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Kim Reynolds OFFICE OF THE GOVERNOR Chris Cournoyer
GOVERNOR LT GOVERNOR
June 02, 2026
The Honorable Paul Pate
Secretary of State of Iowa
State Capitol
Des Moines, Iowa 50319
Dear Mr. Secretary,
I hereby transmit:
House File 2799, 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.
The above House File is hereby approved on this date.
Smcer/Iy,
Kim i^^^jiolds
Governor of Iowa
cc: Secretary of the Senate
Clerk of the House
STATE CAPITOL DES MOINES, IOWA 50319 515.281.5211 WWW.GOVERNOR.IOWA.GOV
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House Pile 2799
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.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
House File 2799, p. 2
DIVISION I
HEADQUARTERS EXPANSION AND DEVELOPMENT FOR GROWTH EMPLOYMENT
PROGRAM
Section 1. NEW SECTION. 15.600 Short title.
This part shall be known and may be cited as the
^Headquarters Expansion and Development for Growth and Employment
Program", or ^"EDGE Program",
Sec. 2. NEW SECTION. 15.601 Definitions.
As used in this part, unless the context otherwise requires:
1. '^Agreement" means an agreement entered into by an
eligible business and the authority pursuant to section 15.604.
2. ^Base employment level" meaTis the number of full-time
equivalent positions at a business, as established by the
authority and the business based on the business's payroll
records, on the date the business applies for the program.
3. '^Benefits" vaeans nonwage compensation provided to an
employee. ^Benefits" include medical and dental insurance, a
pension, a retirement plan, a profit-sharing plan, child care,
life insurance, vision insurance, and disability insurance.
4. "^Community" means a city or county in the state.
5. ^Corporate headquarters" means a location in the
state that serves as the principal executive office or
houses the core administrative operations for a business,
and that includes executive leadership offices, strategic
decision-making functions, and administrative and support staff
employees.
6. "^Corporate job" means a position based at a corporate
headquarters that involves strategic planning, executive
decision-making, or core administrative functions.
7. ^Created jobs" or ^create jobs" means new, permanent,
full-time equivalent positions added to an eligible business's
payroll, at the location of the eligible business's project, in
excess of the eligible business's base employment level.
8. ^Data center business" means the same as defined in
section 423.3, subsection 95.
9. ^Eligible business" means a business that meets the
requirements of section 15.602.
10. ^Full-time equivalent position" a non-part-time
position for the number of hours or days per week considered
House File 2799, p. 3
to be full-time work for the kind of service or work performed
for an employer. Typically, a full-time equivalent position
requires two thousand eighty hours of work in a calendar year,
including all paid holidays, vacations, sick time, and other
paid leave.
11. '^Gross annual wages" means all regular wages and
salaries received by an employee for performing services as
an employee of an employer. '^Gross annual wages" does not
include nonregular forms of compensation, such as bonuses,
unusual overtime pay, commissions, stock options, pensions,
retirement or death benefits, unemployment benefits, life or
other insurance, or other fringe benefits.
12. ^New corporate job" means a corporate job that is a
created job.
13. "^Program" means the headquarters expansion and
development for growth and employment program.
14. '^Project" means the retention or location of a corporate
headquarters for an eligible business, proposed in an eligible
business's application to the program, that will accomplish the
goals of the program.
15. '^Qualifying wage threshold" means the mean wage level
represented by the wages within two standard deviations of
the mean wage within the laborshed area in which the eligible
business is located, as calculated by the authority by rule,
using the most current covered wage and employment data
available from the department of workforce development for the
laborshed area in which the eligible business is located.
16. '^Retained corporate job" means a corporate job that is
also a retained job.
17. '''^Retained jobs" means a full-time equivalent position
that is in existence at the time an eligible business applies
for the program that remains continuously filled, and that is
at risk of elimination if the proposed project for which the
eligible business is applying to the program does not proceed.
18. '^Tax incentives" means tax credits authorized under the
program by the authority for an eligible business.
