SF 2301

Senate
File
2301
-
Introduced
SENATE
FILE
2301
BY
COMMITTEE
ON
COMMERCE
(SUCCESSOR
TO
SSB
3103)
A
BILL
FOR
An
Act
relating
to
matters
under
the
purview
of
the
economic
1
development
authority,
the
utilities
commission,
and
2
the
department
of
education,
including
creation
of
the
3
headquarters
expansion
and
development
for
growth
and
4
employment
program,
and
the
business
incentives
for
growth
5
program
training
fund;
repeal
of
the
new
jobs
tax
credit
6
program;
the
major
economic
growth
attraction
program;
load
7
forecasting
and
analysis
of
electric
transmission
system
8
expansion
plans;
creation
of
the
electric
transmission
9
system
expansion
planning
and
analysis
and
load
forecasting
10
fund;
the
industrial
new
jobs
training
program;
and
11
including
effective
date
provisions.
12
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
13
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DIVISION
I
1
HEADQUARTERS
EXPANSION
AND
DEVELOPMENT
FOR
GROWTH
EMPLOYMENT
2
PROGRAM
3
Section
1.
NEW
SECTION
.
15.600
Short
title.
4
This
part
shall
be
known
and
may
be
cited
as
the
5
“Headquarters
Expansion
and
Development
for
Growth
and
Employment
6
Program”
,
or
“EDGE
Program”
.
7
Sec.
2.
NEW
SECTION
.
15.601
Definitions.
8
As
used
in
this
part,
unless
the
context
otherwise
requires:
9
1.
“Agreement”
means
an
agreement
entered
into
by
an
10
eligible
business
and
the
authority
pursuant
to
section
15.604.
11
2.
“Base
employment
level”
means
the
same
as
defined
in
12
section
15.491.
13
3.
“Benefits”
means
nonwage
compensation
provided
to
an
14
employee.
“Benefits”
include
medical
and
dental
insurance,
a
15
pension,
a
retirement
plan,
a
profit-sharing
plan,
child
care,
16
life
insurance,
vision
insurance,
and
disability
insurance.
17
4.
“Community”
means
a
city
or
county
in
the
state.
18
5.
“Corporate
headquarters”
means
a
location
in
the
19
state
that
serves
as
the
principal
executive
office
or
20
houses
the
core
administrative
operations
for
a
business,
21
and
that
includes
executive
leadership
offices,
strategic
22
decision-making
functions,
and
administrative
and
support
staff
23
employees.
24
6.
“Corporate
job”
means
a
position
based
at
a
corporate
25
headquarters
that
involves
strategic
planning,
executive
26
decision-making,
or
core
administrative
functions.
27
7.
“Created
jobs”
or
“create
jobs”
means
new,
permanent,
28
full-time
equivalent
positions
added
to
an
eligible
business’s
29
payroll,
at
the
location
of
the
eligible
business’s
project,
in
30
excess
of
the
eligible
business’s
base
employment
level.
31
8.
“Data
center
business”
means
the
same
as
defined
in
32
section
423.3,
subsection
95.
33
9.
“Eligible
business”
means
a
business
that
meets
the
34
requirements
of
section
15.602.
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10.
“Full-time
equivalent
position”
means
a
non-part-time
1
position
for
the
number
of
hours
or
days
per
week
considered
2
to
be
full-time
work
for
the
kind
of
service
or
work
performed
3
for
an
employer.
Typically,
a
full-time
equivalent
position
4
requires
two
thousand
eighty
hours
of
work
in
a
calendar
year,
5
including
all
paid
holidays,
vacations,
sick
time,
and
other
6
paid
leave.
7
11.
“Gross
annual
wages”
means
all
regular
wages
and
8
salaries
received
by
an
employee
for
performing
services
as
9
an
employee
of
an
employer.
“Gross
annual
wages”
does
not
10
include
nonregular
forms
of
compensation,
such
as
bonuses,
11
unusual
overtime
pay,
commissions,
stock
options,
pensions,
12
retirement
or
death
benefits,
unemployment
benefits,
life
or
13
other
insurance,
or
other
fringe
benefits.
14
12.
“New
corporate
job”
means
a
corporate
job
that
is
a
15
created
job.
16
13.
“Program”
means
the
headquarters
expansion
and
17
development
for
growth
and
employment
program.
18
14.
“Project”
means
an
activity
or
set
of
activities
19
directly
related
to
the
retention
or
location
of
a
corporate
20
headquarters
for
an
eligible
business,
proposed
in
an
eligible
21
business’s
application
to
the
program,
that
will
accomplish
the
22
goals
of
the
program.
23
15.
“Qualifying
wage
threshold”
means
the
mean
wage
level
24
represented
by
the
wages
within
two
standard
deviations
of
25
the
mean
wage
within
the
laborshed
area
in
which
the
eligible
26
business
is
located,
as
calculated
by
the
authority
by
rule,
27
using
the
most
current
covered
wage
and
employment
data
28
available
from
the
department
of
workforce
development
for
the
29
laborshed
area
in
which
the
eligible
business
is
located.
30
16.
“Retained
corporate
job”
means
a
corporate
job
that
is
31
also
a
retained
job.
32
17.
“Retained
jobs”
means
a
full-time
equivalent
position
33
that
is
in
existence
at
the
time
an
eligible
business
applies
34
for
the
program
that
remains
continuously
filled,
and
that
is
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at
risk
of
elimination
if
the
proposed
project
for
which
the
1
eligible
business
is
applying
to
the
program
does
not
proceed.
