Budget & Taxes (Tax Incentives)

signed · Iowa · Senate May 15, 2026

SF 2492: A bill for an act creating a state corporate income tax deduction for net controlled foreign corporation tested income, and including retroactive applicability provisions.

This Iowa bill updates the state corporate income tax code to allow a deduction for net controlled foreign corporation tested income, replacing a previous reference to the now-repealed global intangible low-taxed income. The change directly affects Iowa businesses with foreign income by ensuring they can still claim a tax break for this specific category of earnings despite recent federal tax law updates. By removing the outdated terminology and keeping the deduction mechanism active, the legislation maintains the state's alignment with current federal tax definitions. The law applies retroactively to tax years beginning on or after January 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates a tax deduction for businesses, reducing their tax liability and promoting economic activity.85% confidence

Sub-Topics Business Taxes Income Tax Tax Incentives

in committee · Iowa · House Apr 29, 2026

HSB 779: A bill for an act relating to the definition of a religious institution or society for purposes of property taxation and including applicability provisions.

This bill clarifies which organizations qualify as religious institutions for property tax exemption purposes in Iowa. It expands the definition to include churches, associations of churches, and religious nonprofit corporations that operate primarily for religious reasons, even if they are not affiliated with a specific church. The changes will take effect for tax assessments starting on or after January 1, 2027.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill expands property tax exemptions for religious nonprofits, reducing tax burdens and promoting fiscal relief for qualifying organizations.85% confidence

Sub-Topics Property Tax Tax Incentives

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in committee · Iowa · House Apr 15, 2026

HSB 773: A bill for an act relating to and making appropriations for the economic development of the state, including to the economic development authority, Iowa finance authority, department of workforce development, and state board of regents and certain regents institutions, and codifying the housing renewal program.

This bill allocates $12.9 million and 102.6 full-time equivalent positions to the Iowa Economic Development Authority for the 2026-2027 fiscal year to support business recruitment, expansion, and retention. It establishes specific goals for the authority to focus on commercially viable projects, adopt free-market practices, and coordinate with other agencies to foster an entrepreneurial environment. The legislation also includes restrictions requiring businesses receiving financial assistance to hire only individuals legally authorized to work in the United States and allows for the recapture of funds if a business knowingly violates this rule.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill allocates $12.9M and 102.6 positions to economic development agencies, directly funding state programs.95% confidence

Sub-Topics Tax Incentives Tags Economic Development

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died · Iowa · Senate May 3, 2026

SF 2506: A bill for an act relating to matters under the purview of the economic development authority, the utilities commission, and the department of education, including creation of the headquarters expansion and development for growth and employment program, and the business incentives for growth program training fund; repeal of the new jobs tax credit program; the major economic growth attraction program; load forecasting and analysis of electric transmission system expansion plans; creation of the electric transmission system expansion planning and analysis and load forecasting fund; the industrial new jobs training program; establishing the new jobs training program interim study committee; the research activities credit; and including effective date provisions.

This bill establishes the Headquarters Expansion and Development for Growth and Employment Program, which allows the state's economic development authority to offer tax incentives to large corporations that expand or retain their corporate headquarters in Iowa. To qualify, businesses must operate in specific sectors like technology or advanced manufacturing, generate most of their revenue outside the state, and commit to providing comprehensive benefits to employees. The legislation also creates a new training fund for business growth, repeals the existing New Jobs Tax Credit Program, and sets up a committee to study new job training initiatives.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates new economic development programs and funds to attract businesses and expand headquarters, supporting state budget goals through growth.85% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill creates programs offering tax incentives tied to employee benefit commitments and establishes training funds to improve workforce skills.75% confidence

Sub-Topics Tax Credits Tax Incentives Workforce Development Tags Economic Development

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passed · Iowa · House Apr 20, 2026

HF 2755: A bill for an act relating to state participation in the federal tax credit program for individual contributions to scholarship granting organizations.

