Budget & Taxes (Tax Incentives)

signed · Iowa · Senate May 15, 2026

SF 2492: A bill for an act creating a state corporate income tax deduction for net controlled foreign corporation tested income, and including retroactive applicability provisions.

This Iowa bill updates the state corporate income tax code to allow a deduction for net controlled foreign corporation tested income, replacing a previous reference to the now-repealed global intangible low-taxed income. The change directly affects Iowa businesses with foreign income by ensuring they can still claim a tax break for this specific category of earnings despite recent federal tax law updates. By removing the outdated terminology and keeping the deduction mechanism active, the legislation maintains the state's alignment with current federal tax definitions. The law applies retroactively to tax years beginning on or after January 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates a tax deduction for businesses, reducing their tax liability and promoting economic activity.85% confidence

Sub-Topics Business Taxes Income Tax Tax Incentives

died · Iowa · Senate May 3, 2026

SF 2506: 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; establishing the new jobs training program interim study committee; the research activities credit; and including effective date provisions.

This bill establishes the Headquarters Expansion and Development for Growth and Employment Program, which allows the state's economic development authority to offer tax incentives to large corporations that expand or retain their corporate headquarters in Iowa. To qualify, businesses must operate in specific sectors like technology or advanced manufacturing, generate most of their revenue outside the state, and commit to providing comprehensive benefits to employees. The legislation also creates a new training fund for business growth, repeals the existing New Jobs Tax Credit Program, and sets up a committee to study new job training initiatives.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates new economic development programs and funds to attract businesses and expand headquarters, supporting state budget goals through growth.85% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill creates programs offering tax incentives tied to employee benefit commitments and establishes training funds to improve workforce skills.75% confidence

Sub-Topics Tax Credits Tax Incentives Workforce Development Tags Economic Development

Track

passed · Iowa · House Apr 20, 2026

HF 2755: A bill for an act relating to state participation in the federal tax credit program for individual contributions to scholarship granting organizations.

This bill directs the Governor of Iowa to opt into a federal tax credit program that allows individuals to receive tax breaks for donating money to scholarship-granting organizations. These organizations are nonprofits that provide financial aid for elementary and secondary education expenses, such as tuition and tutoring, to students in both public and private schools. To maintain eligibility for this program starting in tax years after January 1, 2027, the state's departments of revenue and education must follow federal rules and submit required information to the U.S. Treasury.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill establishes a state tax credit program for education donations, promoting fiscal incentives and supporting educational funding.85% confidence ✓ EducationSupports EducationBill enables tax credits for donations to scholarship organizations, expanding financial aid access for K-12 and private school students.85% confidence

Sub-Topics Tax Credits Tax Incentives Higher Education School Choice Student Financial Aid

Track

introduced · Iowa · House Apr 17, 2026

HF 2774: 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.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax exemptions for construction materials, reducing costs for a nonprofit water trail project.90% confidence

Sub-Topics Business Taxes Sales Tax Tax Incentives

Track

died · Iowa · House May 2, 2026

HF 2798: A bill for an act relating to the excise tax on certain ethanol blended gasoline purchased exclusively for use in an implement of husbandry used in agricultural production.

This bill proposes exempting high-ethanol gasoline (containing more than 85% ethanol) from excise taxes when purchased directly at terminals or refineries for use in agricultural machinery. To qualify for this tax exemption, buyers must provide and retain specific exemption certificates, which suppliers are required to keep on file for at least three years. The legislation also holds purchasers personally responsible for paying the tax if they use the fuel for any purpose other than agricultural production.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax relief for agricultural producers, reducing costs for essential farming operations.85% confidence ✓ EnergySupports EnergyBill promotes renewable energy by providing tax incentives for high-ethanol gasoline use in agriculture, encouraging adoption of biofuels.85% confidence

Sub-Topics Sales Tax Tax Incentives

Track

signed · Iowa · House Jun 2, 2026

HF 2799: 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.

This bill creates the Headquarters Expansion and Development for Growth and Employment Program, which offers tax incentives to large companies that keep or expand their corporate headquarters in Iowa. To qualify, businesses must operate in specific industries like technology or advanced manufacturing, generate most of their revenue outside the state, and prove that other states are competing for their location. The legislation also establishes new training funds for business growth and repeals the previous New Jobs Tax Credit Program. Additionally, it sets up a new fund to help plan the expansion of the state's electric transmission system and creates a committee to study job training needs.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates economic development programs and tax incentive funds to attract business, directly advancing fiscal management and economic growth goals.85% confidence

Sub-Topics Tax Credits Tax Incentives Tags Economic Development

signed · Iowa · Senate Jun 1, 2026

SF 2493: A bill for an act relating to the excise tax on certain ethanol blended gasoline purchased exclusively for use in an implement of husbandry used in agricultural production.