2
18.
“Tax
incentives”
means
tax
credits
authorized
under
the
3
program
by
the
authority
for
an
eligible
business.
4
Sec.
3.
NEW
SECTION
.
15.602
Eligible
business.
5
1.
To
be
eligible
to
receive
tax
incentives
under
6
the
program,
a
business
must
meet
all
of
the
following
7
requirements:
8
a.
The
community
in
which
the
proposed
project
is
located
9
must
approve
the
project
either
by
ordinance
or
resolution.
10
b.
The
business
must
have
a
global
presence,
significant
11
market
share,
or
national
recognition
in
the
industry
in
which
12
the
business
operates.
13
c.
The
business
must
be
able
to
provide
documentation
that
a
14
minimum
of
fifty-one
percent
of
the
business’s
gross
revenue
is
15
generated
from
business
conducted
outside
the
state.
16
d.
The
business
must
be
able
to
provide
documentation
that
17
a
state
other
than
Iowa
is
meaningfully
competing
for
the
18
location,
expansion,
or
retention
of
the
business’s
corporate
19
headquarters.
20
e.
(1)
The
business
must
be
primarily
engaged
in
advanced
21
manufacturing,
bioscience,
insurance
and
finance,
technology
22
and
innovation,
or
research
and
development.
The
business
23
shall
not
be
a
data
center
business,
a
retail
business,
or
24
a
business
where
a
cover
charge
or
membership
requirement
25
restricts
certain
individuals
from
entering
the
business.
26
(2)
Factors
the
authority
shall
consider
to
determine
if
27
a
business
is
primarily
engaged
in
advanced
manufacturing,
28
bioscience,
insurance
and
finance,
technology
and
innovation,
29
or
research
and
development
shall
include
but
are
not
limited
30
to
all
of
the
following:
31
(a)
The
business’s
North
American
industry
classification
32
system
code.
33
(b)
The
business’s
main
sources
of
revenue.
34
(c)
The
business’s
customer
base.
35
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f.
(1)
The
business
must
not
be
solely
relocating
1
operations
from
one
area
of
the
state
to
another
area
of
2
the
state.
A
proposed
project
that
does
not
create
jobs
or
3
involve
a
substantial
amount
of
new
capital
investment
shall
4
be
presumed
to
be
a
relocation
of
operations.
For
purposes
of
5
this
subparagraph,
the
authority
shall
consider
a
letter
from
6
the
affected
local
community’s
government
officials
supporting
7
the
business’s
move
away
from
the
affected
local
community
8
in
making
a
determination
whether
the
business
is
solely
9
relocating
operations.
10
(2)
This
paragraph
shall
not
be
construed
to
prohibit
11
a
business
from
expanding
the
business’s
operations
in
a
12
community
if
the
business
has
similar
operations
in
this
state
13
that
are
not
closing
or
undergoing
a
substantial
reduction
in
14
operations.
15
g.
The
business
must
offer
comprehensive
benefits
to
16
each
full-time
equivalent
employee
employed
at
its
corporate
17
headquarters.
The
authority
may
adopt
rules
under
chapter
17A
18
to
determine
the
requirements
for
comprehensive
benefits.
19
h.
(1)
The
business
must
not
have
a
record
of
violations
20
of
law
or
of
rules,
including
but
not
limited
to
antitrust,
21
environmental,
trade,
or
worker
safety,
that
over
a
period
of
22
time
show
a
consistent
pattern
or
that
establish
the
business’s
23
intentional,
criminal,
or
reckless
conduct
in
violation
of
such
24
laws
or
rules.
25
(2)
In
making
determinations
and
findings
under
26
subparagraph
(1),
and
making
a
determination
whether
a
business
27
is
disqualified
from
the
program,
the
authority
shall
be
exempt
28
from
chapter
17A.
29
2.
In
determining
if
a
business
is
eligible
to
participate
30
in
the
program,
the
authority
shall
consider
a
variety
of
31
factors
including
but
not
limited
to
all
of
the
following:
32
a.
The
cost
to
the
state
of
providing
tax
incentives
33
compared
to
the
potential
increase
in
state
and
local
tax
34
collections
from
the
project,
the
potential
for
population
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growth
resulting
from
the
project,
and
the
potential
for
wage
1
growth
resulting
from
the
project.
2
b.
The
impact
of
the
business’s
proposed
project
on
3
businesses
that
are
in
competition
with
the
business.
4
The
authority
shall
make
a
good-faith
effort
to
identify
5
existing
Iowa
businesses
in
competition
with
the
business
6
being
considered
for
the
program.
The
authority
shall
make
7
a
good-faith
effort
to
determine
the
probability
that
any
8
proposed
tax
incentives
will
displace
employees
of
a
competing
9
business.
In
determining
the
impact
on
a
competing
business,
10
employee
displacement
from
the
competing
business
shall
not
be
11
considered
created
jobs
for
the
applying
business’s
project.
12
c.
The
business’s
proposed
project’s
economic
impact
on
13
the
state.
The
authority
shall
place
greater
emphasis
on
14
businesses
and
proposed
projects
that
meet
the
following
15
requirements:
16
(1)
The
business
has
a
high
proportion
of
in-state
17
suppliers.
18
(2)
The
proposed
project
will
diversify
the
state
economy.
19
(3)
The
business
has
few
in-state
competitors.
20
(4)
The
proposed
project
has
the
potential
to
create
jobs
on
21
an
ongoing
basis,
or
will
result
in
increased
skills
and
wages
22
for
employees
of
the
eligible
business.
