Senate File 657 S-3175 Amend Senate File 657 as follows: 1 1. Page 1, line 21, after < business > by inserting < or 2 revoked by the authority > 3 2. Page 1, line 23, after < declination > by inserting < or 4 revocation > 5 3. Page 2, by striking line 15 and inserting: 6 < e. a. (1) The tax credits for investments in an 7 innovation fund > 8 4. Page 2, after line 23 by inserting: 9 < (2) For the fiscal year beginning July 1, 2025, the 10 allocation pursuant to this paragraph shall be reduced by any 11 tax credit authorized by the authority prior to July 1, 2026, 12 for an investment in a qualifying business pursuant to chapter 13 15E, subchapter V, Code 2025. This subparagraph is repealed 14 July 1, 2026. > 15 5. Page 3, by striking lines 27 and 28 and inserting 16 < pursuant to this subsection for the fiscal year beginning July 17 1, 2026, and for each fiscal year thereafter, the > 18 6. Page 3, after line 30 by inserting: 19 < e. (1) The high quality jobs program administered pursuant 20 to chapter 15, subchapter II, part 13, and the business 21 incentives for growth program administered pursuant to chapter 22 15, subchapter II, part 33. In allocating tax credits pursuant 23 to this subsection, the authority shall allocate fifty million 24 dollars in the aggregate for purposes of this paragraph, by 25 allocating tax credits to the high quality jobs program prior 26 to January 1, 2026, and by allocating the remaining tax credits 27 to the business incentives for growth program on or after 28 January 1, 2026. 29 (2) This paragraph is repealed July 1, 2026. > 30 7. Page 4, line 32, by striking < “h” “b” > and inserting < “h” 31 “b” > 32 8. Page 4, after line 32 by inserting: 33 < Sec. ___. Section 15.354, subsection 2, paragraph a, Code 34 2025, is amended to read as follows: 35 -1- SF 657.2039 (1) 91 jm/jh 1/ 26 #1. #2. #3. #4. #5. #6. #7. #8.

a. All completed applications shall be reviewed and 1 scored on a competitive basis by the authority pursuant to 2 rules adopted by the authority. In scoring applications, the 3 authority may award additional points for all of the following: 4 (1) A housing project located in a community where no 5 housing project has been awarded a tax incentive under the 6 program in the immediately preceding three application periods. 7 (2) A housing project located in a community where a recent 8 or planned business expansion, or a new business, has received 9 a tax incentive or financial assistance under the high quality 10 jobs program administered pursuant to subchapter II, part 13, 11 the major economic growth attraction program administered 12 pursuant to subchapter II, part 32, or the business incentives 13 for growth program administered pursuant to subchapter II, part 14 33. > 15 9. Page 5, line 4, by striking < forty-three million > and 16 inserting < thirty-nine million five hundred thousand > 17 10. Page 5, line 7, by striking < forty million > and 18 inserting < thirty-six million five hundred thousand > 19 11. Page 5, line 27, after < occurs. > by inserting < Tax 20 credits awarded pursuant to this paragraph shall not be counted 21 against the tax credit limit established in paragraph “a” . > 22 12. Page 7, line 20, after < support. > by inserting < For 23 purposes of this subparagraph, “program support” means the 24 services necessary for the efficient administration of a 25 program administered by the authority, including but not 26 limited to administrative costs, conducting a statewide 27 laborshed study in coordination with the department of 28 workforce development, outreach to business and marketing 29 programs, the procurement of technical assistance, and the 30 implementation of information technology. > 31 13. Page 9, by striking lines 19 and 20 and inserting 32 < directly related to the start-up, location, modernization, or 33 expansion of an eligible business and proposed in an eligible 34 business’s application to the > 35 -2- SF 657.2039 (1) 91 jm/jh 2/ 26 #9. #10. #11. #12.