Sec. 3. NEW SECTION. 15.602 Eligible business.
1. To be eligible to receive tax incentives under
the program, a business must meet all of the following
House File 2799, p. 4
requirements:
a. The community in which the proposed project is located
must approve the project either by ordinance or resolution.
b. The business must have a global presence, significant
market share, or national recognition in the industry in which
the business operates.
c. The business must be able to provide documentation that a
minimum of fifty-one percent of the business's gross revenue is
generated from business conducted outside the state.
d. The business must be able to provide documentation that
a state other than Iowa is meaningfully competing for the
location or retention of the business's corporate headquarters.
e. (1) The business must be primarily engaged in advanced
manufacturing, bioscience, insurance and finance, technology
and innovation, or research and development. The business
shall not be a data center business, a retail business, or
a business where a cover charge or membership requirement
restricts certain individuals from entering the business.
(2) Factors the authority shall consider to determine if
a business is primarily engaged in advanced manufacturing,
bioscience, insurance and finance, technology and innovation,
or research and development shall include but are not limited
to all of the following:
(a) The business's North American industry classification
system code.
(b) The business's main sources of revenue.
(c) The business's customer base.
f. (1) The business must not be solely relocating
operations from one area of the state to another area of
the state. A proposed project that does not create jobs or
involve a substantial amount of new capital investment shall
be presumed to be a relocation of operations. For purposes of
this subparagraph, the authority shall consider a letter from
the affected local community's government officials supporting
the business's move away from the affected local community
in making a determination whether the business is solely
relocating operations.
(2) This paragraph shall not be construed to prohibit
a business from expanding the business's operations in a
House File 2799, p. 5
community if the business has similar operations in this state
that are not closing or undergoing a substantial reduction in
operations.
g. The business must offer comprehensive benefits to
each full-time equivalent employee employed at its corporate
headquarters. The authority may adopt rules under chapter 17A
to determine the requirements for comprehensive benefits.
h, (1) The business must not have a record of violations
of law or of rules, including but not limited to antitrust,
environmental, trade, or worker safety, that over a period of
time show a consistent pattern or that establish the business's
intentional, criminal, or reckless conduct in violation of such
laws or rules.
(2) In making determinations and findings under
subparagraph (1), and making a determination whether a business
is disqualified from the program, the authority shall be exempt
from chapter 17A.
2. In determining if a business is eligible to participate
in the program, the authority shall consider a variety of
factors including but not limited to all of the following;
a. The cost to the state of providing tax incentives
compared to the potential increase in state and local tax
collections from the project, the potential for population
growth resulting from the project, and the potential for wage
growth resulting from the project.
b. The impact of the business's proposed project on
businesses that are in competition with the business.
The authority shall make a good-faith effort to identify
existing Iowa businesses in competition with the business
being considered for the program. The authority shall make
a good-faith effort to determine the probability that any
proposed tax incentives will displace employees of a competing
business. In determining the impact on a competing business,
employee displacement from the competing business shall not be
considered created jobs for the applying business's project.
c. The business's proposed project's economic impact on
the state. The authority shall place greater emphasis on
businesses and proposed projects that meet the following
requirements:
House File 2799, p. 6
(1) The business has a high proportion of in-state
suppliers.
(2) The proposed project will diversify the state economy.
(3) The business has few in-state competitors.
(4) The proposed project has the potential to create jobs on
an ongoing basis, or will result in increased skills and wages
for employees of the eligible business.
(5) The proposed project has the potential to increase the
state's overall gross domestic product.
(6) The proposed project will result in a newly constructed
facility, or a facility with a significantly increased taxable
valuation.
(7) Any other factors the authority deems relevant in
determining the economic impact of a proposed project.
Sec. 4. NEW SECTION. 15.603 Applications — authorization
of tax incentives.
1. Applications for the program shall be submitted to the
authority in the form and manner prescribed by the authority by
rule. Each application must be accompanied by an application
fee in an amount determined by the authority by rule.
