Proyectos de ley › 91.ª Asamblea General
Modifying the major economic growth attraction program, and including effective date provisions
Presentado por Sen. Jeff Reichman (R)
Dónde está ahora
- Hecho: Presentado2 de octubre de 2026
- Hecho: Subcomité2 de octubre de 2026
- Hecho: Comité del Senado2 de octubre de 2026
- Hecho: Lo aprueba el Senado2 de octubre de 202628–19
- Se saltó: Comité de la CámaraSe saltó
- Hecho: Lo aprueba la Cámara2 de octubre de 202675–17
- Hecho: A gobernador(a)2 de octubre de 2026
- Hecho: Firmado como ley2 de octubre de 2026
HF 2801 se hizo ley → La misma legislación se aprobó como HF 2801, así que esta versión se dejó de lado. Ir a HF 2801 ¿Qué es el embudo (funnel)?
Qué contiene
Resumen con IA Las grandes empresas que inviertan más de $1 billion en Iowa pueden recibir créditos fiscales especiales para sus proyectos. Este proyecto de ley ofrece beneficios fiscales adicionales a las empresas que construyan en condados rurales con poblaciones de 50,000 o menos. Estas empresas también pueden transferir sus créditos fiscales a otras personas o empresas, siempre que sigan ciertas reglas y cumplan con las metas de creación de empleos.1
Lea la explicación oficial (en inglés)
This bill modifies the major economic growth attraction program (program). The program provides tax incentives for an eligible business (business) that makes a qualifying investment in the state in excess of $1 billion. A “qualifying investment” means a capital investment in real property, including the purchase price of the land, site preparation, infrastructure, and building construction for use in the operation of a business. A “qualifying investment” also means a capital investment in depreciable assets for use in the operation of a business. The bill changes the tax incentives in the program available for a business commencing a project in a rural county. The bill defines a rural county to mean a county with a population of 50,000 persons or less based upon the most recent federal decennial census. Under the bill, the economic development authority (authority) may authorize a tax credit for a business that is up to percent of the business’s qualifying investment located in a rural county. The tax credit shall be remitted to the business equally over a 10-year period. The bill specifies the authority shall not issue a tax credit certificate to the business until the business’s project has been placed in service or until a designated portion of the business’s project has been placed in service, and at least percent of the created jobs associated with the project or a designated portion of the project that pay at least 140 percent of the qualifying wage threshold have been added to the business’s payroll. A tax credit certificate issued to a business located in a rural county is refundable and transferable to another person or entity, subject to the approval by the authority. Prior to approving the transfer, the authority shall verify that the transferee is not associated with a foreign adversary or foreign adversary entity. Any credit in excess may also be credited to the tax liability of the business or transferee of the credit for up to consecutive tax years or until depleted, whichever occurs first. The bill sets out requirements for the transferability of a tax credit certificate, including the transferee submitting the tax credit to the department of revenue (department) within days of the transfer along with the transferee’s name and tax identification number. The bill requires the department to reissue a replacement tax credit to the transferee within days, and each replacement tax credit must contain the information required for the original tax credit certificate including the same expiration date. Under current law, if a business fails to comply with any requirements of the program, the business may be required to repay any tax incentives and the repayment shall be considered a tax payment due. The bill specifies any repayment of tax incentives may include any repayment an affiliate of the business is liable for and the repayment shall be considered a tax payment due.1. If a business obtains a tax credit certificate from the authority by way of a prohibited activity, the bill makes the business and any transferee of a tax credit certificate jointly and severally liable to the state for the amount of the tax credits issued, interest and penalties, reasonable attorney fees, and litigation costs, except that the liability of the transferee shall not exceed an amount equal to the amount of the tax credits acquired by the transferee. However, a qualifying transferee of a tax credit certificate is not subject to the liability, revocation, and repayment imposed in the bill. The bill defines “qualifying transferee” to mean a transferee who acquires a tax credit certificate in good faith, without notice of any prohibited activity, and who is not associated with the business. The bill further defines persons who are considered associated with the business to include owners and family members of the owners of the business. The bill defines “prohibited activity” to mean a breach or default under the agreement with the authority, the violation of any warranty provided by the business to the authority or the department, the claiming of a tax credit for expenditures that are not a qualifying investment, the violation of any requirements of the program, misrepresentation, fraud, or any other unlawful act or omission. The bill prohibits a transferee of the tax credit certificate from claiming the tax credit until a replacement tax credit has been issued. The transferee may use the tax credit transferred against the taxes for any tax year the original transferor could claim the credit. The bill prohibits the transferability of tax credits for agreements entered into after December 31, 2027. Under current law, if a business receives a five-year tax credit and then sells or otherwise renders the land or buildings unusable within five years of receiving the tax credit, the business is liable to the state for a portion of the tax savings achieved from the tax credit. Due to the possible extension of the tax credit to years for a business making a qualifying investment in a rural county, the bill expands the time period of owing a portion of the tax savings achieved to years, if such a business sells or otherwise renders the land or buildings unusable. The bill specifies any consideration received for the transfer shall not be considered as income by the transferor and any consideration from the transfer of the tax credit shall not be deducted from income by the transferee. Under current law and in the bill, a business is also eligible for sales and use tax refunds, withholding tax credits, and property tax exemptions, if granted from the community where the project is located. Currently, the tax credits are allowed against the taxes imposed under Code chapter 422, subchapter II (personal income), subchapter III (corporate income), subchapter V (franchise), and the moneys and credits tax (credit unions). The bill also allows the credit against the taxes imposed under Code chapter 432 (tax on insurance premiums). Currently, the authority may authorize tax incentives under the program for up to two businesses by January 1, 2030. The bill changes the number of qualifying projects that may be authorized by the authority by January 1, 2030, to include authorizing a tax credit that is up to percent of the qualifying investment to one business with a project in a rural county in lieu of authorizing up to two other businesses for a tax credit that is up to percent of the qualifying investment. The bill takes effect upon enactment.