This bill exempts high-ethanol gasoline, specifically blends containing more than 85 percent ethanol, from the state excise tax when purchased directly from a terminal or refinery for use in agricultural equipment. To qualify for this tax exemption, buyers must obtain and present a specific certificate to the supplier, who is required to keep these records for at least three years. The law also holds the purchaser personally responsible for paying the tax if they use the fuel for any purpose other than agricultural production. Ultimately, the legislation removes the cost of the excise tax for farmers buying high-ethanol fuel directly from the source for their machinery.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill exempts agricultural equipment from excise tax, reducing costs for farmers and promoting fiscal relief for the agricultural sector.85% confidence

Sub-Topics Sales Tax Tax Incentives

in committee · Iowa · Senate Feb 24, 2026

SF 2373: A bill for an act modifying the major economic growth attraction program to include incentivizing the building of a professional sports stadium by a national football league franchise in the state.

SF 2373 modifies Iowa's MEGA economic development program to allow NFL franchises building a professional sports stadium in the state to qualify for incentives. The bill defines "sports stadium" as a facility hosting NFL games and adds stadium construction projects to the program's eligible business types, expanding beyond its current focus on advanced manufacturing, biosciences, or R&D. Eligible NFL franchises would receive tax incentives like sales tax refunds and investment credits, subject to the program's existing limits of two projects or a 2027 end date. The bill does not change the requirement that businesses must primarily engage in qualifying sectors, though stadium projects are now explicitly included.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill expands tax incentives (sales tax refunds, investment credits) for NFL stadium construction under MEGA program, directly using tax policy to fund economic development.92% confidence

Sub-Topics Sales Tax Tax Incentives Tags Economic Development

Track

in committee · Iowa · House Feb 16, 2026

HF 2550: A bill for an act relating to small nuclear reactors, including the establishment of the Iowa modular reactor committee within the economic development authority, financial incentives, and the potential establishment of related education programs and including effective date provisions.

HF 2550 establishes Iowa's Small Modular Reactor Committee within the Economic Development Authority to coordinate statewide development of small nuclear reactors. The bill creates financial incentives including a 30% tax credit on qualified capital investments for businesses building reactor projects (like design, manufacturing, power generation, or related supply chains) starting in 2027. It also allows communities to grant property tax exemptions for up to 20 years on improvements directly tied to jobs created by these facilities. The committee will review project applications within 180 days, designate priority development zones, and administer these incentives.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides 30% tax credit on capital investments for nuclear reactor projects, directly incentivizing business development through tax relief.95% confidence ✓ EnergySupports EnergyBill creates tax credits (30% for capital investments) and a committee to advance small nuclear reactor development, directly funding nuclear energy infrastructure per subjects and summary.95% confidence

Sub-Topics Property Tax Tax Credits Tax Incentives Nuclear

Track

in committee · Iowa · House Feb 6, 2026

HF 2341: A bill for an act establishing a partial exemption on property taxes for certain residential properties sold in disaster areas.

HF 2341 creates a partial property tax exemption for residential properties sold by the U.S. Department of Housing and Urban Development (HUD) in areas declared major disaster zones by the president or state disaster emergencies by the governor. It applies specifically to properties sold to owners already receiving Iowa's homestead tax credit, providing a phased tax reduction over four years: 80% exemption in the first assessment year, 60% in the second, 40% in the third, and 20% in the fourth. The exemption expires after the fourth year, meaning homeowners pay full property tax starting in the fifth year. This bill directly affects HUD-sold homeowners in disaster-affected areas who qualify for the homestead tax credit.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides phased property tax exemption for disaster-area homeowners receiving homestead credit, reducing tax burden on qualifying residents.95% confidence ✓ HousingSupports HousingProvides property tax relief for disaster-affected homeowners purchasing HUD properties, extending homestead credit benefits to reduce housing costs and support affordability in recovery zones.95% confidence

Sub-Topics Property Tax Tax Credits Tax Incentives Property Development Property Taxes

Track