This bill allocates state funds for the 2026-2027 fiscal year to support economic development agencies, including the Economic Development Authority, Iowa Finance Authority, Department of Workforce Development, and State Board of Regents. The legislation sets specific goals for these agencies to expand the state economy, increase wealth, and boost population by prioritizing business recruitment, expansion, and entrepreneurial support. It also establishes financial restrictions requiring businesses receiving state assistance to hire only individuals legally authorized to work in the United States and prohibits funding for geothermal snow-melting projects. Additionally, the bill provides separate appropriations for the World Food Prize, a tourism office, and the Iowa Arts Council, while requiring annual performance reports for the tourism office.
SF 139 updates Iowa's programs to address abandoned properties and underutilized commercial sites. It creates a two-year redevelopment tax credit for grayfield sites (over 50,000 sq ft) in communities with under 30,000 residents. The bill also establishes a nuisance property fund providing up to $500,000 in forgivable loans to cities for remediation of large abandoned buildings (50,000+ sq ft), with 25% forgiveness upon meeting specific cleanup or reuse goals like repurposing for housing or parks. Additionally, it expands community funding to include cities of 5,000-30,000 residents, offering up to $10 per square foot for waste abatement, recycling, and hazardous material removal from abandoned buildings.
HF 28, known as the "Iowa Land Redevelopment Trust Act," establishes a framework for municipalities to create land redevelopment trusts. These trusts are public entities designed to acquire and manage dilapidated, abandoned, blighted, and tax-delinquent properties within their jurisdiction. The goal is to return these properties to productive use, which could include revitalizing areas, providing affordable housing, or attracting new industry. Municipalities, either individually or jointly, can create these trusts, which would be governed by a board of directors.
HF 131 creates new incentives for communities to address large abandoned buildings and underutilized commercial properties. It allows cities with populations under 30,000 to receive a two-year redevelopment tax credit for grayfield sites over 50,000 square feet, and provides cities with up to $500,000 in forgivable loans (with 25% forgiven upon successful remediation) for cleaning, repurposing, or selling properties of 50,000+ square feet. The bill also expands funding for communities to address abandoned buildings, enabling cities with 5,000-30,000 residents to receive up to $10 per square foot (capped at $1 million) for waste abatement, recycling, and renovation. These provisions directly affect small and mid-sized Iowa communities seeking to revitalize neglected properties.
SF 144 creates a legal framework for Iowa municipalities (cities, counties, or townships) to establish "land redevelopment trusts." These trusts would help communities address blighted, abandoned, or dilapidated properties by providing a structured tool to rehabilitate them. The bill outlines how trusts are formed (via municipal ordinance or resolution), their governance (with a non-paid board), and their purpose: to return non-productive properties to productive use, support affordable housing, and revitalize neighborhoods. It does not mandate specific actions but enables local governments to create these trusts as needed to tackle property deterioration issues.
SF 357 creates a neighborhood housing revitalization program within Iowa's Finance Authority to provide forgivable loans for home improvements in designated urban and rural areas. It directly affects homeowners who own and occupy their homes in these targeted zones, covering eligible repairs like roof replacements, electrical upgrades, energy efficiency improvements, and accessibility modifications. The program establishes a dedicated fund using unobligated transfers from other state funds, federal grants, or donations, with unspent money rolling over annually instead of reverting to the general fund. The authority will set rules for loan amounts, eligible work, and income-based forgiveness criteria.
SF 622 modifies several state economic development and tax credit programs managed by the Iowa Economic Development Authority and Iowa Finance Authority. It directly affects developers, investors, and communities seeking financial assistance or tax credits for infrastructure, redevelopment, tourism, and historic preservation projects. The bill streamlines the administration and review processes for brownfield, grayfield, and redevelopment tax credits, centralizing some functions within the economic development authority. It also adjusts eligibility requirements for the historic preservation tax credit, particularly for single-family residential projects. Additionally, the bill modifies how review committees are appointed for community attraction and sports tourism programs and removes a section regarding required benefits for certain tourism program applicants.
SSB 1214 modifies Iowa's economic development and urban renewal laws, primarily to support housing initiatives. The bill expands the definition of "economic development" to include workforce housing and requires municipalities to consider workforce housing development when allocating public funds for economic development. For certain urban renewal projects approved after July 1, 2025, related to housing in long-established city areas, the bill caps the required low and moderate-income family housing assistance at 20% of the original project cost. It also extends the duration of tax increment financing (TIF) for these specific housing projects from 10 to 20 years.
SF 45, known as the "Iowa Land Redevelopment Trust Act," allows cities, counties, and townships to create independent land redevelopment trusts. These trusts are designed to acquire and manage dilapidated, abandoned, blighted, and tax-delinquent properties. The bill aims to help communities return these properties to productive use, with the goal of revitalizing areas, providing affordable housing, and attracting new industry. Each trust would be governed by a board of directors.
SF 642 modifies several programs under the Iowa Economic Development Authority and Iowa Finance Authority. The bill adjusts application review processes for programs like strategic infrastructure, community attraction and tourism, and sports tourism. It also alters the administration and eligibility criteria for various tax credits, including brownfield, grayfield, redevelopment, and historic preservation tax credits. For instance, it limits the historic preservation tax credit for single-family dwellings unless a project creates multiple new units. These changes primarily affect businesses, developers, and communities seeking state financial assistance or tax incentives for development and preservation projects.
