Housing Enterprise Zones
An Incentive for Housing Development
Developers and contractors building or rehabilitating housing in an established
Enterprise Zone may be eligible to receive certain state tax incentives.
Eligibility Requirements
- The developer or contractor must build or rehabilitate at least
four single-family homes or at least one multi-family building containing three
or more units in a certified Enterprise Zone.
- The housing must, when completed and made available for occupancy,
meet HUD Housing Quality Standards and local housing codes.
- The housing project must be completed within two years of the start
of construction or rehabilitation.
- The local Enterprise Zone Commission and IEDA must approve the developer
or contractor's application for Enterprise Zone program incentives prior to project
initiation.
Tax Incentives
- A refund of state sales, service or use taxes paid during construction.
- An investment tax credit of up to a maximum of 10% of the investment
directly related to the construction or rehabilitation of the housing.* The tax
credit is based on the new investment used for the first $140,000 of value for each
home or unit. This tax credit is earned when the home or unit is certified for occupancy
and can be carried forward for up to seven additional years or until depleted, whichever
occurs first.
*If the project is, in part, financed through federal, state, and local government
tax credits, grants, and forgivable loans, these monies can not be included for
purposes of calculating the investment tax credit.
Application and Other Materials
- Housing Enterprise Zone Application [MS Word: 74 KB]
- Housing Enterprise Zone Report [MS Word: 31k] — January 1 - December 31, 2011
- Sales and Use Tax Refunds [MS Word: 30k]
- Requesting a Replacement Tax Credit Certificate (section 42 only) [MS Word: 29k]
- Instructions for Requesting a Replacement Tax Credit Certificate [MS Word: 30k]
- Housing Enterprise Zone Annual Compliance and Status Report, January 1 – December 31, 2011 [MS Word: 26k]
Contact Us
To learn how Enterprise Zones can benefit your housing development:
Phone: 515.725.3128
E-mail:
housing@iowa.gov