14. Page 9, by striking lines 30 through 33 and inserting 1 < real property, including the purchase price of the land 2 and existing buildings and structures, site preparation, 3 improvements to the real property, building construction, and 4 long-term lease costs. “Qualifying investment” also means a 5 capital investment in depreciable > 6 15. Page 10, after line 6 by inserting: 7 < 16. “Retained job” means a full-time equivalent position 8 that is in existence at the time an eligible business applies 9 for the program that remains continuously filled, and that is 10 at risk of elimination if the proposed project for which the 11 eligible business is applying to the program does not proceed. > 12 16. Page 10, line 7, by striking < 16. > and inserting < 17. > 13 17. Page 10, line 11, by striking < 17. > and inserting < 18. > 14 18. Page 11, line 15, by striking < provide > and inserting 15 < offer > 16 19. Page 12, by striking line 25 and inserting < an ongoing 17 basis, or will result in increased skills and wages for 18 employees of the eligible business. > 19 20. Page 13, by striking line 21 and inserting < investment, 20 unless the eligible business’s project is located in a rural 21 county, in which case the maximum aggregate value of tax 22 incentives that any one eligible business may receive shall not 23 exceed seven and one-half percent of the eligible business’s 24 qualifying investment. For purposes of this paragraph, “rural 25 county” means a county in the state with a population of twenty 26 thousand or less based on the most recent decennial census 27 released by the United States census bureau. > 28 21. Page 14, line 4, by striking < The > and inserting < After 29 a final determination by the authority, the > 30 22. Page 14, line 23, after < date, > by inserting < the 31 agreement end date, the base employment level, any retained 32 jobs, > 33 23. Page 14, by striking line 28 and inserting < necessary or 34 material to the determination of the business’s eligibility for 35 -3- SF 657.2039 (1) 91 jm/jh 3/ 26 #14. #15. #16. #17. #18. #19. #20. #21. #22.

the program, or the aggregate value of tax incentives approved 1 by the board. > 2 24. Page 15, by striking line 12 and inserting < terms of the 3 agreement until the agreement end date. An eligible business 4 shall maintain the business’s base employment level until the 5 agreement end date. > 6 25. Page 16, by striking line 3 and inserting < paid during 7 the period for which the refund is claimed, and shall submit 8 the forms > 9 26. Page 16, by striking lines 5 through 7 and inserting: 10 < b. The eligible business shall, no more frequently than 11 quarterly, submit an > 12 27. Page 16, line 18, after < business’s > by inserting 13 < final > 14 28. Page 16, by striking lines 21 and 22 and inserting < this 15 section shall not be denied by reason of a time limitation for 16 filing a refund claim set forth in section 423.47. > 17 29. Page 16, line 24, by striking < on a quarterly basis. > 18 and inserting < as soon as practicable after completion of the 19 audit pursuant to paragraph “b” . > 20 30. Page 17, line 2, by striking < The > 21 31. Page 17, by striking line 3 and inserting < An eligible 22 business may claim the tax credit authorized and issued by the 23 authority. The tax credit shall be amortized to the > 24 32. Page 17, line 19, after < refunded. > by inserting < In 25 lieu of claiming a refund, an eligible business may elect to 26 have the overpayment shown on the eligible business’s final, 27 completed return credited to the eligible business’s tax 28 liability for the immediately succeeding tax year. > 29 33. Page 18, after line 26 by inserting: 30 < f. Except as provided in section 15.119, subsection 1, 31 paragraph “b” , the board shall not authorize for any one fiscal 32 year an amount of tax credits pursuant to this section that 33 exceeds the amount allocated pursuant to section 15.119, 34 subsection 2. > 35 -4- SF 657.2039 (1) 91 jm/jh 4/ 26 #24. #25. #26. #27. #28. #29. #30. #31. #32. #33.

