91st General Assembly
Relating to the disclosure of tax incentives provided to web search portal businesses and data center businesses, and including effective date provisions
Sponsored by Rep. Adam Zabner (D)
Topics:Business & economyTaxesData centersTax credits & incentives
Where it is now
- Done: IntroducedJanuary 29, 2026
- Stopped: SubcommitteeDied when the General Assembly ended
- Next: House committeeFunnel: by February 20, 2026
- Next: Passes the House
- Next: Senate committeeFunnel: by March 20, 2026
- Next: Passes the Senate
- Next: To the Governor
- Next: Signed into law
Died when the session ended The 2026 session adjourned on May 3, 2026, the General Assembly’s last regular session. Bills that didn’t pass both chambers died. What’s a funnel?
What’s in it
AI summary Companies that run data centers or web search portals must report more details about the items they buy without paying sales tax. Starting in 2027, the state will use these reports to estimate how much tax money these businesses saved. The names of these companies and the amount of tax they saved or were refunded will be made available for anyone to see online.1
Read the official explanation
This bill relates to the disclosure of tax incentives provided to web search portal businesses and data center businesses (business). Currently, beginning January 31, 2026, and by each January 31 thereafter, a business receiving sales and use tax incentives is required to file an annual report with the department of revenue (DOR). The annual report shall describe the aggregate sales price amount of fuel or electricity purchased that is exempt from sales and use tax in the previous calendar year. For annual reports filed on or after January 31, 2027, the bill requires the annual report to contain the aggregate sales price amount of all items exempt from sales and use taxes purchased by the business. The bill requires DOR to estimate the amount of sales and use taxes saved by the business solely based upon the aggregate sales price amounts disclosed in the annual report to DOR in annual reports filed on or after January 31, 2027. The bill specifies the name of the business and the amount of estimated tax saved by the business shall be a public record on or after January 31, 2027.4(7) and (8). The bill makes the name of the business and the amount of such a refund a public record on or after January 1, 2027. The bill amends 2025 Iowa Acts, chapter 155, section 4, enacted during the 2025 legislative session. The amendment requires the economic development authority to aggregate and post all tax incentives provided to a business in a searchable database for public viewing on the authority’s internet site within 30 days of the effective date of this provision. The provision takes effect upon enactment.