HF 2799

House
File
2799
-
Enrolled
House
File
2799
AN
ACT
RELATING
TO
MATTERS
UNDER
THE
PURVIEW
OF
THE
ECONOMIC
DEVELOPMENT
AUTHORITY,
THE
UTILITIES
COMMISSION,
AND
THE
DEPARTMENT
OF
EDUCATION,
INCLUDING
CREATION
OF
THE
HEADQUARTERS
EXPANSION
AND
DEVELOPMENT
FOR
GROWTH
AND
EMPLOYMENT
PROGRAM,
AND
THE
BUSINESS
INCENTIVES
FOR
GROWTH
PROGRAM
TRAINING
FUND;
REPEAL
OF
THE
NEW
JOBS
TAX
CREDIT
PROGRAM;
THE
MAJOR
ECONOMIC
GROWTH
ATTRACTION
PROGRAM;
LOAD
FORECASTING
AND
ANALYSIS
OF
ELECTRIC
TRANSMISSION
SYSTEM
EXPANSION
PLANS;
CREATION
OF
THE
ELECTRIC
TRANSMISSION
SYSTEM
EXPANSION
PLANNING
AND
ANALYSIS
AND
LOAD
FORECASTING
FUND;
THE
INDUSTRIAL
NEW
JOBS
TRAINING
PROGRAM;
AND
ESTABLISHING
THE
NEW
JOBS
TRAINING
PROGRAM
INTERIM
STUDY
COMMITTEE;
AND
INCLUDING
EFFECTIVE
DATE
PROVISIONS.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
House
File
2799,
p.
2
DIVISION
I
HEADQUARTERS
EXPANSION
AND
DEVELOPMENT
FOR
GROWTH
EMPLOYMENT
PROGRAM
Section
1.
NEW
SECTION
.
15.600
Short
title.
This
part
shall
be
known
and
may
be
cited
as
the
“Headquarters
Expansion
and
Development
for
Growth
and
Employment
Program”
,
or
“EDGE
Program”
.
Sec.
2.
NEW
SECTION
.
15.601
Definitions.
As
used
in
this
part,
unless
the
context
otherwise
requires:
1.
“Agreement”
means
an
agreement
entered
into
by
an
eligible
business
and
the
authority
pursuant
to
section
15.604.
2.
“Base
employment
level”
means
the
number
of
full-time
equivalent
positions
at
a
business,
as
established
by
the
authority
and
the
business
based
on
the
business’s
payroll
records,
on
the
date
the
business
applies
for
the
program.
3.
“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.
4.
“Community”
means
a
city
or
county
in
the
state.
5.
“Corporate
headquarters”
means
a
location
in
the
state
that
serves
as
the
principal
executive
office
or
houses
the
core
administrative
operations
for
a
business,
and
that
includes
executive
leadership
offices,
strategic
decision-making
functions,
and
administrative
and
support
staff
employees.
6.
“Corporate
job”
means
a
position
based
at
a
corporate
headquarters
that
involves
strategic
planning,
executive
decision-making,
or
core
administrative
functions.
7.
“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.
8.
“Data
center
business”
means
the
same
as
defined
in
section
423.3,
subsection
95.
9.
“Eligible
business”
means
a
business
that
meets
the
requirements
of
section
15.602.
10.
“Full-time
equivalent
position”
means
a
non-part-time
position
for
the
number
of
hours
or
days
per
week
considered
House
File
2799,
p.
3
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.
11.
“Gross
annual
wages”
means
all
regular
wages
and
salaries
received
by
an
employee
for
performing
services
as
an
employee
of
an
employer.
“Gross
annual
wages”
does
not
include
nonregular
forms
of
compensation,
such
as
bonuses,
unusual
overtime
pay,
commissions,
stock
options,
pensions,
retirement
or
death
benefits,
unemployment
benefits,
life
or
other
insurance,
or
other
fringe
benefits.
12.
“New
corporate
job”
means
a
corporate
job
that
is
a
created
job.
13.
“Program”
means
the
headquarters
expansion
and
development
for
growth
and
employment
program.
14.
“Project”
means
the
retention
or
location
of
a
corporate
headquarters
for
an
eligible
business,
proposed
in
an
eligible
business’s
application
to
the
program,
that
will
accomplish
the
goals
of
the
program.
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
corporate
job”
means
a
corporate
job
that
is
also
a
retained
job.