This bill directs the Governor of Iowa to opt into a federal tax credit program that allows individuals to receive tax breaks for donating money to scholarship-granting organizations. These organizations are nonprofits that provide financial aid for elementary and secondary education expenses, such as tuition and tutoring, to students in both public and private schools. To maintain eligibility for this program starting in tax years after January 1, 2027, the state's departments of revenue and education must follow federal rules and submit required information to the U.S. Treasury.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill establishes a state tax credit program for education donations, promoting fiscal incentives and supporting educational funding.85% confidence ✓ EducationSupports EducationBill enables tax credits for donations to scholarship organizations, expanding financial aid access for K-12 and private school students.85% confidence

Sub-Topics Tax Credits Tax Incentives Higher Education School Choice Student Financial Aid

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introduced · Iowa · House Apr 17, 2026

HF 2774: 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 by a specific type of nonprofit corporation. To qualify for this tax exemption, the nonprofit must be organized under Iowa law, have a majority of its board members appointed by state political subdivisions, and be responsible for implementing a regional recreational and dam safety plan. The tax relief applies retroactively to January 1, 2025, covering purchases made on or after that date for projects involving written construction contracts.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax exemptions for construction materials, reducing costs for a nonprofit water trail project.90% confidence

Sub-Topics Business Taxes Sales Tax Tax Incentives

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died · Iowa · House May 2, 2026

HF 2798: A bill for an act relating to the excise tax on certain ethanol blended gasoline purchased exclusively for use in an implement of husbandry used in agricultural production.

This bill proposes exempting high-ethanol gasoline (containing more than 85% ethanol) from excise taxes when purchased directly at terminals or refineries for use in agricultural machinery. To qualify for this tax exemption, buyers must provide and retain specific exemption certificates, which suppliers are required to keep on file for at least three years. The legislation also holds purchasers personally responsible for paying the tax if they use the fuel for any purpose other than agricultural production.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax relief for agricultural producers, reducing costs for essential farming operations.85% confidence ✓ EnergySupports EnergyBill promotes renewable energy by providing tax incentives for high-ethanol gasoline use in agriculture, encouraging adoption of biofuels.85% confidence

Sub-Topics Sales Tax Tax Incentives

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signed · Iowa · House Jun 2, 2026

HF 2799: A bill for an act relating to matters under the purview of the economic development authority, the utilities commission, and the department of education, including creation of the headquarters expansion and development for growth and employment program, and the business incentives for growth program training fund; repeal of the new jobs tax credit program; the major economic growth attraction program; load forecasting and analysis of electric transmission system expansion plans; creation of the electric transmission system expansion planning and analysis and load forecasting fund; the industrial new jobs training program; and establishing the new jobs training program interim study committee; and including effective date provisions.

This bill creates the Headquarters Expansion and Development for Growth and Employment Program, which offers tax incentives to large companies that keep or expand their corporate headquarters in Iowa. To qualify, businesses must operate in specific industries like technology or advanced manufacturing, generate most of their revenue outside the state, and prove that other states are competing for their location. The legislation also establishes new training funds for business growth and repeals the previous New Jobs Tax Credit Program. Additionally, it sets up a new fund to help plan the expansion of the state's electric transmission system and creates a committee to study job training needs.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates economic development programs and tax incentive funds to attract business, directly advancing fiscal management and economic growth goals.85% confidence

Sub-Topics Tax Credits Tax Incentives Tags Economic Development

in committee · Iowa · House Apr 15, 2026

HSB 774: 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.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax exemptions for nonprofit construction of water trails, reducing costs and promoting public recreational infrastructure.85% confidence

Sub-Topics Sales Tax Tax Incentives

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signed · Iowa · Senate Jun 1, 2026

SF 2493: A bill for an act relating to the excise tax on certain ethanol blended gasoline purchased exclusively for use in an implement of husbandry used in agricultural production.

This bill exempts high-ethanol gasoline, specifically blends containing more than 85 percent ethanol, from the state excise tax when purchased directly from a terminal or refinery for use in agricultural equipment. To qualify for this tax exemption, buyers must obtain and present a specific certificate to the supplier, who is required to keep these records for at least three years. The law also holds the purchaser personally responsible for paying the tax if they use the fuel for any purpose other than agricultural production. Ultimately, the legislation removes the cost of the excise tax for farmers buying high-ethanol fuel directly from the source for their machinery.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill exempts agricultural equipment from excise tax, reducing costs for farmers and promoting fiscal relief for the agricultural sector.85% confidence

Sub-Topics Sales Tax Tax Incentives