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SF 657 Iowa Senate · 2025-2026 Regular Session

A bill for an act related to state taxation and finance and other related matters, by creating, modifying, and eliminating tax credits and tax incentive programs, providing for penalties, and including effective date and retroactive applicability provisions.

SF 657 modifies the state's tax credit system by creating new credits, changing existing ones, and eliminating some tax incentive programs. It establishes penalties for failing to comply with these tax credit rules and specifies when the changes take effect, including retroactive application to prior tax years. This bill directly affects businesses and individuals who claim tax credits under the state's finance code. Signed into law by the Governor on June 6, 2025, it changes how taxpayers access and qualify for state tax incentives.
Issues: ✓ Budget & TaxesSupports Budget & TaxesCreates new tax credits and modifies existing ones to support business development and economic growth, aligning with fiscal responsibility measures.92% confidence
Bill status signed all 5 stages cleared
Introduction
May 2025
Committee Review
May 2025
Senate Passage
May 2025
House Passage
May 2025
Signed into Law
Jun 2025
Introduced May 12, 2025 Signed Jun 6, 2025
Maddy AI version diff · 2 comparisons

What changed between versions

Enrolled with Governor's Action → Reprinted Marked Up · 4 edits
MODERATE
This bill amends Iowa's economic development tax credit programs to adjust funding limits, modify eligibility criteria, and update administrative rules. Key changes include shifting allocation priorities for specific programs, introducing new caps on credit amounts, and repealing certain provisions related to renewable chemical and workforce housing incentives. These updates aim to refine how state tax incentives are distributed to better align with current economic development goals.
Scope change
The bill modifies the scope of several tax credit programs by changing funding caps and eligibility requirements, particularly affecting high-quality jobs, business growth, and renewable chemical production programs.
FISCAL

Adjusted aggregate tax credit limits for various economic development programs, including reductions for renewable chemical production and changes to allocation formulas for workforce housing and business growth initiatives.

ELIGIBILITY

Updated eligibility criteria for housing projects, specifically removing restrictions related to communities with recent business expansions or new businesses that received prior tax incentives.

TIMELINE

Repealed provisions regarding the renewable chemical tax credit program and certain workforce housing allocations, effectively ending these specific incentive structures.

REQUIREMENT

Changed administrative requirements for allocating tax credits, including new rules on how funds are distributed among different business development programs and revised scoring processes for housing projects.

Floor votes · Senate May 13, 2025 · House May 14, 2025

How they voted

45–1
Passed · 5 other
Total votes 51
May 13, 2025
D Democratic16
12 Yea 1 Nay 3
75% Yea
R Republican35
33 Yea 2
94% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
20
Key actions
4
Committee
1
Amendments
2
Jun 6, 2025
Signed into law
Signed by Governor.
upper
May 14, 2025
Lower · Passed
Passed House, yeas 84, nays 3.
lower
May 14, 2025
Introduced
Amendment H-1351, yeas 29, nays 58, filed, lost.
lower
May 13, 2025
Upper · Passed
Passed Senate, yeas 44, nays 1.
upper
May 13, 2025
Introduced
Amendment S-3175 filed, adopted.
upper
May 12, 2025
Upper · Passed
Committee report, approving bill.
upper
May 12, 2025
Introduced
Introduced, placed on Ways and Means calendar.
upper
0 primary · 0 co-sponsors

Sponsors

No sponsor information available.