17.
“Retained
jobs”
means
a
full-time
equivalent
position
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.
18.
“Tax
incentives”
means
tax
credits
authorized
under
the
program
by
the
authority
for
an
eligible
business.
Sec.
3.
NEW
SECTION
.
15.602
Eligible
business.
1.
To
be
eligible
to
receive
tax
incentives
under
the
program,
a
business
must
meet
all
of
the
following
House
File
2799,
p.
4
requirements:
a.
The
community
in
which
the
proposed
project
is
located
must
approve
the
project
either
by
ordinance
or
resolution.
b.
The
business
must
have
a
global
presence,
significant
market
share,
or
national
recognition
in
the
industry
in
which
the
business
operates.
c.
The
business
must
be
able
to
provide
documentation
that
a
minimum
of
fifty-one
percent
of
the
business’s
gross
revenue
is
generated
from
business
conducted
outside
the
state.
d.
The
business
must
be
able
to
provide
documentation
that
a
state
other
than
Iowa
is
meaningfully
competing
for
the
location
or
retention
of
the
business’s
corporate
headquarters.
e.
(1)
The
business
must
be
primarily
engaged
in
advanced
manufacturing,
bioscience,
insurance
and
finance,
technology
and
innovation,
or
research
and
development.
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,
bioscience,
insurance
and
finance,
technology
and
innovation,
or
research
and
development
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.
f.
(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
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
House
File
2799,
p.
5
community
if
the
business
has
similar
operations
in
this
state
that
are
not
closing
or
undergoing
a
substantial
reduction
in
operations.
g.
The
business
must
offer
comprehensive
benefits
to
each
full-time
equivalent
employee
employed
at
its
corporate
headquarters.
The
authority
may
adopt
rules
under
chapter
17A
to
determine
the
requirements
for
comprehensive
benefits.
h.
(1)
The
business
must
not
have
a
record
of
violations
of
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)
In
making
determinations
and
findings
under
subparagraph
(1),
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
cost
to
the
state
of
providing
tax
incentives
compared
to
the
potential
increase
in
state
and
local
tax
collections
from
the
project,
the
potential
for
population
growth
resulting
from
the
project,
and
the
potential
for
wage
growth
resulting
from
the
project.
b.
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
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
a
competing
business.
In
determining
the
impact
on
a
competing
business,
employee
displacement
from
the
competing
business
shall
not
be
considered
created
jobs
for
the
applying
business’s
project.
c.
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:
House
File
2799,
p.
6
(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
the
state’s
overall
gross
domestic
product.
(6)
The
proposed
project
will
result
in
a
newly
constructed
facility,
or
a
facility
with
a
significantly
increased
taxable
valuation.
(7)
Any
other
factors
the
authority
deems
relevant
in
determining
the
economic
impact
of
a
proposed
project.
Sec.
4.
NEW
SECTION
.
15.603
Applications
——
authorization
of
tax
incentives.
1.
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.
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
an
application
submitted
by
a
business
if
such
review
is
outside
the
expertise
of
the
authority.
3.
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.
Sec.
5.
NEW
SECTION
.
15.604
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
House
File
2799,
p.
7
requirements
of
the
program
or
the
agreement,
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
due,
or
required
to
be
shown
due,
with
the
filing
of
a
return
or
deposit
form.
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
end
date
of
the
agreement.
e.
The
number
of
new
corporate
jobs
and
retained
corporate
jobs
to
be
created
or
retained
as
part
of
the
project,
the
qualifying
wage
threshold
applicable
to
the
project,
and
the
date
on
which
the
authority
will
initially
verify
the
eligible
business
employs
the
required
number
of
new
corporate
jobs
and
retained
corporate
jobs.
f.
The
maximum
aggregate
value
of
the
tax
incentives
authorized
by
the
board.
g.
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,
the
eligible
business
may
be
required
to
repay
all
or
a
portion
of
any
tax
incentives
the
authority
issued
to
the
eligible
business.
h.
A
requirement
that
the
eligible
business
must
continue
to
own
and
operate
a
corporate
headquarters
in
the
state
until
the
end
date
of
the
agreement
as
specified
in
paragraph
“d”
.
i.
Any
terms
deemed
necessary
by
the
authority
to
effect
the
House
File
2799,
p.
8
eligible
business’s
ongoing
compliance
with
section
15.602.
