SF 657

Senate
File
657
-
Enrolled
Senate
File
657
AN
ACT
RELATED
TO
STATE
TAXATION
AND
FINANCE
AND
OTHER
RELATED
MATTERS,
BY
CREATING,
MODIFYING,
AND
ELIMINATING
TAX
CREDITS
AND
TAX
INCENTIVE
PROGRAMS,
PROVIDING
FOR
PENALTIES,
AND
INCLUDING
EFFECTIVE
DATE
AND
RETROACTIVE
APPLICABILITY
PROVISIONS.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
DIVISION
I
ECONOMIC
DEVELOPMENT
PROGRAMS
——
TAX
CREDIT
LIMITS
Section
1.
Section
15.119,
Code
2025,
is
amended
to
read
as
follows:
15.119
Aggregate
tax
credit
limit
for
certain
economic
business
development
programs.
1.
a.
Notwithstanding
any
provision
to
the
contrary
in
any
of
the
business
development
programs
listed
in
subsection
2
,
the
authority,
except
as
provided
in
paragraph
“b”
,
shall
not
authorize
for
any
one
fiscal
year
an
amount
of
tax
credits
for
the
programs
specified
in
subsection
2
that
is
in
excess
of
one
hundred
seventy
ten
million
dollars.
b.
(1)
The
authority
may
authorize
an
amount
of
tax
credits
during
a
fiscal
year
that
is
in
excess
of
the
amount
specified
in
paragraph
“a”
,
but
the
amount
of
such
excess
shall
not
exceed
twenty
percent
of
the
amount
specified
in
paragraph
“a”
,
and
shall
be
counted
against
the
total
amount
of
tax
credits
that
may
be
authorized
for
the
next
fiscal
year.
(2)
Any
amount
of
tax
credits
authorized
and
awarded
during
a
fiscal
year
for
a
program
specified
in
subsection
2
which
Senate
File
657,
p.
2
are
irrevocably
declined
by
the
awarded
business
or
revoked
by
the
authority
on
or
before
June
30
of
the
next
fiscal
year
may
be
reallocated,
authorized,
and
awarded
during
the
fiscal
year
in
which
the
declination
or
revocation
occurs.
Tax
credits
authorized
pursuant
to
this
subparagraph
shall
not
be
considered
for
purposes
of
subparagraph
(1).
2.
The
authority,
with
the
approval
of
the
board,
shall
adopt
by
rule
a
procedure
for
allocating
the
aggregate
tax
credit
limit
established
in
this
section
among
the
following
The
aggregate
tax
credit
limit
specified
in
subsection
1
shall
be
allocated
to
business
development
programs
as
follows
:
a.
(1)
The
high
quality
jobs
program
administered
pursuant
to
subchapter
II,
part
13
.
(2)
In
allocating
tax
credits
pursuant
to
this
subsection
for
the
fiscal
year
beginning
July
1,
2022,
and
for
each
fiscal
year
thereafter,
the
authority
shall
not
allocate
more
than
sixty-eight
million
dollars
for
purposes
of
this
paragraph.
(3)
In
allocating
tax
credits
pursuant
to
this
subsection
,
the
authority
shall
prioritize
issuing
additional
research
activities
tax
credits
pursuant
to
section
15.335
.
b.
The
enterprise
zones
program
administered
pursuant
to
sections
15E.191
through
15E.197,
Code
2014
.
c.
The
assistive
device
tax
credit
program
administered
pursuant
to
section
422.33,
subsection
9
.
d.
The
tax
credits
for
investments
in
qualifying
businesses
issued
pursuant
to
section
15E.43
.
In
allocating
tax
credits
pursuant
to
this
subsection
,
the
authority
shall
allocate
two
million
dollars
for
purposes
of
this
paragraph,
unless
the
authority
determines
that
the
tax
credits
awarded
will
be
less
than
that
amount.
e.
a.
(1)
The
tax
credits
for
investments
in
an
innovation
fund
pursuant
to
section
15E.52
chapter
15E,
subchapter
VI,
and
the
seed
investor
tax
credit
pursuant
to
chapter
15E,
subchapter
IV
.
In
allocating
tax
credits
pursuant
to
this
subsection
,
the
authority
shall
allocate
eight
ten
million
dollars
for
purposes
of
this
paragraph,
unless
the
authority
determines
that
the
tax
credits
awarded
will
be
less
than
that
amount
and
the
board
shall
determine
the
tax
credit
amount
allocated
to
each
program
under
this
paragraph
each
fiscal
Senate
File
657,
p.
3
year
.
(2)
For
the
fiscal
year
beginning
July
1,
2025,
the
allocation
pursuant
to
this
paragraph
shall
be
reduced
by
any
tax
credit
authorized
by
the
authority
prior
to
July
1,
2026,
for
an
investment
in
a
qualifying
business
pursuant
to
chapter
15E,
subchapter
V,
Code
2025.
This
subparagraph
is
repealed
July
1,
2026.
f.
The
redevelopment
tax
credit
program
for
brownfields
and
grayfields
administered
pursuant
to
sections
15.293A
and
15.293B
.
g.
The
workforce
housing
tax
incentives
program
administered
pursuant
to
subchapter
II,
part
17
.
In
allocating
tax
credits
pursuant
to
this
subsection
,
the
authority
shall
not
allocate
more
than
thirty-five
million
dollars
for
purposes
of
this
paragraph.
Of
the
moneys
allocated
under
this
paragraph,
seventeen
million
five
hundred
thousand
dollars
shall
be
reserved
for
allocation
to
qualified
housing
projects
in
small
cities,
as
defined
in
section
15.352
,
that
are
registered
on
or
after
July
1,
2017.
h.
The
renewable
chemical
production
tax
credit
program
administered
pursuant
to
subchapter
II,
part
12
.
In
allocating
tax
credits
pursuant
to
this
subsection
for
the
fiscal
year
beginning
July
1,
2021,
and
for
each
fiscal
year
beginning
before
July
1,
2037,
the
authority
shall
not
allocate
more
than
five
million
dollars
for
purposes
of
this
paragraph.
This
paragraph
is
repealed
July
1,
2039.
3.
In
allocating
the
amount
of
tax
credits
authorized
pursuant
to
subsection
1
among
the
programs
specified
in
subsection
2
,
the
authority
shall
not
allocate
more
than
fifteen
million
dollars
for
purposes
of
subsection
2
,
paragraph
“f”
.
b.
The
renewable
chemical
production
tax
credit
pursuant
to
subchapter
II,
part
12,
and
the
sustainable
aviation
fuel
production
tax
credit
program
pursuant
to
subchapter
II,
part
36.
In
allocating
tax
credits
pursuant
to
this
subsection,
the
authority
shall
allocate
ten
million
dollars
for
purposes
of
this
paragraph,
and
the
board
shall
determine
the
tax
credit
amount
allocated
to
each
program
specified
in
this
paragraph
for
each
fiscal
year.
Senate
File
657,
p.
4
c.
The
research
and
development
tax
credit
program
pursuant
to
subchapter
II,
part
35.
In
allocating
tax
credits
pursuant
to
this
subsection,
the
authority
shall
allocate
forty
million
dollars
for
purposes
of
this
paragraph.
d.
The
business
incentives
for
growth
program
administered
pursuant
to
subchapter
II,
part
33.
In
allocating
tax
credits
pursuant
to
this
subsection
for
the
fiscal
year
beginning
July
1,
2026,
and
for
each
fiscal
year
thereafter,
the
authority
shall
not
allocate
more
than
fifty
million
dollars
for
purposes
of
this
paragraph.
e.
(1)
The
high
quality
jobs
program
administered
pursuant
to
chapter
15,
subchapter
II,
part
13,
and
the
business
incentives
for
growth
program
administered
pursuant
to
chapter
15,
subchapter
II,
part
33.
In
allocating
tax
credits
pursuant
to
this
subsection,
the
authority
shall
allocate
fifty
million
dollars
in
the
aggregate
for
purposes
of
this
paragraph,
by
allocating
tax
credits
to
the
high
quality
jobs
program
prior
to
January
1,
2026,
and
by
allocating
the
remaining
tax
credits
to
the
business
incentives
for
growth
program
on
or
after
January
1,
2026.
(2)
This
paragraph
is
repealed
July
1,
2026.
4.
3.
The
authority
shall
submit
to
the
department
of
revenue
on
or
before
August
15
of
each
year
a
report
on
the
tax
credits
allocated
pursuant
to
this
section
and
the
tax
credits
awarded
under
each
of
the
programs
described
in
subsection
2
.
DIVISION
II
ECONOMIC
DEVELOPMENT
PROGRAMS
——
TAX
CREDIT
LIMITS
CONFORMING
CHANGES
Sec.
2.
Section
15.293A,
subsection
6,
Code
2025,
is
amended
to
read
as
follows:
6.
The
amount
of
tax
credits
that
may
be
awarded
by
the
board
shall
be
subject
to
the
limitation
in
section
15.119
Except
as
provided
in
section
15.293B,
subsection
6,
the
board
shall
not
award
in
any
one
fiscal
year
an
amount
of
tax
credits
that
exceeds
fifteen
million
dollars
.
Sec.
3.
Section
15.293B,
subsection
6,
Code
2025,
is
amended
to
read
as
follows:
6.
a.
(1)
Tax
credits
revoked
under
subsection
3
including
tax
credits
revoked
up
to
five
years
prior
to
July
1,
2021,
and
Senate
File
657,
p.
5
tax
credits
not
awarded
under
subsection
4
or
5
,
may
be
awarded
in
the
next
annual
application
period
established
in
subsection
1
,
paragraph
“c”
.
(2)
Any
amount
of
tax
credits
authorized
and
awarded
during
a
fiscal
year
which
are
irrevocably
declined
by
the
awarded
investor
on
or
before
June
30
of
the
immediately
succeeding
fiscal
year
may
be
awarded
in
the
next
annual
application
period
established
in
subsection
1,
paragraph
“c”
.
b.
Tax
credits
awarded
pursuant
to
paragraph
“a”
shall
not
be
counted
against
the
limit
under
section
15.119,
subsection
3
15.293A,
subsection
6
.
Sec.
4.
Section
15.318,
subsection
3,
paragraph
e,
Code
2025,
is
amended
to
read
as
follows:
e.
In
each
fiscal
year
beginning
on
or
after
July
1,
2023
2025
,
and
ending
on
or
before
June
30,
2036,
the
authority
may
award
an
amount
of
tax
credits
under
the
program
not
to
exceed
the
maximum
aggregate
amount
allocated
in
determined
by
the
board
pursuant
to
section
15.119,
subsection
2,
paragraph
“h”
“b”
.
Sec.
5.
Section
15.354,
subsection
2,
paragraph
a,
Code
2025,
is
amended
to
read
as
follows:
a.
All
completed
applications
shall
be
reviewed
and
scored
on
a
competitive
basis
by
the
authority
pursuant
to
rules
adopted
by
the
authority.
In
scoring
applications,
the
authority
may
award
additional
points
for
all
of
the
following:
(1)
A
housing
project
located
in
a
community
where
no
housing
project
has
been
awarded
a
tax
incentive
under
the
program
in
the
immediately
preceding
three
application
periods.
(2)
A
housing
project
located
in
a
community
where
a
recent
or
planned
business
expansion,
or
a
new
business,
has
received
a
tax
incentive
or
financial
assistance
under
the
high
quality
jobs
program
administered
pursuant
to
subchapter
II,
part
13,
the
major
economic
growth
attraction
program
administered
pursuant
to
subchapter
II,
part
32,
or
the
business
incentives
for
growth
program
administered
pursuant
to
subchapter
II,
part
33.
Sec.
6.
Section
15.354,
subsection
4,
Code
2025,
is
amended
by
striking
the
subsection
and
inserting
in
lieu
thereof
the
following:
Senate
File
657,
p.
6
4.
Maximum
tax
incentives
amount.
a.
(1)
In
the
fiscal
year
beginning
July
1,
2025,
and
ending
June
30,
2026,
the
authority
shall
not
award
an
amount
of
tax
credits
in
excess
of
thirty-nine
million
five
hundred
thousand
dollars.
(2)
In
the
fiscal
year
beginning
July
1,
2026,
and
ending
June
30,
2027,
the
authority
shall
not
award
an
amount
of
tax
credits
in
excess
of
thirty-six
million
five
hundred
thousand
dollars.
(3)
In
the
fiscal
year
beginning
July
1,
2027,
and
for
each
fiscal
year
thereafter,
the
authority
shall
not
award
an
amount
of
tax
credits
in
excess
of
thirty-five
million
dollars.
b.
Of
the
tax
credits
allocated
under
paragraph
“a”
,
fifty
percent
of
the
allocation
available
in
each
fiscal
year
shall
be
reserved
for
allocation
to
qualified
housing
projects
in
small
cities.
c.
Notwithstanding
paragraph
“b”
,
if
the
sum
of
the
amount
of
tax
incentives
awarded
in
a
given
fiscal
year
for
housing
projects
located
in
small
cities
based
on
the
authority’s
review
and
scoring
of
applications
does
not
exceed
the
amount
reserved
for
housing
projects
located
in
small
cities
pursuant
to
paragraph
“b”
,
the
authority
may
award
the
remaining
amount
of
tax
incentives
reserved
for
housing
projects
located
in
small
cities
to
other
housing
projects
during
that
same
fiscal
year.
d.
Tax
credits
revoked
by
the
authority
or
irrevocably
declined
by
a
housing
business
before
June
30
of
the
fiscal
year
following
the
award
may
be
awarded
during
the
fiscal
year
the
revocation
or
declination
occurs.
Tax
credits
awarded
pursuant
to
this
paragraph
shall
not
be
counted
against
the
tax
credit
limit
established
in
paragraph
“a”
.
e.
The
maximum
aggregate
amount
of
tax
incentives
that
may
be
awarded
and
issued
under
section
15.355
to
a
housing
business
for
a
housing
project
shall
not
exceed
one
million
dollars.
f.
If
a
housing
business
qualifies
for
a
higher
amount
of
tax
incentives
under
section
15.355
than
is
allowed
by
the
limitation
imposed
in
paragraph
“e”
,
the
authority
and
the
housing
business
may
negotiate
an
apportionment
of
the
Senate
File
657,
p.
7
reduction
in
tax
incentives
between
the
sales
tax
refund
provided
in
section
15.355,
subsection
2,
and
the
workforce
housing
investment
tax
credits
provided
in
section
15.355,
subsection
3,
provided
the
total
aggregate
amount
of
tax
incentives
after
the
apportioned
reduction
does
not
exceed
the
amount
in
paragraph
“e”
.
g.
The
authority
shall
issue
tax
incentives
under
the
program
on
a
first-come,
first-served
basis
until
the
maximum
amount
of
tax
incentives
allowed
under
paragraph
“a”
is
reached.
Sec.
7.
Section
15.354,
subsection
6,
paragraph
d,
Code
2025,
is
amended
to
read
as
follows:
d.
The
authority
shall
administer
tax
credit
allocations
for
disaster
recovery
housing
projects
separately
from
the
general
allocation
and
separately
from
the
allocation
reserved
for
small
cities
in
section
15.119,
subsection
2,
paragraph
“g”
.
The
authority
shall
issue
tax
incentives
under
the
program
for
disaster
recovery
housing
projects
on
a
first-come,
first-served
basis
until
the
maximum
amount
of
tax
incentives
allocated
under
section
15.119,
subsection
5
,
is
reached.
The
authority
shall
maintain
a
list
of
disaster
recovery
housing
projects
awarded
tax
incentives
under
the
program,
so
that
if
the
maximum
aggregate
amount
of
tax
incentives
allocated
for
disaster
recovery
housing
projects
under
the
program
is
reached
in
a
given
fiscal
year,
such
disaster
recovery
housing
projects
that
were
completed
but
for
which
tax
incentives
were
not
issued
shall
be
placed
on
a
wait
list
in
the
order
the
disaster
recovery
housing
projects
were
awarded
tax
incentives
pursuant
to
paragraph
“c”
,
and
shall
be
given
priority
for
receiving
tax
incentives
in
succeeding
fiscal
years
maximum
tax
credit
amounts
specified
in
section
15.354,
subsection
4,
paragraphs
“a”
and
“b”
.
DIVISION
III
BUSINESS
INCENTIVES
FOR
GROWTH
PROGRAM
Sec.
8.
NEW
SECTION
.
15.111
Assistance
for
certain
programs
and
projects.
1.
a.
Under
the
authority
provided
in
section
15.106A,
there
shall
be
established
one
or
more
funds
within
the
state
treasury,
under
the
control
of
the
authority,
to
be
used
for
purposes
of
this
section.
Senate
File
657,
p.
8
b.
A
fund
established
for
purposes
of
this
section
shall
consist
of
any
moneys
appropriated
to
the
authority
for
purposes
of
this
section,
or
moneys
otherwise
accruing
to
the
authority
and
deposited
in
the
fund
for
purposes
of
this
section.
c.
Interest
or
earnings
on
moneys
in
a
fund
used
for
the
purposes
of
this
section,
and
all
repayments
or
recaptures
of
the
assistance
provided
under
this
section,
shall
accrue
to
the
authority
and
shall
be
used
for
purposes
of
this
section,
notwithstanding
section
12C.7.
Moneys
in
a
fund
are
not
subject
to
section
8.33.
2.
a.
The
moneys
in
a
fund
established
for
purposes
of
this
section,
as
described
in
subsection
1,
shall
be
allocated
by
the
authority
in
appropriate
amounts
to
be
used
for
the
following
purposes:
(1)
For
program
support.
For
purposes
of
this
subparagraph,
“program
support”
means
the
services
necessary
for
the
efficient
administration
of
a
program
administered
by
the
authority,
including
but
not
limited
to
administrative
costs,
conducting
a
statewide
laborshed
study
in
coordination
with
the
department
of
workforce
development,
outreach
to
business
and
marketing
programs,
the
procurement
of
technical
assistance,
and
the
implementation
of
information
technology.
(2)
For
deposit
in
the
innovation
and
commercialization
development
fund
created
pursuant
to
section
15.412.
(3)
For
providing
financial
assistance
to
businesses
engaged
in
disaster
recovery.
For
purposes
of
this
subparagraph,
“business
engaged
in
disaster
recovery”
means
a
business
located
in
an
area
declared
a
disaster
area
by
a
federal
official,
that
has
sustained
physical
damage,
has
closed
as
a
result
of
a
natural
disaster,
and
has
a
plan
for
reopening
that
includes
employing
a
substantial
number
of
the
employees
the
business
employed
before
the
natural
disaster
occurred.
(4)
For
deposit
in
the
entrepreneur
investment
awards
program
fund
pursuant
to
section
15E.363.
(5)
For
deposit
in
a
fund
created
for
purposes
of
the
strategic
infrastructure
program
established
pursuant
to
section
15.313.
Senate
File
657,
p.
9
(6)
For
deposit
in
the
nuisance
property
remediation
fund
established
pursuant
to
section
15.338.
