A bill for an act exempting sales and use taxes incurred for constructing a regional water trail system by a nonprofit corporation, and including effective date and retroactive applicability provisions.

This bill exempts sales and use taxes on building materials, supplies, equipment, and services used to construct a regional water trail system by a specific type of nonprofit corporation. To qualify for this tax exemption, the nonprofit must be organized under Iowa law, have a majority of its board members appointed by state political subdivisions, and be responsible for implementing a regional recreational and dam safety plan. The tax relief applies retroactively to January 1, 2025, covering purchases made on or after that date for projects involving written construction contracts.