2.
The
board
shall
not
amend
the
terms
of
the
agreement
to
allow
an
increase
in
the
maximum
aggregate
value
of
tax
incentives
authorized
by
the
board
under
section
15.603.
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.
6.
NEW
SECTION
.
15.605
Qualifying
wage
tax
credit.
1.
If
the
authority
has
entered
into
an
agreement
with
an
eligible
business
pursuant
to
section
15.604,
the
authority
may
authorize
a
qualifying
wage
tax
credit
with
the
eligible
business
for
a
period
not
to
exceed
three
years
according
to
the
start
and
end
date
specified
in
the
agreement.
The
authority
may
issue
a
qualifying
wage
tax
credit
to
the
eligible
business
for
each
year
of
the
authorized
period
upon
verification
under
section
15.604,
subsection
1,
paragraph
“e”
,
that
the
eligible
business
employed
the
required
number
of
employees
in
new
corporate
jobs
and
retained
corporate
jobs
that
pay
at
least
two
hundred
percent
of
the
qualifying
wage
threshold.
The
tax
credit
for
each
year
of
the
authorized
period
shall
equal
no
more
than
the
sum
of
all
of
the
following:
a.
Up
to
fifteen
percent
of
the
gross
annual
wages
of
new
corporate
jobs
that
pay
at
least
two
hundred
percent
of
the
qualifying
wage
threshold.
b.
Up
to
one
percent
of
the
gross
annual
wages
of
retained
corporate
jobs
that
pay
at
least
two
hundred
percent
of
the
qualifying
wage
threshold,
not
to
exceed
one
million
dollars.
2.
A
tax
credit
shall
be
allowed
against
the
taxes
imposed
in
chapter
422,
subchapters
II,
III,
and
V,
and
against
the
moneys
and
credits
tax
imposed
in
section
533.329.
3.
In
order
for
a
taxpayer
to
claim
a
tax
credit
under
subsection
1,
a
tax
credit
certificate
issued
by
the
authority
House
File
2799,
p.
9
shall
be
included
with
the
taxpayer’s
tax
return.
The
tax
credit
certificate
shall
contain
the
taxpayer’s
name,
address,
tax
identification
number,
the
amount
of
the
credit,
and
other
information
required
by
the
authority.
4.
An
individual
may
claim
a
tax
credit
under
subsection
1
on
behalf
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.
5.
Any
tax
credit
in
excess
of
the
taxpayer’s
liability
for
the
tax
year
is
refundable.
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.
6.
Tax
credit
certificates
issued
pursuant
to
this
section
are
not
transferable.
Sec.
7.
NEW
SECTION
.
15.606
Other
incentives.
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.
8.
NEW
SECTION
.
422.12R
Qualifying
wage
tax
credit.
The
taxes
imposed
under
this
subchapter,
less
the
credits
allowed
under
section
422.12,
shall
be
reduced
by
a
qualifying
wage
tax
credit
allowed
under
section
15.605.
Sec.
9.
Section
422.33,
Code
2026,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
4.
The
taxes
imposed
under
this
subchapter
shall
be
reduced
by
a
qualifying
wage
tax
credit
allowed
under
section
15.605.
Sec.
10.
Section
422.60,
Code
2026,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
2.
The
taxes
imposed
under
this
subchapter
House
File
2799,
p.
10
shall
be
reduced
by
a
qualifying
wage
tax
credit
allowed
under
section
15.605.
Sec.
11.
Section
533.329,
subsection
2,
Code
2026,
is
amended
by
adding
the
following
new
paragraph:
NEW
PARAGRAPH
.
m.
The
moneys
and
credits
tax
imposed
under
this
section
shall
be
reduced
by
a
qualifying
wage
tax
credit
allowed
under
section
15.605.
Sec.
12.
CODE
EDITOR
DIRECTIVE.
The
Code
editor
is
directed
to
designate
sections
15.600
through
15.606,
as
enacted
in
this
division
of
this
Act,
as
part
37
of
subchapter
II.
DIVISION
II
MAJOR
ECONOMIC
GROWTH
ATTRACTION
PROGRAM
Sec.
13.
Section
15.491,
subsection
12,
Code
2026,
is
amended
to
read
as
follows:
12.
“Foreign
adversary”
means
a
the
following:
a.
A
foreign
government
or
foreign
non-government
person
as
determined
in
15
C.F.R.