34. Page 19, by striking line 3 and inserting: 1 < 1. If an eligible business has been authorized by the board 2 to receive tax incentives under the program, a community in 3 which the eligible business’s project > 4 35. Page 19, line 18, after < assistance > by inserting < to an 5 eligible business > 6 36. Page 19, by striking line 25 and inserting < for the 7 project. > 8 37. Page 19, line 28, after < 15.506. > by inserting < The 9 agreement shall specify the circumstances under which the 10 financial assistance must be repaid to the authority. > 11 38. Page 19, after line 32 by inserting: 12 < 4. For purposes of this section, “financial assistance” 13 means assistance provided exclusively from the funds, rights, 14 and assets legally available to the authority pursuant to this 15 chapter and includes but is not limited to assistance in the 16 form of grants, loans, forgivable loans, and royalty payments. > 17 39. Page 20, line 8, after < PROVISIONS. > by inserting < 1. > 18 40. Page 20, after line 12 by inserting: 19 < 2. On the effective date of this division of this Act, all 20 moneys appropriated by the general assembly to the authority 21 for purposes of section 15.335B shall remain available to 22 the authority for purposes of section 15.111, as enacted by 23 this Act. Notwithstanding section 8.33, moneys transferred 24 in accordance with this section that remain unencumbered or 25 unobligated at the close of the fiscal year shall not revert 26 but shall remain available for expenditure for the purposes 27 designated until the close of the succeeding fiscal year. > 28 41. Page 21, by striking line 16 and inserting < section 29 15.330, subsection 12, section 15E.198, Code 2014, Code 2025, 30 and > 31 42. By striking page 21, line 28, through page 22, line 6, 32 and inserting < credit award. The department of revenue, upon 33 notification by the authority of an event of default, shall 34 seek repayment of the value of any such tax credit already 35 -5- SF 657.2039 (1) 91 jm/jh 5/ 26 #34. #35. #36. #37. #38. #39. #40. #41.

claimed in the same manner as provided in section 15.330, 1 subsection 2. After a final determination by the authority, 2 the authority shall notify the department of revenue of any 3 required repayment or recapture of a tax credit. The repayment 4 or recapture of a tax credit pursuant to this subsection shall 5 be considered a tax payment due and payable to the department 6 of revenue by any taxpayer who has claimed the tax credit, and 7 the failure to make such a repayment may be treated by the 8 department of revenue in the same manner as a failure to pay 9 the tax shown due or required to be shown due with the filing 10 of a return or deposit form. > 11 43. Page 23, by striking lines 21 through 29 and inserting 12 < tax credits claimed. The repayment or recapture of tax 13 credits pursuant to this subsection shall be accomplished in 14 the same manner as provided in section 15.330, subsection 2. 15 After a final determination by the authority, the authority 16 shall notify the department of revenue of any required 17 repayment or recapture of a tax credit. The repayment or 18 recapture of a tax credit pursuant to this subsection shall be 19 considered a tax payment due and payable to the department of 20 revenue by any taxpayer who has claimed the tax credit, and 21 the failure to make such a repayment may be treated by the 22 department of revenue in the same manner as a failure to pay 23 the tax shown due or required to be shown due with the filing 24 of a return or deposit form. > 25 44. Page 24, by striking lines 10 and 11 and inserting: 26 < Sec. ___. Section 15.354, subsection 1, paragraph c, Code 27 2025, is amended to read as follows: 28 c. In addition to complying with all applicable requirements 29 in paragraph “b” , a housing business that chooses to be 30 considered as an applicant for tax credits reserved pursuant 31 to section 15.119, subsection 5 , for disaster recovery housing 32 projects shall also submit a certification that the applicant’s 33 housing project is located in a county that has been declared 34 a major disaster by the president of the United States on or 35 -6- SF 657.2039 (1) 91 jm/jh 6/ 26 #43. #44.

after March 12, 2019, and is also a county in which individuals 1 are eligible for federal individual assistance. The housing 2 business must also submit documentation that provides evidence 3 that the qualified housing project is needed due to impact of 4 the disaster that is the subject of the presidential major 5 disaster declaration. > 6 45. Page 24, by striking lines 21 and 22 and inserting 7 < issuance of a tax incentive certificate. > 8 46. Page 24, by striking lines 24 through 29 and inserting 9 < one-half of one percent of the value of tax incentives 10 available pursuant to an agreement that has an aggregate tax 11 incentive value of one hundred thousand dollars or greater. 12 The authority shall collect the fee from the housing business 13 prior to the issuance of a tax incentive. > 14 47. Page 25, by striking lines 4 through 12 and inserting 15 < of tax incentives claimed under section 15.355. The repayment 16 or recapture of tax incentives pursuant to this section shall 17 be accomplished in the same manner as provided in section 18 15.330, subsection 2. After a final determination by the 19 authority, the authority shall notify the department of revenue 20 of any required repayment or recapture of a tax credit. The 21 repayment or recapture of a tax credit pursuant to this 22 subsection shall be considered a tax payment due and payable 23 to the department of revenue by any taxpayer who has claimed 24 the tax credit, and the failure to make such a repayment may 25 be treated by the department of revenue in the same manner as 26 a failure to pay the tax shown due or required to be shown due 27 with the filing of a return or deposit form. > 28 48. Page 25, before line 13 by inserting: 29 < Sec. ___. Section 15.355, subsection 2, paragraph b, 30 subparagraph (3), subparagraph division (a), Code 2025, is 31 amended to read as follows: 32 (a) The housing business shall, after the agreement 33 completion date, make application to the department of revenue 34 for any refund of the amount of sales and use taxes paid under 35 -7- SF 657.2039 (1) 91 jm/jh 7/ 26 #45. #46. #47. #48.