Por qué importa. Las empresas que realicen inversiones de más de $1 billion pueden recibir un crédito fiscal del 10% si su proyecto se encuentra en un condado rural con una población de 50,000 o menos. Estos créditos fiscales pueden transferirse a otras entidades, siempre que el receptor no esté asociado con un adversario extranjero. Se estima que estos cambios disminuirán los ingresos para el General Fund del estado en $10.0 million en el año fiscal 2029, $39.0 million en el año fiscal 2030, $94.0 million en el año fiscal 2031, y $115.0 million anualmente desde el año fiscal 2032 hasta el año fiscal 2038.2
Texto completo del proyecto (en inglés) · Qué cambió antes de aprobarse3
Senate subcommittee
Named October 2, 2026. On October 2, 2026 it recommended passage.
- Sen. Dan Dawson REmail
- Sen. Tony Bisignano DEmail
- Sen. Mike Bousselot REmail
- Sen. Adrian Dickey REmail
- Sen. William A. Dotzler Jr. DEmail
- Sen. et al
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
1 comentario público por escrito a su subcomité: 2 de octubre de 2026 (1) · en el sitio de la Legislatura
Nota fiscal
Resumen con IA This bill changes the Major Economic Growth Attraction (MEGA) Program to allow businesses in rural counties to receive a single 10.0% investment tax credit instead of two 5.0% credits. It also updates rules regarding site evaluations and the purchase of agricultural land by foreign businesses. The bill is estimated to decrease revenue to the state's General Fund, with the largest annual impacts occurring in fiscal year 2031 and fiscal year 2032 through fiscal year 2034. (en inglés)4
Lea la nota fiscal (en inglés)
Description
House File 2801 modifies the Major Economic Growth Attraction (MEGA) Program. Under current law, the Iowa Economic Development Authority (IEDA) may offer two MEGA Program Investment Tax Credit awards for up to 5.0% of an eligible business’s qualifying investment that is remitted equally over five tax years. The Bill specifies that in lieu of two awards for up to 5.0% of a business’s qualifying investment, the IEDA may instead authorize one MEGA Program Investment Tax Credit award to an eligible business located in a rural county for up to 10.0% of the business’s qualifying investment that is remitted equally over 10 tax years. The Bill defines “rural county” to include those with a population of 50,000 or less according to the most recent decennial census. An Investment Tax Credit issued to a business in a rural county is refundable and transferable to another person or entity. Any credit in excess of a present year tax liability may be credited to the future tax liability of the business or transferee for up to 10 years. An Investment Tax Credit issued for a project in a rural county is transferable for agreements entered into on or before December 31, 2027.
The Bill allows a business’s proposed project in a rural county to be eligible for the MEGA Program if the business documents to the IEDA that the business has completed a site evaluation commensurate with a certified site.
Under current law, an Investment Tax Credit is not issued until an eligible business’s project has been placed in service and at least 50.0% of project jobs have been filled. The Bill allows an Investment Tax Credit to be issued to an eligible business once a designated portion of the project has been placed in service and at least 50.0% of project jobs for the designated portion have been filled. The Bill allows the Investment Tax Credit to be claimed against the insurance premiums tax in Iowa Code chapter 432. The Bill specifies that an eligible business that receives an award may be liable for repayment of incentives if an affiliate of the eligible business fails to comply with any Program or agreement requirements and that the IEDA may revoke an Investment Tax Credit award and require repayment if project requirements are not met or if a tax credit is obtained by way of a prohibited activity.
Under current law, agricultural land purchased by a foreign business for participation in the MEGA Program must be a MEGA site or be included in a MEGA site to be authorized by the IEDA Board. The Bill allows the IEDA Board to authorize the purchase of agricultural land by a foreign business if the IEDA determines that the business has completed a site evaluation commensurate with a certified site.
The Bill takes effect upon enactment.