(7)
For
deposit
in
the
community
catalyst
building
remediation
fund
established
pursuant
to
section
15.231.
(8)
For
providing
financial
assistance
to
eligible
businesses
for
the
business
incentives
for
growth
program
pursuant
to
section
15.504.
b.
Each
fiscal
year,
the
authority
shall
estimate
the
amount
of
revenues
available
for
purposes
of
this
section
and
shall
develop
a
budget
appropriate
for
the
expenditure
of
the
revenues
available.
Sec.
9.
NEW
SECTION
.
15.502
Short
title.
This
part
shall
be
known
and
may
be
cited
as
the
“Business
Incentives
for
Growth
Program”
or
“BIG
Program”
.
Sec.
10.
NEW
SECTION
.
15.503
Definitions.
As
used
in
this
part,
unless
the
context
otherwise
requires:
1.
“Base
employment
level”
means
the
number
of
full-time
equivalent
positions
at
a
business,
as
established
by
the
authority
and
the
business
using
the
business’s
payroll
records,
as
of
the
date
the
business
applies
for
tax
incentives
under
the
program.
2.
“Benefits”
means
nonwage
compensation
provided
to
an
employee.
“Benefits”
include
medical
and
dental
insurance,
a
pension,
a
retirement
plan,
a
profit-sharing
plan,
child
care,
life
insurance,
vision
insurance,
and
disability
insurance.
3.
“Community”
means
a
city,
county,
or
entity
established
pursuant
to
chapter
28E.
4.
“Contract
completion”
means
the
date
of
completion
of
the
terms
of
a
contract
between
a
contractor
and
an
eligible
business.
5.
“Contractor”
means
a
person
that
has
executed
a
contract
with
an
eligible
business
for
the
provision
of
property,
materials,
or
services
for
the
construction
or
equipping
of
a
facility
that
is
part
of
the
eligible
business’s
project.
6.
“Created
jobs”
or
“create
jobs”
means
new,
permanent,
full-time
equivalent
positions
added
to
an
eligible
business’s
payroll,
at
the
location
of
the
eligible
business’s
project,
in
excess
of
the
eligible
business’s
base
employment
level.
7.
“Data
center
business”
means
the
same
as
defined
in
Senate
File
657,
p.
10
section
423.3,
subsection
95.
8.
“Eligible
business”
means
a
business
that
meets
the
requirements
of
section
15.504.
9.
“Full-time
equivalent
position”
means
a
non-part-time
position
for
the
number
of
hours
or
days
per
week
considered
to
be
full-time
work
for
the
kind
of
service
or
work
performed
for
an
employer.
Typically,
a
full-time
equivalent
position
requires
two
thousand
eighty
hours
of
work
in
a
calendar
year,
including
all
paid
holidays,
vacations,
sick
time,
and
other
paid
leave.
10.
“Program”
means
the
business
incentives
for
growth
program.
11.
“Project”
means
an
activity
or
set
of
activities
directly
related
to
the
start-up,
location,
modernization,
or
expansion
of
an
eligible
business
and
proposed
in
an
eligible
business’s
application
to
the
program,
that
will
accomplish
the
goals
of
the
program.
12.
“Project
completion
date”
means
the
date
by
which
an
eligible
business
that
has
been
approved
by
the
authority
to
participate
in
the
program
agrees
to
complete
the
terms
and
conditions
of
the
agreement
under
section
15.506.
13.
“Project
completion
period”
means
the
period
of
time
between
the
date
the
authority
approves
an
eligible
business
to
participate
in
the
program
and
the
project
completion
date.
14.
“Qualifying
investment”
means
a
capital
investment
in
real
property,
including
the
purchase
price
of
the
land
and
existing
buildings
and
structures,
site
preparation,
improvements
to
the
real
property,
building
construction,
and
long-term
lease
costs.
“Qualifying
investment”
also
means
a
capital
investment
in
depreciable
assets
for
use
in
the
operation
of
an
eligible
business.
15.
“Qualifying
wage
threshold”
means
the
mean
wage
level
represented
by
the
wages
within
two
standard
deviations
of
the
mean
wage
within
the
laborshed
area
in
which
the
eligible
business
is
located,
as
calculated
by
the
authority
by
rule,
using
the
most
current
covered
wage
and
employment
data
available
from
the
department
of
workforce
development
for
the
laborshed
area
in
which
the
eligible
business
is
located.
16.
“Retained
job”
means
a
full-time
equivalent
position
Senate
File
657,
p.
11
that
is
in
existence
at
the
time
an
eligible
business
applies
for
the
program
that
remains
continuously
filled,
and
that
is
at
risk
of
elimination
if
the
proposed
project
for
which
the
eligible
business
is
applying
to
the
program
does
not
proceed.
17.
“Subcontractor”
means
a
person
that
contracts
with
a
contractor
for
the
provision
of
property,
materials,
or
services
for
the
construction
or
equipping
of
a
facility
that
is
part
of
an
eligible
business’s
project.
18.
“Tax
incentives”
means
tax
credits,
tax
refunds,
or
tax
exemptions
authorized
under
the
program
by
the
authority
for
an
eligible
business.
Sec.
11.
NEW
SECTION
.
15.504
Eligible
business.
1.
To
be
eligible
to
receive
tax
incentives
under
the
program,
a
business
must
meet
all
of
the
following
requirements:
a.
The
community
in
which
the
proposed
project
is
located
must
approve
the
project
either
by
ordinance
or
resolution.
b.
(1)
The
business
must
be
primarily
engaged
in
advanced
manufacturing,
bioscience,
insurance
and
finance,
or
technology
and
innovation.
The
business
shall
not
be
a
data
center
business,
a
retail
business,
or
a
business
where
a
cover
charge
or
membership
requirement
restricts
certain
individuals
from
entering
the
business.
(2)
Factors
the
authority
shall
consider
to
determine
if
a
business
is
primarily
engaged
in
advanced
manufacturing,
biosciences,
insurance
and
finance,
or
technology
and
innovation
shall
include
but
are
not
limited
to
all
of
the
following:
(a)
The
business’s
North
American
industry
classification
system
code.
(b)
The
business’s
main
sources
of
revenue.
(c)
The
business’s
customer
base.
c.
(1)
The
business
must
not
be
solely
relocating
operations
from
one
area
of
the
state
to
another
area
of
the
state.
A
proposed
project
that
does
not
create
jobs
or
involve
a
substantial
amount
of
new
capital
investment
shall
be
presumed
to
be
a
relocation
of
operations.
For
purposes
of
this
subparagraph,
the
authority
shall
consider
a
letter
from
the
affected
local
community’s
government
officials
supporting
Senate
File
657,
p.
12
the
business’s
move
away
from
the
affected
local
community
in
making
a
determination
whether
the
business
is
solely
relocating
operations.
(2)
This
paragraph
shall
not
be
construed
to
prohibit
a
business
from
expanding
the
business’s
operations
in
a
community
if
the
business
has
similar
operations
in
this
state
that
are
not
closing
or
undergoing
a
substantial
reduction
in
operations.
d.
The
business
must
offer
comprehensive
benefits
to
each
full-time
equivalent
employee
employed
at
the
project.
The
authority
may
adopt
rules
under
chapter
17A
to
determine
the
procedure
for
establishing
requirements
for
comprehensive
benefits.
e.
(1)
The
business
must
not
have
a
record
of
violations
of
the
law
or
of
rules,
including
but
not
limited
to
antitrust,
environmental,
trade,
or
worker
safety,
that
over
a
period
of
time
show
a
consistent
pattern
or
that
establish
the
business’s
intentional,
criminal,
or
reckless
conduct
in
violation
of
such
laws
or
rules.
(2)
If
the
authority
determines
that
the
business
has
a
record
of
violations
described
in
subparagraph
(1),
and
the
authority
finds
that
the
violations
did
not
seriously
affect
public
health,
public
safety,
or
the
environment,
the
business
may
be
eligible
to
qualify
for
the
program.
(3)
If
the
authority
determines
that
the
business
has
a
record
of
violations
described
in
subparagraph
(1),
and
the
authority
finds
that
there
were
mitigating
circumstances
related
to
the
violations,
the
business
may
be
eligible
to
qualify
for
the
program.
(4)
In
making
determinations
and
findings
under
subparagraphs
(2)
and
(3),
and
making
a
determination
whether
a
business
is
disqualified
from
the
program,
the
authority
shall
be
exempt
from
chapter
17A.
2.
In
determining
if
a
business
is
eligible
to
participate
in
the
program,
the
authority
shall
consider
a
variety
of
factors,
including
but
not
limited
to
all
of
the
following:
a.
The
impact
of
the
business’s
proposed
project
on
businesses
that
are
in
competition
with
the
business.
The
authority
shall
make
a
good-faith
effort
to
identify
Senate
File
657,
p.
13
existing
Iowa
businesses
in
competition
with
the
business
being
considered
for
the
program.
The
authority
shall
make
a
good-faith
effort
to
determine
the
probability
that
any
proposed
tax
incentives
will
displace
employees
of
the
competing
businesses.
b.
The
business’s
proposed
project’s
economic
impact
on
the
state.
The
authority
shall
place
greater
emphasis
on
businesses
and
proposed
projects
that
meet
the
following
requirements:
(1)
The
business
has
a
high
proportion
of
in-state
suppliers.
(2)
The
proposed
project
will
diversify
the
state
economy.
(3)
The
business
has
few
in-state
competitors.
(4)
The
proposed
project
has
the
potential
to
create
jobs
on
an
ongoing
basis,
or
will
result
in
increased
skills
and
wages
for
employees
of
the
eligible
business.
(5)
The
proposed
project
has
the
potential
to
increase
productivity,
efficiency,
and
competitiveness
through
adoption
and
integration
of
smart
technologies
including
specialized
hardware,
software,
or
other
equipment.
(6)
The
proposed
project
has
the
potential
to
increase
the
state’s
overall
gross
domestic
product.
(7)
Any
other
factors
the
authority
deems
relevant
in
determining
the
economic
impact
of
a
proposed
project.
Sec.
12.
NEW
SECTION
.
15.505
Applications
——
authorization
of
tax
credits
and
exemptions.
1.
a.
Applications
for
the
program
shall
be
submitted
to
the
authority
in
the
form
and
manner
prescribed
by
the
authority
by
rule.
Each
application
must
be
accompanied
by
an
application
fee
in
an
amount
determined
by
the
authority
by
rule.
b.
For
a
proposed
project
that
will
result
in
elevated
water
consumption
by
the
business,
the
application
shall
be
accompanied
by
a
water
conservation
and
waste
reduction
plan,
and
shall
be
submitted
to
the
authority
in
the
form
and
manner
prescribed
by
the
authority
by
rule.
2.
In
determining
the
eligibility
of
a
business
to
participate
in
the
program,
the
authority
may
engage
outside
experts
to
complete
a
technical,
financial,
or
other
review
of
Senate
File
657,
p.
14
an
application
submitted
by
a
business.
3.
a.
The
authority
and
the
board
may
negotiate
with
an
eligible
business
regarding
the
terms
of,
and
the
aggregate
value
of,
the
tax
incentives
the
eligible
business
may
receive
under
the
program.
The
maximum
aggregate
value
of
the
tax
incentives
that
any
one
eligible
business
may
receive
shall
not
exceed
five
percent
of
the
eligible
business’s
qualifying
investment,
unless
the
eligible
business’s
project
is
located
in
a
rural
county,
in
which
case
the
maximum
aggregate
value
of
tax
incentives
that
any
one
eligible
business
may
receive
shall
not
exceed
seven
and
one-half
percent
of
the
eligible
business’s
qualifying
investment.
For
purposes
of
this
paragraph,
“rural
county”
means
a
county
in
the
state
with
a
population
of
twenty
thousand
or
less
based
on
the
most
recent
decennial
census
released
by
the
United
States
census
bureau.
b.
The
board
may
authorize
any
combination
of
tax
incentives
available
under
the
program
for
an
eligible
business.
4.
The
board
shall
not
authorize
an
award
under
this
part
before
January
1,
2026.
Sec.
13.
NEW
SECTION
.
15.506
Agreement.
1.
An
eligible
business
that
is
approved
by
the
authority
to
participate
in
the
program
shall
enter
into
an
agreement
with
the
authority
that
specifies
the
criteria
for
the
successful
completion
of
all
requirements
of
the
program.
The
agreement
must
contain,
at
a
minimum,
provisions
related
to
all
of
the
following:
a.
The
eligible
business
must
certify
to
the
authority
annually
that
the
business
is
in
compliance
with
the
agreement.
b.
If
the
eligible
business
fails
to
comply
with
any
requirements
of
the
program
or
the
agreement,
as
determined
by
the
authority,
the
eligible
business
may
be
required
to
repay
any
tax
incentives
the
authority
issued
to
the
eligible
business.
After
a
final
determination
by
the
authority,
the
authority
will
notify
the
department
of
revenue
of
any
required
repayment
of
a
tax
incentive,
which
shall
be
considered
a
tax
payment
due
and
payable
to
the
department
of
revenue
by
any
taxpayer
that
claimed
the
tax
incentive,
and
the
failure
to
make
the
repayment
may
be
treated
by
the
department
of
revenue
in
the
same
manner
as
a
failure
to
pay
the
tax
shown
Senate
File
657,
p.
15
due,
or
required
to
be
shown
due,
with
the
filing
of
a
return
or
deposit
form.
A
county
shall
have
the
authority
to
take
action
to
recover
the
value
of
property
taxes
not
collected
as
a
result
of
the
exemption
provided
to
the
business
under
this
part.
c.
If
the
eligible
business
undergoes
a
layoff
or
permanently
closes
any
of
its
facilities
within
the
state,
the
eligible
business
may
be
subject
to
all
of
the
following:
(1)
A
reduction
or
elimination
of
some
or
all
of
the
tax
incentives
the
authority
issued
to
the
eligible
business.
(2)
Repayment
of
any
tax
incentives
that
the
business
has
claimed,
and
payment
of
any
penalties
assessed
by
the
department
of
revenue.
d.
The
project
completion
date,
the
agreement
end
date,
the
base
employment
level,
any
retained
jobs,
the
number
of
created
jobs,
the
qualifying
wage
threshold
that
is
applicable
to
the
project,
the
amount
of
qualifying
investment,
the
maximum
aggregate
value
of
the
tax
incentives
authorized
by
the
board,
and
any
other
terms
and
obligations
the
authority
deems
necessary
or
material
to
the
determination
of
the
business’s
eligibility
for
the
program,
or
the
aggregate
value
of
tax
incentives
approved
by
the
board.
e.
The
eligible
business
shall
only
employ
individuals
legally
authorized
to
work
in
this
state.
If
the
eligible
business
is
found
to
knowingly
employ
individuals
who
are
not
legally
authorized
to
work
in
this
state,
in
addition
to
any
penalties
provided
by
law,
all
or
a
portion
of
any
tax
incentives
issued
by
the
authority
shall
be
subject
to
repayment
as
described
in
section
15.506,
subsection
1,
paragraph
“b”
.
f.
Any
terms
deemed
necessary
by
the
authority
to
effect
the
eligible
business’s
ongoing
compliance
with
section
15.504.
2.
The
business
shall
satisfy
all
applicable
terms
of
the
agreement
by
the
project
completion
date;
however,
the
board
may
for
good
cause
extend
the
project
completion
date
or
otherwise
amend
the
terms
of
the
agreement.
The
board
shall
not
amend
the
terms
of
the
agreement
to
allow
an
increase
in
the
maximum
aggregate
value
of
the
tax
incentives
authorized
by
the
board
under
section
15.505,
subsection
3.
Senate
File
657,
p.
16
3.
The
eligible
business
shall
comply
with
all
applicable
terms
of
the
agreement
until
the
agreement
end
date.
An
eligible
business
shall
maintain
the
business’s
base
employment
level
until
the
agreement
end
date.
4.
The
eligible
business
shall
not
assign
the
agreement
to
another
entity
without
the
advance
written
approval
of
the
board.
5.
The
authority
may
enforce
the
terms
of
the
agreement
as
necessary
and
appropriate.
Sec.
14.
NEW
SECTION
.
15.507
Sales
and
use
tax
refund.
1.
An
eligible
business
that
has
been
issued
a
tax
incentive
certificate
under
the
program
shall
be
entitled
to
a
refund,
as
negotiated
under
section
15.505,
subsection
3,
of
the
sales
and
use
taxes
paid
under
chapter
423
for
gas,
electricity,
water,
and
sewer
utility
services,
tangible
personal
property,
or
on
services
rendered,
furnished,
or
performed
to
or
for
a
contractor
or
subcontractor
and
used
in
the
fulfillment
of
a
written
contract
for
the
construction
or
equipping
of
a
facility
that
is
part
of
the
eligible
business’s
project.
Taxes
attributable
to
intangible
property
and
furniture
and
furnishings
shall
not
be
refunded.
2.
To
receive
the
sales
and
use
tax
refund,
the
eligible
business
shall
file
a
claim
with
the
department
of
revenue
as
follows:
a.
The
contractor
or
subcontractor
shall
state
under
oath,
on
forms
provided
by
the
department
of
revenue,
the
amount
of
the
sales
of
tangible
personal
property
or
services
rendered,
furnished,
or
performed
including
water,
sewer,
gas,
and
electric
utility
services
upon
which
sales
or
use
tax
has
been
paid
during
the
period
for
which
the
refund
is
claimed,
and
shall
submit
the
forms
to
the
eligible
business
before
contract
completion.
b.
The
eligible
business
shall,
no
more
frequently
than
quarterly,
submit
an
application
to
the
department
of
revenue
for
a
refund
of
the
amount
of
the
sales
and
use
taxes
paid
pursuant
to
chapter
423
upon
any
tangible
personal
property,
or
services
rendered,
furnished,
or
performed,
including
water,
sewer,
gas,
and
electric
utility
services.
The
application
shall
be
submitted
in
the
form
and
manner
prescribed
by
the
Senate
File
657,
p.
17
department
of
revenue.
The
department
of
revenue
shall
audit
the
application
and,
if
approved,
issue
a
warrant
or
warrants
to
the
eligible
business
in
the
amount
of
the
sales
or
use
tax
which
has
been
paid
to
the
state
of
Iowa
under
subsection
1.
The
eligible
business’s
final
application
must
be
submitted
to
the
department
of
revenue
within
one
year
after
the
project
completion
date.
An
application
filed
by
the
eligible
business
in
accordance
with
this
section
shall
not
be
denied
by
reason
of
a
time
limitation
for
filing
a
refund
claim
set
forth
in
section
423.47.
c.
The
refund
shall
be
remitted
by
the
department
of
revenue
to
the
eligible
business
as
soon
as
practicable
after
completion
of
the
audit
pursuant
to
paragraph
“b”
.
Interest
shall
not
accrue
on
any
part
of
the
refund
that
has
not
yet
been
remitted
by
the
department
of
revenue
to
the
eligible
business.
3.
