The $35 million renovation of the former Register and Tribune building will be among the first projects considered for tax credit incentives under a new state program.

Des Moines City Council members will be asked Monday to pass a resolution supporting the application of an Indianapolis developer for $1 million in Workforce Housing Tax Credits, a program that was approved last year by Gov. Terry Branstad and the Iowa Legislature to replace another tax credit program that nearly ran out of money after a rush of development projects in 2012 across the state, primarily in Des Moines.

The new program sets a per-project ceiling of $1 million on the tax credits, while the entire program has a cap of $20 million, a number that a great many developers believe is too low to satisfy demand, particularly in Greater Des Moines.

Under the new law, the tax credits were extended to additional counties in hopes of generating development in rural areas. Projects now will be considered on a first-come basis by the Iowa Economic Development Authority. Previously, local commissions reviewed and approved the applications.

After months of delay as rules were adopted for the program, the law will take effect Jan. 28, and the IEDA will begin taking applications online beginning Feb. 2. Local communities are required to signal their support by adopting resolutions approving applications and anteing up local funds of $1,000 per housing unit created under the program.

However, local approval is a procedural matter and will not carry weight when the IEDA makes a final determination on whether to award the tax credits.

One issue that remains to be resolved is whether any unused Workforce Housing Tax Credits can be passed along to other tax credit programs. The IEDA board voted earlier this month to delay implementation of that aspect of the law until after the end of the current legislative session.

Most observers believe that demand will make the transfer of the credits a moot issue.

An indication of that demand could come during Monday’s Des Moines City Council meeting. In addition to the request from R & T Lofts LP, the entity created by TWG Development LLC of Indianapolis for the renovation, the council is expected to consider a resolution to approve Workforce Housing Tax Credits for Christ the King Housing Services for 26 units of senior housing on Southwest Ninth Street, and other projects could be added before the council meets.

In October, the City Council approved a preliminary development agreement that called for 164 units of market-rate and affordable housing at the former Register and Tribune building, along with commercial development of the basement and first floor. That agreement also called for the use of state brownfield tax credits, another piece of legislation that has not been implemented as the IEDA works out the details of its operation.

Rules for the brownfield tax credit program will be considered on Feb. 6 and, if approved, could take effect Feb. 26 with an application deadline of March 16.

Here’s a breakdown of the R & T Lofts funding package, based in part on a preliminary agreement approved late last year by the City Council:

• Federal historic tax credit equity $5.7 million.
• State historic tax credit equity $5.5 million.
• State Workforce Housing tax credits $1 million;
• State brownfields tax credits $850,000,
• Federal Low Income Housing Tax Credit (LIHTC) 4 percent credit equity $5.2 million.
• City of Des Moines economic development assistance of $3.7 million (10 years).
• Developer equity and permanent financing $14.5 million.