Eligible businesses could receive tax credits for headquarters jobs

The economic development authority may approve wage-based tax credits for eligible businesses. The program covers businesses seeking to locate, expand, or keep a corporate headquarters in Iowa. A business must receive approval and sign an agreement with the authority before it can receive credits. The authority may issue credits for up to three years after confirming that the required new and retained headquarters jobs pay at least twice the local wage threshold. Businesses must meet eligibility rules, including local approval, and offer comprehensive benefits to headquarters employees. Credits may be issued during the start and end dates in the business’s agreement.

The authority would hire Iowa State University to prepare public reports on electricity use and transmission plans. The reports would cover 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 utilities commission may require public utilities to share information needed for the reports. The commission must set a total limit and schedule for utility payments into a state fund; these payments would be in addition to other allowed assessments. The first forecast and analysis must be published by December 31, 2028. Later reports must be published every two years by December 31.

The state would direct part of certain businesses’ wage withholding payments to a fund for job training costs. The fund would support eligible businesses with projects covered by agreements under the business incentives for growth program. The authority must identify the jobs as having enough economic impact to warrant training help. Reimbursement is limited to documented training paid to a third party, tied to the business’s project, and incurred during the agreement period, which cannot exceed four years. A business approved for reimbursement cannot receive another state incentive for the same purpose. Training costs must be incurred during the period named in the business’s agreement, for no more than four years.

The text would repeal the new jobs tax credit and limit its use for industrial training costs to older agreements. These provisions concern taxpayers with new jobs tax credits and community college agreements under the industrial new jobs training program. Earlier credits and taxpayers’ rights to claim or redeem them, including carryforward amounts, would be preserved. Withholding credits could be used for industrial training program costs only under agreements entered into on or before June 30, 2026. The repeal would take effect upon enactment. The June 30, 2026, cutoff applies to agreements that use withholding credits for training costs.

The text would extend the deadline for approving certain MEGA program incentives or farmland exemptions. This provision concerns incentives and farmland ownership exemptions under the major economic growth attraction program. The board could not approve these incentives or exemptions for more than two eligible businesses, or on or after the stated deadline, whichever comes first. The stated deadline is January 1, 2030.