SF 2279 creates a tax credit for Iowa taxpayers who donate to maternity group homes, allowing them to claim a 100% credit against several state taxes (including individual, corporate, and franchise taxes) for their donations. The credit directly affects donors and qualifying maternity group homes, which are defined as community-based residences providing housing, care, and support for pregnant or postpartum women with children. Key limits include a $3.5 million annual statewide cap on total credits and a $500,000 cap per organization, with applications approved on a first-come, first-served basis within six months of donation. The credit cannot be carried forward, transferred, or used to reduce taxable income, and excess credits are forfeited.
HF 2525 creates two tax deductions for Iowa veterinarians: (1) a deduction for income from rural veterinary loan repayment programs (capped at $15,000 yearly/$60,000 lifetime), and (2) a deduction for all interest paid on veterinary school student loans (if the vet practiced in Iowa that year). The bill excludes the student loan interest deduction if a vet is simultaneously receiving rural loan repayments. To qualify, veterinarians must practice in Iowa (details to be set by the Department of Revenue), and the bill applies retroactively to tax years beginning January 1, 2026.
This bill changes how small Iowa cities must review their finances. Cities with fewer than 2,000 residents and annual budgets under $1 million must now undergo formal financial audits every five years (previously, they had periodic checks every eight years). It also requires these cities to include detailed credit and debit card spending records in their public financial reports. The changes apply specifically to cities meeting these population and budget thresholds, with no impact on larger cities or school district audits.
HF 2441 modifies Iowa's Teach Iowa Scholar program by removing the requirement that applicants must rank in the top 25% of their teacher preparation program. Instead, it establishes new funding allocations starting July 1, 2026: 20% of funds must go to eligible classroom teachers providing special education instruction, and 50% must go to teachers employed in rural school districts (defined as districts with fewer than 1,000 students). The program continues to offer up to $4,000 annually (capped at $20,000 over five years) for teachers in STEM, ESL, special education, or hard-to-staff subjects. These changes directly affect teachers in rural areas and special education by altering how funds are distributed.
This bill creates the "EDGE Program" to incentivize businesses with global presence to establish or retain corporate headquarters in Iowa by offering tax credits for creating or retaining high-wage jobs. To qualify, businesses must generate over 51% of revenue outside Iowa, operate in qualifying sectors (like tech or bioscience), and provide comprehensive employee benefits. The bill repeals several existing programs, including the New Jobs Tax Credit and Major Economic Growth Attraction Program, while establishing a new fund for electric transmission system planning. It also creates a separate "Business Incentives for Growth Program Training Fund" to support workforce development.
This bill requires cities and counties in Iowa that collect hotel and motel taxes to spend at least 50% of the revenue on tourism development (like new public attractions or events) and tourism promotion (advertising to attract visitors). It defines "tourist" as someone traveling more than 50 miles for business or leisure, and mandates that cities/counties report how they use these funds starting in 2027. The remaining tax money can still be used for regular city or county operations. The bill applies only to jurisdictions already imposing such taxes.
This bill (SF 2175) makes broad changes to Iowa's education system, primarily affecting charter schools, nonpublic schools, and public school districts. It modifies charter school funding formulas to include additional state cost components, adds charter school employees to the state retirement system, and allows students in charter or nonpublic schools to participate in public school sports under specific conditions (e.g., no prior participation by their school and payment of fees). The bill also designates charter schools as local education agencies for federal funding access and authorizes the Iowa Finance Authority to issue bonds for charter and nonpublic school facilities. These changes apply to school budget years starting July 1, 2026.
HF 2717 defines "major rules" as those with significant costs ($200k+ annual or $1M+ over 5 years), adverse economic impacts, or Clean Air Act changes. It requires state agencies to classify proposed rules as "major" and provide detailed regulatory analyses covering costs, benefits, alternatives, and impacts on businesses and communities. The bill also mandates that the Legislative Services Agency conduct its own review of major rules, including cost assessments for regulated entities and state revenue effects. This procedural change affects how Iowa agencies develop regulations and directly impacts businesses, local governments, and individuals subject to new rules. The bill is pending in the 2026 legislative session.
HF 2590 directs Iowa's Department of Management to sell the state-owned communications network as soon as feasible. It requires the sale to include a 10-year guarantee that existing authorized users (like government agencies and schools) can continue receiving network services on reasonable terms. The department must submit quarterly progress reports starting October 2026 and provide a detailed sale plan 10 days before closing. Proceeds from the sale will go to the state general fund, and the bill removes previous restrictions that limited how the network could be used or resold. The sale authorization takes effect immediately, while other changes to network rules take effect July 1, 2027.
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.
