Bill > SSB3103

Introduced Session

This bill relates to economic development authority programs and tax credits; load forecasting and the state electric transmission system expansion plans; and the industrial new jobs training program. DIVISION I —— HEADQUARTERS EXPANSION AND DEVELOPMENT FOR GROWTH AND EMPLOYMENT PROGRAM. The bill creates a headquarters expansion and development for growth and employment program (EDGE program) to provide tax incentives to eligible businesses. The qualifications for an eligible business, and the factors the economic development authority (authority) shall consider in determining if a business is eligible to participate in the EDGE program are provided in the bill. Applications for the EDGE program shall be submitted to the authority. The terms of, and aggregate value of, a tax incentive may be negotiated between an eligible business, the authority, and the board comprised of members of the authority appointed by the governor (board). An eligible business that is approved to participate in the EDGE program shall enter into an agreement with the authority specifying the criteria for successful completion of the program requirements. The requirements for the program agreement are detailed in the bill, and the authority may enforce such requirements. If the authority enters into an agreement with an eligible business, the authority may authorize a qualifying wage tax credit for the eligible business for a period not to exceed three years as 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 that the eligible business employed the required number of employees S.F. _____ H.F. _____ in new corporate jobs and retained corporate jobs that pay at least 200 percent of the qualifying wage threshold. The tax credit for each year of the authorized period shall equal no more than the amount specified in the bill. A taxpayer shall include a tax credit certificate issued by the authority with the taxpayer’s tax return to claim the tax credit. An individual may claim a tax credit on behalf of a partnership, limited liability company, S corporation, estate, or trust electing to have income taxed directly to the individual in an amount based upon the pro rata share of the individual’s earnings. Any tax credit in excess of the taxpayer’s liability for the tax year is refundable or may be credited to the immediately succeeding tax year. Tax credit certificates are not transferable. The authority may prohibit an eligible business that receives a tax incentive from the program from receiving any other tax incentives or financial assistance under any program administered by the authority. Under the bill, individual and corporate income taxes, financial institution franchise taxes, and money and credits taxes on credit unions shall be reduced by a qualifying wage tax credit. DIVISION II —— MAJOR ECONOMIC GROWTH ATTRACTION PROGRAM. The bill amends the definition of a “foreign adversary” under the major economic growth attraction program (MEGA program). Under current law, a foreign adversary is a foreign government or foreign nongovernment person as determined in 15 C.F.R. §7.4, and as listed in 15 C.F.R. §7.4(a) at any time from March 4, 2024, through the termination of the program. Under the bill, a foreign adversary is a foreign government or foreign nongovernment person as determined in 15 C.F.R. §7.4, and as listed in 15 C.F.R. §7.4(a) at any time from March 4, 2024, through July 17, 2024, or, as determined in 15 C.F.R. §791.4, and as listed in 15 C.F.R. §791.4 at any time from July 18, 2024, through the termination of the program. S.F. _____ H.F. _____ Under current law, the board shall not authorize tax incentives available under the MEGA program, or an exemption to restrictions on agricultural land holdings, for more than two eligible businesses, or on or after January 1, 2027, whichever occurs first. The bill extends this provision to January 1, 2030. DIVISION III —— BUSINESS INCENTIVES FOR GROWTH PROGRAM TRAINING FUND. The bill creates a business incentives for growth program training fund (fund) in the state treasury under the control of the authority. Under the bill, an amount up to 1.5 percent of the gross wages an eligible business pays pursuant to an agreement with the authority shall be credited to the fund from the withholding payments made by the eligible business. Such jobs shall be identified by the authority as having a sufficient economic impact to warrant assistance with training. On a quarterly basis, an eligible business shall disclose the amount of gross wages that qualify to the authority and to the department of revenue (DOR). The authority shall calculate the amount of gross wages to be deposited into the fund, and the DOR shall deposit that amount into the fund. 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, and that meet the requirements detailed in the bill. An eligible business that has been approved to receive a reimbursement from the fund shall not receive any other state incentives for the same purpose. DIVISION IV —— REPEAL OF THE NEW JOBS TAX CREDIT. The bill repeals the new jobs tax credit under Code section 422.11A. The bill makes a conforming change to Code section 2.48(3)(e)(7). This division of the bill, being deemed of immediate importance, takes effect upon enactment. DIVISION V —— LOAD FORECASTING. The bill relates to load S.F. _____ H.F. _____ forecasting and analysis of electric transmission system expansion plans. The bill directs the authority to commission Iowa state university of science and technology (ISU) to produce a report forecasting the probable future growth of electricity use within the state and within the midwest region. The report must include a load forecast and an analysis of electric transmission system expansion plans, and must be commissioned from ISU at least once every two years. In developing the report, ISU must solicit input from residential, commercial, and industrial consumers and the electric industry. The load forecast and 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. A report shall be made publicly available on the authority’s internet site. The bill grants the Iowa utilities commission (commission) authority to compel public utilities to share with ISU information necessary to develop the load forecasts and electric transmission system expansion planning analysis required under the bill. The bill also provides that the load forecast and electric transmission system expansion planning analysis may be used as evidentiary support in any proceedings before the commission. This authority to compel includes all electric utilities, including electric public utilities with few customers, electric cooperative corporations and associations, and municipally owned utilities. The bill requires the commission to direct all electric utilities to remit to the treasurer of state for deposit in the electric transmission system expansion planning analysis and load forecasting fund, as created in the bill, a percentage of the utilities’ total gross intrastate operating revenues from the prior year. Moneys in the fund are appropriated to the authority for the purpose of commissioning the load forecasting report and analysis. The bill directs the commission to S.F. _____ H.F. _____ establish by rule an aggregate maximum amount of remittances and a schedule for remittances. The remittances are in addition to assessments otherwise permitted and may be included in budgets approved for energy efficiency implementation. DIVISION VI —— IOWA INDUSTRIAL NEW JOBS TRAINING PROGRAM. Under current law, a community college may enter into an agreement to establish a project which shall provide for program costs, including deferred costs, which may be paid from one or more sources, including the new jobs credit from withholding to be received or derived from new employment resulting from the project. The agreement shall include a provision which fixes the minimum amount of incremental property taxes, new jobs credit from withholding, or tuition and fee payments which shall be paid for program costs. Under the bill, the new jobs credit from withholding is only available for agreements entered into on or before June 30, 2026, and such an agreement may include a provision which fixes the minimum amount of new jobs credit from withholding which shall be paid for program costs.

Committee Categories

No sponsors listed

Other Sponsors (1)

Committee report approving bill, renumbered as SF 2301. (on 02/11/2026)

Official Document