A
contractor
or
subcontractor
that
willfully
makes
a
false
report
of
tax
paid
under
this
section
is
guilty
of
an
aggravated
misdemeanor,
and
shall
be
liable
for
payment
of
the
tax
and
any
applicable
penalty
and
interest.
Sec.
15.
NEW
SECTION
.
15.508
Qualifying
investment
tax
credit.
1.
The
authority
may
authorize
a
tax
credit
for
an
eligible
business
pursuant
to
section
15.505,
subsection
3.
The
authority
shall
not
issue
a
tax
credit
certificate
to
the
eligible
business
until
the
eligible
business’s
project
or
a
portion
of
the
project
has
been
placed
in
service.
An
eligible
business
may
claim
the
tax
credit
authorized
and
issued
by
the
authority.
The
tax
credit
shall
be
amortized
to
the
eligible
business
equally
over
five
tax
years.
The
tax
credit
shall
be
allowed
against
taxes
imposed
under
chapter
422,
subchapter
II,
III,
or
V,
and
against
the
moneys
and
credits
tax
imposed
in
section
533.329.
If
the
eligible
business
is
a
partnership,
S
corporation,
limited
liability
company,
cooperative
organized
under
chapter
501
and
filing
as
a
partnership
for
federal
tax
purposes,
or
estate
or
trust
electing
to
have
the
income
taxed
directly
to
the
individual,
an
individual
may
claim
the
tax
credit
allowed.
The
amount
claimed
by
the
individual
shall
be
based
upon
the
pro
rata
share
of
the
individual’s
earnings
of
the
partnership,
S
corporation,
limited
liability
company,
Senate
File
657,
p.
18
cooperative
organized
under
chapter
501
and
filing
as
a
partnership
for
federal
tax
purposes,
or
estate
or
trust.
Any
tax
credit
in
excess
of
the
eligible
business’s
tax
liability
for
the
tax
year
may
be
refunded.
In
lieu
of
claiming
a
refund,
an
eligible
business
may
elect
to
have
the
overpayment
shown
on
the
eligible
business’s
final,
completed
return
credited
to
the
eligible
business’s
tax
liability
for
the
immediately
succeeding
tax
year.
A
tax
credit
shall
not
be
carried
back
to
a
tax
year
prior
to
the
tax
year
in
which
the
tax
credit
is
first
claimed
by
the
eligible
business.
2.
If
within
five
years
of
the
date
the
authority
issues
an
eligible
business
a
tax
credit
under
subsection
1
the
eligible
business
sells,
disposes
of,
razes,
or
otherwise
renders
unusable
all
or
a
part
of
the
land,
buildings,
or
other
structures
for
which
the
tax
credit
was
claimed
under
this
section,
the
tax
liability
of
the
eligible
business
for
the
year
in
which
all
or
part
of
the
land,
buildings,
or
other
existing
structures
are
sold,
disposed
of,
razed,
or
otherwise
rendered
unusable
shall
be
increased
by
one
of
the
following
amounts:
a.
One
hundred
percent
of
the
tax
credit
claimed
under
this
section
if
all
or
a
part
of
the
land,
buildings,
or
other
structures
for
which
the
tax
credit
was
claimed
under
this
section
cease
to
be
eligible
for
the
tax
credit
within
one
year
after
the
date
the
authority
issued
the
tax
credit
to
the
eligible
business.
b.
Eighty
percent
of
the
tax
credit
claimed
under
this
section
if
all
or
a
part
of
the
land,
buildings,
or
other
structures
for
which
the
tax
credit
was
claimed
under
this
section
cease
to
be
eligible
for
the
tax
credit
within
two
years
after
the
date
the
authority
issued
the
tax
credit
to
the
eligible
business.
c.
Sixty
percent
of
the
tax
credit
claimed
under
this
section
if
all
or
a
part
of
the
land,
buildings,
or
other
structures
for
which
the
tax
credit
was
claimed
under
this
section
cease
to
be
eligible
for
the
tax
credit
within
three
years
after
the
date
the
authority
issued
the
tax
credit
to
the
eligible
business.
d.
Forty
percent
of
the
tax
credit
claimed
under
this
Senate
File
657,
p.
19
section
if
all
or
a
part
of
the
land,
buildings,
or
other
structures
for
which
the
tax
credit
was
claimed
under
this
section
cease
to
be
eligible
for
the
tax
credit
within
four
years
after
the
date
the
authority
issued
the
tax
credit
to
the
eligible
business.
e.
Twenty
percent
of
the
tax
credit
claimed
under
this
section
if
all
or
a
part
of
the
land,
buildings,
or
other
structures
for
which
the
tax
credit
was
claimed
under
this
section
cease
to
be
eligible
for
the
tax
credit
within
five
years
after
the
date
the
authority
issued
the
tax
credit
to
the
eligible
business.
f.
Except
as
provided
in
section
15.119,
subsection
1,
paragraph
“b”
,
the
board
shall
not
authorize
for
any
one
fiscal
year
an
amount
of
tax
credits
pursuant
to
this
section
that
exceeds
the
amount
allocated
pursuant
to
section
15.119,
subsection
2.
Sec.
16.
NEW
SECTION
.
15.509
Other
incentives.
1.
An
eligible
business
may
apply
for
and
be
eligible
to
receive
other
federal,
state,
and
local
incentives
in
addition
to
the
tax
incentives
issued
by
the
authority
to
the
eligible
business
under
the
program.
2.
The
authority,
in
its
discretion,
may
prohibit
an
eligible
business
that
has
been
issued
tax
incentives
under
the
program
from
receiving
any
additional
tax
incentive,
tax
credit,
grant,
loan,
or
other
financial
assistance
under
any
program
administered
by
the
authority.
Sec.
17.
NEW
SECTION
.
15.510
Property
tax
exemption.
1.
If
an
eligible
business
has
been
authorized
by
the
board
to
receive
tax
incentives
under
the
program,
a
community
in
which
the
eligible
business’s
project
is
located
may
grant
the
eligible
business
a
property
tax
exemption
for
a
portion
of
the
actual
value
added
by
improvements
to
real
property
through
the
project.
The
community
may
allow
a
property
tax
exemption
for
a
period
not
to
exceed
ten
years
beginning
the
year
that
the
improvements
to
real
property
are
first
assessed
for
taxation.
2.
For
purposes
of
this
section,
“improvements”
means
new
construction,
and
rehabilitation
of
and
additions
to
existing
structures.
3.
A
property
tax
exemption
granted
under
subsection
1
shall
Senate
File
657,
p.
20
apply
to
all
taxing
districts,
except
for
school
districts,
in
which
the
real
property
is
located.
Sec.
18.
NEW
SECTION
.
15.511
Financial
assistance
for
certain
eligible
businesses.
1.
The
authority
may
provide
financial
assistance
to
an
eligible
business
pursuant
to
section
15.111,
subsection
2,
paragraph
“a”
,
subparagraph
(8),
if
the
authority
and
the
board
find
such
assistance
necessary
to
facilitate
the
project’s
successful
completion,
that
the
project
has
an
extensive
economic
impact,
or
that
financial
assistance
will
incentivize
an
eligible
business
to
choose
an
Iowa
location,
rather
than
an
out-of-state
location,
for
the
project.
2.
Each
eligible
business
receiving
assistance
under
this
section
shall
enter
into
an
agreement
with
the
authority
and
the
agreement
shall
meet
the
requirements
of
section
15.506.
The
agreement
shall
specify
the
circumstances
under
which
the
financial
assistance
must
be
repaid
to
the
authority.
3.
If
the
authority
and
the
board
determine
financial
assistance
should
be
awarded,
the
authority
and
the
board
shall
determine
the
appropriate
amount
and
type
of
assistance
for
facilitating
the
eligible
business’s
project.
4.
For
purposes
of
this
section,
“financial
assistance”
means
assistance
provided
exclusively
from
the
funds,
rights,
and
assets
legally
available
to
the
authority
pursuant
to
this
chapter
and
includes
but
is
not
limited
to
assistance
in
the
form
of
grants,
loans,
forgivable
loans,
and
royalty
payments.
Sec.
19.
CODE
EDITOR
DIRECTIVE.
The
Code
editor
is
directed
to
designate
sections
15.502
through
15.511,
as
enacted
in
this
division
of
this
Act,
as
part
33
of
subchapter
II.
Sec.
20.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
enactment.
DIVISION
IV
ELIMINATION
OF
THE
HIGH
QUALITY
JOBS
PROGRAM
Sec.
21.
REPEAL.
Sections
15.326,
15.327,
15.329,
15.330,
15.330A,
15.331A,
15.331C,
15.332,
15.333,
15.333A,
15.335,
15.335A,
15.335B,
15.335C,
and
15.336,
Code
2025,
are
repealed.
Sec.
22.
TRANSITION
PROVISIONS.
1.
An
agreement
entered
into
on
or
before
December
31,
2025,
by
a
business
and
the
economic
development
authority
pursuant
Senate
File
657,
p.
21
to
section
15.330,
Code
2025,
or
amended
pursuant
to
section
15.330A,
Code
2025,
shall
be
valid
and
continue
per
the
terms
of
the
agreement.
2.
On
the
effective
date
of
this
division
of
this
Act,
all
moneys
appropriated
by
the
general
assembly
to
the
authority
for
purposes
of
section
15.335B
shall
remain
available
to
the
authority
for
purposes
of
section
15.111,
as
enacted
by
this
Act.
Notwithstanding
section
8.33,
moneys
transferred
in
accordance
with
this
section
that
remain
unencumbered
or
unobligated
at
the
close
of
the
fiscal
year
shall
not
revert
but
shall
remain
available
for
expenditure
for
the
purposes
designated
until
the
close
of
the
succeeding
fiscal
year.
Sec.
23.
PRESERVATION
OF
EXISTING
RIGHTS.
This
division
of
this
Act
shall
not
limit,
modify,
or
otherwise
adversely
affect
any
amount
of
tax
incentive
issued,
awarded,
or
allowed
before
December
31,
2025,
nor
shall
it
limit,
modify,
or
otherwise
adversely
affect
a
taxpayer’s
right
to
claim
or
redeem
a
tax
incentive
issued,
awarded,
or
allowed
before
December
31,
2025,
including
but
not
limited
to
any
tax
credit
carry
forward
amount.
Sec.
24.
EFFECTIVE
DATE.
This
division
of
this
Act
takes
effect
December
31,
2025.
DIVISION
V
HIGH
QUALITY
JOBS
PROGRAM
CONFORMING
CHANGES
Sec.
25.
Section
2.48,
subsection
3,
paragraph
a,
subparagraph
(1),
Code
2025,
is
amended
by
striking
the
subparagraph.
Sec.
26.
Section
2.48,
subsection
3,
paragraph
a,
subparagraph
(2),
Code
2025,
is
amended
to
read
as
follows:
(2)
The
tax
credits
for
increasing
research
activities
available
under
sections
15.335,
422.10
,
and
422.33
.
Sec.
27.
Section
8G.3,
subsection
8,
Code
2025,
is
amended
to
read
as
follows:
8.
“Tax
exemption
or
credit”
means
an
exclusion
from
the
operation
or
collection
of
a
tax
imposed
in
this
state.
Tax
exemption
or
credit
includes
tax
credits,
exemptions,
deductions,
and
rebates.
“Tax
exemption
or
credit”
also
includes
sales
tax
refunds
if
such
refunds
are
applied
for
and
Senate
File
657,
p.
22
granted
as
a
form
of
financial
assistance,
including
but
not
limited
to
the
refunds
allowed
in
sections
15.331A
15.507
and
423.4
.
Sec.
28.
Section
15.106B,
subsection
5,
paragraph
b,
Code
2025,
is
amended
to
read
as
follows:
b.
Fees
collected
by
the
authority
pursuant
to
this
subsection
shall
be
deposited
in
a
fund
within
the
state
treasury
created
pursuant
to
section
15.106A,
subsection
1
,
paragraph
“o”
,
and
are
appropriated
to
the
authority
for
the
purposes
set
out
in
section
15.106A,
subsection
1
,
paragraph
“o”
.
However,
fees
collected
by
the
authority
pursuant
to
section
15.330,
subsection
12,
section
15E.198,
Code
2014,
Code
2025,
and
section
15.354,
subsection
3
,
paragraph
“b”
,
shall
be
used
exclusively
for
costs
associated
with
the
administration
of
due
diligence
and
compliance.
Sec.
29.
Section
15.293B,
subsection
3,
Code
2025,
is
amended
to
read
as
follows:
3.
If
an
investor
is
awarded
a
tax
credit
pursuant
to
this
section
,
the
authority
and
the
investor
shall
enter
into
an
agreement
concerning
the
qualifying
redevelopment
project.
If
the
investor
fails
to
comply
with
any
of
the
requirements
of
the
agreement,
the
authority
may
find
the
investor
in
default
under
the
agreement
and
may
revoke
all
or
a
portion
of
the
tax
credit
award.
The
department
of
revenue,
upon
notification
by
the
authority
of
an
event
of
default,
shall
seek
repayment
of
the
value
of
any
such
tax
credit
already
claimed
in
the
same
manner
as
provided
in
section
15.330,
subsection
2.
After
a
final
determination
by
the
authority,
the
authority
shall
notify
the
department
of
revenue
of
any
required
repayment
or
recapture
of
a
tax
credit.
The
repayment
or
recapture
of
a
tax
credit
pursuant
to
this
subsection
shall
be
considered
a
tax
payment
due
and
payable
to
the
department
of
revenue
by
any
taxpayer
who
has
claimed
the
tax
credit,
and
the
failure
to
make
such
a
repayment
may
be
treated
by
the
department
of
revenue
in
the
same
manner
as
a
failure
to
pay
the
tax
shown
due
or
required
to
be
shown
due
with
the
filing
of
a
return
or
deposit
form.
Sec.
30.
Section
15.317,
subsection
5,
Code
2025,
is
amended
to
read
as
follows:
Senate
File
657,
p.
23
5.
The
business
shall
not
be
relocating
or
reducing
operations
as
described
in
section
15.329,
subsection
1
,
paragraph
“b”
follows
,
and
as
determined
under
the
discretion
of
the
authority
.
:
a.
The
business
shall
not
be
solely
relocating
operations
from
one
area
of
the
state.
A
project
that
does
not
create
new
jobs
or
involve
a
substantial
amount
of
new
capital
investment
shall
be
presumed
to
be
a
relocation.
In
determining
whether
a
business
is
solely
relocating
operations
for
purposes
of
this
paragraph,
the
authority
shall
consider
a
letter
of
support
for
the
move
from
the
affected
local
community.
b.
The
business
shall
not
be
in
the
process
of
reducing
operations
in
one
community
while
simultaneously
applying
for
the
program.
For
purposes
of
this
paragraph,
a
reduction
in
operations
within
twelve
months
before
or
after
an
application
is
submitted
to
the
authority
shall
be
presumed
to
be
a
reduction
in
operations
while
simultaneously
applying
for
assistance
under
the
program.
c.
This
subsection
shall
not
be
construed
to
prohibit
a
business
from
expanding
its
operation
in
a
community
if
existing
operations
of
a
similar
nature
in
this
state
are
not
closed
or
substantially
reduced.
Sec.
31.
Section
15.318,
subsection
2,
paragraph
b,
Code
2025,
is
amended
to
read
as
follows:
b.
The
compliance
Compliance
cost
fees
authorized
in
section
15.330,
subsection
12
,
shall
apply
to
all
agreements
entered
into
under
this
program
and
shall
be
collected
by
the
authority
in
the
same
manner
and
to
the
same
extent
as
described
in
that
subsection.
in
the
amount
and
manner
as
follows:
(1)
The
imposition
of
a
one-time
compliance
cost
fee
of
five
hundred
dollars
to
be
collected
by
the
authority
prior
to
the
issuance
of
a
tax
incentive
certificate.
(2)
The
imposition
of
a
compliance
cost
fee
equal
to
one-half
of
one
percent
of
the
value
of
tax
incentives
claimed
pursuant
to
an
agreement
that
has
an
aggregate
tax
incentive
value
of
one
hundred
thousand
dollars
or
greater.
The
authority
shall
collect
the
fee
from
the
business
after
the
tax
incentive
is
claimed
by
the
business
from
the
department
of
revenue.
Senate
File
657,
p.
24
Sec.
32.
Section
15.318,
subsection
4,
Code
2025,
is
amended
to
read
as
follows:
4.
Termination
and
repayment.
The
failure
by
an
eligible
business
in
fulfilling
any
requirement
of
the
program
or
any
of
the
terms
and
obligations
of
an
agreement
entered
into
pursuant
to
this
section
may
result
in
the
reduction,
termination,
or
rescission
of
the
tax
credits
under
section
15.319
and
may
subject
the
eligible
business
to
the
repayment
or
recapture
of
tax
credits
claimed.
The
repayment
or
recapture
of
tax
credits
pursuant
to
this
subsection
shall
be
accomplished
in
the
same
manner
as
provided
in
section
15.330,
subsection
2.
After
a
final
determination
by
the
authority,
the
authority
shall
notify
the
department
of
revenue
of
any
required
repayment
or
recapture
of
a
tax
credit.
The
repayment
or
recapture
of
a
tax
credit
pursuant
to
this
subsection
shall
be
considered
a
tax
payment
due
and
payable
to
the
department
of
revenue
by
any
taxpayer
who
has
claimed
the
tax
credit,
and
the
failure
to
make
such
a
repayment
may
be
treated
by
the
department
of
revenue
in
the
same
manner
as
a
failure
to
pay
the
tax
shown
due
or
required
to
be
shown
due
with
the
filing
of
a
return
or
deposit
form.
Sec.
33.
Section
15.354,
subsection
1,
paragraph
b,
subparagraph
(2),
Code
2025,
is
amended
to
read
as
follows:
(2)
A
report
that
meets
the
requirements
and
conditions
of
section
15.330,
subsection
9
submitted
to
the
authority
by
a
business
together
with
its
application
describing
all
violations
of
environmental
law
or
worker
safety
law
within
the
last
five
years
.
If,
upon
review
of
the
application,
the
authority
finds
that
the
business
has
a
record
of
violations
of
the
law,
statutes,
or
rules
that
tends
to
show
a
consistent
pattern,
the
authority
shall
not
provide
incentives
or
assistance
to
the
business
unless
the
authority
finds
either
that
the
violations
did
not
seriously
affect
public
health,
public
safety,
or
the
environment,
or,
if
such
violations
did
seriously
affect
public
health,
public
safety,
or
the
environment,
that
mitigating
circumstances
were
present.
Sec.
34.
Section
15.354,
subsection
1,
paragraph
c,
Code
2025,
is
amended
to
read
as
follows:
c.
In
addition
to
complying
with
all
applicable
requirements
Senate
File
657,
p.
25
in
paragraph
“b”
,
a
housing
business
that
chooses
to
be
considered
as
an
applicant
for
tax
credits
reserved
pursuant
to
section
15.119,
subsection
5
,
for
disaster
recovery
housing
projects
shall
also
submit
a
certification
that
the
applicant’s
housing
project
is
located
in
a
county
that
has
been
declared
a
major
disaster
by
the
president
of
the
United
States
on
or
after
March
12,
2019,
and
is
also
a
county
in
which
individuals
are
eligible
for
federal
individual
assistance.