§7.4
,
and
that
is
listed
in
15
C.F.R.
§7.4(a)
at
any
time
from
March
4,
2024,
through
the
termination
of
the
program
July
17,
2024
.
b.
A
foreign
government
or
foreign
non-government
person
as
determined
in
15
C.F.R.
§791.4,
and
that
is
listed
in
15
C.F.R.
§791.4
at
any
time
from
July
18,
2024,
through
the
termination
of
the
program.
Sec.
14.
Section
15.501,
Code
2026,
is
amended
to
read
as
follows:
15.501
Restrictions
on
board.
The
board
shall
not
authorize
tax
incentives
available
under
the
program,
or
an
exemption
to
restrictions
on
agricultural
land
holdings
pursuant
to
this
part
,
for
more
than
two
eligible
businesses,
or
on
or
after
January
1,
2027
2030
,
whichever
occurs
first.
DIVISION
III
BUSINESS
INCENTIVES
FOR
GROWTH
PROGRAM
TRAINING
FUND
Sec.
15.
NEW
SECTION
.
15.512
Training
fund.
1.
A
business
incentives
for
growth
program
training
fund
is
created
in
the
state
treasury
under
the
control
of
the
authority.
An
amount
up
to
one
and
one-half
percent
of
the
gross
wages
an
eligible
business
pays
to
employees
specified
in
an
agreement
entered
into
pursuant
to
section
15.506
shall
be
House
File
2799,
p.
11
credited
to
the
fund
from
the
withholding
payments
made
by
an
eligible
business
pursuant
to
section
422.16.
Such
jobs
shall
be
identified
by
the
authority
as
having
a
sufficient
economic
impact
to
warrant
assistance
with
training.
2.
On
a
quarterly
basis,
an
eligible
business
shall
disclose
the
amount
of
gross
wages
that
qualify
under
subsection
1
to
the
authority
and
to
the
department
of
revenue.
Based
upon
the
gross
wage
amount
provided
to
the
authority,
the
authority
shall
calculate
the
amount
of
gross
wages
to
be
deposited
into
the
fund
for
the
quarter,
and
the
department
of
revenue
shall
deposit
that
amount
into
the
fund.
3.
Moneys
in
the
fund
shall
be
used
to
reimburse
training
expenses
incurred
by
an
eligible
business
that
are
associated
with
the
eligible
business’s
project.
4.
An
eligible
business’s
training
expenses
that
may
be
eligible
for
reimbursement
must
meet
all
of
the
following
criteria:
a.
The
expenses
are
paid
to
a
third
party.
b.
The
expenses
are
for
training
that
is
specific
to
the
project
of
the
eligible
business
and
necessary
for
the
success
of
the
project.
c.
The
expenses
were
incurred
over
the
period
of
time
identified
in
the
agreement
under
section
15.506,
but
not
to
exceed
four
years.
d.
The
expenses
are
documented
to
the
satisfaction
of
the
authority.
5.
An
eligible
business
that
has
been
approved
by
the
authority
to
receive
a
reimbursement
from
the
fund
shall
not
be
eligible
to
receive
any
other
state
incentive
to
be
used
for
the
same
purpose.
DIVISION
IV
REPEAL
OF
THE
NEW
JOBS
TAX
CREDIT
Sec.
16.
Section
2.48,
subsection
3,
paragraph
e,
subparagraph
(7),
Code
2026,
is
amended
by
striking
the
subparagraph.
Sec.
17.
Section
422.33,
subsection
6,
Code
2026,
is
amended
by
striking
the
subsection.
Sec.
18.
REPEAL.
Section
422.11A,
Code
2026,
is
repealed.
Sec.
19.
PRESERVATION
OF
EXISTING
RIGHTS.
This
division
of
House
File
2799,
p.
12
this
Act
shall
not
limit,
modify,
or
otherwise
adversely
affect
any
amount
of
tax
incentive
issued,
awarded,
or
allowed
before
the
effective
date
of
this
division
of
this
Act,
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
the
effective
date
of
this
division
of
this
Act,
including
but
not
limited
to
any
tax
incentive
carryforward
amount.
Sec.
20.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
enactment.
DIVISION
V
LOAD
FORECASTING
Sec.
21.
NEW
SECTION
.
15.120A
Load
forecasting
report
and
analysis
of
electric
transmission
system
expansion
plans.
