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
8 provisions identified: 2 benefits, 4 costs, 2 mixed.
New training reimbursements for approved employers
Beginning July 1, 2026, a new state fund reimburses approved employers for documented, project-specific training paid to third parties. Funding comes from employer withholding payments, up to 1.5% of gross wages for employees identified in approved projects. Employers must report those wages quarterly, and training costs must fall within an agreement lasting no more than four years. Travel, conferences, legal fees, professional-degree training, onboarding, and basic computer skills do not qualify; administrative costs are capped at 15%. Employers cannot receive another state incentive for the same training.
New tax credits for headquarters jobs
Beginning July 1, 2026, approved headquarters businesses can receive wage-based tax credits for up to three years. Credits cover up to 15% of qualifying new-job wages and 1% of retained-job wages; retained-job credits have a $1 million cap. Jobs must pay at least 200% of the program’s qualifying wage threshold. Certificates are required to claim credits against Iowa individual income, corporate income, or moneys-and-credits taxes; pass-through owners receive their ownership share. Excess credits are refundable or can apply to the next year, but credits cannot be transferred or carried back.
Tighter rules for college training projects
For Iowa’s industrial new jobs training program, qualifying jobs must be permanent, full-time-equivalent positions above base employment at the project location. Colleges must document that training costs fall within the agreement period to qualify for credits funded through withholding. Travel, conference, and legal-fee reimbursements are excluded, and administrative expenses cannot exceed 15% of program costs. Projects leading directly to professional degrees or including onboarding or basic computer skills do not qualify. Revenue officials must share employer-college agreements with workforce officials for a brief review. A legislative study committee must first meet by August 1, 2026, and report by December 15, 2026, on program results, training, financing, and oversight.
Training projects face tighter financing limits
Industrial new jobs training agreements signed on or after July 1, 2026, can delay program-cost payments for at most seven years. That clock starts when the project begins. Agreements signed before July 1, 2026, retain a ten-year maximum, and their agreed delay cannot be extended. Community college project bonds cannot exceed 70% of training-related program costs. Colleges must also report bond interest details to the relevant state departments.
Headquarters tax breaks require job commitments
Beginning July 1, 2026, headquarters applicants need a national or global presence and at least 51% of revenue from outside Iowa. Eligible sectors include advanced manufacturing, bioscience, finance, technology, and research—not retail or data centers. Businesses need local approval, documented competition from another state, comprehensive employee benefits, and no pattern of illegal or unsafe conduct. Signed agreements set job counts, wages, verification dates, and a maximum total award that amendments cannot increase. Businesses must certify compliance annually, maintain base employment, and keep operating their Iowa headquarters through the agreement’s end. Noncompliance, layoffs, closures, or knowingly hiring unauthorized workers can trigger reductions, repayment treated as tax due, or penalties. Agreement transfers need board approval, and the authority can bar additional authority-run incentives.
New jobs tax credit ends
Effective June 2, 2026, Iowa ends the standing New Jobs Tax Credit. Businesses keep rights to incentives issued, awarded, or allowed before that date. Those protections include claiming or redeeming existing incentives and using unused credit amounts carried forward.
Utilities fund electricity forecasts and planning
Iowa State University must prepare statewide electricity forecasts and transmission expansion analyses, first due December 31, 2028, then every two years. Reports use utility data and stakeholder input and must appear on the economic development authority’s website. Utilities must fund this work through additional payments capped at 0.02% of their prior-year gross revenue from Iowa utility operations. The Utilities Commission sets the total funding ceiling and payment schedule; any household bill increase is not specified. The commission can require needed utility data, while utilities can use third-party preparers and seek confidentiality protections. Published analyses used in commission proceedings must protect confidential utility information. Beginning July 1, 2026, additional state utility rules also apply to electric utilities covered by the amended applicability provision.
Longer window for limited business incentives
Beginning July 1, 2026, Iowa extends the Major Economic Growth Attraction approval deadline from January 1, 2027, to January 1, 2030. The authority can approve covered tax incentives or agricultural land-holding exemptions for no more than two eligible businesses, whichever limit comes first. The law also revises the program’s definition of “foreign adversary.” It covers persons listed under 15 C.F.R. 7.4 from March 4 through July 17, 2024, and under 15 C.F.R. 791.4 from July 18, 2024, until the program ends.
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.
6/2/2026HouseFiscal note.
5/19/2026legislatureReported correctly enrolled, signed by Speaker and President, and sent to Governor.
5/13/2026HouseImmediate message.
5/3/2026SenatePassed Senate, yeas 41, nays 0.
5/3/2026SenateSubstituted for SF 2506.
5/3/2026SenateRead first time, attached to SF 2506.
5/3/2026SenateMessage from House.
5/3/2026SenateMessage from Senate.
5/2/2026HouseImmediate message.
5/2/2026HousePassed House, yeas 78, nays 7.
5/2/2026HouseAmendment H-8480 filed, adopted.
5/2/2026HouseFiscal note.
5/2/2026legislatureIntroduced, placed on Ways and Means calendar.
5/2/2026House
Bill Text
As Introduced
Enrolled
Related Bills
HF 2801, A bill for an act modifying the major economic growth attraction program, and including effective date provisions. (Formerly HSB 785.) Effective date: 10/02/2026.
SF 2472, A bill for an act relating to state and local government taxes, fees, financial authority, and budgets, by modifying property assessment provisions, divisions of revenue, and funding from the secure an advanced vision for education fund, establishing a program for first-time homebuyers, modifying and making appropriations, and including effective date, applicability, and retroactive applicability provisions. (Formerly SSB 3001.) Effective date: 05/18/2026, 07/01/2026, 01/01/2027. Applicability date: 01/01/2026, 07/01/2026, 01/01/2027, 07/01/2027, 07/01/2028.
HF 2768, A bill for an act relating to and making appropriations for state government administration and regulation, including the department of administrative services, auditor of state, ethics and campaign disclosure board, offices of governor and lieutenant governor, department of inspections, appeals, and licensing, department of insurance and financial services, department of management, Iowa public employees’ retirement system, public information board, department of revenue, secretary of state, treasurer of state, and utilities commission. (Formerly HSB 771.) Effective date: 07/01/2026.
HF 2756, A bill for an act relating to licensing of service companies, motor vehicle service contracts, and residential service contracts, and providing civil penalties and including effective date provisions. (Formerly HF 2714, HSB 517.) Effective date: 01/01/2027.
HF 2706, A bill for an act relating to judicial officers, including magistrate appointments in judicial election districts, senior magistrates, and judicial officer compensation, and including effective date provisions. (Formerly HSB 722.) Effective date: 07/01/2026, 11/01/2026, 06/18/2027.
HF 2711, A bill for an act relating to state policies and programs with race or gender requirements. (Formerly HSB 668.) Effective date: 07/01/2026.