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89th General Assembly · Funnel one-pager · Monday, November 9, 2026

HF 2520: Exempting from the state sales and use tax the purchase price of specified digital products, prewritten computer software, and related services sold to public utilities, and including effective date provisions

Died when the session ended · The 2022 session adjourned on May 24, 2022, the General Assembly’s last regular session. Bills that didn’t pass both chambers died.

What it does

This bill exempts from the state sales and use tax the purchase price of specified digital products, prewritten computer software, and related services sold to public utilities. The bill expands the definition of “commercial enterprise” to include a “public utility” as defined in Code section 476.1(3). As a result, the sales price of specified digital products, prewritten computer software, and other enumerated digital and computer services furnished to a public utility are exempt from the sales tax, if exclusively used by the public utility. By operation of Code section 423.6, an item exempt from the imposition of the sales tax is also exempt from the use tax imposed in Code section 423.5. The bill takes effect January 1, 2023.

Sponsors

Ways and Means committee

Cost

Less revenue: up to $20,000

House File 2520 will reduce revenues to the General Fund and local option sales tax (LOST) by the estimated amounts listed below.General Fund LOST FY 2023 130,000$ 20,000$ FY 2024 230,000 40,000 FY 2025 240,000 40,000 FY 2026 240,000 40,000 FY 2027 250,000 40,…

Senate subcommittee · named March 8, 2022

  • Sen. Tim Goodwin (R)
  • Sen. Dan Dawson (R) · dan.dawson@legis.iowa.gov
  • Sen. Pam Jochum (D)

Lobbying · 5 for, 0 against

For: Iowa Association of Electric Cooperatives; Iowa Association of Municipal Utilities; Iowa Institute for Cooperatives; Iowa Rural Water Association; Urbandale Water Utility

In plain words

  1. February 23, 2022Filed in the House
  2. February 28, 2022Cost estimate (fiscal note) posted
  3. March 7, 2022Passed the House, 95–0
  4. March 8, 2022Arrived in the Senate
  5. March 8, 2022Senate subcommittee named: Goodwin, Dawson and Jochum

From public records at legis.iowa.gov, compiled by Funnel (iowafunnel.com), an independent, nonpartisan site. Current as of Monday, November 9, 2026. https://iowafunnel.com/bills/89/HF2520