To
support
economic
development
in
the
state,
the
authority
shall
commission
Iowa
state
university
of
science
and
technology
to
produce
a
report
forecasting
the
probable
future
growth
of
the
use
of
electricity
within
Iowa
and
within
the
midwest
region.
The
report
shall
include
a
load
forecast
and
an
analysis
of
electric
transmission
system
expansion
plans.
The
authority
must
commission
such
report
from
the
university
at
least
every
two
years.
In
developing
the
report,
the
university
shall
solicit
the
input
of
residential,
commercial,
and
industrial
consumers
and
the
electric
industry.
The
published
report
shall
only
rely
on
information
provided
by
utilities
as
required
by
section
476.2
in
aggregate
form
and
exclude
identifying
information
about
an
individual
utility’s
electric
system.
The
load
forecast
and
state
electric
transmission
system
expansion
planning
analysis
must
be
published
by
December
31,
2028,
and
biennially
published
on
or
before
December
31
thereafter.
The
authority
may
commission
other
reports
as
necessary
to
evaluate
energy
needs
including
but
not
limited
to
natural
gas.
A
report
commissioned
pursuant
to
this
section
must
be
publicly
available
on
the
authority’s
internet
site.
Sec.
22.
Section
476.1A,
subsection
2,
Code
2026,
is
amended
to
read
as
follows:
2.
However,
sections
section
476.2,
subsection
7,
section
476.20,
subsections
1
through
4,
sections
476.21
,
476.51
,
House
File
2799,
p.
13
476.56
,
476.58
,
476.62
,
and
476.66
,
and
chapters
476A
and
478
,
to
the
extent
applicable,
apply
to
such
electric
utilities.
Sec.
23.
Section
476.1B,
subsection
2,
Code
2026,
is
amended
to
read
as
follows:
2.
Section
476.20,
subsections
1
through
4
,
Section
476.2,
subsection
7,
section
476.20,
subsections
1
through
4,
sections
476.51
,
476.56
,
476.58
,
476.62
,
and
476.66
,
and
chapters
476A
and
478
,
to
the
extent
applicable,
apply
to
such
electric
and
gas
utilities.
Sec.
24.
Section
476.2,
Code
2026,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
7.
The
commission
shall
have
the
authority
to
compel
all
public
utilities
to
share
with
Iowa
state
university
of
science
and
technology
the
utility’s
information
necessary
to
develop
state
load
forecasts
and
state
electric
transmission
system
expansion
planning
analysis
pursuant
to
section
15.120A.
A
public
utility
may
use
a
third
party
to
prepare
such
information
to
be
shared
with
Iowa
state
university
of
science
and
technology.
A
public
utility
may
enter
into
a
nondisclosure
agreement
with
Iowa
state
university
of
science
and
technology
requiring
the
shared
information
be
kept
confidential
if
the
public
utility
reasonably
believes
the
information
is
a
confidential
record
pursuant
to
section
22.7.
The
state
load
forecast
and
state
electric
transmission
system
expansion
planning
aggregate
analysis
published
pursuant
to
section
15.120A
may
be
used
as
evidentiary
support
in
any
proceedings
before
the
commission,
provided
the
confidentiality
of
any
information
provided
by
a
public
utility
is
maintained.
Sec.
25.
NEW
SECTION
.
476.10C
Load
forecasts
and
analyses
of
state
electric
transmission
system
expansion
plans
——
fund.
1.
An
electric
transmission
system
expansion
plans
analysis
and
load
forecasting
fund
is
created
in
the
state
treasury
under
the
control
of
the
economic
development
authority.
The
commission
shall
direct
all
electric
utilities
to
remit
to
the
treasurer
of
state
for
deposit
in
the
electric
transmission
system
expansion
plans
analysis
and
load
forecasting
fund
not
more
than
two
one-hundredths
of
one
percent
of
the
total
gross
operating
revenues
during
the
last
calendar
year
derived
from
the
utilities’
intrastate
public
utility
operations.
Moneys
in
House
File
2799,
p.
14
the
fund
are
appropriated
to
the
economic
development
authority
to
be
used
for
the
purposes
of
commissioning
a
report
pursuant
to
section
15.120A.
Notwithstanding
section
8.33,
moneys
in
the
fund
that
remain
unencumbered
or
unobligated
at
the
close
of
a
fiscal
year
shall
not
revert
but
shall
remain
available
for
expenditure
for
the
purposes
designated.
