Relating to matters under the purview of the Iowa economic development authority, including tax credit limits, targeted jobs tax credits, and the major economic growth attraction program; creation of the business incentives for growth program, the seed investor tax credit program, the Iowa film production incentive program, the research and development tax credit program, and the sustainable aviation fuel production tax credit program; elimination of the high quality jobs program, the investments in qualifying businesses tax credit, employer child care tax credits, assistive device tax credits, endow Iowa tax credits, and research activities tax credits; and including effective date provisions and criminal penalties

Proposed by the Economic Development Authority · all agency proposals

Topics:Business & economy Taxes Child care Tax credits & incentives

Same legislation: SSB 1205, SF 657, HF 1054

Write your legislators about itWhat changed before it passed

Official bill page Lobbyist declarations One-pager to print

Where it is now

Done: IntroducedMarch 6, 2025
Done: SubcommitteeMarch 6, 2025
Done: House committeeMay 12, 2025
Done: Passes the HouseMay 14, 202584–3
Skipped: Senate committeeSkipped
Done: Passes the SenateMay 13, 202544–1
Done: To the GovernorMay 23, 2025
Done: Signed into lawJune 6, 2025

Became HF 1054 → Its progress continues under the new number. Go to HF 1054 What’s a funnel?

What’s in it

_____ business incentives for growth program, the seed investor tax credit program, the Iowa film production incentive program, the research and development tax credit program, and the sustainable aviation fuel production tax credit program; elimination of the high quality jobs program, the investments in qualifying businesses tax credit, employer child care tax credits, assistive device tax credits, endow Iowa tax credits, and research activities tax credits; and makes conforming changes. DIVISION I —— ECONOMIC DEVELOPMENT PROGRAMS —— TAX CREDIT LIMITS.

Read the full explanation

Under the bill, the authority shall not authorize for any one fiscal year an aggregate amount of tax credits for business development programs in excess of $110 million for allocation among the business programs as follows: (1) for tax credits for investments in an innovation fund and the seed investor tax credit the authority shall allocate a total of $10 million; (2) for the renewable chemical production tax credit and the sustainable aviation fuel production tax credit the authority shall allocate a total of $10 million; (3) for the research and development tax credit the authority shall allocate $40 million; and (4) for the business incentives for growth program for the fiscal year beginning July 1, 2026, and for each fiscal year thereafter, the authority shall not allocate more than $50 million. DIVISION II —— ECONOMIC DEVELOPMENT PROGRAMS —— TAX CREDIT LIMITS —— CONFORMING CHANGES.354(6)(d). DIVISION III —— BUSINESS INCENTIVES FOR GROWTH PROGRAM. The bill creates a business incentives for growth program (BIG program), effective January 1, 2026, to provide tax incentives to eligible businesses. The qualifications for an eligible business are provided in the bill. Applications for the BIG program shall be submitted to the authority. _____ the business, the application must be accompanied by a water conservation and waste reduction plan. The terms of, and aggregate value of, a tax incentive may be negotiated between an eligible business and the authority, but the aggregate value of the tax incentives that any one eligible business may receive shall not exceed percent of the eligible business’s qualifying investment. The board may authorize any combination of tax incentives available for an eligible business. An eligible business that is approved by the authority to participate in the BIG program shall enter into an agreement with the authority specifying the criteria for successful completion of the program requirements. The requirements for the program agreement are detailed in the bill. An eligible business issued a tax incentive under the BIG program shall be entitled to a refund of certain sales and us

From the explanation printed with the bill as introduced, written by the Legislative Services Agency. Changed since by amendments H-1350, S-3175; see Amendments. Full bill text · What changed before it passed

House subcommittee

Named March 6, 2025. On March 27, 2025 it recommended passage.

Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part

Fiscal note

3 million The increase in investment tax credits is projected to decrease the statewide local option income surtax for schools by the following amounts: • FY 2026 = $3,000 • FY 2027 = $7,000 4 • FY 2028 = $5,000 • FY 2029 = $2,000 Division III — Business Incentives for Growth (BIG) Program Description Division III of the Bill: • Creates the BIG Program administered by the IEDA, with awards not authorized before January 1, 2026, to provide tax incentives to an eligible business that is primarily engaged in advanced manufacturing, bioscience, insurance and finance, or technology and innovation.

Final Fiscal Note — Economic Development Programs and Credits · June 6, 2025
Economic Development Programs and Credits · May 14, 2025
Economic Development Programs and Credits · May 13, 2025
Economic Development Programs and Credits · May 13, 2025

Nonpartisan cost estimates from the Legislative Services Agency’s Fiscal Services Division. The newest is first. Reading a fiscal note

Iowa Code it changes

Creates§15.111 §15.502 §15.503 §15.504 §15.505 §15.506 §15.507 §15.508 §15.509 §15.510 §15.511 §15.517 §15.520 §15.521 §15.522 §15.523 §15.524 §15.525 §15.526 §15.530 §15.531 §15.532 §15.533 §15.534 §15.535 §15E.25 §15E.26 §15E.27 §15E.28 §15E.29 §422.10C §422.12Q

Amends§15.106B §15.119 §15.293A §15.293B §15.317 §15.318 §15.354 §15.494 §15.495 §15.499 §159A.6B §15E.303 §15E.305 §15E.311 §15E.351 §15E.362 §15E.52 §15H.5 §2.48 §237A.31 §266.19 §403.19A §422.10 §422.11F §422.11H §422.12O §422.33 §422.60 §427B.17 §432.12C §432.12D §432.12O §455B.104 §533.329 §8G.3

Cites§15.330 §15.330A §15.331 §15E.191 §15E.197 §15E.198 §15E.304 §15E.43 §15E.45

Read from the bill as introduced. Each links to every bill touching that chapter of the Iowa Code. How the Code works

Lobbying

28 for · 2 against · 23 undecided · Who →

Family tree

Where this legislation came from and where it went: earlier tries, the versions it moved through this Assembly, and later bills built on it.

Study bill

SSB 1205Renumbered HSB 305Renumbered

91st General Assembly

SF 657Became lawfrom SSB 1205 HF 1054Didn’t advancefrom HSB 305

Earlier and later bills are matched by wording or an identical title; check the text to be sure it’s the same idea.