chapter 423 prior to the completion of the housing project that 1 were directly related to a housing project and specified in the 2 agreement. The application shall be made in the manner and 3 upon forms to be provided by the department of revenue. The 4 department of revenue shall audit the claim and, if approved, 5 issue a warrant to the housing business. The application must 6 be made within one year after the agreement completion date. 7 A claim filed by the housing business in accordance with this 8 subsection shall not be denied by reason of a time limitation 9 provision for filing a refund claim set forth in chapter 421 10 or 423 section 423.47 . > 11 49. By striking page 25, line 34, through page 26, line 2, 12 and inserting < businesses through the provision of technical 13 assistance. The authority may provide financial assistance 14 under this section from moneys allocated for financial 15 assistance for business accelerators pursuant to section 16 15.335B, subsection 2 15.111 . > 17 50. Page 28, by striking lines 9 through 12 and inserting 18 < assistance to the person. The office shall assist the person 19 in completing any technical information required in order 20 to receive assistance by the economic development authority 21 pursuant to section 15.335B. > 22 51. Page 28, by striking lines 13 through 19. 23 52. Page 28, by striking lines 22 and 23 and inserting: 24 < Sec. ___. Section 422.11F, subsection 2, Code 2025, is 25 amended to read as follows: 26 2. The taxes imposed under this subchapter , less the credits 27 allowed under section 422.12 , shall be reduced by investment 28 tax credits authorized pursuant to section 15.333 and section 29 15E.193B, subsection 6, Code 2014 sections 15.508 and 15.496 . > 30 53. Page 28, by striking lines 26 and 27 and inserting: 31 < Sec. ___. Section 422.33, subsection 12, paragraph b, Code 32 2025, is amended to read as follows: 33 b. The taxes imposed under this subchapter shall be reduced 34 by investment tax credits authorized pursuant to section 15.333 35 -8- SF 657.2039 (1) 91 jm/jh 8/ 26 #49. #50. #51. #52. #53.

and section 15E.193B, subsection 6, Code 2014 sections 15.508 1 and 15.496 . > 2 54. Page 28, by striking lines 30 and 31 and inserting: 3 < Sec. ___. Section 422.60, subsection 5, paragraph b, Code 4 2025, is amended to read as follows: 5 b. The taxes imposed under this subchapter shall be reduced 6 by investment tax credits authorized pursuant to sections 7 15.333 and 15E.193B, subsection 6, Code 2014 15.508 and 8 15.496 . > 9 55. Page 29, by striking lines 5 through 13 and inserting: 10 < Sec. ___. Section 432.12C, subsection 2, Code 2025, is 11 amended to read as follows: 12 2. The taxes imposed under this chapter shall be reduced by 13 investment tax credits authorized pursuant to section 15.333A 14 and section 15E.193B, subsection 6, Code 2014 sections 15.508 15 and 15.496 . 16 Sec. ___. Section 455B.104, subsection 2, Code 2025, is 17 amended by striking the subsection. 18 Sec. ___. Section 533.329, subsection 2, paragraph c, Code 19 2025, is amended by striking the paragraph. 20 Sec. ___. Section 533.329, subsection 2, paragraph d, Code 21 2025, is amended to read as follows: 22 d. The moneys and credits tax imposed under this section 23 shall be reduced by an investment tax credit authorized 24 pursuant to section 15.333 sections 15.508 and 15.496 . > 25 56. Page 29, line 14, after < 15E.233, > by inserting 26 < 266.19, > 27 57. Page 29, line 28, after < PROGRAM > by inserting < AND 28 INNOVATION FUND INVESTMENT TAX CREDITS > 29 58. Page 30, line 23, after < less > by inserting < based on 30 the most recent decennial census released by the United States 31 census bureau > 32 59. Page 30, line 25, after < thousand > by inserting < based 33 on the most recent decennial census released by the United 34 States census bureau > 35 -9- SF 657.2039 (1) 91 jm/jh 9/ 26 #54. #55. #56. #57. #58.