23
(5)
The
proposed
project
has
the
potential
to
increase
the
24
state’s
overall
gross
domestic
product.
25
(6)
The
proposed
project
will
result
in
a
newly
constructed
26
facility,
or
a
facility
with
a
significantly
increased
taxable
27
valuation.
28
(7)
Any
other
factors
the
authority
deems
relevant
in
29
determining
the
economic
impact
of
a
proposed
project.
30
Sec.
4.
NEW
SECTION
.
15.603
Applications
——
authorization
31
of
tax
incentives.
32
1.
Applications
for
the
program
shall
be
submitted
to
the
33
authority
in
the
form
and
manner
prescribed
by
the
authority
by
34
rule.
Each
application
must
be
accompanied
by
an
application
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fee
in
an
amount
determined
by
the
authority
by
rule.
1
2.
In
determining
the
eligibility
of
a
business
to
2
participate
in
the
program
the
authority
may
engage
outside
3
experts
to
complete
a
technical,
financial,
or
other
review
4
of
an
application
submitted
by
a
business
if
such
review
is
5
outside
the
expertise
of
the
authority.
6
3.
The
authority
and
the
board
may
negotiate
with
an
7
eligible
business
regarding
the
terms
of,
and
the
aggregate
8
value
of,
the
tax
incentives
the
eligible
business
may
receive
9
under
the
program.
10
Sec.
5.
NEW
SECTION
.
15.604
Agreement.
11
1.
An
eligible
business
that
is
approved
by
the
authority
to
12
participate
in
the
program
shall
enter
into
an
agreement
with
13
the
authority
that
specifies
the
criteria
for
the
successful
14
completion
of
all
requirements
of
the
program.
The
agreement
15
must
contain,
at
a
minimum,
provisions
related
to
all
of
the
16
following:
17
a.
The
eligible
business
must
certify
to
the
authority
18
annually
that
the
business
is
in
compliance
with
the
agreement.
19
b.
If
the
eligible
business
fails
to
comply
with
any
20
requirements
of
the
program
or
the
agreement,
the
eligible
21
business
may
be
required
to
repay
any
tax
incentives
the
22
authority
issued
to
the
eligible
business.
After
a
final
23
determination
by
the
authority,
the
authority
will
notify
24
the
department
of
revenue
of
any
required
repayment
of
a
25
tax
incentive,
which
shall
be
considered
a
tax
payment
due
26
and
payable
to
the
department
of
revenue
by
any
taxpayer
27
that
claimed
the
tax
incentive,
and
the
failure
to
make
the
28
repayment
may
be
treated
by
the
department
of
revenue
in
the
29
same
manner
as
a
failure
to
pay
the
tax
shown
due,
or
required
30
to
be
shown
due,
with
the
filing
of
a
return
or
deposit
form.
31
c.
If
the
eligible
business
undergoes
a
layoff
or
32
permanently
closes
any
of
its
facilities
within
the
state,
the
33
eligible
business
may
be
subject
to
all
of
the
following:
34
(1)
A
reduction
or
elimination
of
some
or
all
of
the
tax
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incentives
the
authority
issued
to
the
eligible
business.
1
(2)
Repayment
of
any
tax
incentives
that
the
business
2
has
claimed,
and
payment
of
any
penalties
assessed
by
the
3
department
of
revenue.
4
d.
The
end
date
of
the
agreement.
5
e.
The
number
of
new
corporate
jobs
and
retained
corporate
6
jobs
to
be
created
or
retained
as
part
of
the
project,
the
7
qualifying
wage
threshold
applicable
to
the
project,
and
the
8
date
on
which
the
authority
will
initially
verify
the
eligible
9
business
employs
the
required
number
of
new
corporate
jobs
and
10
retained
corporate
jobs.
11
f.
The
maximum
aggregate
value
of
the
tax
incentives
12
authorized
by
the
board.
13
g.
The
eligible
business
shall
only
employ
individuals
14
legally
authorized
to
work
in
this
state.
If
the
eligible
15
business
is
found
to
knowingly
employ
individuals
who
are
16
not
legally
authorized
to
work
in
this
state,
in
addition
to
17
any
penalties
provided
by
law,
the
eligible
business
may
be
18
required
to
repay
all
or
a
portion
of
any
tax
incentives
the
19
authority
issued
to
the
eligible
business.
20
h.
A
requirement
that
the
eligible
business
must
continue
to
21
own
and
operate
a
corporate
headquarters
in
the
state
until
the
22
end
date
of
the
agreement
as
specified
in
paragraph
“d”
.
23
i.
Any
terms
deemed
necessary
by
the
authority
to
effect
the
24
eligible
business’s
ongoing
compliance
with
section
15.602.
25
2.
The
board
shall
not
amend
the
terms
of
the
agreement
26
to
allow
an
increase
in
the
maximum
aggregate
value
of
tax
27
incentives
authorized
by
the
board
under
section
15.603.
28
3.
The
eligible
business
shall
comply
with
all
applicable
29
terms
of
the
agreement
until
the
agreement
end
date.
An
30
eligible
business
shall
maintain
the
business’s
base
employment
31
level
until
the
agreement
end
date.
32
4.
The
eligible
business
shall
not
assign
the
agreement
33
to
another
entity
without
the
advance
written
approval
of
the
34
board.
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5.
The
authority
may
enforce
the
terms
of
the
agreement
as
1
necessary
and
appropriate.
2
Sec.
