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Bill > HF2198
IA HF2198
IA HF2198A bill for an act relating to the disclosure of tax incentives provided to web search portal businesses and data center businesses, and including effective date provisions.
summary
Introduced
01/29/2026
01/29/2026
In Committee
01/29/2026
01/29/2026
Crossed Over
Passed
Dead
Introduced Session
91st General Assembly
Bill Summary
This bill relates to the disclosure of tax incentives provided to web search portal businesses and data center businesses (business). Currently, beginning January 31, 2026, and by each January 31 thereafter, a business receiving sales and use tax incentives is required to file an annual report with the department of revenue (DOR). The annual report shall describe the aggregate sales price amount of fuel or electricity purchased that is exempt from sales and use tax in the previous calendar year. For annual reports filed on or after January 31, 2027, the bill requires the annual report to contain the aggregate sales price amount of all items exempt from sales and use taxes purchased by the business. The bill requires DOR to estimate the amount of sales and use taxes saved by the business solely based upon the aggregate sales price amounts disclosed in the annual report to DOR in annual reports filed on or after January 31, 2027. The bill specifies the name of the business and the amount of estimated tax saved by the business shall be a public record on or after January 31, 2027. Currently, a business is entitled to a sales and use tax refund under certain circumstances under Code section 423.4(7) and (8). The bill makes the name of the business and the amount of such a refund a public record on or after January 1, 2027. The bill amends 2025 Iowa Acts, chapter 155, section 4, enacted during the 2025 legislative session. The amendment requires the economic development authority to aggregate and post all tax incentives provided to a business in a searchable database for public viewing on the authority’s internet site within 30 days of the effective date of this provision. The provision takes effect upon enactment.
AI Summary
This bill expands public disclosure requirements for tax incentives provided to web search portal businesses and data center businesses, which are companies involved in online search services and large-scale computing facilities, respectively. Starting January 31, 2027, these businesses will be required to report not only the fuel and electricity they purchase tax-free but also the total value of all items they purchase that are exempt from sales and use taxes. The Department of Revenue (DOR) will then estimate the amount of sales and use taxes saved by these businesses based on this information, and both the business name and the estimated tax savings will become public records. Additionally, starting January 1, 2027, the names of data center businesses and the amounts of sales and use tax refunds they receive will also be made public. Furthermore, a separate provision, effective immediately upon enactment, mandates that the Economic Development Authority create a searchable online database within 30 days, listing all tax incentives provided to web search portal and data center businesses, including their names and the aggregate amount of incentives received.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
Introduced, referred to Ways and Means. H.J. 173. (on 01/29/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.legis.iowa.gov/legislation/BillBook?ga=91&ba=HF2198 |
| BillText | https://www.legis.iowa.gov/docs/publications/LGI/91/attachments/HF2198.html |
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