastructure Assistance Program (PIAP)
  
  
• Entrepreneurial Ventures Assistance (EVA) Assistance Program (awards funded with IVF)
  
  
• Loan and Credit Guarantee (LCG) Program
  
  
• Renewable Fuel Infrastructure Programs

Direct financial assistance - state funding sources
The Department has three main sources from which it can make a direct financial assistance award. This Report includes awards from these funding sources:

• Grow Iowa Values Fund, 2003: Referred to as “IVF(FES)” in this Report. It means the 1st Grow Iowa Values Fund established in 2003 and funded with Federal Economic Stimulus (FES) monies. Direct awards were made from this source. The Grow Iowa Values Board also allocated a portion of the fund to some of the direct financial assistance programs listed above.
  
  
• Grow Iowa Values Fund, 2005: Referred to as “IVF(2005)” in this Report. It means the 2nd Grow Iowa Values Fund established in 2005 and funded with a $50M appropriation from the general fund.
  
  
• “Old money” refers to direct financial programs that received funding through annual appropriations from the State legislature.

State tax credit programs
When a business receives a “tax credit award” it means that the business is authorized to claim certain specific tax credit benefits (e.g., sales and use tax refund, investment tax credit, research activities credit). The credits offset income tax liability and a refund returns taxes paid that are associated with a funded Project. This Report includes awards from these tax credit programs:

• High Quality Job Creation (HQJC) Program
  
  
• Enterprise Zone (EZ) Program
  
  
• New Jobs and Income Program (NJIP) * this program was repealed 7/1/05 but there are still open contracts that the Department is managing.
  
  
• New Capital Investment Program (NCIP) * this program was repealed 7/1/05 but there are still open contracts that the Department is managing.

Federal job creation program
One federally funded job creation is included in this Report because it is often times part of a Project that is also receiving a State financial assistance or tax credit award. Under this program a grant is awarded to a City or County on behalf of a business. This Report includes awards from this federal program:

• Economic Development Set-Aside (EDSA) Program