1. A community college may enter into an agreement to establish a project. If an agreement is entered into, the community college and the employer shall notify the department of revenue as soon as possible. An agreement shall provide for program costs, including deferred costs, which may be paid from one or a combination of the following sources:

 a. Incremental property taxes to be received or derived from an employer’s business property where new jobs are created as a result of the project.
 b. New jobs credit from withholding to be received or derived from new employment resulting from the project.
 c. Tuition, student fees, or special charges fixed by the board of directors to defray program costs in whole or in part.
 d. Guarantee of payments to be received under paragraph “a”, “b”, or “c”.

Terms Used In Iowa Code 260E.3

  • Board of directors: means the board of directors of a community college. See Iowa Code 260E.2
  • Community college: means a community college established under chapter 260C. See Iowa Code 260E.2
  • Date of commencement of the project: means the date of the agreement. See Iowa Code 260E.2
  • Employer: means the person providing new jobs in the merged area served by the community college and entering into an agreement. See Iowa Code 260E.2
  • following: when used by way of reference to a chapter or other part of a statute mean the next preceding or next following chapter or other part. See Iowa Code 4.1
  • Incremental property taxes: means the taxes as provided in sections 403. See Iowa Code 260E.2
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • New jobs credit from withholding: means the credit as provided in section 260E. See Iowa Code 260E.2
  • program: means the project or projects established by a community college for the creation of jobs by providing education and training of workers for new jobs for new or expanding industry in the merged area served by the community college. See Iowa Code 260E.2
  • Program costs: means all necessary and incidental costs of providing program services. See Iowa Code 260E.2
  • Project: means a training arrangement which is the subject of an agreement entered into between the community college and an employer to provide program services. See Iowa Code 260E.2
  • Property: means a tangible object, animate or inanimate, under a museum's care which has intrinsic historic, artistic, scientific, or cultural value. See Iowa Code 305B.2
  • Student: means a person who enrolls in or seeks to enroll in a course of instruction offered or conducted by a school. See Iowa Code 261B.2
  • year: means twelve consecutive months. See Iowa Code 4.1
 2. Payment of program costs shall not be deferred for a period longer than ten years from the date of commencement of the project.
 3. Costs of on-the-job training for employees shall not exceed fifty percent of the annual gross payroll costs for up to one year of the new jobs. For purposes of this subsection, “gross payroll” can be the gross wages, salaries, and benefits for the jobs in training in the project.
 4. An agreement shall include a provision which fixes the minimum amount of incremental property taxes, new jobs credit from withholding, or tuition and fee payments which shall be paid for program costs.
 5. Any payments required to be made by an employer are a lien upon the employer’s business property until paid and have equal precedence with ordinary taxes and shall not be divested by a judicial sale. Property subject to the lien may be sold for sums due and delinquent at a tax sale, with the same forfeitures, penalties, and consequences as for the nonpayment of ordinary taxes. The purchaser at tax sale obtains the property subject to the remaining payments.
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