Iowa authority may approve tax credits for headquarters jobs

The Iowa Economic Development Authority may approve tax credits for eligible businesses with Iowa headquarters projects. The program covers certain businesses seeking to keep or locate a corporate headquarters in Iowa, including businesses with qualifying new or retained corporate jobs. The business needs approval from its city or county and must meet the program’s eligibility rules, including industry and out-of-state business requirements. The authority may approve credits through an agreement after verifying job requirements; qualifying jobs must pay at least twice the local wage threshold. An approved credit may cover up to three years, as set in the agreement.

The authority may reimburse eligible businesses for certain worker training expenses from a dedicated fund. This applies to eligible businesses whose jobs the authority identifies as having enough economic impact to warrant training help. The fund receives up to 1.5 percent of qualifying employee wages from withholding payments. Training must be specific to and necessary for the project, paid to a third party, and documented to the authority’s satisfaction. A business cannot use another state incentive for the same purpose. Training expenses must fall within the period set in the business agreement, up to four years.

The authority must commission Iowa State University to forecast electricity use and analyze electric transmission expansion plans. The reports cover expected electricity use in Iowa and the Midwest and plans to expand Iowa’s electric transmission system. Published reports must use utility information in aggregate form and leave out information identifying an individual utility’s electric system. The utilities commission may require public utilities to share needed information. Utilities may use a third party to prepare it and may seek confidentiality protections. The first report is due by December 31, 2028, with another due by December 31 every two years after that.