This bill appropriates state funds from the road use tax fund and the primary road fund to the Iowa Department of Transportation for the fiscal year 2026-2027. The legislation specifies exact dollar amounts allocated for various operational needs, including salaries, vehicle maintenance, utility services, and specific projects like driver's license system modernization and road facility repairs. Key provisions also establish rules for how unspent money from certain maintenance and project categories can be carried over for up to three years after the fiscal year ends, ensuring funds remain available for designated purposes unless projects are completed earlier.
This bill exempts ethanol-blended gasoline containing over 85% ethanol from Iowa's excise tax when purchased exclusively for use in farm machinery (like tractors) used in agricultural production. It requires farmers to provide a completed exemption certificate to fuel suppliers at the time of purchase, which suppliers must keep for three years. If the fuel is later used for non-farm purposes, the farmer must pay the excise tax directly to the state. The change shifts from a post-purchase refund system to an upfront exemption, applying specifically to agricultural equipment fuel.
This bill creates special license plates for Iowa vehicles displaying the U.S.S. Iowa (SSN-797) emblem. Owners pay a one-time $35 fee for standard plates or $60 total ($35 base + $25 for personalization) for personalized plates (max 5 characters), plus annual fees of $10 (standard) or $5 (personalized). All fees collected are deposited into the road use tax fund and then transferred monthly to the state general fund to support veterans' suicide prevention grants through the Department of Veterans Affairs. The bill prohibits the state from restricting plate issuance based on order volume.
HF 2406 imposes a 22.5% tax on the wholesale sales price for alternative nicotine products and vapor products, in addition to existing taxes on tobacco products like cigars and snuff. It defines "nicotine" broadly to include nicotine analogs and substances mimicking nicotine, and limits packages of alternative nicotine products to 20 individually consumable units. Starting January 1, 2029, tax rates will adjust annually based on inflation, determined by statewide surveys of cigarette retail prices (excluding tax-driven increases). The bill affects distributors and retailers of these products in Iowa, with tax revenue collected by the Iowa Department of Revenue.
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.
HF 2689 creates a sales tax holiday for clothing under $100 sold on July 3-5, 2026, in Iowa, exempting these purchases from state sales tax (with exclusions like sportswear and protective gear). It also establishes a task force to organize commemorative activities for the 250th anniversary of the Declaration of Independence, including Capitol decorations, July 2026 events, an educational display honoring U.S. presidents, and Constitution Day school instruction on September 17, 2026. The bill affects Iowa residents purchasing qualifying clothing during the specified dates and requires public schools and state agencies to participate in anniversary programming. It does not alter tax rates permanently but provides a temporary exemption for a limited period.
SF 2252 modifies Iowa's Major Economic Growth Attraction (MEGA) program to allow tax incentives for building a National Football League (NFL) stadium. The bill expands the existing program - which currently targets businesses in advanced manufacturing, biosciences, or R&D - to include NFL franchises constructing a professional sports stadium. Key provisions define "sports stadium" as a facility for NFL games and specify that incentives (like sales tax refunds and investment tax credits) would apply to the stadium project, subject to the program’s $1 billion investment threshold. This bill would directly affect NFL teams seeking to build a stadium in Iowa, but it does not change other MEGA program requirements or eligibility rules.
HF 2303 requires promoters of professional or amateur kickboxing matches (defined as public events with admission fees, donations, or merchandise sales) to obtain a license from Iowa's state commissioner of athletics. It mandates that promoters report ticket sales and gross receipts within 20 days after an event and pay a 5% tax on those receipts (after deducting state sales tax). The bill applies the same licensing, reporting, and tax rules to kickboxing that currently govern mixed martial arts events under existing Iowa law. This formalizes kickboxing regulation under the commissioner’s authority, aligning it with current administrative practices for similar combat sports.
This bill increases Iowa's tax refund for biodiesel producers from 4 cents to 5 cents per gallon of biodiesel produced. It directly affects biodiesel manufacturers in Iowa by raising their quarterly refund amount based on total annual production. The refund calculation method remains unchanged - multiplying gallons produced by the rate - but extends the program's expiration from January 1, 2028, to January 1, 2031. The bill modifies existing tax provisions without altering eligibility or production requirements.
HF 2688 requires data centers in Iowa that claim sales tax exemptions or refunds to invest 5% of the value of those exemptions/refunds from the previous year into qualifying businesses or innovation funds. This applies directly to data center businesses using specific tax exemptions under sections 423.3 and 423.4. If they fail to meet this investment requirement, the state cancels their tax exemption eligibility and requires them to repay all claimed exemptions/refunds as regular tax payments. The bill also updates annual reporting requirements for data centers to include details on exempt purchases and tax refunds starting in 2027.