2. In determining the eligibility of a business to
participate in the program the authority may engage outside
experts to complete a technical, financial, or other review
of an application submitted by a business if such review is
outside the expertise of the authority.
3. The authority and the board may negotiate with an
eligible business regarding the terms of, and the aggregate
value of, the tax incentives the eligible business may receive
under the program.
Sec. 5. NEW SECTION. 15.604 Agreement.
1. An eligible business that is approved by the authority to
participate in the program shall enter into an agreement with
the authority that specifies the criteria for the successful
completion of all requirements of the program. The agreement
must contain, at a minimum, provisions related to all of the
following:
3, The eligible business must certify to the authority
annually that the business is in compliance with the agreement.
b. If the eligible business fails to comply with any
House File 2799, p. 7
requirements of the program or the agreement, the eligible
business may be required to repay any tax incentives the
authority issued to the eligible business. After a final
determination by the authority, the authority will notify
the department of revenue of any required repayment of a
tax incentive, which shall be considered a tax payment due
and payable to the department of revenue by any taxpayer
that claimed the tax incentive, and the failure to make the
repayment may be treated by the department of revenue in the
same manner as a failure to pay the tax shown due, or required
to be shown due, with the filing of a return or deposit form.
c. If the eligible business undergoes a layoff or
permanently closes any of its facilities within the state, the
eligible business may be subject to all of the following:
(1) A reduction or elimination of some or all of the tax
incentives the authority issued to the eligible business.
(2) Repayment of any tax incentives that the business
has claimed, and payment of any penalties assessed by the
department of revenue.
d. The end date of the agreement.
e. The number of new corporate jobs and retained corporate
jobs to be created or retained as part of the project, the
qualifying wage threshold applicable to the project, and the
date on which the authority will initially verify the eligible
business employs the required number of new corporate jobs and
retained corporate jobs.
f. The maximum aggregate value of the tax incentives
authorized by the board.
g. The eligible business shall only employ individuals
legally authorized to work in this state. If the eligible
business is found to knowingly employ individuals who are
not legally authorized to work in this state, in addition to
any penalties provided by law, the eligible business may be
required to repay all or a portion of any tax incentives the
authority issued to the eligible business.
h. A requirement that the eligible business must continue to
own and operate a corporate headquarters in the state until the
end date of the agreement as specified in paragraph "V.
i. Any terms deemed necessary by the authority to effect the
House File 2799, p. 8
eligible business's ongoing compliance with section 15.602.
2. The board shall not amend the terms of the agreement
to allow an increase in the maximum aggregate value of tax
incentives authorized by the board under section 15.603.
3. The eligible business shall comply with all applicable
terms of the agreement until the agreement end date. An
eligible business shall maintain the business's base employment
level until the agreement end date.
4. The eligible business shall not assign the agreement
to another entity without the advance written approval of the
board.
5. The authority may enforce the terms of the agreement as
necessary and appropriate.
Sec. 6. NEW SECTION. 15.605 Qualifying wage tax credit.
1. If the authority has entered into an agreement with an
eligible business pursuant to section 15.604, the authority
may authorize a qualifying wage tax credit with the eligible
business for a period not to exceed three years according
to the start and end date specified in the agreement. The
authority may issue a qualifying wage tax credit to the
eligible business for each year of the authorized period upon
verification under section 15.604, subsection 1, paragraph
that the eligible business employed the required number
of employees in new corporate jobs and retained corporate jobs
that pay at least two hundred percent of the qualifying wage
threshold. The tax credit for each year of the authorized
period shall equal no more than the sum of all of the
following:
a. Up to fifteen percent of the gross annual wages of new
corporate jobs that pay at least two hundred percent of the
qualifying wage threshold.
b. Up to one percent of the gross annual wages of retained
corporate jobs that pay at least two hundred percent of the
qualifying wage threshold, not to exceed one million dollars.