Background
The MEGA Program provides tax incentives to attract capital investment from businesses that invest at least $1.000 billion in the State. The business must be primarily engaged in advanced manufacturing, bioscience, or research and development. The following incentives are provided through the MEGA Program:
- An Investment Tax Credit of up to 5.0% of a business’s qualifying investment. The credit is refundable and may be carried forward for up to five consecutive tax years.
- A refund of the sales and use taxes paid for gas, electricity, water, and sewer utilities services; tangible personal property; or services rendered, furnished, or performed that contributed to the construction or equipping of the facility.
- A Withholding Tax Credit of up to 3.0% of the gross wages paid to each employee in a project job that pays at least the qualifying wage threshold. The credit may be carried forward for up to five consecutive tax years.
A local government may award a property tax exemption for a portion of the actual value added by improvements to real property directly related to created jobs.
Tax incentives under the MEGA Program cannot be awarded to more than two eligible businesses and are unavailable after January 1, 2030. As of October 1, 2026, no MEGA Program tax incentives have been awarded.
Assumptions
For the purpose of determining a fiscal impact, the following assumptions were used:
- According to a press release from the Office of the Governor, the changes to the MEGA Program in the Bill are for the purpose of allowing a MEGA Program award for a Mesabi Metallics steel manufacturing facility project. This Fiscal Note assumes that the Mesabi Metallics project would be eligible to receive a MEGA Program award under current law and would receive a MEGA Program award under the Bill.
- Under current law, it is assumed that the Mesabi Metallics project would be the only project that receives a 5.0% MEGA Program Investment Tax Credit award from the IEDA Board. The project must be placed in service before receiving the credit.
- Due to changes in the Bill, it is assumed that one award receiving a 10.0% Investment Tax Credit will be made by the IEDA Board for a project in a rural county and no awards receiving a 5.0% Investment Tax Credit will be made.
- The project receiving an award will have a total investment of $15.000 billion. Of this amount, $11.500 billion will be a qualifying investment.
- An Investment Tax Credit will be issued as portions of the project become operational. Issued Investment Tax Credits will be claimed equally over 10 years, and all issued credits will be claimed by either the business or transferee. The project will be operating at 8.7% capacity in FY 2029, 33.9% capacity in FY 2030, 81.7% capacity in FY 2031, and 100.0% capacity in FY 2032.
- Investment Tax Credits will be fully refunded rather than carried forward against future tax liability.
- All tax credits will be remitted in the same year they are claimed.
- The project will receive an Investment Tax Credit of 10.0% of the project’s qualifying investment.
- Sales and use tax refunds and Withholding Tax Credits eligible under the MEGA Program are not changed in the Bill. Tax incentives claimed by the project under the MEGA Program for sales and use tax refunds and Withholding Tax Credits are estimated to be the following:
- FY 2027 = $0
- FY 2028 = $13.7 million
- FY 2029 = $39.7 million
- FY 2030 = $75.9 million
- FY 2031 = $31.5 million
- FY 2032 = $4.7 million
- FY 2033 = $4.9 million
- FY 2034 = $5.0 million
- FY 2035 = $5.2 million
- FY 2036 = $5.3 million
- FY 2037 = $5.5 million
- FY 2038 = $5.6 million
- FY 2039 = $5.8 million
- FY 2040 = $6.0 million
- FY 2041 = $6.2 million
Fiscal Impact
House File 2801 is estimated to decrease revenue to the General Fund. Figure 1 displays the net impact of changes to the Investment Tax Credit made by the Bill compared to current law over the course of the project.
Figure 1 — Investment Tax Credit General Fund Revenue Impact (in Millions)
Current Law
One $15.000 Billion
Investment
HF 2801 One $15.000 Billion
Investment
Estimated
General Fund
Revenue Impact
FY 2027 $ 0.0 $ 0.0 $ 0.0 FY 2028 0.0 0.0 0.0 FY 2029 0.0 -10.0 -10.0 FY 2030 0.0 -39.0 -39.0 FY 2031 0.0 -94.0 -94.0 FY 2032 -115.0 -115.0 0.0 FY 2033 -115.0 -115.0 0.0 FY 2034 -115.0 -115.0 0.0 FY 2035 -115.0 -115.0 0.0 FY 2036 -115.0 -115.0 0.0 FY 2037 0.0 -115.0 -115.0 FY 2038 0.0 -115.0 -115.0 FY 2039 0.0 -105.0 -105.0 FY 2040 0.0 -76.0 -76.0 FY 2041 0.0 -21.0 -21.0
Sources
- Iowa Department of Revenue
- LSA calculations and analysis
- Final Fiscal Note — MEGA Program, Project Eligibility and Tax Credits · 2 de noviembre de 2026
- MEGA Program, Project Eligibility and Tax Credits · 2 de octubre de 2026
- MEGA Program, Project Eligibility and Tax Credits · 2 de octubre de 2026
Lo que cambia del Código de Iowa (Iowa Code)
Crea§432.12P
Modifica§15.491§15.492§15.494§15.496§15.498
Cita§15.501
Cabildeo
14 a favor · 5 en contra · 7 indecisos · Quiénes →
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91st General Assembly