A bill for an act exempting sales and use taxes incurred for constructing a regional water trail system by a nonprofit corporation, and including effective date and retroactive applicability provisions.

This bill exempts sales and use taxes on building materials, supplies, equipment, and services used to construct a regional water trail system in Iowa. It applies specifically to nonprofit corporations that have a majority of their board appointed by state political subdivisions and are responsible for implementing regional recreational and dam safety plans. To qualify for the tax exemption, the nonprofit must enter into a written construction contract where the resulting infrastructure becomes public property or the property of the designated exempt entity. The law takes effect immediately upon passage and applies retroactively to January 1, 2025, for qualifying purchases and services made on or after that date.