2. A tax credit shall be allowed against the taxes imposed
in chapter 422, subchapters II, III, and V, and against the
moneys and credits tax imposed in section 533.329.
3. In order for a taxpayer to claim a tax credit under
subsection 1, a tax credit certificate issued by the authority
House File 2799, p. 9
shall be included with the taxpayer's tax return. The tax
credit certificate shall contain the taxpayer's name, address,
tax identification number, the amount of the credit, and other
information required by the authority.
4. An individual may claim a tax credit under subsection
1 on behalf of a partnership, limited liability company,
S corporation, estate, or trust electing to have income
taxed directly to the individual. The amount claimed by the
individual shall be based upon the pro rata share of the
individual's earnings from the partnership, limited liability
company, S corporation, estate, or trust.
5. Any tax credit in excess of the taxpayer's liability
for the tax year is refundable. In lieu of claiming a refund,
an eligible business may elect to have the overpayment shown
on the eligible business's final, completed return credited
to the eligible business's tax liability for the immediately
succeeding tax year, A tax credit shall not be carried back
to a tax year prior to the tax year in which the tax credit is
first claimed by the eligible business.
6. Tax credit certificates issued pursuant to this section
are not transferable.
Sec. 7. NEW SECTION. 15.606 Other incentives.
The authority, in its discretion, may prohibit an eligible
business that has been issued tax incentives under the program
from receiving any additional tax incentive, tax credit,
grant, loan, or other financial assistance under any program
administered by the authority.
Sec. 8. NEW SECTION. 422.12R Qualifying wage tax credit.
The taxes imposed under this subchapter, less the credits
allowed under section 422.12, shall be reduced by a qualifying
wage tax credit allowed under section 15.605.
Sec. 9. Section 422.33, Code 2026, is amended by adding the
following new subsection;
NEW SUBSECTION. 4. The taxes imposed under this subchapter
shall be reduced by a qualifying wage tax credit allowed under
section 15.605.
Sec. 10. Section 422.60, Code 2026, is amended by adding the
following new subsection:
NEW SUBSECTION. 2. The taxes imposed under this subchapter
House File 2799, p. 10
shall be reduced by a qualifying wage tax credit allowed under
section 15,605.
Sec. 11. Section 533.329, subsection 2, Code 2026, is
amended by adding the following new paragraph:
NEW PARAGRAPH, m. The moneys and credits tax imposed under
this section shall be reduced by a qualifying wage tax credit
allowed under section 15.605.
Sec. 12. CODE EDITOR DIRECTIVE. The Code editor is directed
to designate sections 15.600 through 15.606, as enacted in this
division of this Act, as part 37 of subchapter II.
DIVISION II
MAJOR ECONOMIC GROWTH ATTRACTION PROGRAM
Sec. 13. Section 15.491, subsection 12, Code 2026, is
amended to read as follows:
12. ^Foreign adversary" means a- the following:
^ A foreign government or foreign non-government person as
determined in 15 C.F.R. §7.4, and that is listed in 15 C.F.R.
§7.4(a) at any time from March 4, 2024, through the termination
of the program July 17, 2024.
b, A foreign government or foreign non-government person as
determined in 15 C.F.R. §791.4, and that is listed in 15 C.F.R.
§791.4 at any time from July 18, 2024, through the termination
of the program.
Sec. 14. Section 15.501, Code 2026, is amended to read as
follows:
15.501 Restrictions on board.
The board shall not authorize tax incentives available under
the program, or an exemption to restrictions on agricultural
land holdings pursuant to this part, for more than two eligible
businesses, or on or after January 1, 2027 2030, whichever
occurs first.
DIVISION III
BUSINESS INCENTIVES FOR GROWTH PROGRAM TRAINING FUND
Sec. 15. NEW SECTION. 15.512 Training fund.
1. A business incentives for growth program training fund
is created in the state treasury under the control of the
authority. An amount up to one and one-half percent of the
gross wages an eligible business pays to employees specified in
an agreement entered into pursuant to section 15.506 shall be
House File 2799, p. 11
credited to the fund from the withholding payments made by an
eligible business pursuant to section 422.16. Such jobs shall
be identified by the authority as having a sufficient economic
impact to warrant assistance with training.
