Iowa Administrative Code Agency 123 - Capital Investment Board, Iowa
Overview of Agency 123 - Iowa Capital Investment Board
Agency 123 refers specifically to the Iowa Capital Investment Board (ICIB) within the IAC. This board was established to support economic development in Iowa through the encouragement of private venture capital investment.
Let’s go into detail about its structure, purpose, and responsibilities—based solely on the rules found in the IAC under Agency 123, without pulling in any external law or reference:
1. Purpose of the Iowa Capital Investment Board (Agency 123)
The primary goal of the Iowa Capital Investment Board is to facilitate capital investment in Iowa-based businesses, particularly early-stage companies that might otherwise struggle to access funding.
This is done by administering investment tax credit programs that incentivize venture capital investment in Iowa through certified funds.
2. Key Programs Administered
The rules under Agency 123 typically cover the implementation and management of investment tax credit programs. Two major programs often appear:
a. Iowa Fund of Funds Program
Designed to attract venture capital investments to Iowa.
The ICIB does not directly invest in companies but instead supports the formation of a fund that then invests in private venture capital funds.
These venture capital funds are expected to make investments in Iowa businesses.
b. Tax Credit Certificates
The Board issues tax credit certificates to designated investors or entities that invest in qualifying funds.
These credits can offset Iowa tax liabilities and may sometimes be transferable or refundable depending on the specific rule set under Agency 123.
3. Rulemaking and Certification Processes
Agency 123 includes detailed provisions on how funds and investors become certified to participate in the programs:
The application process for certification.
Criteria for approval, such as financial viability, investment strategy, and Iowa impact.
The review process and the authority of the Board to approve or deny applications.
Annual reporting and audit requirements from participating funds or investors.
4. Oversight and Reporting Requirements
The Board has the authority to require:
Annual financial reports from certified entities.
Compliance reports to ensure continued eligibility.
Performance metrics, including the number of Iowa businesses supported, amount of capital invested, and job creation metrics.
They may revoke certifications or credits if entities fail to comply with reporting or performance standards.
5. Limitation of Liability and Sunset Provisions
The rules often contain sections that:
Limit the liability of the State of Iowa with respect to guarantees or obligations of the fund.
Include sunset provisions, meaning programs expire unless renewed, repealed, or replaced.
6. Structure and Operation of the Board
While the rules in Agency 123 do not usually define the legal creation of the Board (that comes from statute), they do outline:
The operating procedures of the Board.
The process for issuing rules, including public notice, hearings, and amendments.
Administrative procedures like recordkeeping, conflict of interest policies, and meeting schedules.
7. Definitions and Interpretations
The first chapters typically include definitions used throughout the rules, such as:
"Designated investor"
"Investment fund"
"Tax credit certificate"
"Iowa business"
"Venture capital"
These definitions are crucial because they determine eligibility for participation and how rules are applied.
Summary Table (Simplified):
| Area | Details |
|---|---|
| Purpose | Promote investment in Iowa through tax credit programs |
| Main Programs | Fund of Funds, Investment Tax Credit Program |
| Participants | Designated investors, certified capital funds, Iowa businesses |
| Board Role | Certify funds, issue tax credits, enforce compliance, collect reports |
| Administrative Rules | Application process, eligibility criteria, definitions, reporting, revocation |
| Tax Credit Rules | Issuance, transferability, redemption, limitations |
| Compliance Oversight | Audits, financial disclosures, job creation tracking |
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