6.
NEW
SECTION
.
15.605
Qualifying
wage
tax
credit.
3
1.
If
the
authority
has
entered
into
an
agreement
with
an
4
eligible
business
pursuant
to
section
15.604,
the
authority
5
may
authorize
a
qualifying
wage
tax
credit
with
the
eligible
6
business
for
a
period
not
to
exceed
three
years
according
7
to
the
start
and
end
date
specified
in
the
agreement.
The
8
authority
may
issue
a
qualifying
wage
tax
credit
to
the
9
eligible
business
for
each
year
of
the
authorized
period
upon
10
verification
under
section
15.604,
subsection
1,
paragraph
11
“e”
,
that
the
eligible
business
employed
the
required
number
12
of
employees
in
new
corporate
jobs
and
retained
corporate
jobs
13
that
pay
at
least
two
hundred
percent
of
the
qualifying
wage
14
threshold.
The
tax
credit
for
each
year
of
the
authorized
15
period
shall
equal
no
more
than
the
sum
of
all
of
the
16
following:
17
a.
Up
to
fifteen
percent
of
the
gross
annual
wages
of
new
18
corporate
jobs
that
pay
at
least
two
hundred
percent
of
the
19
qualifying
wage
threshold.
20
b.
Up
to
one
percent
of
the
gross
annual
wages
of
retained
21
corporate
jobs
that
pay
at
least
two
hundred
percent
of
the
22
qualifying
wage
threshold,
not
to
exceed
one
million
dollars.
23
2.
A
tax
credit
shall
be
allowed
against
the
taxes
imposed
24
in
chapter
422,
subchapters
II,
III,
and
V,
and
against
the
25
moneys
and
credits
tax
imposed
in
section
533.329.
26
3.
In
order
for
a
taxpayer
to
claim
a
tax
credit
under
27
subsection
1,
a
tax
credit
certificate
issued
by
the
authority
28
shall
be
included
with
the
taxpayer’s
tax
return.
The
tax
29
credit
certificate
shall
contain
the
taxpayer’s
name,
address,
30
tax
identification
number,
the
amount
of
the
credit,
and
other
31
information
required
by
the
authority.
32
4.
An
individual
may
claim
a
tax
credit
under
subsection
33
1
on
behalf
of
a
partnership,
limited
liability
company,
34
S
corporation,
estate,
or
trust
electing
to
have
income
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taxed
directly
to
the
individual.
The
amount
claimed
by
the
1
individual
shall
be
based
upon
the
pro
rata
share
of
the
2
individual’s
earnings
from
the
partnership,
limited
liability
3
company,
S
corporation,
estate,
or
trust.
4
5.
Any
tax
credit
in
excess
of
the
taxpayer’s
liability
5
for
the
tax
year
is
refundable.
In
lieu
of
claiming
a
refund,
6
an
eligible
business
may
elect
to
have
the
overpayment
shown
7
on
the
eligible
business’s
final,
completed
return
credited
8
to
the
eligible
business’s
tax
liability
for
the
immediately
9
succeeding
tax
year.
A
tax
credit
shall
not
be
carried
back
10
to
a
tax
year
prior
to
the
tax
year
in
which
the
tax
credit
is
11
first
claimed
by
the
eligible
business.
12
6.
Tax
credit
certificates
issued
pursuant
to
this
section
13
are
not
transferable.
14
Sec.
7.
NEW
SECTION
.
15.606
Other
incentives.
15
The
authority,
in
its
discretion,
may
prohibit
an
eligible
16
business
that
has
been
issued
tax
incentives
under
the
program
17
from
receiving
any
additional
tax
incentive,
tax
credit,
18
grant,
loan,
or
other
financial
assistance
under
any
program
19
administered
by
the
authority.
20
Sec.
8.
NEW
SECTION
.
422.12R
Qualifying
wage
tax
credit.
21
The
taxes
imposed
under
this
subchapter,
less
the
credits
22
allowed
under
section
422.12,
shall
be
reduced
by
a
qualifying
23
wage
tax
credit
allowed
under
section
15.605.
24
Sec.
9.
Section
422.33,
Code
2026,
is
amended
by
adding
the
25
following
new
subsection:
26
NEW
SUBSECTION
.
4.
The
taxes
imposed
under
this
subchapter
27
shall
be
reduced
by
a
qualifying
wage
tax
credit
allowed
under
28
section
15.605.
29
Sec.
10.
Section
422.60,
Code
2026,
is
amended
by
adding
the
30
following
new
subsection:
31
NEW
SUBSECTION
.
2.
The
taxes
imposed
under
this
subchapter
32
shall
be
reduced
by
a
qualifying
wage
tax
credit
allowed
under
33
section
15.605.
34
Sec.
11.
Section
533.329,
subsection
2,
Code
2026,
is
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amended
by
adding
the
following
new
paragraph:
1
NEW
PARAGRAPH
.
m.
The
moneys
and
credits
tax
imposed
under
2
this
section
shall
be
reduced
by
a
qualifying
wage
tax
credit
3
allowed
under
section
15.605.
4
Sec.
12.
CODE
EDITOR
DIRECTIVE.
The
Code
editor
is
directed
5
to
designate
sections
15.600
through
15.606,
as
enacted
in
this
6
division
of
this
Act,
as
part
37
of
subchapter
II.
7
DIVISION
II
8
MAJOR
ECONOMIC
GROWTH
ATTRACTION
PROGRAM
9
Sec.
13.