2. On a quarterly basis, an eligible business shall disclose
the amount of gross wages that qualify under subsection 1 to
the authority and to the department of revenue. Based upon
the gross wage amount provided to the authority, the authority
shall calculate the amount of gross wages to be deposited into
the fund for the quarter, and the department of revenue shall
deposit that amount into the fund.
3. Moneys in the fund shall be used to reimburse training
expenses incurred by an eligible business that are associated
with the eligible business's project.
4. An eligible business's training expenses that may be
eligible for reimbursement must meet all of the following
criteria:
a. The expenses are paid to a third party.
b. The expenses are for training that is specific to the
project of the eligible business and necessary for the success
of the project.
c. The expenses were incurred over the period of time
identified in the agreement under section 15.506, but not to
exceed four years.
d. The expenses are documented to the satisfaction of the
authority.
5. An eligible business that has been approved by the
authority to receive a reimbursement from the fund shall not be
eligible to receive any other state incentive to be used for
the same purpose.
DIVISION IV
REPEAL OF THE NEW JOBS TAX CREDIT
Sec. 16. Section 2.48, subsection 3, paragraph e,
subparagraph (7), Code 2026, is amended by striking the
subparagraph.
Sec. 17. Section 422.33, subsection 6, Code 2026, is amended
by striking the subsection.
Sec. 18. REPEAL. Section 422.IIA, Code 2026, is repealed.
Sec. 19. PRESERVATION OF EXISTING RIGHTS. This division of
House Pile 2799, p. 12
this Act shall not limit, modify, or otherwise adversely affect
any amount of tax incentive issued, awarded, or allowed before
the effective date of this division of this Act, nor shall
it limit, modify, or otherwise adversely affect a taxpayer's
right to claim or redeem a tax incentive issued, awarded, or
allowed before the effective date of this division of this Act,
including but not limited to any tax incentive carryforward
amount.
Sec. 20. EFFECTIVE DATE. This division of this Act, being
deemed of immediate importance, takes effect upon enactment.
DIVISION V
LOAD FORECASTING
Sec. 21. NEW SECTION. 15.120A Load forecasting report and
analysis of electric transmission system expansion plans.
To support economic development in the state, the authority
shall commission Iowa state university of science and
technology to produce a report forecasting the probable future
growth of the use of electricity within Iowa and within the
midwest region. The report shall include a load forecast and
an analysis of electric transmission system expansion plans.
The authority must commission such report from the university
at least every two years. In developing the report, the
university shall solicit the input of residential, commercial,
and industrial consumers and the electric industry. The
published report shall only rely on information provided by
utilities as required by section 476.2 in aggregate form and
exclude identifying information about an individual utility's
electric system. The load forecast and state electric
transmission system expansion planning analysis must be
published by December 31, 2028, and biennially published on or
before December 31 thereafter. The authority may commission
other reports as necessary to evaluate energy needs including
but not limited to natural gas. A report commissioned pursuant
to this section must be publicly available on the authority's
internet site.
Sec. 22. Section 476.lA, subsection 2, Code 2026, is amended
to read as follows:
2. However, sections section 476.2, subsection 7, section
476.20, subsections 1 through 4, sections 476.21, 476.51,
House File 2799, p. 13
476.56, 476.58, 476.62, and 476.66^ and chapters 476A and 478,
to the extent applicable, apply to such electric utilities.
Sec. 23. Section 476.IB, subsection 2, Code 2026, is amended
to read as follows:
2. Section 476.20, subsections 1 through 4, Section 476.2,
subsection 7, section 476.20, subsections 1 through 4, sections
476.51, 476.56, 476.58, 476.62, and 476.66^ and chapters 476A
and 478, to the extent applicable, apply to such electric and
gas utilities.