The
housing
business
must
also
submit
documentation
that
provides
evidence
that
the
qualified
housing
project
is
needed
due
to
impact
of
the
disaster
that
is
the
subject
of
the
presidential
major
disaster
declaration.
Sec.
35.
Section
15.354,
subsection
3,
paragraph
b,
Code
2025,
is
amended
to
read
as
follows:
b.
The
compliance
Compliance
cost
fees
imposed
in
section
15.330,
subsection
12
,
shall
apply
to
all
agreements
entered
into
under
this
program
and
shall
be
collected
by
the
authority
in
the
same
manner
and
to
the
same
extent
as
described
in
that
subsection.
in
the
amount
and
manner
as
follows:
(1)
The
imposition
of
a
one-time
compliance
cost
fee
of
five
hundred
dollars
to
be
collected
by
the
authority
prior
to
the
issuance
of
a
tax
incentive
certificate.
(2)
The
imposition
of
a
compliance
cost
fee
equal
to
one-half
of
one
percent
of
the
value
of
tax
incentives
available
pursuant
to
an
agreement
that
has
an
aggregate
tax
incentive
value
of
one
hundred
thousand
dollars
or
greater.
The
authority
shall
collect
the
fee
from
the
housing
business
prior
to
the
issuance
of
a
tax
incentive.
Sec.
36.
Section
15.354,
subsection
5,
Code
2025,
is
amended
to
read
as
follows:
5.
Termination
and
repayment.
The
failure
by
a
housing
business
in
completing
a
housing
project
to
comply
with
any
requirement
of
this
program
or
any
of
the
terms
and
obligations
of
an
agreement
entered
into
pursuant
to
this
section
may
result
in
the
revocation,
reduction,
termination,
or
rescission
of
the
tax
incentive
award
or
the
approved
tax
incentives
and
may
subject
the
housing
business
to
the
repayment
or
recapture
of
tax
incentives
claimed
under
section
15.355.
The
repayment
or
recapture
of
tax
incentives
pursuant
to
this
Senate
File
657,
p.
26
section
shall
be
accomplished
in
the
same
manner
as
provided
in
section
15.330,
subsection
2.
After
a
final
determination
by
the
authority,
the
authority
shall
notify
the
department
of
revenue
of
any
required
repayment
or
recapture
of
a
tax
credit.
The
repayment
or
recapture
of
a
tax
credit
pursuant
to
this
subsection
shall
be
considered
a
tax
payment
due
and
payable
to
the
department
of
revenue
by
any
taxpayer
who
has
claimed
the
tax
credit,
and
the
failure
to
make
such
a
repayment
may
be
treated
by
the
department
of
revenue
in
the
same
manner
as
a
failure
to
pay
the
tax
shown
due
or
required
to
be
shown
due
with
the
filing
of
a
return
or
deposit
form.
Sec.
37.
Section
15.355,
subsection
2,
paragraph
b,
subparagraph
(3),
subparagraph
division
(a),
Code
2025,
is
amended
to
read
as
follows:
(a)
The
housing
business
shall,
after
the
agreement
completion
date,
make
application
to
the
department
of
revenue
for
any
refund
of
the
amount
of
sales
and
use
taxes
paid
under
chapter
423
prior
to
the
completion
of
the
housing
project
that
were
directly
related
to
a
housing
project
and
specified
in
the
agreement.
The
application
shall
be
made
in
the
manner
and
upon
forms
to
be
provided
by
the
department
of
revenue.
The
department
of
revenue
shall
audit
the
claim
and,
if
approved,
issue
a
warrant
to
the
housing
business.
The
application
must
be
made
within
one
year
after
the
agreement
completion
date.
A
claim
filed
by
the
housing
business
in
accordance
with
this
subsection
shall
not
be
denied
by
reason
of
a
time
limitation
provision
for
filing
a
refund
claim
set
forth
in
chapter
421
or
423
section
423.47
.
Sec.
38.
Section
15.499,
subsection
1,
Code
2025,
is
amended
to
read
as
follows:
1.
Except
for
the
high
quality
jobs
program
administered
by
the
authority
pursuant
to
sections
15.326
through
15.336
,
and
the
targeted
jobs
withholding
credit
pursuant
to
section
403.19A
,
an
eligible
business
may
apply
for
and
be
eligible
to
receive
other
federal,
state,
and
local
incentives
in
addition
to
the
tax
incentives
issued
by
the
authority
to
the
eligible
business
under
the
program.
Sec.
39.
Section
15E.351,
subsection
1,
Code
2025,
is
amended
to
read
as
follows:
Senate
File
657,
p.
27
1.
The
authority
shall
establish
and
administer
a
business
accelerator
program
to
provide
financial
assistance
for
the
establishment
and
operation
of
a
business
accelerator
for
technology-based,
value-added
agricultural,
information
solutions,
alternative
and
renewable
energy
including
the
alternative
and
renewable
energy
sectors
listed
in
section
476.42,
subsection
1
,
paragraph
“a”
,
subparagraph
(1),
or
advanced
manufacturing
start-up
businesses
or
for
a
satellite
of
an
existing
business
accelerator.
The
program
shall
be
designed
to
foster
the
accelerated
growth
of
new
and
existing
businesses
through
the
provision
of
technical
assistance.
The
authority
may
provide
financial
assistance
under
this
section
from
moneys
allocated
for
financial
assistance
for
business
accelerators
pursuant
to
section
15.335B,
subsection
2
15.111
.
Sec.
40.
Section
15E.362,
subsection
1,
paragraph
c,
Code
2025,
is
amended
to
read
as
follows:
c.
“Financial
assistance”
means
the
same
as
defined
in
section
15.327
assistance
provided
only
from
the
funds,
rights,
and
assets
legally
available
to
the
authority
pursuant
to
chapter
15
and
includes
but
is
not
limited
to
assistance
in
the
form
of
grants,
loans,
forgivable
loans,
and
royalty
payments
.
Sec.
41.
Section
15H.5,
subsection
2,
Code
2025,
is
amended
to
read
as
follows:
2.
The
Iowa
summer
youth
corps
program
is
established
to
provide
meaningful
summer
enrichment
programming
to
Iowa
youth.
The
program
shall
be
administered
by
the
commission
using
a
competitive
grant
process
to
implement
projects
in
accordance
with
program
requirements.
The
commission
shall
adopt
administrative
rules
for
the
program,
including
but
not
limited
to
incentives,
grant
criteria,
and
grantee
selection
processes.
A
percentage
of
the
grants
shall
be
designated
by
the
commission
to
address
the
needs
of
economically
distressed
areas
as
defined
in
section
15.335C
.
Sec.
42.
Section
15H.5,
subsection
5,
paragraph
c,
Code
2025,
is
amended
to
read
as
follows:
c.
The
commission
shall
give
priority
consideration
to
approving
those
projects
that
target
communities
that
have
disproportionately
high
rates
of
juvenile
crime
or
low
rates
of
high
school
graduation
or
that
have
been
designated
as
an
Senate
File
657,
p.
28
economically
distressed
areas
as
defined
in
section
15.335C
area
.
Sec.
43.
Section
15H.5,
Code
2025,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
7.
For
purposes
of
this
section,
“economically
distressed
area”
means
a
county
that
meets
at
least
three
of
the
following
criteria:
a.
The
county
ranks
among
the
thirty-three
Iowa
counties
with
the
highest
average
monthly
unemployment
rates
for
the
most
recent
twelve-month
period
based
on
the
applicable
local
area
unemployment
statistics
produced
by
the
United
States
department
of
labor,
bureau
of
labor
statistics.
b.
The
county
ranks
among
the
thirty-three
Iowa
counties
with
the
highest
average
annualized
unemployment
rates
for
the
most
recent
five-year
period
based
on
the
applicable
local
area
unemployment
statistics
produced
by
the
United
States
department
of
labor,
bureau
of
labor
statistics.
c.
The
county
ranks
among
the
thirty-three
Iowa
counties
with
the
lowest
annual
average
weekly
wages
based
on
the
most
recent
quarterly
census
of
employment
and
wages
published
by
the
United
States
department
of
labor,
bureau
of
labor
statistics.
d.
The
county
ranks
among
the
thirty-three
Iowa
counties
with
the
highest
family
poverty
rates
based
on
the
most
recent
American
community
survey
five-year
estimate
released
by
the
United
States
census
bureau.
e.
The
county
ranks
among
the
thirty-three
Iowa
counties
with
the
highest
percentage
population
loss.
Percentage
population
loss
shall
be
calculated
by
comparing
the
most
recent
population
estimate
produced
by
the
United
States
census
bureau
to
the
most
recent
decennial
census
released
by
the
United
States
census
bureau,
except
for
a
calendar
year
in
which
the
decennial
census
data
is
released,
then
the
percentage
population
loss
shall
be
calculated
by
comparing
the
population
in
the
decennial
census
released
that
calendar
year
to
the
population
in
the
decennial
census
released
ten
years
prior.
f.
The
county
ranks
among
the
thirty-three
Iowa
counties
with
the
highest
percentage
of
persons
sixty-five
years
of
age
Senate
File
657,
p.
29
or
older
based
on
the
most
recent
American
community
survey
five-year
estimate
released
by
the
United
States
census
bureau.
Sec.
44.
Section
159A.6B,
subsection
2,
Code
2025,
is
amended
to
read
as
follows:
2.
The
office
may
execute
contracts
in
order
to
provide
technical
support
and
outreach
services
for
purposes
of
assisting
and
educating
interested
persons
as
provided
in
this
section
.
The
office
may
also
contract
with
a
consultant
to
provide
part
or
all
of
these
services.
The
office
may
require
that
a
person
receiving
assistance
pursuant
to
this
section
contribute
up
to
fifty
percent
of
the
amount
required
to
support
the
costs
of
contracting
with
the
consultant
to
provide
assistance
to
the
person.
The
office
shall
assist
the
person
in
completing
any
technical
information
required
in
order
to
receive
assistance
by
the
economic
development
authority
pursuant
to
section
15.335B.
Sec.
45.
Section
422.10,
subsection
5,
Code
2025,
is
amended
by
striking
the
subsection.
Sec.
46.
Section
422.11F,
subsection
2,
Code
2025,
is
amended
to
read
as
follows:
2.
The
taxes
imposed
under
this
subchapter
,
less
the
credits
allowed
under
section
422.12
,
shall
be
reduced
by
investment
tax
credits
authorized
pursuant
to
section
15.333
and
section
15E.193B,
subsection
6,
Code
2014
sections
15.508
and
15.496
.
Sec.
47.
Section
422.33,
subsection
5,
paragraph
h,
Code
2025,
is
amended
by
striking
the
paragraph.
Sec.
48.
Section
422.33,
subsection
12,
paragraph
b,
Code
2025,
is
amended
to
read
as
follows:
b.
The
taxes
imposed
under
this
subchapter
shall
be
reduced
by
investment
tax
credits
authorized
pursuant
to
section
15.333
and
section
15E.193B,
subsection
6,
Code
2014
sections
15.508
and
15.496
.
Sec.
49.
Section
422.33,
subsection
19,
Code
2025,
is
amended
by
striking
the
subsection.
Sec.
50.
Section
422.60,
subsection
5,
paragraph
b,
Code
2025,
is
amended
to
read
as
follows:
b.
The
taxes
imposed
under
this
subchapter
shall
be
reduced
by
investment
tax
credits
authorized
pursuant
to
sections
15.333
and
15E.193B,
subsection
6,
Code
2014
15.508
and
15.496
.
Senate
File
657,
p.
30
Sec.
51.
Section
422.60,
subsection
8,
Code
2025,
is
amended
by
striking
the
subsection.
Sec.
52.
Section
427B.17,
subsection
8,
paragraph
b,
Code
2025,
is
amended
to
read
as
follows:
b.
Any
electric
power
generating
plant
which
operated
during
the
preceding
assessment
year
at
a
net
capacity
factor
of
more
than
twenty
percent,
shall
not
receive
the
benefits
of
this
section
or
of
section
15.332
.
Sec.
53.
Section
432.12C,
subsection
2,
Code
2025,
is
amended
to
read
as
follows:
2.
The
taxes
imposed
under
this
chapter
shall
be
reduced
by
investment
tax
credits
authorized
pursuant
to
section
15.333A
and
section
15E.193B,
subsection
6,
Code
2014
sections
15.508
and
15.496
.
Sec.
54.
Section
455B.104,
subsection
2,
Code
2025,
is
amended
by
striking
the
subsection.
Sec.
55.
Section
533.329,
subsection
2,
paragraph
c,
Code
2025,
is
amended
by
striking
the
paragraph.
Sec.
56.
Section
533.329,
subsection
2,
paragraph
d,
Code
2025,
is
amended
to
read
as
follows:
d.
The
moneys
and
credits
tax
imposed
under
this
section
shall
be
reduced
by
an
investment
tax
credit
authorized
pursuant
to
section
15.333
sections
15.508
and
15.496
.
Sec.
57.
REPEAL.
Sections
15E.231,
15E.232,
15E.233,
266.19,
422.11U,
and
432.12H,
Code
2025,
are
repealed.
Sec.
58.
PRESERVATION
OF
EXISTING
RIGHTS.
The
sections
of
this
division
of
this
Act
amending
sections
422.10,
422.11F,
422.11U,
422.33,
422.60,
432.12C,
432.12H,
and
533.329
shall
not
limit,
modify,
or
otherwise
adversely
affect
any
amount
of
tax
incentive
issued,
awarded,
or
allowed
before
December
31,
2025,
nor
shall
it
limit,
modify,
or
otherwise
adversely
affect
a
taxpayer’s
right
to
claim
or
redeem
a
tax
incentive
issued,
awarded,
or
allowed
before
December
31,
2025,
including
but
not
limited
to
any
tax
credit
carryforward
amount.
Sec.
59.
EFFECTIVE
DATE.
This
division
of
this
Act
takes
effect
December
31,
2025.
DIVISION
VI
SEED
INVESTOR
TAX
CREDIT
PROGRAM
AND
INNOVATION
FUND
INVESTMENT
TAX
CREDITS
Senate
File
657,
p.
31
Sec.
60.
NEW
SECTION
.
15E.25
Purpose.
The
purpose
of
this
subchapter
is
to
stimulate
job
growth,
create
wealth,
and
accelerate
the
creation
of
new
ventures
by
using
investment
tax
credits
to
incentivize
the
transfer
of
capital
from
investors
to
entrepreneurs,
particularly
during
early-stage
growth.
Sec.
61.
NEW
SECTION
.
15E.26
Definitions.
For
purposes
of
this
subchapter,
unless
the
context
otherwise
requires:
1.
“Affiliate”
means
a
spouse,
child,
or
sibling
of
an
investor
or
a
corporation,
partnership,
or
trust
in
which
an
investor
has
a
controlling
equity
interest
or
in
which
an
investor
exercises
management
control.
2.
“Authority”
means
the
economic
development
authority
created
in
section
15.105.
3.
“Entrepreneurial
assistance
program”
includes
the
entrepreneur
investment
awards
program
administered
under
section
15E.362,
the
receipt
of
services
from
a
service
provider
engaged
pursuant
to
section
15.411,
subsection
1,
or
the
program
administered
under
section
15.411,
subsection
2.
4.
“Investment”
means
a
minimum
cash
investment
of
ten
thousand
dollars
in
a
qualifying
business.
5.
“Investor”
means
a
person
making
a
cash
investment
in
a
qualifying
business.
“Investor”
does
not
include
a
person
that
holds
at
least
a
seventy
percent
ownership
interest
as
an
owner,
member,
or
shareholder
in
a
qualifying
business.
6.
“Qualifying
business”
means
a
business
meeting
the
criteria
defined
in
section
15E.28.
7.
“Rural
area”
means
a
city
that
has
a
population
of
fifteen
thousand
or
less
based
on
the
most
recent
decennial
census
released
by
the
United
States
census
bureau.
8.
“Urban
area”
means
a
city
that
has
a
population
of
greater
than
fifteen
thousand
based
on
the
most
recent
decennial
census
released
by
the
United
States
census
bureau.
Sec.
62.
NEW
SECTION
.
15E.27
Investment
tax
credits.
1.
a.
For
tax
years
beginning
on
or
after
January
1,
2025,
a
tax
credit
shall
be
allowed
against
the
taxes
imposed
in
chapter
422,
subchapters
II,
III,
and
V,
and
in
chapter
432,
and
against
the
moneys
and
credits
tax
imposed
in
section
Senate
File
657,
p.
32
533.329,
for
a
portion
of
a
taxpayer’s
equity
investment,
as
provided
in
subsection
2,
in
a
qualifying
business.
b.
An
individual
may
claim
a
tax
credit
under
this
section
of
a
partnership,
limited
liability
company,
S
corporation,
estate,
or
trust
electing
to
have
income
taxed
directly
to
the
individual.
The
amount
claimed
by
the
individual
shall
be
based
upon
the
pro
rata
share
of
the
individual’s
earnings
from
the
partnership,
limited
liability
company,
S
corporation,
estate,
or
trust.
c.
A
tax
credit
shall
be
allowed
only
for
an
investment
made
in
the
form
of
cash
to
purchase
equity
in
a
qualifying
business.
d.
An
affiliate
of
a
qualifying
business
or
an
affiliate
of
a
qualifying
business’s
principals
shall
not
be
eligible
for
a
tax
credit
under
this
section.
e.
(1)
For
a
tax
credit
claimed
against
the
taxes
imposed
on
any
of
the
following,
any
tax
credit
in
excess
of
the
tax
liability
is
refundable:
(a)
A
tax
credit
claimed
against
the
taxes
imposed
in
chapter
422,
subchapters
II,
III,
and
V.
(b)
A
tax
credit
claimed
against
the
taxes
imposed
in
chapter
432.
(c)
A
tax
credit
claimed
against
the
moneys
and
credits
tax
imposed
in
section
533.329.
(2)
A
tax
credit
shall
not
be
carried
back
to
a
tax
year
prior
to
the
tax
year
in
which
the
taxpayer
redeems
the
tax
credit.
f.
In
lieu
of
claiming
a
refund,
a
taxpayer
may
elect
to
have
the
overpayment
shown
on
the
taxpayer’s
final,
completed
return
credited
to
the
tax
liability
for
the
immediately
succeeding
tax
year.
2.
a.
The
amount
of
the
tax
credit
shall
equal
twenty
percent
of
the
taxpayer’s
equity
investment
if
the
qualifying
business
is
located
in
an
urban
area
at
the
time
of
the
investment.
The
amount
of
the
tax
credit
shall
equal
thirty-five
percent
of
the
taxpayer’s
equity
investment
if
the
qualifying
business
is
located
in
a
rural
area
at
the
time
of
the
investment.
b.
(1)
The
maximum
amount
of
a
tax
credit
that
may
be
Senate
File
657,
p.
