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House
File
2198
-
Introduced
HOUSE
FILE
2198
BY
ZABNER
A
BILL
FOR
An
Act
relating
to
the
disclosure
of
tax
incentives
provided
to
1
web
search
portal
businesses
and
data
center
businesses,
and
2
including
effective
date
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
Section
422.20,
subsection
3,
paragraph
a,
Code
1
2026,
is
amended
to
read
as
follows:
2
a.
Unless
otherwise
expressly
permitted
by
section
8G.4
,
3
section
11.41
,
section
96.11,
subsection
6
,
section
421.17,
4
subsections
22,
23,
and
26
,
section
421.17,
subsection
27
,
5
paragraph
“k”
,
section
421.17,
subsection
31
,
section
252B.9
,
6
section
321.40,
subsection
6
,
sections
321.120
,
421.19
,
421.28
,
7
421.59
,
421.65
,
422.72
,
section
423.3,
subsections
92,
93,
8
and
95,
section
423.4,
subsections
7
and
8,
section
452A.63
,
9
and
556.19,
subsection
2
,
this
section
,
or
another
provision
10
of
law,
a
tax
return,
return
information,
or
investigative
11
or
audit
information
shall
not
be
divulged
to
any
person
12
or
entity,
other
than
the
taxpayer,
the
department,
or
13
internal
revenue
service
for
use
in
a
matter
unrelated
to
tax
14
administration.
15
Sec.
2.
Section
423.3,
subsection
92,
paragraph
b,
16
subparagraph
(5),
Code
2026,
is
amended
to
read
as
follows:
17
(5)
(a)
The
web
search
portal
business
shall
register
18
with
the
department
as
a
web
search
portal.
To
maintain
its
19
registration,
the
web
search
portal
business
shall
file
an
20
annual
report
with
the
department,
by
January
31,
2026,
and
by
21
each
January
31
thereafter.
The
annual
report
shall
describe
22
the
aggregate
sales
price
amount
of
backup
power
generation
23
fuel
and
electricity
purchased
and
the
amount
used
in
the
24
previous
calendar
year
for
the
purposes
described
in
paragraph
25
“a”
,
subparagraphs
(2)
and
(3),
and
any
other
information
the
26
department
requires.
27
(b)
Beginning
with
an
annual
report
due
on
or
after
January
28
31,
2027,
the
annual
report
shall
also
contain
the
aggregate
29
sales
price
amount
of
exempt
property
purchased
under
paragraph
30
“a”
,
subparagraph
(1).
31
(c)
(i)
For
annual
reports
due
on
or
after
January
31,
32
2027,
the
department
of
revenue
shall
estimate
the
amount
of
33
tax
saved
under
this
subchapter
by
the
business
solely
based
34
upon
the
aggregate
sales
price
amounts
disclosed
in
the
annual
35
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report.
1
(ii)
The
name
of
the
web
search
portal
business
filing
2
the
annual
report
and
the
amount
of
estimated
tax
saved
that
3
is
described
in
this
subparagraph
division
shall
be
a
public
4
record
on
or
after
January
31,
2027.
5
Sec.
3.
Section
423.3,
subsection
93,
paragraph
b,
6
subparagraph
(5),
Code
2026,
is
amended
to
read
as
follows:
7
(5)
(a)
The
web
search
portal
business
shall
register
with
8
the
department
as
a
web
search
portal
business.
To
maintain
9
its
registration,
the
web
search
portal
business
shall
file
an
10
annual
report
with
the
department,
by
January
31,
2026,
and
by
11
each
January
31
thereafter.
The
annual
report
shall
describe
12
the
aggregate
sales
price
amount
of
backup
power
generation
13
fuel
and
electricity
purchased
and
the
amount
used
in
the
14
previous
calendar
year
for
the
purposes
described
in
paragraph
15
“a”
,
subparagraphs
(2)
and
(3),
and
any
other
information
the
16
department
requires.