Sec. 24. Section 476.2, Code 2026, is amended by adding the
following new subsection:
NEW SUBSECTION. 7. The commission shall have the authority
to compel all public utilities to share with Iowa state
university of science and technology the utility's information
necessary to develop state load forecasts and state electric
transmission system expansion planning analysis pursuant to
section 15.120A. A public utility may use a third party
to prepare such information to be shared with Iowa state
university of science and technology. A public utility may
enter into a nondisclosure agreement with Iowa state university
of science and technology requiring the shared information be
kept confidential if the public utility reasonably believes
the information is a confidential record pursuant to section
22.7. The state load forecast and state electric transmission
system expansion planning aggregate analysis published pursuant
to section 15.120A may be used as evidentiary support in any
proceedings before the commission, provided the confidentiality
of any information provided by a public utility is maintained.
Sec. 25. NEW SECTION. 476.IOC Load forecasts and analyses
of state electric transmission system expansion plans — fund.
1. An electric transmission system expansion plans analysis
and load forecasting fund is created in the state treasury
under the control of the economic development authority. The
commission shall direct all electric utilities to remit to the
treasurer of state for deposit in the electric transmission
system expansion plans analysis and load forecasting fund not
more than two one-hundredths of one percent of the total gross
operating revenues during the last calendar year derived from
the utilities' intrastate public utility operations. Moneys in
House Pile 2799, p. 14
the fund are appropriated to the economic development authority
to be used for the purposes of commissioning a report pursuant
to section 15.120A. Notwithstanding section 8.33, moneys in
the fund that remain unencumbered or unobligated at the close
of a fiscal year shall not revert but shall remain available
for expenditure for the purposes designated. Notwithstanding
section 12C.7, subsection 2, interest or earnings on moneys in
the fund shall be credited to the fund.
2. The commission shall, by rule, establish a maximum
amount of remittances in aggregate and provide a schedule
for remittances. The remittances collected pursuant to this
section shall be in addition to the assessments permitted
pursuant to section 476.10. The commission shall allow
inclusion of these remittances in the budgets approved by the
commission pursuant to section 476.6, subsection 15, paragraph
but such remittances shall not be included when computing
the projected cumulative average annual cost for an electric
utility's energy efficiency plan and demand response plan under
section 476.6, subsection 15, paragraph
DIVISION VI
IOWA INDUSTRIAL NEW JOBS TRAINING PROGRAM
Sec. 26. Section 260E.2, subsection 10, Code 2026, is
amended by striking the subsection and inserting in lieu
thereof the following;
10. job'' means a new, permanent, full-time equivalent
position added to an employer's payroll, at the location of the
employer's project, in excess of the employer's base employment
level.
Sec. 27. Section 260E.3, subsection 2, Code 2026, is amended
to read as follows:
2. Payment For an agreement entered into on or
before June 30, 2026, payment of program costs shall not be
deferred for a period longer than ten years from the date of
commencement of the project, and the agreed upon period shall
not be extended.
b. For an agreement entered into on or after July 1, 2026,
payment of program costs shall not be deferred for a period
longer than seven years from the date of commencement of the
project.
House File 2799, p. 15
Sec. 28. Section 260E.3r Code 2026, is amended by adding the
following new subsection:
NEW SUBSECTION. 6. Upon receipt of a notice that a
community college and an employer have entered into an
agreement, the department of revenue shall provide a copy of
the agreement to the department of workforce development for
review. The department of workforce development may provide
feedback regarding the agreement to the department of revenue
within seven calendar days after the date of receipt of the
copy of the agreement. The department of revenue must share
any such feedback with the community college.
Sec. 29. Section 260E.5, Code 2026, is amended by adding the
following new subsection:
NEW SUBSECTION. 7. A bond issued to a community college
for a project shall not exceed seventy percent of total program
costs related to training expenses.