33
issued
per
fiscal
year
to
a
natural
person
and
the
person’s
spouse
or
dependent
shall
not
exceed
one
hundred
thousand
dollars
combined.
For
purposes
of
this
subparagraph,
“dependent”
has
the
same
meaning
as
defined
by
the
Internal
Revenue
Code.
(2)
The
maximum
amount
of
a
tax
credit
that
may
be
issued
per
fiscal
year
to
a
corporation
or
other
entity
shall
not
exceed
one
hundred
thousand
dollars.
(3)
An
application
received
by
the
authority
that
exceeds
the
maximum
amount
of
tax
credits
permitted
by
this
paragraph
shall
be
denied,
in
whole
or
in
part,
regardless
of
whether
the
investment
would
otherwise
be
eligible
to
qualify
for
a
tax
credit.
(4)
For
purposes
of
this
paragraph,
a
tax
credit
issued
to
a
partnership,
limited
liability
company,
S
corporation,
estate,
or
trust
electing
to
have
income
taxed
directly
to
the
individual
shall
be
deemed
to
be
issued
to
the
individual
owners
based
upon
the
pro
rata
share
of
the
individual’s
earnings
from
the
entity.
c.
The
maximum
amount
of
tax
credits
that
may
be
issued
per
fiscal
year
for
equity
investments
in
any
one
qualifying
business
shall
not
exceed
five
hundred
thousand
dollars.
An
application
received
by
the
authority
that
exceeds
the
maximum
amount
of
tax
credits
permitted
by
this
paragraph
shall
be
denied,
in
whole
or
in
part,
regardless
of
whether
the
investment
would
otherwise
be
eligible
to
qualify
for
a
tax
credit.
3.
An
investment
shall
be
deemed
to
have
been
made
on
the
same
date
as
the
date
of
acquisition
of
the
equity
interest
as
determined
by
the
Internal
Revenue
Code.
4.
The
authority
shall
not
issue
tax
credits
under
this
section
in
excess
of
the
amount
approved
by
the
authority
for
any
one
fiscal
year
pursuant
to
section
15.119,
subsection
2,
paragraph
“a”
.
5.
A
tax
credit
shall
not
be
transferred
to
any
other
person.
6.
The
authority
shall
develop
a
system
for
registration
and
issuance
of
tax
credits
authorized
pursuant
to
this
subchapter
and
shall
control
distribution
of
all
tax
credit
certificates
Senate
File
657,
p.
34
to
investors
pursuant
to
this
subchapter.
The
authority
shall
develop
rules
for
the
qualification
and
administration
of
qualifying
businesses.
The
department
of
revenue
shall
adopt
rules
pursuant
to
chapter
17A
as
necessary
for
the
administration
of
this
subchapter.
Sec.
63.
NEW
SECTION
.
15E.28
Qualifying
businesses.
1.
To
determine
whether
a
business
is
a
qualifying
business,
a
business
shall
submit
an
application
to
the
authority
that
is
accompanied
by
a
nonrefundable
application
fee.
A
business
must
be
certified
by
the
authority
as
a
qualifying
business
in
order
for
an
investor’s
equity
investment
to
qualify
for
a
tax
credit.
2.
In
order
to
be
a
qualifying
business,
a
business
must
meet
all
of
the
following
criteria:
a.
The
principal
business
operations,
and
a
majority
of
employees,
of
the
business
are
located
in
this
state.
b.
The
business
has
been
in
operation
for
five
years
or
less.
c.
The
business
has
at
least
one
full-time
equivalent
employee.
d.
The
business’s
primary
operations
are
in
advanced
manufacturing,
bioscience,
insurance
and
finance,
and
technologies.
The
business
shall
not
be
primarily
engaged
in
retail
sales,
real
estate,
the
provision
of
health
care,
or
the
provision
of
services
that
require
a
professional
license.
In
determining
whether
a
business
is
primarily
engaged
in
advanced
manufacturing,
biosciences,
insurance
and
finance,
or
technologies,
the
authority
shall
consider
the
business’s
North
American
industry
classification
system
code,
the
business’s
main
sources
of
revenue,
and
the
business’s
customer
base.
e.
The
business
is
an
independent
organization
that
is
not
part
of,
or
an
affiliate
of,
a
business
that
is
not
a
qualifying
business.
f.
The
business
shall
establish
that
its
owners,
directors,
officers,
and
employees
have
an
appropriate
level
of
experience
consistent
with
the
nature
of
the
business.
The
authority
may
consult
with
outside
service
providers
to
determine
whether
a
business
meets
the
requirement
of
this
paragraph.
A
business
that
has
participated
in
an
entrepreneurial
assistance
program
Senate
File
657,
p.
35
shall
be
presumed
to
meet
the
requirement
of
this
paragraph.
g.
The
business
shall
not
have
a
net
worth
that
exceeds
ten
million
dollars.
h.
The
business
shall
have
secured
all
of
the
following
at
the
time
of
application
for
tax
credits:
(1)
At
least
two
investors.
For
purposes
of
this
subparagraph,
“investor”
includes
a
person
who
executes
a
binding
investment
commitment
to
a
qualifying
business,
and
does
not
include
an
affiliate
of
a
qualifying
business
or
an
affiliate
of
a
qualifying
business’s
principals.
(2)
Total
equity
financing,
binding
investment
commitments,
or
some
combination
thereof,
equal
to
at
least
five
hundred
thousand
dollars,
from
investors.
3.
A
qualifying
business
shall
have
the
burden
of
proof
to
demonstrate
to
the
authority
its
qualifications
under
this
section,
and
shall
have
the
obligation
to
notify
the
authority
in
a
timely
manner
of
any
changes
in
the
qualifications
of
the
business
or
in
the
eligibility
of
investors
to
redeem
the
investment
tax
credits
in
any
tax
year.
The
authority
may
revoke
the
certification
of
a
qualifying
business
that
no
longer
meets
the
requirements
of
this
section.
4.
A
business
that
has
been
certified
by
the
authority
as
a
qualifying
business
shall
annually
submit
an
application
to
the
authority
that
documents
continued
eligibility
as
a
qualifying
business
and
any
investments
that
may
qualify
for
a
tax
credit.
The
business
shall
submit
the
application
to
the
authority
during
an
annual
application
period
designated
by
the
authority
by
rule.
5.
Based
on
the
applications
submitted
by
qualifying
businesses
pursuant
to
subsection
4,
the
authority
shall
make
an
initial
allocation
of
tax
credits
in
the
order
in
which
the
applications
are
received
until
the
maximum
amount
of
tax
credits
determined
by
the
board
pursuant
to
section
15.119,
subsection
2,
is
reached.
Equity
investors
that
are
eligible
for
a
tax
credit
based
on
such
initial
allocation
shall
submit
any
additional
information
requested
by
the
authority
necessary
to
verify
the
eligibility
of
the
investor
and
to
issue
a
tax
credit
certificate.
An
equity
investor
that
does
not
submit
the
required
information
may
be
denied
a
tax
credit.
If
any
Senate
File
657,
p.
36
equity
investor
included
in
the
initial
allocation
is
denied
a
tax
credit,
the
authority
may
allocate
such
tax
credits
to
equity
investors
that
were
not
included
in
the
initial
allocation.
6.
Upon
receipt
of
all
required
information
from
a
qualifying
business
and
an
equity
investor,
the
director
of
the
authority
may
approve
issuance
of
a
tax
credit
certificate
to
be
included
with
the
equity
investor’s
tax
return.
The
tax
credit
certificate
shall
contain
the
taxpayer’s
name,
address,
tax
identification
number,
the
amount
of
tax
credit,
the
name
of
the
qualifying
business,
and
any
other
information
required
by
the
department
of
revenue.
The
tax
credit
certificate,
unless
rescinded
by
the
authority,
shall
be
accepted
by
the
department
of
revenue
as
payment
for
taxes
imposed
pursuant
to
chapter
422,
subchapters
II,
III,
and
V,
and
in
chapter
432,
and
for
the
moneys
and
credits
tax
imposed
in
section
533.329,
subject
to
any
conditions
or
restrictions
placed
by
the
authority
upon
the
face
of
the
tax
credit
certificate
and
subject
to
the
limitations
of
section
15E.27.
Sec.
64.
NEW
SECTION
.
15E.29
Confidentiality
——
reports.
1.
Except
as
provided
in
subsection
2,
all
information
or
records
in
the
possession
of
the
authority
with
respect
to
this
subchapter
shall
be
presumed
by
the
authority
to
be
a
trade
secret
protected
under
chapter
550
or
common
law,
and
shall
be
kept
confidential
by
the
authority
unless
otherwise
ordered
by
a
court.
2.
All
of
the
following
shall
be
considered
public
information
under
chapter
22:
a.
The
identity
of
a
qualifying
business.
b.
The
identity
of
an
investor
and
the
qualifying
business
in
which
the
investor
made
an
equity
investment.
c.
The
number
of
tax
credit
certificates
issued
by
the
authority.
d.
The
total
dollar
amount
of
tax
credits
issued
by
the
authority.
3.
The
authority
shall
include
as
part
of
the
annual
report
under
section
15.107B
a
listing
of
eligible
qualifying
businesses,
the
number
of
tax
credit
certificates,
and
the
amount
of
tax
credits
issued
by
the
authority
in
each
fiscal
Senate
File
657,
p.
37
year.
Sec.
65.
Section
15E.52,
subsection
5,
paragraph
a,
Code
2025,
is
amended
to
read
as
follows:
a.
To
receive
a
tax
credit,
a
taxpayer
must
submit
an
application
to
the
board.
The
board
shall
issue
certificates
under
this
section
on
a
first-come,
first-served
basis,
which
certificates
may
be
redeemed
for
tax
credits.
The
board
shall
issue
such
certificates
so
that
not
more
than
the
amount
allocated
for
such
tax
credits
under
section
15.119,
subsection
2,
paragraph
“a”
,
may
be
claimed.
The
board
shall
not
issue
a
certificate
before
September
1,
2014.
Sec.
66.
Section
15E.52,
subsection
7,
paragraph
g,
Code
2025,
is
amended
to
read
as
follows:
g.
The
fund
proposes
to
obtain
at
least
fifteen
three
million
dollars
in
binding
investment
commitments
and
to
invest
a
minimum
of
fifteen
three
million
dollars
in
companies
that
have
a
principal
place
of
business
in
the
state.
Sec.
67.
CODE
EDITOR
DIRECTIVE.
The
Code
editor
is
directed
to
do
the
following:
1.
Entitle
chapter
15E,
subchapter
IV,
“Seed
Investor
Tax
Credit”
and
include
sections
15E.25
through
15E.29.
2.
Correct
internal
references
in
the
Code
and
in
enacted
legislation
as
necessary
due
to
the
enactment
of
this
division
of
this
Act.
DIVISION
VII
ELIMINATION
OF
INVESTMENTS
IN
QUALIFYING
BUSINESSES
TAX
CREDIT
PROGRAM
Sec.
68.
REPEAL.
Sections
15E.41,
15E.42,
15E.43,
15E.44,
and
15E.46,
Code
2025,
are
repealed.
Sec.
69.
TRANSITION
PROVISIONS.
A
tax
credit
issued
by
the
economic
development
authority
to
a
taxpayer
before
June
30,
2026,
for
an
investment
in
a
qualifying
business
pursuant
to
chapter
15E,
subchapter
V,
Code
2025,
shall
remain
valid
per
the
terms
under
which
the
tax
credit
was
issued
by
the
economic
development
authority,
and
the
provisions
of
chapter
15E,
subchapter
V,
Code
2025.
DIVISION
VIII
INVESTMENTS
IN
QUALIFYING
BUSINESS
TAX
CREDIT
PROGRAM
——
CONFORMING
CHANGES
Senate
File
657,
p.
38
Sec.
70.
Section
2.48,
subsection
3,
paragraph
d,
subparagraph
(1),
Code
2025,
is
amended
by
striking
the
subparagraph.
Sec.
71.
Section
15E.52,
subsection
4,
Code
2025,
is
amended
to
read
as
follows:
4.
A
taxpayer
shall
not
claim
a
tax
credit
under
this
section
if
the
taxpayer
is
a
venture
capital
investment
fund
allocation
manager
for
the
Iowa
fund
of
funds
created
in
section
15E.65
or
an
investor
that
receives
a
tax
credit
for
the
same
investment
in
a
qualifying
business
as
described
in
section
15E.44
or
in
a
community-based
seed
capital
fund
as
described
in
section
15E.45
,
Code
2015
15E.28
.
Sec.
72.
Section
422.11F,
subsection
1,
Code
2025,
is
amended
to
read
as
follows:
1.
The
taxes
imposed
under
this
subchapter
,
less
the
credits
allowed
under
section
422.12
,
shall
be
reduced
by
an
investment
tax
credit
authorized
pursuant
to
section
15E.43
15E.27
for
an
investment
in
a
qualifying
business.
Sec.
73.
Section
422.33,
subsection
12,
paragraph
a,
Code
2025,
is
amended
to
read
as
follows:
a.
The
taxes
imposed
under
this
subchapter
shall
be
reduced
by
an
investment
tax
credit
authorized
pursuant
to
section
15E.43
15E.27
for
an
investment
in
a
qualifying
business.
Sec.
74.
Section
422.60,
subsection
5,
paragraph
a,
Code
2025,
is
amended
to
read
as
follows:
a.
The
taxes
imposed
under
this
subchapter
shall
be
reduced
by
an
investment
tax
credit
authorized
pursuant
to
section
15E.43
15E.27
for
an
investment
in
a
qualifying
business.
Sec.
75.
Section
432.12C,
subsection
1,
Code
2025,
is
amended
to
read
as
follows:
1.
The
tax
imposed
under
this
chapter
shall
be
reduced
by
an
investment
tax
credit
authorized
pursuant
to
section
15E.43
15E.27
for
an
investment
in
a
qualifying
business.
Sec.
76.
Section
533.329,
subsection
2,
paragraph
e,
Code
2025,
is
amended
to
read
as
follows:
e.
The
moneys
and
credits
tax
imposed
under
this
section
shall
be
reduced
by
an
investment
tax
credit
authorized
pursuant
to
section
15E.43
15E.27
.
Sec.
77.
PRESERVATION
OF
EXISTING
RIGHTS.
The
sections
of
Senate
File
657,
p.
39
this
division
of
this
Act
amending
sections
422.11F,
422.33,
422.60,
432.12C,
and
533.329
shall
not
limit,
modify,
or
otherwise
adversely
affect
any
amount
of
investment
tax
credit
under
section
15E.43,
Code
2025,
that
was
issued,
awarded,
or
allowed
before
July
1,
2026,
and
shall
not
limit,
modify,
or
otherwise
adversely
affect
a
taxpayer’s
right
to
claim
or
redeem
an
investment
tax
credit
under
section
15E.43,
Code
2025,
that
was
issued,
awarded,
or
allowed
before
July
1,
2026,
including
but
not
limited
to
any
tax
credit
carryforward
amount.
DIVISION
IX
IOWA
FILM
PRODUCTION
INCENTIVE
PROGRAM
AND
FUND
Sec.
78.
NEW
SECTION
.
15.517
Iowa
film
production
incentive
program.
1.
As
used
in
this
section:
a.
“Fund”
means
the
Iowa
film
production
incentive
fund.
b.
“Program”
means
the
Iowa
film
production
incentive
program.
c.
“Qualified
expenditure”
means
an
allowed
expense,
as
determined
by
the
authority
by
rule,
that
is
incurred
by
a
qualified
production
facility
on
or
after
July
1,
2025,
but
before
July
1,
2027,
for
producing
a
qualified
production.
d.
“Qualified
production”
means
a
feature
film,
television
series,
documentary,
or
unscripted
series
that
is
rated
G,
PG,
PG-13,
or
R
by
the
classification
and
ratings
administration
of
the
motion
picture
association
of
America
or
the
TV
parental
guidelines
monitoring
board.
e.
“Qualified
production
facility”
or
“facility”
means
any
of
the
following:
(1)
A
dedicated
studio
located
in
this
state
at
which
qualified
productions
can
be
produced.
(2)
A
studio
located
in
this
state
at
which
all
preproduction
and
film
production
take
place
for
a
qualified
production
filmed
on
location
in
this
state.
(3)
A
company
that
has,
in
the
three
consecutive
years
immediately
preceding
an
application
for
a
rebate,
had
the
company’s
principal
place
of
business
in
this
state
and
produced
a
qualified
production.
2.
a.
The
authority
shall
establish
and
administer
an
Iowa
Senate
File
657,
p.
40
film
production
incentive
program
for
the
purpose
of
providing
rebates
to
qualified
production
facilities
for
qualified
expenditures.
b.
The
authority
shall
establish
eligibility
criteria
for
the
program
by
rule.
(1)
The
eligibility
criteria
for
qualified
production
facilities
must
require
that
a
facility
have
an
agreement
between
the
authority
and
the
facility
that
the
phrase
“filmed
in
Iowa”
appears
noticeably
in
the
credits
of
the
qualified
production.
(2)
The
eligibility
criteria
for
a
qualified
production
must
include:
(a)
A
total
production
budget
of
at
least
one
million
dollars,
including
at
least
five
hundred
thousand
dollars
in
qualified
expenditures,
and
evidence
that
the
total
production
budget
is
fully
funded.
(b)
Availability
to
the
public
for
viewing
at
a
venue
where
admission
is
charged,
or
availability
for
purchase,
for
rental,
or
through
a
streaming
service
that
requires
a
subscription.
(3)
The
eligibility
criteria
for
qualified
expenditures
must
include
the
following:
(a)
The
requirements
for
substantiation
of
expenses
and
submission
of
expenses
for
industry
standard
activities
including
expenses
for
cast
members,
equipment,
studio
production
facilities,
hospitality
services,
certified
public
accountant
services,
per
diem
payments,
payments
to
businesses
located
in
this
state,
accommodations,
and
any
other
expenses
allowed
by
the
authority.
Qualified
expenditures
shall
not
include
expenses
for
entertainment,
studio
executive
airfare,
royalties,
and
publicity
for
the
qualified
production.
(b)
Documentation
that
all
qualified
expenses
were
incurred
following
approval
of
the
application
for
rebate
by
the
authority.
3.
An
application
for
a
rebate
under
the
program
shall
be
submitted
by
a
qualified
production
facility
to
the
authority
for
approval
in
the
form
and
manner
prescribed
by
the
authority.
In
determining
whether
to
approve
a
rebate,
the
factors
the
authority
may
consider
include
but
are
not
limited
to
all
of
the
following:
Senate
File
657,
p.
41
a.
The
extent
to
which
the
applicant
will
participate
in
training,
education,
and
recruitment
programs
that
are
organized
in
cooperation
with
interested
Iowa
colleges
and
universities,
and
that
are
designed
to
promote
and
encourage
the
training
and
hiring
of
Iowa
residents.
b.
