91st General Assembly · Funnel one-pager · Monday, November 9, 2026

SF 657: Related to state taxation and finance and other related matters, by creating, modifying, and eliminating tax credits and tax incentive programs, providing for penalties, and including effective date and retroactive applicability provisions

Signed into law

What it does

This bill relates to matters under the purview of the Iowa economic development authority (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 makes conforming changes.

Cost

Cost: up to $7,000

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 Incen…

Senate subcommittee · named March 5, 2025

Sen. Dan Dawson (R) · dan.dawson@legis.iowa.gov
Sen. William A. Dotzler Jr. (D) · bill.dotzler@legis.iowa.gov
Sen. Mike Klimesh (R) · mike.klimesh@legis.iowa.gov

Lobbying · 28 for, 2 against

For: AMVC Management Services; Ames Regional Economic Alliance; Arconic (Formerly Alcoa); Cedar Rapids Metro Economic Alliance; City of Bettendorf; Gevo; Greater Des Moines Partnership; Greater Fort Dodge Growth Alliance; Iowa Association of Business and Industry (ABI); Iowa Biotechnology Association; Iowa Business Council; Iowa Chamber Alliance; and 16 more

Against: Coalition for Iowa Woodlands and Trees; Common Good Iowa

In plain words

March 4, 2025Filed in the Senate and sent to the Ways and Means committee · as SSB 1205
March 5, 2025Senate subcommittee named: Dawson, Dotzler and Klimesh · as SSB 1205
May 12, 2025Filed in the Senate
May 12, 2025Approved by the Senate committee
May 12, 2025Approved by the Senate committee, and given a new number: SF 657 · as SSB 1205
May 13, 2025Cost estimate (fiscal note) posted
May 13, 2025Passed the Senate, 44–1
May 14, 2025Cost estimate (fiscal note) posted
May 14, 2025Took the place of HF 1054 on the House floor (the same legislation)
May 14, 2025Passed the House, 84–3
May 23, 2025Sent to the Governor
June 6, 2025Cost estimate (fiscal note) posted
June 6, 2025Signed into law