Section
15.491,
subsection
12,
Code
2026,
is
10
amended
to
read
as
follows:
11
12.
“Foreign
adversary”
means
a
the
following:
12
a.
A
foreign
government
or
foreign
non-government
person
as
13
determined
in
15
C.F.R.
§7.4
,
and
that
is
listed
in
15
C.F.R.
14
§7.4(a)
at
any
time
from
March
4,
2024,
through
the
termination
15
of
the
program
July
17,
2024
.
16
b.
A
foreign
government
or
foreign
non-government
person
as
17
determined
in
15
C.F.R.
§791.4,
and
that
is
listed
in
15
C.F.R.
18
§791.4
at
any
time
from
July
18,
2024,
through
the
termination
19
of
the
program.
20
Sec.
14.
Section
15.501,
Code
2026,
is
amended
to
read
as
21
follows:
22
15.501
Restrictions
on
board.
23
The
board
shall
not
authorize
tax
incentives
available
under
24
the
program,
or
an
exemption
to
restrictions
on
agricultural
25
land
holdings
pursuant
to
this
part
,
for
more
than
two
eligible
26
businesses,
or
on
or
after
January
1,
2027
2030
,
whichever
27
occurs
first.
28
DIVISION
III
29
BUSINESS
INCENTIVES
FOR
GROWTH
PROGRAM
TRAINING
FUND
30
Sec.
15.
NEW
SECTION
.
15.512
Training
fund.
31
1.
A
business
incentives
for
growth
program
training
fund
32
is
created
in
the
state
treasury
under
the
control
of
the
33
authority.
An
amount
up
to
one
and
one-half
percent
of
the
34
gross
wages
an
eligible
business
pays
according
to
an
agreement
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entered
into
pursuant
to
section
15.506
shall
be
credited
to
1
the
fund
from
the
withholding
payments
made
by
an
eligible
2
business
pursuant
to
section
422.16.
Such
jobs
shall
be
3
identified
by
the
authority
as
having
a
sufficient
economic
4
impact
to
warrant
assistance
with
training.
5
2.
On
a
quarterly
basis,
an
eligible
business
shall
disclose
6
the
amount
of
gross
wages
that
qualify
under
subsection
1
to
7
the
authority
and
to
the
department
of
revenue.
Based
upon
8
the
gross
wage
amount
provided
to
the
authority,
the
authority
9
shall
calculate
the
amount
of
gross
wages
to
be
deposited
into
10
the
fund
for
the
quarter,
and
the
department
of
revenue
shall
11
deposit
that
amount
into
the
fund.
12
3.
Moneys
in
the
fund
shall
be
used
to
reimburse
training
13
expenses
incurred
by
an
eligible
business
that
are
associated
14
with
the
eligible
business’s
project.
15
4.
An
eligible
business’s
training
expenses
that
may
be
16
eligible
for
reimbursement
must
meet
all
of
the
following
17
criteria:
18
a.
The
expenses
are
paid
to
a
third
party.
19
b.
The
expenses
are
for
training
that
is
specific
to
the
20
project
of
the
eligible
business
and
necessary
for
the
success
21
of
the
project.
22
c.
The
expenses
were
incurred
over
the
period
of
time
23
identified
in
the
agreement
under
section
15.506,
but
not
to
24
exceed
four
years.
25
d.
The
expenses
are
documented
to
the
satisfaction
of
the
26
authority.
27
5.
An
eligible
business
that
has
been
approved
by
the
28
authority
to
receive
a
reimbursement
from
the
fund
shall
not
be
29
eligible
to
receive
any
other
state
incentive
to
be
used
for
30
the
same
purpose.
31
DIVISION
IV
32
REPEAL
OF
THE
NEW
JOBS
TAX
CREDIT
33
Sec.
16.
Section
2.48,
subsection
3,
paragraph
e,
34
subparagraph
(7),
Code
2026,
is
amended
by
striking
the
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subparagraph.
1
Sec.
17.
REPEAL.
Section
422.11A,
Code
2026,
is
repealed.
2
Sec.
18.
PRESERVATION
OF
EXISTING
RIGHTS.
This
division
of
3
this
Act
shall
not
limit,
modify,
or
otherwise
adversely
affect
4
any
amount
of
tax
incentive
issued,
awarded,
or
allowed
before
5
the
effective
date
of
this
division
of
this
Act,
nor
shall
6
it
limit,
modify,
or
otherwise
adversely
affect
a
taxpayer’s
7
right
to
claim
or
redeem
a
tax
incentive
issued,
awarded,
or
8
allowed
before
the
effective
date
of
this
division
of
this
Act,
9
including
but
not
limited
to
any
tax
incentive
carryforward
10
amount.
11
Sec.
19.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
12
deemed
of
immediate
importance,
takes
effect
upon
enactment.
13
DIVISION
V
14
LOAD
FORECASTING
15
Sec.
20.
NEW
SECTION
.
15.120A
Load
forecasting
report
and
16
analysis
of
electric
transmission
system
expansion
plans.
17
To
support
economic
development
in
the
state,
the
authority
18
shall
commission
Iowa
state
university
of
science
and
19
technology
to
produce
a
report
forecasting
the
probable
future
20
growth
of
the
use
of
electricity
within
Iowa
and
within
the
21
midwest
region.
The
report
shall
include
a
load
forecast
and
22
an
analysis
of
electric
transmission
system
expansion
plans.
23
The
authority
must
commission
such
report
from
the
university
24
at
least
every
two
years.
