A bill for an act relating to investment requirements for data center businesses that claim certain sales tax exemptions and sales and use tax refunds.

This bill requires data center businesses in Iowa that claim sales tax exemptions or refunds to invest 5% of the claimed amount annually into qualifying businesses or innovation funds. Specifically, they must make this investment by year-end based on the prior year's exemption/refund value. If they fail, the state cancels their tax exemption eligibility and requires repayment of the full claimed amount as a tax payment. The bill also updates annual reporting requirements for data centers to include details about exempt property purchases and tax refunds starting in 2027.