Whether
the
rebate
will
incentivize
a
qualified
production
facility
to
choose
an
Iowa
location
for
its
qualified
production
rather
than
an
out-of-state
location.
c.
The
likelihood
that
approval
of
the
rebate
will
result
in
an
overall
long-term
positive
impact
to
the
state.
4.
a.
If
a
qualified
production
facility’s
application
is
approved
by
the
authority,
the
maximum
rebate
paid
to
the
facility
under
the
program
shall
equal
thirty
percent
of
the
facility’s
documented
qualified
expenditures
excluding
any
sales,
use,
and
hotel
and
motel
taxes
paid.
b.
Prior
to
disbursement
of
the
rebate,
a
qualified
production
facility
shall
submit
all
of
the
following
to
the
authority
at
the
expense
of
the
facility:
(1)
An
examination
of
the
qualified
expenditures
completed
by
a
certified
public
accountant,
as
defined
in
section
542.3,
in
accordance
with
the
currently
effective
statements
on
standards
for
attestation
engagements
established
by
the
American
institute
of
certified
public
accountants.
(2)
A
statement
of
the
final
amount
of
qualified
expenditures.
(3)
Any
other
information
the
authority
deems
necessary
to
ensure
compliance
with
this
section.
5.
a.
An
Iowa
film
production
incentive
fund
is
created
in
the
state
treasury
under
the
control
of
the
authority.
The
fund
shall
consist
of
moneys
appropriated
to
the
authority
and
any
other
moneys
available
to,
obtained
by,
or
accepted
by
the
authority
for
placement
in
the
fund.
The
fund
shall
be
used
to
provide
rebates
under
the
program.
b.
The
cumulative
value
of
rebates
claimed
by
qualified
production
facilities
pursuant
to
this
section
shall
not
exceed
four
million
dollars.
c.
Notwithstanding
section
8.33,
moneys
in
the
fund
that
remain
unencumbered
or
unobligated
at
the
close
of
the
fiscal
year
shall
not
revert
but
shall
remain
available
for
Senate
File
657,
p.
42
expenditure
for
the
purposes
designated
until
the
close
of
the
succeeding
fiscal
year.
Notwithstanding
section
12C.7,
interest
or
earnings
on
moneys
in
the
fund
shall
be
credited
to
the
fund.
6.
The
authority
shall
not
use
more
than
five
percent
of
the
moneys
in
the
fund
at
the
beginning
of
each
fiscal
year
for
purposes
of
administrative
costs,
technical
assistance,
and
other
program
support.
7.
The
authority
shall
adopt
rules
pursuant
to
chapter
17A
to
administer
this
section.
8.
This
section
is
repealed
July
1,
2027.
Sec.
79.
CODE
EDITOR
DIRECTIVE.
The
Code
editor
shall
designate
section
15.517,
as
enacted
in
this
division
of
this
Act,
as
part
34
of
subchapter
II.
DIVISION
X
EMPLOYER
CHILD
CARE
TAX
CREDIT
REPEAL
Sec.
80.
Section
237A.31,
subsection
1,
Code
2025,
is
amended
to
read
as
follows:
1.
The
taxes
imposed
under
chapter
422,
subchapter
II
or
III
,
the
franchise
tax
imposed
under
chapter
422,
subchapter
V
,
the
gross
premiums
tax
under
chapter
432
,
or
the
moneys
and
credits
tax
imposed
under
section
533.329
shall
be
reduced
by
an
employer
child
care
tax
credit
through
the
tax
year
beginning
on
or
after
January
1,
2025,
but
before
January
1,
2026,
equal
to
the
proportion
of
the
federal
employer-provided
child
care
tax
credit
provided
in
section
45F
of
the
Internal
Revenue
Code
the
taxpayer
was
eligible
for
in
the
same
tax
year
attributable
to
expenditures
made
in
this
state.
Sec.
81.
Section
237A.31,
Code
2025,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
5.
This
section
is
repealed
January
1,
2031.
Sec.
82.
Section
422.12O,
Code
2025,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
3.
This
section
is
repealed
January
1,
2031.
Sec.
83.
Section
422.33,
subsection
32,
Code
2025,
is
amended
to
read
as
follows:
32.
a.
The
taxes
imposed
under
this
subchapter
shall
be
Senate
File
657,
p.
43
reduced
by
an
employer
child
care
tax
credit
allowed
pursuant
to
section
237A.31
.
b.
This
subsection
is
repealed
January
1,
2031.
Sec.
84.
Section
422.60,
subsection
15,
Code
2025,
is
amended
to
read
as
follows:
15.
a.
The
taxes
imposed
under
this
subchapter
shall
be
reduced
by
an
employer
child
care
tax
credit
allowed
pursuant
to
section
237A.31
.
b.
This
subsection
is
repealed
January
1,
2031.
Sec.
85.
Section
432.12O,
Code
2025,
is
amended
to
read
as
follows:
432.12O
Employer
child
care
tax
credit.
1.
The
taxes
imposed
under
this
chapter
shall
be
reduced
by
an
employer
child
care
tax
credit
allowed
pursuant
to
section
237A.31
.
2.
This
section
is
repealed
January
1,
2031.
Sec.
86.
Section
533.329,
subsection
2,
paragraph
m,
Code
2025,
is
amended
to
read
as
follows:
m.
(1)
The
moneys
and
credits
tax
imposed
under
this
section
shall
be
reduced
by
an
employer
child
care
tax
credit
allowed
pursuant
to
section
237A.31
.
(2)
This
paragraph
is
repealed
January
1,
2031.
DIVISION
XI
ASSISTIVE
DEVICE
TAX
CREDIT
REPEAL
Sec.
87.
Section
2.48,
subsection
3,
paragraph
e,
subparagraph
(5),
Code
2025,
is
amended
to
read
as
follows:
(5)
(a)
The
assistive
device
corporate
tax
credit
under
section
422.33
.
(b)
This
subparagraph
is
repealed
January
1,
2031.
Sec.
88.
Section
422.33,
subsection
9,
paragraph
a,
subparagraph
(1),
Code
2025,
is
amended
to
read
as
follows:
(1)
The
taxes
imposed
under
this
subchapter
shall
be
reduced
by
an
assistive
device
tax
credit
through
the
tax
year
beginning
on
or
after
January
1,
2024,
but
before
January
1,
2025
.
A
small
business
purchasing,
renting,
or
modifying
an
assistive
device
or
making
workplace
modifications
for
an
individual
with
a
disability
who
is
employed
or
will
be
employed
by
the
small
business
is
eligible,
subject
to
availability
of
credits,
to
receive
this
assistive
device
Senate
File
657,
p.
44
tax
credit
which
is
equal
to
fifty
percent
of
the
first
five
thousand
dollars
paid
during
the
tax
year
for
the
purchase,
rental,
or
modification
of
the
assistive
device
or
for
making
the
workplace
modifications.
The
following
percentage
of
any
credit
in
excess
of
the
tax
liability
shall
be
refunded
with
interest
in
accordance
with
section
421.60,
subsection
2
,
paragraph
“e”
,
as
follows:
(a)
For
the
tax
year
beginning
on
or
after
January
1,
2023,
but
before
January
1,
2024,
ninety-five
percent.
(b)
For
the
tax
year
beginning
on
or
after
January
1,
2024,
but
before
January
1,
2025,
ninety
percent.
(c)
For
the
tax
year
beginning
on
or
after
January
1,
2025,
but
before
January
1,
2026,
eighty-five
percent.
(d)
For
the
tax
year
beginning
on
or
after
January
1,
2026,
but
before
January
1,
2027,
eighty
percent.
(e)
For
tax
years
beginning
on
or
after
January
1,
2027,
seventy-five
percent.
Sec.
89.
Section
422.33,
subsection
9,
Code
2025,
is
amended
by
adding
the
following
new
paragraph:
NEW
PARAGRAPH
.
d.
This
subsection
is
repealed
January
1,
2031.
Sec.
90.
RETROACTIVE
APPLICABILITY.
This
division
of
this
Act
applies
retroactively
to
January
1,
2025,
for
tax
years
beginning
on
or
after
that
date.
DIVISION
XII
ENDOW
IOWA
TAX
CREDIT
Sec.
91.
Section
15E.303,
subsections
1,
2,
and
6,
Code
2025,
are
amended
by
striking
the
subsections.
Sec.
92.
Section
15E.305,
subsection
2,
unnumbered
paragraph
1,
Code
2025,
is
amended
to
read
as
follows:
The
aggregate
amount
of
tax
credits
authorized
pursuant
to
this
section
shall
not
exceed
a
total
of
six
three
million
five
hundred
thousand
dollars
annually.
Sec.
93.
Section
15E.305,
subsection
2,
paragraph
a,
Code
2025,
is
amended
to
read
as
follows:
a.
The
maximum
amount
of
tax
credits
granted
to
a
taxpayer
shall
not
exceed
one
hundred
fifty
thousand
dollars.
Sec.
94.
Section
15E.305,
Code
2025,
is
amended
by
adding
the
following
new
subsection:
Senate
File
657,
p.
45
NEW
SUBSECTION
.
3A.
In
addition
to
the
other
eligibility
requirements
for
receiving
a
tax
credit
under
this
section,
to
be
eligible
to
receive
a
tax
credit
pursuant
to
this
section
all
of
the
following
must
apply:
a.
The
endow
Iowa
qualified
community
foundation
and
permanent
endowment
fund
do
not
contain
the
name
of
a
corporation
or
other
business
entity.
b.
The
endow
Iowa
qualified
community
foundation
submitted
a
report
to
the
general
assembly
by
January
31
detailing
the
specific
grants
provided
during
the
calendar
year
preceding
the
applicable
tax
year.
c.
The
community
foundation
that
administers
a
permanent
endowment
fund
for
which
a
taxpayer
requests
a
tax
credit
has
provided
any
information
requested
by
the
authority
to
verify
whether
a
contribution
to
the
permanent
endowment
fund
is
eligible
for
the
tax
credit.
Sec.
95.
Section
15E.311,
subsection
4,
paragraph
c,
Code
2025,
is
amended
to
read
as
follows:
c.
“Eligible
county
recipient”
means
an
endow
Iowa
qualified
community
foundation
or
community
affiliate
organization,
as
defined
in
section
15E.303
,
that
is
selected
,
in
accordance
with
the
procedures
described
in
section
15E.304
,
to
receive
moneys
from
an
account
created
in
this
section
for
a
particular
county.
To
be
selected
as
an
eligible
county
recipient,
a
community
affiliate
organization
shall
establish
a
county
affiliate
fund
to
receive
moneys
as
provided
by
this
section
.
Sec.
96.
Section
15E.311,
subsection
6,
Code
2025,
is
amended
by
striking
the
subsection.
Sec.
97.
REPEAL.
Sections
15E.301,
15E.302,
and
15E.304,
Code
2025,
are
repealed.
Sec.
98.
EFFECTIVE
DATE.
This
division
of
this
Act
takes
effect
January
1,
2026.
Sec.
99.
APPLICABILITY.
This
division
of
this
Act
applies
to
tax
years
beginning
on
or
after
January
1,
2026.
DIVISION
XIII
RESEARCH
ACTIVITIES
TAX
CREDIT
REPEAL
Sec.
100.
Section
422.10,
subsection
1,
unnumbered
paragraph
1,
Code
2025,
is
amended
to
read
as
follows:
The
taxes
imposed
under
this
subchapter
shall
be
reduced
by
Senate
File
657,
p.
46
a
state
tax
credit
for
increasing
research
activities
in
this
state
through
the
tax
year
beginning
on
or
after
January
1,
2025,
but
before
January
1,
2026
.
Sec.
101.
Section
422.10,
subsection
1,
paragraph
b,
subparagraph
(3),
subparagraph
division
(d),
subparagraph
subdivision
(iv),
Code
2025,
is
amended
by
striking
the
subparagraph
subdivision.
Sec.
102.
Section
422.10,
subsection
1,
paragraph
b,
subparagraph
(3),
subparagraph
division
(e),
Code
2025,
is
amended
to
read
as
follows:
(e)
For
tax
years
beginning
on
or
after
January
1,
2027
2026
,
amounts
paid
for
supplies
as
defined
in
section
41(b)(2)(C)
of
the
Internal
Revenue
Code
shall
not
be
qualified
research
expenses
in
this
state.
Sec.
103.
Section
422.10,
Code
2025,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
7.
This
section
is
repealed
January
1,
2027.
Sec.
104.
Section
422.33,
subsection
5,
paragraph
a,
unnumbered
paragraph
1,
Code
2025,
is
amended
to
read
as
follows:
The
taxes
imposed
under
this
subchapter
shall
be
reduced
by
a
state
tax
credit
through
the
tax
year
beginning
on
or
after
January
1,
2025,
but
before
January
1,
2026,
for
increasing
research
activities
in
this
state
equal
to
the
sum
of
the
following:
Sec.
105.
Section
422.33,
subsection
5,
paragraph
b,
subparagraph
(2),
subparagraph
division
(d),
subparagraph
subdivision
(iv),
Code
2025,
is
amended
by
striking
the
subparagraph
subdivision.
Sec.
106.
Section
422.33,
subsection
5,
paragraph
b,
subparagraph
(2),
subparagraph
division
(e),
Code
2025,
is
amended
to
read
as
follows:
(e)
For
tax
years
beginning
on
or
after
January
1,
2027
2026
,
amounts
paid
for
supplies
as
defined
in
section
41(b)(2)(C)
of
the
Internal
Revenue
Code
shall
not
be
qualified
research
expenses
in
this
state.
Sec.
107.
Section
422.33,
subsection
5,
Code
2025,
is
amended
by
adding
the
following
new
paragraph:
Senate
File
657,
p.
47
NEW
PARAGRAPH
.
j.
This
subsection
is
repealed
January
1,
2027.
DIVISION
XIV
RESEARCH
AND
DEVELOPMENT
TAX
CREDIT
PROGRAM
Sec.
108.
NEW
SECTION
.
15.520
Short
title.
This
part
shall
be
known
and
may
be
cited
as
the
“Research
and
Development
Tax
Credit
Program”
.
Sec.
109.
NEW
SECTION
.
15.521
Definitions.
As
used
in
this
part,
unless
the
context
otherwise
requires:
1.
“Eligible
expenditures”
means
qualified
research
expenses
under
section
41
of
the
Internal
Revenue
Code,
to
the
extent
the
expenditures
occurred
in
this
state.
2.
“Qualified
business”
means
a
business
certified
by
the
authority
as
eligible
to
claim
the
research
and
development
tax
credit.
3.
“Qualified
research
and
development”
means
a
systematic
activity
that
combines
basic
and
applied
research
in
an
attempt
to
discover
solutions
to
new
or
existing
problems,
or
to
create
or
update
goods
and
services.
“Qualified
research
and
development”
includes
a
set
of
innovative
activities
undertaken
by
an
eligible
business
in
developing
new
services
or
products,
and
in
improving
existing
ones.
Sec.
110.
NEW
SECTION
.
15.522
Eligible
businesses
and
sectors.
1.
The
tax
credit
available
pursuant
to
this
part
shall
be
available
only
to
a
business
primarily
engaged
in
any
of
the
following:
a.
Advanced
manufacturing.
b.
Bioscience.
c.
Insurance
and
finance.
d.
Technology
and
innovation.
2.
For
a
business
described
in
subsection
1,
the
sectors
available
for
the
credit
may
include
the
following:
a.
Second-generation
food
innovation.
b.
Food
ingredients
and
supplements.
c.
Crop
protection.
d.
Hybrid
seed
technologies.
e.
Diagnostic
analytics
and
immunotherapies.
f.
Chip
technologies
and
microelectronics.
Senate
File
657,
p.
48
g.
Medical
equipment
and
supplies.
h.
Software
and
technology.
i.
Aerospace.
j.
Pharmaceuticals.
k.
Consumer
products.
l.
Any
additional
sectors
included
by
the
authority
by
rule.
3.
A
business
that
shall
not
be
considered
to
be
engaged
in
advanced
manufacturing,
bioscience,
insurance
and
finance,
or
technology
and
innovation
under
subsection
1,
and
thus
is
not
eligible
for
the
credit,
includes
but
is
not
limited
to
all
of
the
following:
a.
A
business
engaged
in
agriculture
production
as
defined
in
section
423.1.
b.
A
business
that
is
a
contractor,
subcontractor,
builder,
or
a
contractor-retailer
that
engages
in
commercial
and
residential
repair
and
installation,
including
but
not
limited
to
heating
or
cooling
installation
and
repair,
plumbing
and
pipe
fitting,
security
system
installation,
and
electrical
installation
and
repair.
For
purposes
of
this
paragraph,
“contractor-retailer”
means
a
business
that
makes
frequent
retail
sales
to
the
public
or
to
other
contractors
and
that
also
engages
in
the
performance
of
construction
contracts.
c.
A
finance
or
investment
company.
d.
A
retailer.
e.
A
wholesaler.
f.
A
transportation
company.
g.
An
ethanol
biorefinery.
h.
An
agricultural
cooperative
association
as
defined
in
section
502.102.
i.
A
real
estate
company.
j.
A
collection
agency.
k.
An
accountant.
l.
An
architect.
m.
A
publisher.
Sec.
111.
NEW
SECTION
.
15.523
Application,
certification,
and
agreement.
1.
A
business
shall
submit
a
preapplication
to
the
authority
to
determine
whether
the
business
is
primarily
engaged
in
an
eligible
sector
identified
in
section
15.522
and
is
Senate
File
657,
p.
49
actively
engaged
in
qualified
research
and
development.
The
determination
made
by
the
authority
shall
be
based
on
factors
including
but
not
limited
to
the
North
American
industry
classification
code
and
sources
of
revenue.
The
authority
may
request
any
additional
documentation
or
conduct
site
visits
to
verify
the
requirements
of
the
program
are
met
upon
the
submission
of
the
preapplication.
2.
The
authority
must
certify
a
business
as
a
qualified
business
for
the
business
to
claim
a
research
and
development
tax
credit.
A
qualified
business
that
continues
to
meet
the
requirements
of
the
program
and
the
agreement
entered
pursuant
to
subsection
3
may
remain
certified
for
up
to
five
years.
A
business
may
reapply
for
certification
in
additional
five-year
increments.
A
business
that
does
not
demonstrate
an
increase
in
eligible
expenditures
may
be
denied
recertification
by
the
authority.
A
business
that
is
denied
certification
or
recertification
may
reapply.
The
authority
may
specify
the
length
of
time
after
the
denial
when
the
business
is
eligible
to
reapply.
3.
An
eligible
business
must
enter
into
an
agreement
with
the
authority
for
successful
completion
of
all
requirements
of
the
program.
4.
Each
year
after
certification
as
a
qualified
business,
the
qualified
business
shall
submit
an
application
to
the
authority
for
a
tax
credit
based
on
the
amount
of
eligible
expenditures
that
were
included
in
Section
F
of
Internal
Revenue
Form
6765
that
was
submitted
with
the
qualified
business’s
most
recently
filed
and
accepted
federal
tax
return.