In
developing
the
report,
the
25
university
shall
solicit
the
input
of
residential,
commercial,
26
and
industrial
consumers
and
the
electric
industry.
The
load
27
forecast
and
state
electric
transmission
system
expansion
28
planning
analysis
must
be
published
by
December
31,
2028,
and
29
biennially
published
on
or
before
December
31
thereafter.
The
30
authority
may
commission
other
reports
as
necessary
to
evaluate
31
energy
needs
including
but
not
limited
to
natural
gas.
A
32
report
commissioned
pursuant
to
this
section
must
be
publicly
33
available
on
the
authority’s
internet
site.
34
Sec.
21.
Section
476.1A,
subsection
2,
Code
2026,
is
amended
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to
read
as
follows:
1
2.
However,
sections
section
476.2,
subsection
7,
section
2
476.20,
subsections
1
through
4,
sections
476.21
,
476.51
,
3
476.56
,
476.58
,
476.62
,
and
476.66
,
and
chapters
476A
and
478
,
4
to
the
extent
applicable,
apply
to
such
electric
utilities.
5
Sec.
22.
Section
476.1B,
subsection
2,
Code
2026,
is
amended
6
to
read
as
follows:
7
2.
Section
476.20,
subsections
1
through
4
,
Section
476.2,
8
subsection
7,
section
476.20,
subsections
1
through
4,
sections
9
476.51
,
476.56
,
476.58
,
476.62
,
and
476.66
,
and
chapters
476A
10
and
478
,
to
the
extent
applicable,
apply
to
such
electric
and
11
gas
utilities.
12
Sec.
23.
Section
476.2,
Code
2026,
is
amended
by
adding
the
13
following
new
subsection:
14
NEW
SUBSECTION
.
7.
The
commission
shall
have
the
authority
15
to
compel
all
public
utilities
to
share
with
Iowa
state
16
university
of
science
and
technology
information
necessary
to
17
develop
state
load
forecasts
and
state
electric
transmission
18
system
expansion
planning
analysis
pursuant
to
section
15.120A.
19
The
load
forecast
and
state
electric
transmission
system
20
expansion
planning
analysis
published
pursuant
to
section
21
15.120A
may
be
used
as
evidentiary
support
in
any
proceedings
22
before
the
commission.
23
Sec.
24.
NEW
SECTION
.
476.10C
Load
forecasts
and
analyses
24
of
state
electric
transmission
system
expansion
plans
——
fund.
25
1.
An
electric
transmission
system
expansion
plans
analysis
26
and
load
forecasting
fund
is
created
in
the
state
treasury
27
under
the
control
of
the
economic
development
authority.
The
28
commission
shall
direct
all
electric
utilities
to
remit
to
the
29
treasurer
of
state
for
deposit
in
the
electric
transmission
30
system
expansion
plans
analysis
and
load
forecasting
fund
a
31
percentage
of
the
total
gross
operating
revenues
during
the
32
last
calendar
year
derived
from
the
utilities’
intrastate
33
public
utility
operations.
Moneys
in
the
fund
are
appropriated
34
to
the
economic
development
authority
to
be
used
for
the
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purposes
of
commissioning
a
report
pursuant
to
section
15.120A.
1
Notwithstanding
section
8.33,
moneys
in
the
fund
that
remain
2
unencumbered
or
unobligated
at
the
close
of
a
fiscal
year
shall
3
not
revert
but
shall
remain
available
for
expenditure
for
the
4
purposes
designated.
Notwithstanding
section
12C.7,
subsection
5
2,
interest
or
earnings
on
moneys
in
the
fund
shall
be
credited
6
to
the
fund.
7
2.
The
commission
shall,
by
rule,
establish
a
maximum
8
amount
of
remittances
in
aggregate
and
provide
a
schedule
9
for
remittances.
The
remittances
collected
pursuant
to
this
10
section
shall
be
in
addition
to
the
assessments
permitted
11
pursuant
to
section
476.10.
The
commission
shall
allow
12
inclusion
of
these
remittances
in
the
budgets
approved
by
the
13
commission
pursuant
to
section
476.6,
subsection
15,
paragraph
14
“c”
.
15
DIVISION
VI
16
IOWA
INDUSTRIAL
NEW
JOBS
TRAINING
PROGRAM
17
Sec.
25.
Section
260E.3,
subsection
1,
paragraph
b,
Code
18
2026,
is
amended
to
read
as
follows:
19
b.
New
For
an
agreement
entered
into
on
or
before
June
20
30,
2026,
new
jobs
credit
from
withholding
to
be
received
or
21
derived
from
new
employment
resulting
from
the
project.
22
Sec.
26.
Section
260E.3,
subsection
4,
Code
2026,
is
amended
23
to
read
as
follows:
24
4.
An
agreement
shall
include
a
provision
which
fixes
the
25
minimum
amount
of
incremental
property
taxes
,
new
jobs
credit
26
from
withholding,
or
tuition
and
fee
payments
which
shall
be
27
paid
for
program
costs.
An
agreement
entered
into
on
or
before
28
June
30,
2026,
may
include
a
provision
which
fixes
the
minimum
29
amount
of
new
jobs
credit
from
withholding
which
shall
be
paid
30
for
program
costs.
31
Sec.
27.
Section
260E.5,
unnumbered
paragraph
1,
Code
2026,
32
is
amended
to
read
as
follows:
33
If
an
For
an
agreement
entered
into
on
or
before
June
34
30,
2026,
if
the
agreement
provides
that
all
or
part
of
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program
costs
are
to
be
met
by
receipt
of
new
jobs
credit
from
1
withholding,
it
shall
be
done
as
follows:
2
EXPLANATION
3
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
4
the
explanation’s
substance
by
the
members
of
the
general
assembly.