Notwithstanding
section
12C.7,
subsection
2,
interest
or
earnings
on
moneys
in
the
fund
shall
be
credited
to
the
fund.
2.
The
commission
shall,
by
rule,
establish
a
maximum
amount
of
remittances
in
aggregate
and
provide
a
schedule
for
remittances.
The
remittances
collected
pursuant
to
this
section
shall
be
in
addition
to
the
assessments
permitted
pursuant
to
section
476.10.
The
commission
shall
allow
inclusion
of
these
remittances
in
the
budgets
approved
by
the
commission
pursuant
to
section
476.6,
subsection
15,
paragraph
“c”
,
but
such
remittances
shall
not
be
included
when
computing
the
projected
cumulative
average
annual
cost
for
an
electric
utility’s
energy
efficiency
plan
and
demand
response
plan
under
section
476.6,
subsection
15,
paragraph
“c”
.
DIVISION
VI
IOWA
INDUSTRIAL
NEW
JOBS
TRAINING
PROGRAM
Sec.
26.
Section
260E.2,
subsection
10,
Code
2026,
is
amended
by
striking
the
subsection
and
inserting
in
lieu
thereof
the
following:
10.
“New
job”
means
a
new,
permanent,
full-time
equivalent
position
added
to
an
employer’s
payroll,
at
the
location
of
the
employer’s
project,
in
excess
of
the
employer’s
base
employment
level.
Sec.
27.
Section
260E.3,
subsection
2,
Code
2026,
is
amended
to
read
as
follows:
2.
a.
Payment
For
an
agreement
entered
into
on
or
before
June
30,
2026,
payment
of
program
costs
shall
not
be
deferred
for
a
period
longer
than
ten
years
from
the
date
of
commencement
of
the
project
,
and
the
agreed
upon
period
shall
not
be
extended
.
b.
For
an
agreement
entered
into
on
or
after
July
1,
2026,
payment
of
program
costs
shall
not
be
deferred
for
a
period
longer
than
seven
years
from
the
date
of
commencement
of
the
project.
House
File
2799,
p.
15
Sec.
28.
Section
260E.3,
Code
2026,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
6.
Upon
receipt
of
a
notice
that
a
community
college
and
an
employer
have
entered
into
an
agreement,
the
department
of
revenue
shall
provide
a
copy
of
the
agreement
to
the
department
of
workforce
development
for
review.
The
department
of
workforce
development
may
provide
feedback
regarding
the
agreement
to
the
department
of
revenue
within
seven
calendar
days
after
the
date
of
receipt
of
the
copy
of
the
agreement.
The
department
of
revenue
must
share
any
such
feedback
with
the
community
college.
Sec.
29.
Section
260E.5,
Code
2026,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
7.
A
bond
issued
to
a
community
college
for
a
project
shall
not
exceed
seventy
percent
of
total
program
costs
related
to
training
expenses.
Sec.
30.
Section
260E.7,
Code
2026,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
4.
A
community
college
that
receives
a
new
jobs
credit
from
withholding
under
section
260E.5
shall
annually
report
a
detailed
accounting
of
the
community
college’s
bond
interest
to
the
department
of
workforce
development,
the
department
of
education,
and
the
department
of
revenue.
Sec.
31.
NEW
SECTION
.
260E.8
Eligible
program
costs.
To
be
eligible
to
receive
a
new
jobs
credit
from
withholding,
a
community
college
must
document
to
the
satisfaction
of
the
department
that
the
community
college’s
program
costs
meet
all
of
the
following
criteria:
1.
The
program
costs
are
incurred
over
the
period
of
time
specified
in
the
agreement
under
section
260E.3.
2.
The
program
costs
are
not
incurred
to
reimburse
travel,
conferences,
or
legal
fees.
3.
Administrative
expenses
account
for
no
more
than
fifteen
percent
of
the
program
costs.
4.
The
program
costs
are
not
incurred
for
a
project
that
leads
directly
to
a
professional
degree
in
medicine,
law,
accounting,
or
other
professional
area,
or
a
project
that
includes
onboarding
or
basic
computer
skills.
House
File
2799,
p.
16
Sec.
32.
IOWA
INDUSTRIAL
NEW
JOBS
TRAINING
PROGRAM
INTERIM
STUDY
COMMITTEE.