The
application
shall
include
a
verification
of
eligible
expenditures
by
procedures
prescribed
by
the
authority
by
rule.
The
qualified
business
shall
engage
an
independent
certified
public
accountant
authorized
to
practice
in
this
state
to
conduct
the
verification.
A
qualified
business
shall
submit
the
application
to
the
authority
by
January
31
following
the
most
recently
filed
and
accepted
federal
tax
return
for
a
tax
year
in
which
the
business
is
determined
to
be
a
qualified
business.
5.
Each
fiscal
year,
the
authority
will
approve
tax
credit
awards
by
apportioning
the
amount
of
tax
credits
available
Senate
File
657,
p.
50
pursuant
to
section
15.119
on
a
pro
rata
basis,
based
on
the
total
amount
of
eligible
expenditures
incurred
by
all
qualified
businesses
that
are
awarded
a
tax
credit.
Up
to
five
percent
of
the
amount
of
tax
credits
available
pursuant
to
section
15.119
may
be
awarded
as
additional
tax
credits
to
qualified
businesses
that
demonstrate
an
increase
in
eligible
expenditures.
6.
If
the
qualified
business
fails
to
comply
with
any
requirements
of
the
program
or
the
agreement
entered
pursuant
to
subsection
3
as
determined
by
the
authority,
the
qualified
business
may
have
its
certification
as
a
qualified
business
revoked
or
be
required
to
repay
any
tax
credit
the
authority
issued
to
the
qualified
business.
After
a
final
determination,
the
authority
will
notify
the
department
of
revenue
of
any
required
repayment
of
a
tax
credit.
Such
repayment
shall
be
considered
a
tax
payment
due
and
payable
to
the
department
of
revenue
by
any
taxpayer
that
claimed
the
tax
incentive,
and
the
failure
to
make
the
repayment
may
be
treated
by
the
department
of
revenue
in
the
same
manner
as
a
failure
to
pay
the
tax
shown
due,
or
required
to
be
shown
due,
with
the
filing
of
a
return
or
deposit
form.
7.
A
qualified
business
that
claims
a
research
activities
credit
pursuant
to
section
422.10
or
422.33,
Code
2025,
shall
not
claim
a
research
and
development
tax
credit
awarded
pursuant
to
this
part
on
the
same
tax
return.
Sec.
112.
NEW
SECTION
.
15.524
Research
and
development
tax
credit.
1.
For
tax
years
beginning
on
or
after
January
1,
2026,
a
research
and
development
tax
credit
is
available
to
a
qualified
business
that
is
approved
for
the
tax
credit
by
the
authority.
2.
Upon
submission
of
the
documentation
required
pursuant
to
section
15.523,
subsection
4,
and
verification
of
eligible
expenditures
by
the
authority,
the
authority
may
issue
a
tax
credit
certificate
to
a
qualified
business
indicating
the
amount
available
to
be
claimed.
The
authority
may
approve
a
tax
credit
in
an
amount
up
to
three
and
one-half
percent
of
the
amount
of
the
qualified
business’s
eligible
expenditures.
The
tax
credit
shall
be
claimed
in
the
tax
year
immediately
following
the
tax
year
during
which
the
eligible
expenditures
Senate
File
657,
p.
51
were
incurred.
3.
To
claim
a
tax
credit
under
this
section,
a
taxpayer
shall
include
one
or
more
tax
credit
certificates
with
the
taxpayer’s
tax
return.
The
tax
credit
certificate
must
contain
the
taxpayer’s
name,
address,
tax
identification
number,
the
amount
of
the
credit,
the
name
of
the
qualified
business,
and
any
other
information
required
by
the
department
of
revenue.
The
tax
credit
certificate,
unless
rescinded
by
the
authority,
shall
be
accepted
by
the
department
of
revenue
as
payment
for
taxes
imposed
pursuant
to
chapter
422,
subchapters
II
and
III,
subject
to
any
conditions
or
restrictions
placed
by
the
authority
upon
the
face
of
the
tax
credit
certificate
and
subject
to
the
limitations
of
the
program.
4.
Any
tax
credit
in
excess
of
the
business’s
tax
liability
is
refundable.
In
lieu
of
claiming
a
refund,
the
taxpayer
may
elect
to
have
the
overpayment
shown
on
the
taxpayer’s
final,
completed
return
credited
to
the
tax
liability
for
the
following
tax
year.
5.
Tax
credit
certificates
issued
pursuant
to
this
section
are
not
transferable.
6.
If
the
business
is
a
partnership,
S
corporation,
limited
liability
company,
estate,
or
trust
electing
to
have
the
income
taxed
directly
to
the
individual,
an
individual
may
claim
the
tax
credit
allowed.
The
amount
claimed
by
the
individual
shall
be
based
upon
the
pro
rata
share
of
the
individual’s
earnings
of
the
partnership,
S
corporation,
limited
liability
company,
or
estate
or
trust.
7.
The
maximum
amount
of
tax
credits
the
authority
may
issue
under
this
section
each
fiscal
year
shall
not
exceed
the
amount
specified
in
section
15.119.
8.
A
qualified
business
that
was
approved
to
receive
a
research
activities
credit
pursuant
to
section
15.335,
Code
2025,
prior
to
January
1,
2026,
shall
not
claim
such
tax
credit
and
a
research
and
development
tax
credit
pursuant
to
this
part
on
the
same
tax
return.
Sec.
113.
NEW
SECTION
.
15.525
Reporting
requirements.
1.
A
qualified
business
shall
report
annually
to
the
authority
all
of
the
following:
a.
The
total
amount
of
investment
made
in
research
and
Senate
File
657,
p.
52
development.
b.
The
qualified
location
in
this
state
where
the
research
and
development
occurred.
c.
The
number
of
jobs
created,
wages
paid,
and
employee
residence
locations.
2.
The
authority
shall
include
as
part
of
the
annual
report
under
section
15.107B
an
annual
report
of
the
activities
conducted
pursuant
to
this
part.
3.
The
authority
shall
report
all
information
in
an
aggregate
form
to
prevent,
as
much
as
possible,
information
being
attributable
to
any
particular
qualified
business.
Sec.
114.
NEW
SECTION
.
15.526
Confidentiality.
1.
Except
as
provided
in
subsection
2,
all
information
or
records
in
the
possession
of
the
authority
with
respect
to
this
part
shall
be
presumed
by
the
authority
to
be
a
trade
secret
protected
under
chapter
550
or
common
law,
and
shall
be
kept
confidential
by
the
authority
unless
otherwise
ordered
by
the
court.
2.
The
identity
of
a
tax
credit
recipient
and
the
amount
of
the
tax
credit
shall
be
considered
public
information
under
chapter
22.
Sec.
115.
NEW
SECTION
.
422.12Q
Research
and
development
tax
credit.
The
taxes
imposed
under
this
subchapter,
less
the
credits
allowed
under
section
422.12,
shall
be
reduced
by
a
research
and
development
tax
credit
allowed
pursuant
to
section
15.524.
Sec.
116.
Section
422.33,
Code
2025,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
17.
The
taxes
imposed
under
this
subchapter
shall
be
reduced
by
the
research
and
development
tax
credit
allowed
pursuant
to
section
15.524.
Sec.
117.
CODE
EDITOR
DIRECTIVE.
The
Code
editor
shall
designate
sections
15.520
through
15.526,
as
enacted
in
this
division
of
this
Act,
as
part
35
of
subchapter
II.
Sec.
118.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
enactment.
DIVISION
XV
SUSTAINABLE
AVIATION
FUEL
PRODUCTION
TAX
CREDIT
Sec.
119.
NEW
SECTION
.
15.530
Short
title.
Senate
File
657,
p.
53
This
part
shall
be
known
and
may
be
cited
as
the
“Sustainable
Aviation
Fuel
Production
Tax
Credit
Program”
.
Sec.
120.
NEW
SECTION
.
15.531
Definitions.
As
used
in
this
part,
unless
the
context
otherwise
requires:
1.
“Aviation
gasoline”
means
the
same
as
defined
in
section
452A.2.
2.
“Eligible
taxpayer”
means
a
business
engaged
in
manufacturing
sustainable
aviation
fuel
from
feedstock.
3.
“Feedstock”
means
any
organic
matter
processed
or
refined
in
the
state
suitable
for
sustainable
aviation
fuel
production
without
further
enhancement.
“Feedstock”
includes
ethanol,
corn
oil,
soybean
oil,
animal
fats,
used
cooking
oil,
and
algae.
4.
“Jet
fuel”
means
blends
of
hydrocarbons
derived
from
crude
petroleum,
natural
gasoline,
and
synthetic
hydrocarbons,
intended
for
use
in
aviation
turbine
engines,
and
that
meet
the
specifications
in
ASTM
(American
society
for
testing
and
materials)
specification
D1655-12.
5.
“Sustainable
aviation
fuel”
means
the
portion
of
a
liquid
fuel
meeting
the
requirements
of
ASTM
D7566
or
the
Fischer
Tropsch
provisions
of
ASTM
D1655,
Annex
A1,
derived
from
feedstock
not
including
palm
fatty
acid
distillates
and
that
achieves
at
least
a
fifty
percent
life
cycle
greenhouse
gas
emissions
reduction
as
determined
by
any
of
the
following:
a.
The
fuel
production
pathway
achieves
at
least
a
fifty
percent
life
cycle
greenhouse
gas
emission
reduction
in
comparison
with
petroleum-based
aviation
gasoline,
aviation
turbine
fuel,
and
jet
fuel
utilizing
the
most
recent
version
of
the
GREET
(Argonne
national
laboratory’s
greenhouse
gases,
regulated
emissions,
and
energy
use
in
technologies)
model
that
accounts
for
reduced
emissions
throughout
the
fuel
production
process.
b.
The
fuel
production
pathway
achieves
at
least
a
fifty
percent
reduction
in
comparison
with
petroleum-based
aviation
gasoline,
aviation
turbine
fuel,
and
jet
fuel
utilizing
the
most
recent
version
of
the
default
life
cycle
emission
value
or
actual
core
life
cycle
emissions
value
under
the
most
recent
carbon
offsetting
and
reduction
scheme
for
international
aviation
methodology
for
sustainable
aviation
fuels
adopted
by
the
international
civil
aviation
organization.
Senate
File
657,
p.
54
Sec.
121.
NEW
SECTION
.
15.532
Eligible
business
application
and
agreement.
1.
a.
An
eligible
business
that
produces
a
sustainable
aviation
fuel
in
this
state
from
feedstock
during
a
calendar
year
may
apply
to
the
authority
for
the
sustainable
aviation
fuel
tax
credit
provided
in
section
15.533.
b.
The
application
must
be
made
to
the
authority
in
the
manner
prescribed
by
the
authority.
c.
The
application
must
be
made
during
the
calendar
year
following
the
calendar
year
in
which
the
sustainable
aviation
fuel
is
produced.
d.
The
authority
may
accept
applications
on
a
continuous
basis
or
may
establish,
by
rule,
an
annual
application
deadline.
e.
The
application
must
include
all
of
the
following
information:
(1)
The
amount
of
sustainable
aviation
fuel
produced
in
the
state
from
feedstock
by
the
eligible
business
during
the
calendar
year,
measured
in
gallons.
(2)
The
types
and
sources
of
feedstock
used
to
produce
sustainable
aviation
fuel,
documented
in
sufficient
detail
to
allow
the
authority
to
verify
that
such
feedstock
was
processed
or
refined
in
the
state.
(3)
Any
other
information
reasonably
required
by
the
authority
in
order
to
establish
and
verify
eligibility
under
the
program.
f.
The
authority
shall
review
and
score
all
complete
applications
submitted
by
eligible
businesses
on
a
competitive
basis
pursuant
to
rules
adopted
by
the
authority.
2.
a.
Before
being
issued
a
tax
credit
under
section
15.533,
an
eligible
business
must
enter
into
an
agreement
with
the
authority
for
the
successful
completion
of
all
requirements
of
the
program.
As
part
of
the
agreement,
the
eligible
business
shall
agree
to
collect
and
provide
any
information
reasonably
required
by
the
authority
in
order
to
allow
the
board
to
fulfill
its
reporting
obligation
under
section
15.534.
b.
An
eligible
business
shall
fulfill
all
the
requirements
of
the
program
and
the
agreement
before
the
authority
issues
the
business
a
tax
credit
certificate
or
enters
into
a
Senate
File
657,
p.
55
subsequent
agreement
with
the
business
under
this
section.
The
authority
may
decline
to
enter
into
a
subsequent
agreement
with
the
business
under
this
section
if
a
prior
agreement
is
not
successfully
fulfilled.
c.
Upon
establishing
that
all
requirements
of
the
program
and
the
agreement
have
been
fulfilled,
the
authority
shall
issue
a
tax
credit
certificate
to
the
eligible
business
stating
the
amount
of
sustainable
fuel
tax
credit
the
eligible
business
may
claim.
3.
The
failure
by
an
eligible
business
in
fulfilling
any
requirement
of
the
program
or
any
of
the
terms
and
obligations
of
an
agreement
entered
into
pursuant
to
this
section
may
result
in
the
reduction,
termination,
or
rescission
of
the
tax
credits
under
section
15.533
and
may
subject
the
eligible
business
to
the
repayment
or
recapture
of
tax
credits
claimed.
After
a
final
determination,
the
authority
will
notify
the
department
of
revenue
of
any
required
repayment
of
a
tax
credit.
Such
repayment
shall
be
considered
a
tax
payment
due
and
payable
to
the
department
of
revenue
by
any
taxpayer
that
claimed
the
tax
credit,
and
the
failure
to
make
the
repayment
may
be
treated
by
the
department
of
revenue
in
the
same
manner
as
a
failure
to
pay
the
tax
shown
due,
or
required
to
be
shown
due,
with
the
filing
of
a
return
or
deposit
form.
4.
a.
Except
as
provided
in
paragraph
“b”
,
any
information
or
record
in
the
possession
of
the
authority
with
respect
to
the
program
shall
be
presumed
by
the
authority
to
be
a
trade
secret
protected
under
chapter
550
or
common
law
and
shall
be
kept
confidential
by
the
authority
unless
otherwise
ordered
by
a
court.
b.
The
identity
of
a
tax
credit
recipient
and
the
amount
of
the
tax
credit
shall
be
considered
public
information
under
chapter
22.
Sec.
122.
NEW
SECTION
.
15.533
Sustainable
aviation
fuel
tax
credit.
1.
An
eligible
business
that
has
entered
into
an
agreement
pursuant
to
section
15.532
may
claim
a
tax
credit
in
an
amount
equal
to
the
product
of
twenty-five
cents
multiplied
by
the
number
of
gallons
of
sustainable
aviation
fuel
produced
in
this
state
from
feedstock.
The
sustainable
aviation
fuel
tax
Senate
File
657,
p.
56
credit
shall
not
be
available
for
any
sustainable
aviation
fuel
produced
before
the
2026
calendar
year
or
after
the
2035
calendar
year.
2.
The
tax
credit
shall
be
allowed
against
taxes
imposed
under
chapter
422,
subchapter
II
or
III.
3.
The
tax
credit
shall
be
claimed
for
the
tax
year
during
which
the
eligible
business
was
issued
the
tax
credit.
4.
An
individual
may
claim
a
tax
credit
under
this
section
of
a
partnership,
limited
liability
company,
S
corporation,
cooperative
organized
under
chapter
501
and
filing
as
a
partnership
for
federal
tax
purposes,
estate,
or
trust
electing
to
have
income
taxed
directly
to
the
individual.
The
amount
claimed
by
the
individual
shall
be
based
upon
the
pro
rata
share
of
the
individual’s
earnings
from
the
partnership,
limited
liability
company,
S
corporation,
cooperative,
estate,
or
trust.
5.
Any
tax
credit
in
excess
of
the
tax
liability
is
refundable.
In
lieu
of
claiming
a
refund,
the
taxpayer
may
elect
to
have
the
overpayment
shown
on
the
taxpayer’s
final,
completed
return
credited
to
the
tax
liability
for
the
following
tax
year.
6.
a.
To
claim
a
tax
credit
under
this
section,
a
taxpayer
shall
include
one
or
more
tax
credit
certificates
with
the
taxpayer’s
tax
return.
b.
The
tax
credit
certificate
shall
contain
the
taxpayer’s
name,
address,
tax
identification
number,
the
amount
of
the
credit,
the
name
of
the
eligible
business,
and
any
other
information
required
by
the
department
of
revenue.
c.
The
tax
credit
certificate,
unless
rescinded
by
the
authority,
shall
be
accepted
by
the
department
of
revenue
as
payment
for
taxes
imposed
pursuant
to
chapter
422,
subchapters
II
and
III,
subject
to
any
conditions
or
restrictions
placed
by
the
authority
upon
the
face
of
the
tax
credit
certificate
and
subject
to
the
limitations
of
the
program.
d.
Tax
credit
certificates
issued
pursuant
to
this
section
are
not
transferable.
7.
a.
The
maximum
amount
of
tax
credits
the
authority
may
issue
each
fiscal
year
pursuant
to
this
section
shall
be
as
provided
in
section
15.119.
Senate
File
657,
p.
57
b.
(1)
The
maximum
amount
of
tax
credits
that
the
authority
may
issue
to
an
eligible
business
for
the
production
of
sustainable
aviation
fuel
in
a
calendar
year
shall
not
exceed
one
million
dollars.
(2)
The
authority
shall
not
issue
more
than
five
tax
credit
certificates
to
an
eligible
business
for
the
production
of
sustainable
aviation
fuel
under
the
program.
Sec.
123.
NEW
SECTION
.
15.534
Reports
to
general
assembly.
1.
For
purposes
of
this
section,
“successful
tax
credit
applicant”
includes,
with
respect
to
each
fiscal
year,
an
eligible
business
that
was
issued
a
tax
credit
certificate
for
production
of
sustainable
aviation
fuel
during
that
fiscal
year.
2.
The
annual
report
under
section
15.107B
shall
include
a
report,
developed
in
cooperation
with
the
department
of
revenue,
describing
the
activities
of
the
program
for
the
previous
fiscal
year.
The
report
shall,
at
a
minimum,
include
all
of
the
following
information:
a.
The
aggregate
number
of
gallons
of
sustainable
aviation
fuel
produced
for
which
successful
tax
credit
applicants
received
a
tax
credit
in
the
previous
calendar
year.
b.
For
each
eligible
business
issued
a
sustainable
aviation
fuel
tax
credit
during
each
calendar
year:
(1)
The
identity
of
the
eligible
business.
(2)
The
amount
of
the
tax
credit.
c.
The
total
amount
of
all
sustainable
aviation
fuel
tax
credits
claimed
during
each
calendar
year,
and
the
portion
of
the
claims
issued
as
a
refund.
3.
To
protect
the
presumption
of
confidentiality
established
pursuant
to
section
15.532,
the
board
shall
report
all
information
in
an
aggregate
form
to
prevent,
as
much
as
possible,
information
being
attributable
to
any
particular
eligible
business,
except
as
provided
in
subsection
2.