Sec. 30. Section 260E.7, Code 2026, is amended by adding the
following new subsection:
NEW SUBSECTION. 4. A community college that receives
a new jobs credit from withholding under section 260E.5
shall annually report a detailed accounting of the community
college's bond interest to the department of workforce
development, the department of education, and the department
of revenue.
Sec. 31. NEW SECTION. 260E.8 Eligible program costs.
To be eligible to receive a new jobs credit from withholding,
a community college must document to the satisfaction of the
department that the community college's program costs meet all
of the following criteria:
1. The program costs are incurred over the period of time
specified in the agreement under section 260E.3.
2. The program costs are not incurred to reimburse travel,
conferences, or legal fees.
3. Administrative expenses account for no more than fifteen
percent of the program costs.
4. The program costs are not incurred for a project that
leads directly to a professional degree in medicine, law,
accounting, or other professional area, or a project that
includes onboarding or basic computer skills.
House File 2799, p. 16
Sec. 32. IOWA INDUSTRIAL NEW JOBS TRAINING PROGRAM INTERIM
STUDY COMMITTEE.
1. The legislative council is requested to establish an
interim study committee to meet during the 2026 legislative
interim to review the new jobs training program and make
recommendations regarding the program.
2. The membership of the committee shall consist of, at a
minimum:
a. Three members of the senate, two republicans and one
democrat, appointed by the majority leader of the senate.
b. Three members of the house of representatives, two
republicans and one democrat, appointed by the speaker of the
house of representatives.
c. Three representatives of community colleges located
within the state.
d. A representative of the Iowa economic development
authority.
e. A representative of the department of workforce
development.
f. Three business owners who have participated in the new
jobs training program.
g. One business owner who has not participated in the new
jobs training program.
h. A representative of the office of the governor.
i. A local director of economic development.
3. The interim study committee shall do all of the
following:
a. Review the new jobs training program, including but not
limited to all of the following:
(1) The original objectives of the program, and an
evaluation of whether the objectives are aligned with the
current workforce needs in the state.
(2) The number of jobs created as a result of the program.
(3) Wage increases for participants in the program prior to
and after participating in the program.
(4) Employee retention rates for employers participating
in the program.
(5) The financial impact of the program, including an
evaluation of the cost-effectiveness of the program, a
House File 2799, p. 17
comparison of state funding versus economic output and job
creation, and an assessment of the return on investment for the
state and businesses that participate in the program.
(6) The quality and relevance of the training programs that
are offered, including whether each training program meets
industry standards and needs, and whether participants in the
training gain necessary skills to succeed in each participant's
job.
(7) The effectiveness of the program in targeting
industries with the highest demand for skilled labor.
(8) Sectors that may require more focus and support from the
program.
b. Gather qualitative data through surveys or interviews
with program participants, and identify the strengths
and weaknesses of the new jobs training program from the
perspective of the participants.
c. Review partnerships with community colleges and training
providers to evaluate whether the partnerships are effective in
delivering relevant training, and identify ways to strengthen
or expand partnerships.
d. Assess the effectiveness of the program's compliance
monitoring and oversight of the use of program funds and
participants' adherence to the program requirements.
e. Compare the benefit that employers receive from
participating in the program to the benefits available to the
same employers through other incentive programs.
f. Review how community colleges participating in the
program use bond interest.
g. Evaluate whether skills gained by employees through the
program are transferable.
h. Review the program's payment mechanism.
4. Meetings of the interim study committee may be held
electronically or in person, provided that the final meeting of
the interim study committee is held in person.
5. The interim study committee shall submit a report
detailing the committee's findings and recommendations to the
general assembly no later than December 15, 2026.
House File 2799, p. 18
6. The interim study committee shall hold the committee's
first meeting on or before August 1, 2026.
PAT GRASSL]
Speaker ov the House
AMY SINCL5^lR
President of the Senate
I hereby certify that this bill originated in the House and
is known as House File 2799, Ninety-first General Assembly.
Approved 2026
MEGJ^N NELSON
Chief QfLerk >5f#the House
KIM •REYNOLDS
Governor