5
This
bill
relates
to
economic
development
authority
programs
6
and
tax
credits;
load
forecasting
and
the
state
electric
7
transmission
system
expansion
plans;
and
the
industrial
new
8
jobs
training
program.
9
DIVISION
I
——
HEADQUARTERS
EXPANSION
AND
DEVELOPMENT
FOR
10
GROWTH
AND
EMPLOYMENT
PROGRAM.
The
bill
creates
a
headquarters
11
expansion
and
development
for
growth
and
employment
program
12
(EDGE
program)
to
provide
tax
incentives
to
eligible
13
businesses.
The
qualifications
for
an
eligible
business,
and
14
the
factors
the
economic
development
authority
(authority)
15
shall
consider
in
determining
if
a
business
is
eligible
to
16
participate
in
the
EDGE
program
are
provided
in
the
bill.
17
Applications
for
the
EDGE
program
shall
be
submitted
to
the
18
authority.
19
The
terms
of,
and
aggregate
value
of,
a
tax
incentive
may
20
be
negotiated
between
an
eligible
business,
the
authority,
and
21
the
board
comprised
of
members
of
the
authority
appointed
by
22
the
governor
(board).
An
eligible
business
that
is
approved
to
23
participate
in
the
EDGE
program
shall
enter
into
an
agreement
24
with
the
authority
specifying
the
criteria
for
successful
25
completion
of
the
program
requirements.
The
requirements
26
for
the
program
agreement
are
detailed
in
the
bill,
and
the
27
authority
may
enforce
such
requirements.
28
If
the
authority
enters
into
an
agreement
with
an
eligible
29
business,
the
authority
may
authorize
a
qualifying
wage
tax
30
credit
for
the
eligible
business
for
a
period
not
to
exceed
31
three
years
as
specified
in
the
agreement.
The
authority
may
32
issue
a
qualifying
wage
tax
credit
to
the
eligible
business
for
33
each
year
of
the
authorized
period
upon
verification
that
the
34
eligible
business
employed
the
required
number
of
employees
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in
new
corporate
jobs
and
retained
corporate
jobs
that
pay
1
at
least
200
percent
of
the
qualifying
wage
threshold.
The
2
tax
credit
for
each
year
of
the
authorized
period
shall
equal
3
no
more
than
the
amount
specified
in
the
bill.
A
taxpayer
4
shall
include
a
tax
credit
certificate
issued
by
the
authority
5
with
the
taxpayer’s
tax
return
to
claim
the
tax
credit.
An
6
individual
may
claim
a
tax
credit
on
behalf
of
a
partnership,
7
limited
liability
company,
S
corporation,
estate,
or
trust
8
electing
to
have
income
taxed
directly
to
the
individual
in
9
an
amount
based
upon
the
pro
rata
share
of
the
individual’s
10
earnings.
Any
tax
credit
in
excess
of
the
taxpayer’s
liability
11
for
the
tax
year
is
refundable
or
may
be
credited
to
the
12
immediately
succeeding
tax
year.
Tax
credit
certificates
are
13
not
transferable.
14
The
authority
may
prohibit
an
eligible
business
that
15
receives
a
tax
incentive
from
the
program
from
receiving
any
16
other
tax
incentives
or
financial
assistance
under
any
program
17
administered
by
the
authority.
18
Under
the
bill,
individual
and
corporate
income
taxes,
19
financial
institution
franchise
taxes,
and
money
and
credits
20
taxes
on
credit
unions
shall
be
reduced
by
a
qualifying
wage
21
tax
credit.
22
DIVISION
II
——
MAJOR
ECONOMIC
GROWTH
ATTRACTION
PROGRAM.
23
The
bill
amends
the
definition
of
a
“foreign
adversary”
under
24
the
major
economic
growth
attraction
program
(MEGA
program).
25
Under
current
law,
a
foreign
adversary
is
a
foreign
government
26
or
foreign
nongovernment
person
as
determined
in
15
C.F.R.
27
§7.4,
and
as
listed
in
15
C.F.R.
§7.4(a)
at
any
time
from
March
28
4,
2024,
through
the
termination
of
the
program.
Under
the
29
bill,
a
foreign
adversary
is
a
foreign
government
or
foreign
30
nongovernment
person
as
determined
in
15
C.F.R.
§7.4,
and
as
31
listed
in
15
C.F.R.
§7.4(a)
at
any
time
from
March
4,
2024,
32
through
July
17,
2024,
or,
as
determined
in
15
C.F.R.
§791.4,
33
and
as
listed
in
15
C.F.R.
§791.4
at
any
time
from
July
18,
34
2024,
through
the
termination
of
the
program.
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Under
current
law,
the
board
shall
not
authorize
tax
1
incentives
available
under
the
MEGA
program,
or
an
exemption
to
2
restrictions
on
agricultural
land
holdings,
for
more
than
two
3
eligible
businesses,
or
on
or
after
January
1,
2027,
whichever
4
occurs
first.
The
bill
extends
this
provision
to
January
1,
5
2030.
6
DIVISION
III
——
BUSINESS
INCENTIVES
FOR
GROWTH
PROGRAM
7
TRAINING
FUND.
The
bill
creates
a
business
incentives
for
8
growth
program
training
fund
(fund)
in
the
state
treasury
under
9
the
control
of
the
authority.