Sec.
124.
NEW
SECTION
.
15.535
Future
repeal.
Sections
15.530,
15.531,
15.532,
15.533,
15.534,
and
this
section
are
repealed
January
1,
2037.
Sec.
125.
NEW
SECTION
.
422.10C
Sustainable
aviation
fuel
tax
credit.
The
taxes
imposed
under
this
subchapter,
less
the
credits
Senate
File
657,
p.
58
allowed
under
section
422.12,
shall
be
reduced
by
a
sustainable
aviation
fuel
tax
credit
allowed
under
section
15.533.
This
section
is
repealed
January
1,
2037.
Sec.
126.
Section
422.33,
Code
2025,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
23.
The
taxes
imposed
under
this
subchapter
shall
be
reduced
by
a
sustainable
aviation
fuel
tax
credit
allowed
under
section
15.533.
This
subsection
is
repealed
January
1,
2037.
Sec.
127.
TAX
CREDIT
CLAIMS.
Sustainable
aviation
fuel
tax
credits
issued
pursuant
to
the
sustainable
aviation
tax
credit
program
enacted
in
this
division
of
this
Act
shall
not
be
issued
by
the
economic
development
authority
prior
to
July
1,
2026,
and
shall
not
be
claimed
by
a
taxpayer
prior
to
September
1,
2026.
Sec.
128.
CODE
EDITOR
DIRECTIVE.
The
Code
editor
shall
designate
sections
15.530
through
15.535,
as
enacted
in
this
division
of
this
Act,
as
part
36
of
subchapter
II.
Sec.
129.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
enactment.
Sec.
130.
RETROACTIVE
APPLICABILITY.
This
division
of
this
Act
applies
retroactively
to
January
1,
2025,
for
tax
years
beginning
on
or
after
that
date.
DIVISION
XVI
MAJOR
ECONOMIC
GROWTH
ATTRACTION
PROGRAM
Sec.
131.
Section
15.494,
subsection
1,
paragraph
b,
Code
2025,
is
amended
to
read
as
follows:
b.
If
the
eligible
business
fails
to
comply
with
any
requirements
of
the
program
or
the
agreement
as
determined
by
the
authority
,
the
eligible
business
may
be
required
to
repay
any
tax
incentives
the
authority
issued
to
the
eligible
business.
A
After
a
final
determination,
the
authority
shall
notify
the
department
of
revenue
of
any
required
repayment
of
a
tax
incentive
shall
.
Any
repayment
shall
be
considered
a
tax
payment
due
and
payable
to
the
department
of
revenue
by
any
taxpayer
that
claimed
the
tax
incentive,
and
the
failure
to
make
the
repayment
may
be
treated
by
the
department
of
revenue
in
the
same
manner
as
a
failure
to
pay
the
tax
shown
due,
or
required
to
be
shown
due,
with
the
filing
of
a
return
or
Senate
File
657,
p.
59
deposit
form.
In
addition,
the
county
shall
have
the
authority
to
take
action
to
recover
the
value
of
property
taxes
not
collected
as
a
result
of
the
exemption
provided
to
the
business
under
this
part.
Sec.
132.
Section
15.495,
subsection
2,
Code
2025,
is
amended
to
read
as
follows:
2.
To
receive
the
sales
and
use
tax
refund,
the
eligible
business
shall
file
a
claim
with
the
department
of
revenue
as
follows:
a.
The
contractor
or
subcontractor
shall
state
under
oath,
on
forms
provided
by
the
department
of
revenue,
the
amount
of
the
sales
of
tangible
personal
property
or
services
rendered,
furnished,
or
performed
including
water,
sewer,
gas,
and
electric
utility
services
upon
which
sales
or
use
tax
has
been
paid
prior
to
contract
completion
during
the
period
for
which
the
refund
is
claimed
,
and
shall
submit
the
forms
to
the
eligible
business
before
contract
completion.
b.
The
eligible
business
shall
inform
the
department
of
revenue
in
writing
of
contract
completion.
The
eligible
business
shall,
after
contract
completion
no
more
frequently
than
quarterly
,
submit
an
application
to
the
department
of
revenue
for
a
refund
of
the
amount
of
the
sales
and
use
taxes
paid
pursuant
to
chapter
423
upon
any
tangible
personal
property,
or
services
rendered,
furnished,
or
performed,
including
water,
sewer,
gas,
and
electric
utility
services.
The
application
shall
be
submitted
in
the
form
and
manner
prescribed
by
the
department
of
revenue.
The
department
of
revenue
shall
audit
the
application
and,
if
approved,
issue
a
warrant
or
warrants
to
the
eligible
business
in
the
amount
of
the
sales
or
use
tax
which
has
been
paid
to
the
state
of
Iowa
under
subsection
1
.
The
eligible
business’s
application
must
be
submitted
to
the
department
of
revenue
within
one
year
after
the
project
completion
date.
An
application
filed
by
the
eligible
business
in
accordance
with
this
section
shall
not
be
denied
by
reason
of
a
time
limitation
for
filing
a
refund
claim
set
forth
in
chapter
421
or
423
section
423.47
.
c.
The
refund
shall
be
remitted
by
the
department
of
revenue
to
the
eligible
business
equally
over
five
tax
years
as
soon
as
practicable
after
completion
of
an
audit
pursuant
to
paragraph
Senate
File
657,
p.
60
“b”
.
Interest
shall
not
accrue
on
any
part
of
the
refund
that
has
not
yet
been
remitted
by
the
department
of
revenue
to
the
eligible
business.
DIVISION
XVII
MASS
LAYOFFS
AND
BUSINESS
CLOSURES
Sec.
133.
NEW
SECTION
.
15.112
Mass
layoffs
and
business
closures.
If
an
entity
that
is
awarded
a
tax
incentive
or
other
financial
assistance
under
any
of
the
programs
administered
by
the
authority
experiences
a
business
closure
or
a
mass
layoff
for
which
notice
is
required
under
chapter
84C,
the
authority
may
reduce
or
eliminate
some
or
all
of
the
financial
assistance
awarded
by
the
authority
to
the
entity.
DIVISION
XVIII
CONFORMING
CHANGES
Sec.
134.
Section
8.55,
subsection
3,
paragraph
f,
subparagraph
(2),
subparagraph
division
(a),
as
enacted
by
2025
Iowa
Acts,
Senate
File
619,
section
82,
is
amended
to
read
as
follows:
(a)
Disaster
aid
provided
to
businesses
engaged
in
disaster
recovery
as
described
in
chapter
15,
subchapter
II,
part
13
section
15.111
,
and
housing
businesses
engaged
in
disaster
recovery
housing
projects
as
defined
in
section
15.354,
subsection
6.
Sec.
135.
2025
Iowa
Acts,
House
File
975,
section
10,
if
enacted,
is
amended
to
read
as
follows:
SEC.
10.
TRANSFER
OF
MONEYS.
On
the
effective
date
of
this
division
of
this
Act,
any
unencumbered
or
unobligated
moneys
remaining
in
the
brownfield
redevelopment
fund
created
in
section
15.293
are
transferred
to
a
fund
or
funds
established
pursuant
to
section
15.335B
15.111
,
subsection
1,
paragraph
“a”,
as
determined
by
the
economic
development
authority.
DIVISION
XIX
RESEARCH
ACTIVITIES
TAX
CREDIT
——
AGRISCIENCE
Sec.
136.
Section
422.10,
subsection
1,
paragraph
a,
subparagraph
(1),
subparagraph
division
(b),
subparagraph
subdivision
(i),
Code
2025,
is
amended
to
read
as
follows:
(i)
(A)
A
person
engaged
in
agricultural
production
as
defined
in
section
423.1
except
if
the
credit
is
based
on
Senate
File
657,
p.
61
conducting
agriscience
research
as
defined
in
subparagraph
part
(B)
and
the
person
or
the
business
is
engaged
in
bovine
and
porcine
veterinary
research,
the
person
shall
not
be
considered
to
be
engaged
in
agricultural
production
as
defined
in
section
423.1
.
(B)
As
used
in
this
subparagraph
subdivision,
“agriscience
research”
means
research
that
is
approved
and
overseen
or
monitored
by
a
board
that
includes,
at
a
minimum,
an
individual
who
was
employed
with,
contracted
by,
or
professionally
trained
by
an
accredited
university
as
a
researcher
in
an
applied
animal
science
and
an
individual
holding
a
doctor
of
veterinary
medicine
or
a
doctoral
degree
in
an
applied
animal
science;
is
conducted
in
this
state
in
an
applied
animal
science;
improves
the
scientific
knowledge
base
or
increases
scientific
innovation,
performance,
or
viability
within
this
state;
the
results
of
the
research
are
evaluated
by
a
person
educated
and
trained
in
statistics
by
an
accredited
university
and
capable
of
applying
generally
accepted
methodologies
to
the
results
in
accordance
with
industry
standards
in
an
applied
animal
science;
and
the
results
of
the
research
are
made
available
to
the
public
by
submission
to
or
publication
in
a
journal,
magazine,
or
similar
periodical,
if
the
statistical
evaluation
indicated
the
research
is
reliable
and
relevant
to
an
applied
animal
science.
(C)
As
used
in
this
subparagraph
subdivision,
“applied
animal
science”
includes
the
areas
of
animal
science,
veterinary
medicine,
nutritional
science,
genetic
science,
and
microbiology.
Sec.
137.
Section
422.33,
subsection
5,
paragraph
e,
subparagraph
(1),
subparagraph
division
(b),
subparagraph
subdivision
(i),
Code
2025,
is
amended
to
read
as
follows:
(i)
(A)
A
person
engaged
in
agricultural
production
as
defined
in
section
423.1
,
except
if
the
credit
is
based
on
conducting
agriscience
research
and
the
person
or
the
business
is
engaged
in
bovine
and
porcine
veterinary
research,
the
person
shall
not
be
considered
to
be
engaged
in
agricultural
production
as
defined
in
section
423.1
.
(B)
As
used
in
this
subparagraph
subdivision,
“agriscience
research”
means
research
that
is
approved
and
overseen
or
Senate
File
657,
p.
62
monitored
by
a
board
that
includes,
at
a
minimum,
an
individual
who
was
employed
with,
contracted
by,
or
professionally
trained
by
an
accredited
university
as
a
researcher
in
an
applied
animal
science
and
an
individual
holding
a
doctor
of
veterinary
medicine
or
a
doctoral
degree
in
an
applied
animal
science;
is
conducted
in
this
state
in
an
applied
animal
science;
improves
the
scientific
knowledge
base
or
increases
scientific
innovation,
performance,
or
viability
within
this
state;
the
results
of
the
research
are
evaluated
by
a
person
educated
and
trained
in
statistics
by
an
accredited
university
and
capable
of
applying
generally
accepted
methodologies
to
the
results
in
accordance
with
industry
standards
in
an
applied
animal
science;
and
the
results
of
the
research
are
made
available
to
the
public
by
submission
to
or
publication
in
a
journal,
magazine,
or
similar
periodical,
if
the
statistical
evaluation
indicated
the
research
is
reliable
and
relevant
to
an
applied
animal
science.
(C)
As
used
in
this
subparagraph
subdivision,
“applied
animal
science”
includes
the
areas
of
animal
science,
veterinary
medicine,
nutritional
science,
genetic
science,
and
microbiology.
Sec.
138.
RETROACTIVE
APPLICABILITY.
This
division
of
this
Act
applies
retroactively
to
January
1,
2017,
for
tax
years
beginning
on
or
after
that
date.
DIVISION
XX
MOTOR
FUEL
TAXES
——
REPORTING
Sec.
139.
Section
452A.3,
subsection
1,
paragraph
b,
unnumbered
paragraph
1,
Code
2025,
is
amended
to
read
as
follows:
On
and
after
July
1,
2030,
an
excise
tax
of
thirty
cents
is
imposed
on
each
gallon
of
ethanol
blended
gasoline
classified
as
E-15
or
higher.
Before
July
1,
2030,
the
rate
of
the
excise
tax
on
ethanol
blended
gasoline
classified
as
E-15
or
higher
shall
be
based
on
the
number
of
gallons
of
ethanol
blended
gasoline
classified
as
E-15
or
higher
that
are
distributed
in
this
state
as
expressed
as
a
percentage
of
the
number
of
gallons
of
motor
fuel
distributed
in
this
state,
which
is
referred
to
as
the
distribution
percentage.
For
purposes
of
this
paragraph
“b”
,
only
ethanol
blended
gasoline
and
Senate
File
657,
p.
63
nonblended
gasoline,
not
including
aviation
gasoline,
shall
be
used
in
determining
the
percentage
basis
for
the
excise
tax.
The
department
shall
determine
the
percentage
basis
for
each
determination
period
beginning
January
1
and
ending
December
31
based
on
information
from
reports
submitted
to
the
department
for
filing
pursuant
to
section
452A.33
.
Before
June
1,
the
department
may
amend
the
distribution
percentage
due
to
a
mistake
or
if
there
is
a
late
report
filed
by
a
retail
dealer
to
the
department
under
section
452A.33,
subsection
1.
The
rate
for
the
excise
tax
shall
apply
for
the
period
beginning
July
1
and
ending
June
30
following
the
end
of
the
determination
period.
Before
July
1,
2030,
the
rate
of
the
excise
tax
on
each
gallon
of
ethanol
blended
gasoline
classified
as
E-15
or
higher
shall
be
as
follows:
Sec.
140.
Section
452A.3,
subsection
3,
paragraph
a,
subparagraph
(2),
unnumbered
paragraph
1,
Code
2025,
is
amended
to
read
as
follows:
Except
as
otherwise
provided
in
this
section
and
in
this
subchapter
,
this
subparagraph
shall
apply
to
the
excise
tax
imposed
on
each
gallon
of
biodiesel
blended
fuel
classified
as
B-20
or
higher
used
for
any
purpose
for
the
privilege
of
operating
motor
vehicles
in
this
state.
On
and
after
July
1,
2030,
the
rate
of
the
excise
tax
on
each
gallon
of
biodiesel
blended
fuel
classified
as
B-20
or
higher
is
thirty-two
and
five-tenths
cents.
Before
July
1,
2030,
the
rate
of
the
excise
tax
on
each
gallon
of
biodiesel
blended
fuel
classified
as
B-20
or
higher
shall
be
based
on
the
number
of
gallons
of
biodiesel
blended
fuel
classified
as
B-20
or
higher
that
are
distributed
in
this
state
as
expressed
as
a
percentage
of
the
number
of
gallons
of
special
fuel
for
diesel
engines
of
motor
vehicles
distributed
in
this
state,
which
is
referred
to
as
the
distribution
percentage.
The
department
shall
determine
the
percentage
basis
for
each
determination
period
beginning
January
1
and
ending
December
31
based
on
information
from
reports
submitted
to
the
department
for
filing
pursuant
to
section
452A.33
.
Before
June
1,
the
department
may
amend
the
distribution
percentage
due
to
a
mistake
or
if
there
is
a
late
report
filed
by
a
retail
dealer
to
the
department
under
section
452A.33,
subsection
1.
The
rate
of
the
excise
tax
shall
apply
Senate
File
657,
p.
64
for
the
period
beginning
July
1
and
ending
June
30
following
the
end
of
the
determination
period.
Before
July
1,
2030,
the
rate
of
the
excise
tax
on
each
gallon
of
biodiesel
blended
fuel
classified
as
B-20
or
higher
shall
be
as
follows:
Sec.
141.
Section
452A.15,
subsection
5,
Code
2025,
is
amended
to
read
as
follows:
5.
The
director
may
impose
a
civil
penalty
against
any
person
who
fails
to
timely
file
the
reports
or
keep
the
records
required
under
this
section
.
The
penalty
shall
be
one
hundred
dollars
for
the
first
violation
and
shall
increase
by
one
hundred
dollars
for
each
additional
violation
occurring
in
the
calendar
year
in
which
the
first
violation
occurred.
Sec.
142.
Section
452A.33,
subsection
2,
unnumbered
paragraph
1,
Code
2025,
is
amended
to
read
as
follows:
On
or
before
April
1
the
department
shall
deliver
a
report
to
the
governor
and
the
legislative
services
agency.
Before
June
1,
the
department
may
amend
the
report
due
to
a
mistake
or
if
there
is
a
late
report
by
a
retail
dealer
under
subsection
1.
The
report
shall
compile
information
reported
by
retail
dealers
to
the
department
as
provided
in
this
section
and
shall
at
least
include
all
of
the
following:
DIVISION
XXI
E-15
PROMOTION
TAX
CREDIT
Sec.
143.
Section
422.11O,
subsection
5,
paragraph
b,
Code
2025,
is
amended
to
read
as
follows:
b.
This
subsection
is
repealed
January
1,
2026
2028
.
Sec.
144.
Section
422.11Y,
subsection
9,
Code
2025,
is
amended
to
read
as
follows:
9.
This
section
is
repealed
January
1,
2026
2028
.
Sec.
145.
Section
422.33,
subsection
11D,
paragraph
c,
Code
2025,
is
amended
to
read
as
follows:
c.
This
subsection
is
repealed
January
1,
2026
2028
.
Sec.
146.
2011
Iowa
Acts,
chapter
113,
section
37,
as
amended
by
2016
Iowa
Acts,
chapter
1106,
section
3,
and
2022
Iowa
Acts,
chapter
1067,
section
57,
is
amended
to
read
as
follows:
SEC.
37.
TAX
CREDIT
AVAILABILITY.
For
a
retail
dealer
who
may
claim
an
E-15
plus
gasoline
promotion
tax
credit
under
section
422.11Y
or
422.33,
subsection
11D
,
as
enacted
in
this
Senate
File
657,
p.
65
Act
and
amended
in
subsequent
Acts,
in
calendar
year
2025
2027
,
and
whose
tax
year
ends
prior
to
December
31,
2025
2027
,
the
retail
dealer
may
continue
to
claim
the
tax
credit
in
the
retail
dealer’s
following
tax
year.
In
that
case,
the
tax
credit
shall
be
calculated
in
the
same
manner
as
provided
in
section
422.11Y
or
422.33,
subsection
11D
,
as
enacted
in
this
Act
and
amended
in
subsequent
Acts,
for
the
remaining
period
beginning
on
the
first
day
of
the
retail
dealer’s
new
tax
year
until
December
31,
2025
2027
.
For
that
remaining
period,
the
tax
credit
shall
be
calculated
in
the
same
manner
as
a
retail
dealer
whose
tax
year
began
on
the
previous
January
1
and
who
is
calculating
the
tax
credit
on
December
31,
2025
2027
.
______________________________
AMY
SINCLAIR
President
of
the
Senate
______________________________
PAT
GRASSLEY
Speaker
of
the
House
I
hereby
certify
that
this
bill
originated
in
the
Senate
and
is
known
as
Senate
File
657,
Ninety-first
General
Assembly.
______________________________
W.
CHARLES
SMITHSON
Secretary
of
the
Senate
Approved
_______________,
2025
______________________________
KIM
REYNOLDS
Governor