17
(b)
Beginning
with
an
annual
report
due
on
or
after
January
18
31,
2027,
the
annual
report
shall
contain
the
aggregate
sales
19
price
amount
of
exempt
property
purchased
under
paragraph
“a”
,
20
subparagraph
(1).
21
(c)
(i)
For
annual
reports
due
on
or
after
January
31,
22
2027,
the
department
of
revenue
shall
estimate
the
amount
of
23
tax
saved
under
this
subchapter
by
the
business
solely
based
24
upon
the
aggregate
sales
price
amounts
disclosed
in
the
annual
25
report.
26
(ii)
The
name
of
the
web
search
portal
business
filing
27
the
annual
report
and
the
amount
of
estimated
tax
saved
that
28
is
described
in
this
subparagraph
division
shall
be
a
public
29
record
on
or
after
January
31,
2027.
30
Sec.
4.
Section
423.3,
subsection
95,
paragraph
b,
31
subparagraph
(5),
Code
2026,
is
amended
to
read
as
follows:
32
(5)
(a)
The
data
center
business
shall
register
with
33
the
department
as
a
data
center
business.
To
maintain
its
34
registration,
the
data
center
business
shall
file
an
annual
35
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report
with
the
department,
by
January
31,
2026,
and
by
each
1
January
31
thereafter.
The
annual
report
shall
describe
the
2
aggregate
sales
price
amount
of
backup
power
generation
fuel
3
and
electricity
purchased
in
the
previous
calendar
year
for
the
4
purposes
described
in
paragraph
“a”
,
subparagraphs
(2)
and
(3),
5
and
any
other
information
the
department
requires.
6
(b)
Beginning
with
an
annual
report
due
on
or
after
January
7
31,
2027,
the
annual
report
shall
also
contain
the
aggregate
8
sales
price
amount
of
exempt
property
purchased
under
paragraph
9
“a”
,
subparagraph
(1).
10
(c)
(i)
For
annual
reports
due
on
or
after
January
31,
11
2027,
the
department
of
revenue
shall
estimate
the
amount
of
12
tax
saved
under
this
subchapter
by
the
business
solely
based
13
upon
the
aggregate
sales
price
amounts
disclosed
in
the
annual
14
report.
15
(ii)
The
name
of
the
data
center
business
filing
the
annual
16
report
and
the
amount
of
estimated
tax
saved
that
is
described
17
in
this
subparagraph
division
shall
be
a
public
record
on
or
18
after
January
31,
2027.
19
Sec.
5.
Section
423.4,
subsection
7,
Code
2026,
is
amended
20
by
adding
the
following
new
paragraph:
21
NEW
PARAGRAPH
.
0g.
The
name
of
the
owner
of
a
data
center
22
business
and
the
annual
amount
of
sales
and
use
tax
refunds
23
that
are
provided
to
the
data
center
business
under
this
24
subsection
shall
be
considered
a
public
record
on
or
after
25
January
1,
2027.
26
Sec.
6.
Section
423.4,
subsection
8,
Code
2026,
is
amended
27
by
adding
the
following
new
paragraph:
28
NEW
PARAGRAPH
.
0h.
The
name
of
the
owner
of
a
data
center
29
business
and
the
annual
amount
of
sales
and
use
tax
refunds
30
that
are
provided
to
the
data
center
business
under
this
31
subsection
shall
be
considered
a
public
record
on
or
after
32
January
1,
2027.
33
Sec.
7.
2025
Iowa
Acts,
chapter
155,
section
4,
is
amended
34
to
read
as
follows:
35
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SEC.
4.
FINANCIAL
ASSISTANCE
REPORTING
——
ECONOMIC
1
DEVELOPMENT
AUTHORITY.
2
1.