1.
The
legislative
council
is
requested
to
establish
an
interim
study
committee
to
meet
during
the
2026
legislative
interim
to
review
the
new
jobs
training
program
and
make
recommendations
regarding
the
program.
2.
The
membership
of
the
committee
shall
consist
of,
at
a
minimum:
a.
Three
members
of
the
senate,
two
republicans
and
one
democrat,
appointed
by
the
majority
leader
of
the
senate.
b.
Three
members
of
the
house
of
representatives,
two
republicans
and
one
democrat,
appointed
by
the
speaker
of
the
house
of
representatives.
c.
Three
representatives
of
community
colleges
located
within
the
state.
d.
A
representative
of
the
Iowa
economic
development
authority.
e.
A
representative
of
the
department
of
workforce
development.
f.
Three
business
owners
who
have
participated
in
the
new
jobs
training
program.
g.
One
business
owner
who
has
not
participated
in
the
new
jobs
training
program.
h.
A
representative
of
the
office
of
the
governor.
i.
A
local
director
of
economic
development.
3.
The
interim
study
committee
shall
do
all
of
the
following:
a.
Review
the
new
jobs
training
program,
including
but
not
limited
to
all
of
the
following:
(1)
The
original
objectives
of
the
program,
and
an
evaluation
of
whether
the
objectives
are
aligned
with
the
current
workforce
needs
in
the
state.
(2)
The
number
of
jobs
created
as
a
result
of
the
program.
(3)
Wage
increases
for
participants
in
the
program
prior
to
and
after
participating
in
the
program.
(4)
Employee
retention
rates
for
employers
participating
in
the
program.
(5)
The
financial
impact
of
the
program,
including
an
evaluation
of
the
cost-effectiveness
of
the
program,
a
House
File
2799,
p.
17
comparison
of
state
funding
versus
economic
output
and
job
creation,
and
an
assessment
of
the
return
on
investment
for
the
state
and
businesses
that
participate
in
the
program.
(6)
The
quality
and
relevance
of
the
training
programs
that
are
offered,
including
whether
each
training
program
meets
industry
standards
and
needs,
and
whether
participants
in
the
training
gain
necessary
skills
to
succeed
in
each
participant’s
job.
(7)
The
effectiveness
of
the
program
in
targeting
industries
with
the
highest
demand
for
skilled
labor.
(8)
Sectors
that
may
require
more
focus
and
support
from
the
program.
b.
Gather
qualitative
data
through
surveys
or
interviews
with
program
participants,
and
identify
the
strengths
and
weaknesses
of
the
new
jobs
training
program
from
the
perspective
of
the
participants.
c.
Review
partnerships
with
community
colleges
and
training
providers
to
evaluate
whether
the
partnerships
are
effective
in
delivering
relevant
training,
and
identify
ways
to
strengthen
or
expand
partnerships.
d.
Assess
the
effectiveness
of
the
program’s
compliance
monitoring
and
oversight
of
the
use
of
program
funds
and
participants’
adherence
to
the
program
requirements.
e.
Compare
the
benefit
that
employers
receive
from
participating
in
the
program
to
the
benefits
available
to
the
same
employers
through
other
incentive
programs.
f.
Review
how
community
colleges
participating
in
the
program
use
bond
interest.
g.
Evaluate
whether
skills
gained
by
employees
through
the
program
are
transferable.
h.
Review
the
program’s
payment
mechanism.
4.
Meetings
of
the
interim
study
committee
may
be
held
electronically
or
in
person,
provided
that
the
final
meeting
of
the
interim
study
committee
is
held
in
person.
5.
The
interim
study
committee
shall
submit
a
report
detailing
the
committee’s
findings
and
recommendations
to
the
general
assembly
no
later
than
December
15,
2026.
House
File
2799,
p.
18
6.
The
interim
study
committee
shall
hold
the
committee’s
first
meeting
on
or
before
August
1,
2026.
______________________________
PAT
GRASSLEY
Speaker
of
the
House
______________________________
AMY
SINCLAIR
President
of
the
Senate
I
hereby
certify
that
this
bill
originated
in
the
House
and
is
known
as
House
File
2799,
Ninety-first
General
Assembly.
______________________________
MEGHAN
NELSON
Chief
Clerk
of
the
House
Approved
_______________,
2026
______________________________
KIM
REYNOLDS
Governor