Iowa could offer headquarters tax credits and fund electricity forecasts

The Iowa Economic Development Authority may approve tax credits for eligible businesses with Iowa headquarters projects. The program covers businesses in specified industries seeking to locate or keep a corporate headquarters in Iowa. It excludes data centers, retailers, and businesses that restrict entry through a cover charge or membership requirement. The project needs approval from its city or county, and another state must be meaningfully competing for the headquarters. The business must meet the program’s industry, revenue, benefit, and other eligibility rules. The authority must approve an agreement and verify the required jobs and wages before issuing credits. An agreement may authorize credits for up to three years.

The Iowa Utilities Commission must direct electric utilities to pay into a fund for electricity forecasts and transmission planning. All electric utilities pay a share of their prior year’s gross revenue from Iowa operations, within the cap set by the commission. The commission must set an overall payment cap and schedule by rule. The payments are added to other permitted assessments and may be included in utility budgets approved by the commission. The bill does not state when utility payments would begin.

The Economic Development Authority must hire Iowa State University to prepare reports on electricity use and transmission plans. The reports cover likely future electricity use in Iowa and the Midwest, and plans to expand Iowa’s electric transmission system. The university must seek input from consumers and the electric industry. The commission may require public utilities to share information needed for the reports. The reports may support proceedings before the commission. The first report must be published by December 31, 2028, with later reports at least every two years.

The bill limits use of new jobs withholding credits in the industrial training program to earlier agreements. This applies to agreements under Iowa’s industrial new jobs training program. Agreements made by that date may set a minimum amount of the credit to pay program costs. The bill preserves incentives issued, awarded, or allowed before this division takes effect. The cutoff is June 30, 2026. This division would take effect upon enactment.