The
economic
development
authority
shall
submit
an
3
annual
report
to
the
general
assembly
no
later
than
November
1,
4
2025,
that
details
the
amount
of
every
direct
loan,
forgivable
5
loan,
tax
credit,
tax
exemption,
tax
refund,
grant,
or
any
6
other
financial
assistance
awarded
to
a
person
during
the
prior
7
fiscal
year
by
the
authority
under
an
economic
development
8
program
administered
by
the
authority.
The
report
shall
9
identify
the
county
where
the
project
associated
with
each
such
10
award
is
located.
11
2.
Notwithstanding
any
other
Code
provision
to
the
12
contrary,
the
tax
incentives
described
in
subsection
1
that
13
are
provided
to
a
web
search
portal
business
or
a
data
center
14
business
shall
be
posted
and
maintained
on
the
economic
15
development
authority’s
internet
site
in
a
searchable
database
16
for
public
viewing
within
thirty
days
of
the
effective
date
of
17
this
subsection
of
this
Act.
The
searchable
database
shall
18
include
the
name
of
the
web
search
portal
business
or
data
19
center
business
and
the
aggregate
amount
of
tax
incentives
20
received
by
such
a
business
disclosed
in
the
report.
For
21
purposes
of
this
subsection,
“web
search
portal
business”
means
22
the
same
as
defined
in
section
423.3,
subsection
92
or
93,
and
23
“data
center
business”
means
the
same
as
defined
in
section
24
423.3,
subsection
95.
25
Sec.
8.
EFFECTIVE
DATE.
The
following,
being
deemed
of
26
immediate
importance,
takes
effect
upon
enactment:
27
The
section
of
this
Act
amending
2025
Iowa
Acts,
chapter
155,
28
section
4.
29
EXPLANATION
30
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
31
the
explanation’s
substance
by
the
members
of
the
general
assembly.
32
This
bill
relates
to
the
disclosure
of
tax
incentives
33
provided
to
web
search
portal
businesses
and
data
center
34
businesses
(business).
35
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Currently,
beginning
January
31,
2026,
and
by
each
1
January
31
thereafter,
a
business
receiving
sales
and
use
2
tax
incentives
is
required
to
file
an
annual
report
with
the
3
department
of
revenue
(DOR).
The
annual
report
shall
describe
4
the
aggregate
sales
price
amount
of
fuel
or
electricity
5
purchased
that
is
exempt
from
sales
and
use
tax
in
the
previous
6
calendar
year.
7
For
annual
reports
filed
on
or
after
January
31,
2027,
the
8
bill
requires
the
annual
report
to
contain
the
aggregate
sales
9
price
amount
of
all
items
exempt
from
sales
and
use
taxes
10
purchased
by
the
business.
The
bill
requires
DOR
to
estimate
11
the
amount
of
sales
and
use
taxes
saved
by
the
business
solely
12
based
upon
the
aggregate
sales
price
amounts
disclosed
in
13
the
annual
report
to
DOR
in
annual
reports
filed
on
or
after
14
January
31,
2027.
The
bill
specifies
the
name
of
the
business
15
and
the
amount
of
estimated
tax
saved
by
the
business
shall
be
16
a
public
record
on
or
after
January
31,
2027.
17
Currently,
a
business
is
entitled
to
a
sales
and
use
tax
18
refund
under
certain
circumstances
under
Code
section
423.4(7)
19
and
(8).
The
bill
makes
the
name
of
the
business
and
the
amount
20
of
such
a
refund
a
public
record
on
or
after
January
1,
2027.
21
The
bill
amends
2025
Iowa
Acts,
chapter
155,
section
4,
22
enacted
during
the
2025
legislative
session.
The
amendment
23
requires
the
economic
development
authority
to
aggregate
and
24
post
all
tax
incentives
provided
to
a
business
in
a
searchable
25
database
for
public
viewing
on
the
authority’s
internet
site
26
within
30
days
of
the
effective
date
of
this
provision.
The
27
provision
takes
effect
upon
enactment.
28
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