10
Under
the
bill,
an
amount
up
to
1.5
percent
of
the
gross
11
wages
an
eligible
business
pays
pursuant
to
an
agreement
12
with
the
authority
shall
be
credited
to
the
fund
from
the
13
withholding
payments
made
by
the
eligible
business.
Such
jobs
14
shall
be
identified
by
the
authority
as
having
a
sufficient
15
economic
impact
to
warrant
assistance
with
training.
On
a
16
quarterly
basis,
an
eligible
business
shall
disclose
the
17
amount
of
gross
wages
that
qualify
to
the
authority
and
to
the
18
department
of
revenue
(DOR).
The
authority
shall
calculate
the
19
amount
of
gross
wages
to
be
deposited
into
the
fund,
and
the
20
DOR
shall
deposit
that
amount
into
the
fund.
21
Moneys
in
the
fund
shall
be
used
to
reimburse
training
22
expenses
incurred
by
an
eligible
business
that
are
associated
23
with
the
eligible
business’s
project,
and
that
meet
the
24
requirements
detailed
in
the
bill.
An
eligible
business
that
25
has
been
approved
to
receive
a
reimbursement
from
the
fund
26
shall
not
receive
any
other
state
incentives
for
the
same
27
purpose.
28
DIVISION
IV
——
REPEAL
OF
THE
NEW
JOBS
TAX
CREDIT.
The
29
bill
repeals
the
new
jobs
tax
credit
under
Code
section
30
422.11A.
The
bill
makes
a
conforming
change
to
Code
section
31
2.48(3)(e)(7).
32
This
division
of
the
bill,
being
deemed
of
immediate
33
importance,
takes
effect
upon
enactment.
34
DIVISION
V
——
LOAD
FORECASTING.
The
bill
relates
to
load
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forecasting
and
analysis
of
electric
transmission
system
1
expansion
plans.
The
bill
directs
the
authority
to
commission
2
Iowa
state
university
of
science
and
technology
(ISU)
to
3
produce
a
report
forecasting
the
probable
future
growth
of
4
electricity
use
within
the
state
and
within
the
midwest
region.
5
The
report
must
include
a
load
forecast
and
an
analysis
of
6
electric
transmission
system
expansion
plans,
and
must
be
7
commissioned
from
ISU
at
least
once
every
two
years.
In
8
developing
the
report,
ISU
must
solicit
input
from
residential,
9
commercial,
and
industrial
consumers
and
the
electric
industry.
10
The
load
forecast
and
electric
transmission
system
expansion
11
planning
analysis
must
be
published
by
December
31,
2028,
and
12
biennially
published
on
or
before
December
31
thereafter.
The
13
authority
may
commission
other
reports
as
necessary
to
evaluate
14
energy
needs.
A
report
shall
be
made
publicly
available
on
the
15
authority’s
internet
site.
16
The
bill
grants
the
Iowa
utilities
commission
(commission)
17
authority
to
compel
public
utilities
to
share
with
ISU
18
information
necessary
to
develop
the
load
forecasts
and
19
electric
transmission
system
expansion
planning
analysis
20
required
under
the
bill.
The
bill
also
provides
that
the
load
21
forecast
and
electric
transmission
system
expansion
planning
22
analysis
may
be
used
as
evidentiary
support
in
any
proceedings
23
before
the
commission.
This
authority
to
compel
includes
24
all
electric
utilities,
including
electric
public
utilities
25
with
few
customers,
electric
cooperative
corporations
and
26
associations,
and
municipally
owned
utilities.
27
The
bill
requires
the
commission
to
direct
all
electric
28
utilities
to
remit
to
the
treasurer
of
state
for
deposit
in
the
29
electric
transmission
system
expansion
planning
analysis
and
30
load
forecasting
fund,
as
created
in
the
bill,
a
percentage
of
31
the
utilities’
total
gross
intrastate
operating
revenues
from
32
the
prior
year.
Moneys
in
the
fund
are
appropriated
to
the
33
authority
for
the
purpose
of
commissioning
the
load
forecasting
34
report
and
analysis.
The
bill
directs
the
commission
to
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establish
by
rule
an
aggregate
maximum
amount
of
remittances
1
and
a
schedule
for
remittances.
The
remittances
are
in
2
addition
to
assessments
otherwise
permitted
and
may
be
included
3
in
budgets
approved
for
energy
efficiency
implementation.
4
DIVISION
VI
——
IOWA
INDUSTRIAL
NEW
JOBS
TRAINING
PROGRAM.
5
Under
current
law,
a
community
college
may
enter
into
an
6
agreement
to
establish
a
project
which
shall
provide
for
7
program
costs,
including
deferred
costs,
which
may
be
paid
8
from
one
or
more
sources,
including
the
new
jobs
credit
from
9
withholding
to
be
received
or
derived
from
new
employment
10
resulting
from
the
project.
The
agreement
shall
include
11
a
provision
which
fixes
the
minimum
amount
of
incremental
12
property
taxes,
new
jobs
credit
from
withholding,
or
tuition
13
and
fee
payments
which
shall
be
paid
for
program
costs.
14
Under
the
bill,
the
new
jobs
credit
from
withholding
is
only
15
available
for
agreements
entered
into
on
or
before
June
30,
16
2026,
and
such
an
agreement
may
include
a
provision
which
fixes
17
the
minimum
amount
of
new
jobs
credit
from
withholding
which
18
shall
be
paid
for
program
costs.
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