Read the full stored bill text
House
File
2688
-
Introduced
HOUSE
FILE
2688
BY
COMMITTEE
ON
ECONOMIC
GROWTH
AND
TECHNOLOGY
(SUCCESSOR
TO
HSB
727)
A
BILL
FOR
An
Act
relating
to
investment
requirements
for
data
center
1
businesses
that
claim
certain
sales
tax
exemptions
and
sales
2
and
use
tax
refunds.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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2688
Section
1.
NEW
SECTION
.
15E.30
Data
center
business
sales
1
tax
exemptions
and
refunds
——
required
investments.
2
1.
a.
A
data
center
business
that
claims
a
sales
tax
3
exemption
under
section
423.3,
subsection
95,
or
a
sales
and
4
use
tax
refund
under
section
423.4,
subsections
7
and
8,
shall,
5
by
the
end
of
the
calendar
year,
invest
a
minimum
of
five
6
percent
of
the
aggregate
value
of
the
sales
tax
exemption
and
7
sales
or
use
tax
refund
claimed
for
the
immediately
preceding
8
calendar
year
as
either
of
the
following:
9
(1)
As
an
equity
investment
in
a
qualifying
business
under
10
section
15E.28.
11
(2)
As
an
equity
investment
in
an
innovation
fund
under
12
section
15E.52.
13
b.
The
department
of
revenue
shall
annually
provide
the
14
aggregate
value
of
the
sales
tax
exemptions
and
sales
and
use
15
tax
refunds
claimed
by
the
data
center
business
as
disclosed
in
16
the
annual
report
of
the
data
center
business
required
pursuant
17
to
section
423.3,
subsection
95,
paragraph
“b”
,
subparagraph
18
(5).
19
2.
The
authority
shall
verify
that
the
data
center
made
20
equity
investments
that
meet
the
requirements
of
subsection
1.
21
If
a
data
center
business
fails
to
make
the
required
investment
22
described
in
subsection
1,
all
of
the
following
shall
apply:
23
a.
The
authority
shall
notify
the
department
of
revenue,
and
24
the
department
of
revenue
shall
cancel
the
registration
of
the
25
data
center
business
under
section
423.3,
subsection
95,
and
26
the
data
center
business
shall
not
be
eligible
for
the
sales
27
tax
exemption
under
section
423.3,
subsection
95.
28
b.
The
data
center
business
shall
repay
the
aggregate
amount
29
of
the
sales
tax
exemptions
and
sales
and
use
tax
refunds
30
claimed
in
the
calendar
year
for
which
the
data
center
business
31
did
not
make
the
required
investment.
Any
repayment
shall
be
32
considered
a
tax
payment
due
and
payable
to
the
department
33
of
revenue
by
the
data
center
business,
and
the
failure
to
34
make
the
repayment
may
be
treated
by
the
department
of
revenue
35
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2688
in
the
same
manner
as
a
failure
to
pay
the
tax
shown
due,
1
or
required
to
be
shown
due,
with
the
filing
of
a
return
or
2
deposit
form.
3
3.
The
authority
may
adopt
rules
pursuant
to
chapter
17A
to
4
administer
this
section.
5
Sec.
2.
Section
423.3,
subsection
95,
paragraph
b,
6
subparagraph
(5),
Code
2026,
is
amended
to
read
as
follows:
7
(5)
(a)
The
data
center
business
shall
register
with
8
the
department
as
a
data
center
business.
To
maintain
its
9
registration,
the
data
center
business
shall
file
an
annual
10
report
with
the
department,
by
January
31,
2026,
and
by
each
11
January
31
thereafter.
The
annual
report
shall
describe
the
12
aggregate
sales
price
amount
of
backup
power
generation
fuel
13
and
electricity
purchased
in
the
previous
calendar
year
for
the
14
purposes
described
in
paragraph
“a”
,
subparagraphs
(2)
and
(3),
15
and
any
other
information
the
department
requires.
16
(b)
Beginning
with
the
annual
report
due
on
or
after
January
17
31,
2027,
the
annual
report
shall
also
contain
all
of
the
18
following
information
from
the
previous
calendar
year:
19
(i)
The
aggregate
sales
price
amount
of
exempt
property
20
purchased
under
paragraph
“a”
,
subparagraphs
(1),
(2),
and
(3).
21
(ii)
The
amount
of
sales
and
use
tax
refunds
under
section
22
423.4,
subsections
7
and
8.
23
(c)
If
the
economic
development
authority
notifies
the
24
department
of
revenue
that
the
data
center
business
is
not
in
25
compliance
with
section
15E.30,
the
department
of
revenue
shall
26
cancel
the
registration
of
the
data
center
business.
27
EXPLANATION
28
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
29
the
explanation’s
substance
by
the
members
of
the
general
assembly.
30
This
bill
relates
to
the
investment
requirements
for
data
31
center
businesses
that
claim
certain
sales
tax
exemptions
and
32
sales
and
use
tax
refunds.
33
The
bill
requires
a
data
center
business
(data
center)
that
34
claims
a
sales
tax
exemption
or
sales
and
use
tax
refunds
35
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2688
(exemptions
and
refunds)
to,
by
the
end
of
the
calendar
1
year,
invest
a
minimum
of
5
percent
of
the
aggregate
value
2
of
the
exemption
or
refund
claimed
for
the
previous
year
as
3
an
equity
investment
in
either
a
qualifying
business
or
an
4
innovation
fund.
The
department
of
revenue
(department)
shall
5
annually
provide
the
aggregate
value
of
the
exemptions
and
6
refunds
claimed
by
a
data
center
as
disclosed
in
the
data
7
center’s
annual
report,
and
the
economic
development
authority
8
(authority)
shall
verify
the
data
center
made
the
required
9
equity
investments.
10
If
a
data
center
does
not
make
the
required
equity
11
investments,
the
authority
shall
notify
the
department,
which
12
shall
cancel
the
registration
of
the
data
center
for,
and
13
the
data
center
shall
not
receive,
a
sales
tax
exemption.
14
Additionally,
the
data
center
shall
repay
the
aggregate
amount
15
of
the
exemptions
and
refunds
claimed
for
which
the
year
the
16
data
center
did
not
make
the
required
investment.
Repayment
17
shall
be
considered
a
tax
payment
due
and
payable
to
the
18
department,
and
the
failure
to
make
the
repayment
may
be
19
treated
as
a
failure
to
pay
the
tax
shown
due,
or
required
to
be
20
shown
due,
with
the
filing
of
a
return
or
deposit
form.
21
The
authority
may
adopt
rules
to
administer
the
bill.
22
Under
current
law,
a
data
center
shall
register
with
the
23
department
as
a
data
center
and
shall
file
an
annual
report
24
with
the
department
describing
the
backup
power
generation
25
fuel
and
electricity
purchased
in
the
previous
year
and
any
26
other
information
the
department
requires.
The
bill
requires
27
the
annual
report
to
describe
the
aggregate
sales
price
28
amount
of
the
backup
power
generation
fuel
and
electricity.
29
Additionally,
beginning
with
the
annual
report
due
January
31,
30
2027,
a
data
center’s
annual
report
shall
contain,
from
the
31
previous
calendar
year,
the
aggregate
sales
price
amount
of
32
exempt
property
purchased,
and
the
amount
of
sales
and
use
tax
33
refunds
received.
34
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