All Roll Calls
Yes: 119 • No: 7
IowaHF 279991st General Assembly (2025–2026)HouseWALLET
A bill for 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. (Formerly HSB 755.) Effective date: 06/02/2026, 07/01/2026.
Sponsored By: COMMITTEE ON WAYS AND MEANS
Signed by Governor
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Bill Overview
Analyzed Economic Effects
6 provisions identified: 1 benefits, 0 costs, 5 mixed.
State fund repays business training costs
Iowa creates a Business Incentives for Growth training fund. Up to 1.5% of certain employee wages goes to the fund from withholding. Businesses must report those wages every quarter. The fund reimburses documented, project‑specific third‑party training costs during the agreement period (up to four years). A business reimbursed from this fund cannot get another state incentive for the same training.
New jobs training rules and cutoff
Employers must reimburse community colleges at least 25% of training costs. Costs counted for the withholding credit must be within the contract period, cannot include travel, conferences, or legal fees, and admin costs are capped at 15%. For agreements signed on or before June 30, 2026, program costs may be deferred up to 10 years; for agreements signed on or after July 1, 2026, deferral is capped at 7 years. Agreements must set minimum funding sources (extra property taxes, new jobs credit from withholding, or tuition and fees). The new jobs credit from withholding applies only to agreements signed on or before June 30, 2026, and pre‑July 2026 agreements keep the existing payment rules. A 2026 interim study committee must report findings by December 15, 2026.
Statewide power planning and utility data
Iowa must publish a statewide electric load forecast and transmission plan analysis. Iowa State University prepares it using aggregate utility data; the first report is due by December 31, 2028, then every two years on or before December 31 of even‑numbered years. The Utilities Board can require utilities to provide the needed data, allow third‑party preparation, and protect confidential details. A new fund pays for this work; electric utilities remit up to 0.02% of intrastate gross operating revenue on a schedule the commission sets. The law clarifies which utility rules apply to electric and gas utilities. This division takes effect upon enactment.
New tax breaks for corporate headquarters
Iowa creates the EDGE program to keep or attract corporate headquarters. To qualify, a business needs local approval, over 51% of revenue from outside Iowa, proof another state is competing, allowed industries (not data centers or retail), full benefits for full‑time staff, and no pattern of serious violations. The agreement sets job goals, wage targets, an end date, and a maximum total incentive. The wage tax credit can last up to 3 years: up to 15% of wages for new jobs and up to 1% for retained jobs that each pay at least 200% of the wage threshold; the retained‑job portion is capped at $1,000,000. The credit is refundable (or can go to the next year) and applies against specified Iowa taxes. The board may approve no more than two EDGE businesses, and it stops authorizing incentives on or after January 1, 2030. The Authority may also bar EDGE recipients from getting more state financial assistance later.
Updated foreign adversary rules and references
Iowa updates which federal lists define a “foreign adversary,” using 15 C.F.R. §7.4 for entities listed between March 4, 2024 and July 17, 2024, and 15 C.F.R. §791.4 from July 18, 2024 forward. The law also removes one subparagraph from Code section 2.48. These technical changes can affect who is eligible for certain economic development programs.
Old tax sections repealed, credits protected
Iowa repeals Code section 422.11A and subsection 6 of section 422.33. The law also protects any tax incentive issued, awarded, or allowed before this division took effect, including carryforwards. Taxpayers keep the right to claim or redeem those incentives.
Sponsors & Cosponsors
Sponsor
COMMITTEE ON WAYS AND MEANS
Affiliation unavailable
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
Senate vote • 5/3/2026
Passed Senate
Yes: 41 • No: 0
House vote • 5/2/2026
Passed House
Yes: 78 • No: 7
Actions Timeline
Signed by Governor. H.J. 06/02.
6/2/2026GovernorFiscal note.
5/19/2026legislatureReported correctly enrolled, signed by Speaker and President, and sent to Governor. H.J. 05/13.
5/13/2026SenateImmediate message.
5/3/2026legislaturePassed Senate, yeas 41, nays 0.
5/3/2026SenateSubstituted for SF 2506.
5/3/2026legislatureRead first time, attached to SF 2506.
5/3/2026legislatureMessage from House.
5/3/2026HouseMessage from Senate.
5/2/2026SenateImmediate message.
5/2/2026legislaturePassed House, yeas 78, nays 7.
5/2/2026HouseAmendment H-8480 filed, adopted.
5/2/2026legislatureFiscal note.
5/2/2026legislatureIntroduced, placed on Ways and Means calendar.
5/2/2026legislature
Bill Text
As Introduced
Enrolled
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