60. Page 31, after line 22 by inserting: 1 < f. In lieu of claiming a refund, a taxpayer may elect to 2 have the overpayment shown on the taxpayer’s final, completed 3 return credited to the tax liability for the immediately 4 succeeding tax year. > 5 61. By striking page 31, line 30, through page 32, line 5, 6 and inserting: 7 < b. (1) The maximum amount of a tax credit that may be 8 issued per fiscal year to a natural person and the person’s 9 spouse or dependent shall not exceed one hundred thousand 10 dollars combined. For purposes of this subparagraph, 11 “dependent” has the same meaning as defined by the Internal 12 Revenue Code. 13 (2) The maximum amount of a tax credit that may be issued 14 per fiscal year to a corporation or other entity shall not 15 exceed one hundred thousand dollars. 16 (3) An application received by the authority that exceeds 17 the maximum amount of tax credits permitted by this paragraph 18 shall be denied, in whole or in part, regardless of whether the 19 investment would otherwise be eligible to qualify for a tax 20 credit. 21 (4) For purposes of this paragraph, a tax credit issued 22 to a partnership, limited liability company, S corporation, 23 estate, or trust electing to have income taxed directly to 24 the individual shall be deemed to be issued to the individual 25 owners based upon the pro rata share of the individual’s 26 earnings from the entity. > 27 62. Page 32, line 8, after < dollars. > by inserting < An 28 application received by the authority that exceeds the maximum 29 amount of tax credits permitted by this paragraph shall 30 be denied, in whole or in part, regardless of whether the 31 investment would otherwise be eligible to qualify for a tax 32 credit. > 33 63. By striking page 32, line 27, through page 33, line 2, 34 and inserting: 35 -10- SF 657.2039 (1) 91 jm/jh 10/ 26 #60. #61. #62. #63.

< 1. To determine whether a business is a qualifying 1 business, a business shall submit an application to the 2 authority that is accompanied by a nonrefundable application 3 fee. A business must be certified by the authority as 4 a qualifying business in order for an investor’s equity 5 investment to qualify for a tax credit. > 6 64. Page 33, line 13, after < technologies. > by inserting 7 < The business shall not be primarily engaged in retail 8 sales, real estate, the provision of health care, or the 9 provision of services that require a professional license. 10 In determining whether a business is primarily engaged in 11 advanced manufacturing, biosciences, insurance and finance, or 12 technologies, the authority shall consider the business’s North 13 American industry classification system code, the business’s 14 main sources of revenue, and the business’s customer base. > 15 65. Page 33, line 15, by striking < a larger parent company. > 16 and inserting < a business that is not a qualifying business. > 17 66. Page 33, by striking lines 23 through 25. 18 67. Page 33, line 26, by striking < h. > and inserting < g. > 19 68. Page 33, line 26, by striking < two > and inserting < ten > 20 69. Page 33, line 28, by striking < i. > and inserting < h. > 21 70. Page 33, by striking lines 30 through 32 and inserting: 22 < (1) At least two investors. For purposes of this 23 subparagraph, “investor” includes a person who executes a 24 binding investment commitment to a qualifying business, and 25 does not include an affiliate of a qualifying business or an 26 affiliate of a qualifying business’s principals. > 27 71. Page 34, line 6, after < year. > by inserting < The 28 authority may revoke the certification of a qualifying business 29 that no longer meets the requirements of this section. > 30 72. Page 34, by striking lines 7 through 20 and inserting: 31 < 4. A business that has been certified by the authority as a 32 qualifying business shall annually submit an application to the 33 authority that documents continued eligibility as a qualifying 34 business and any investments that may qualify for a tax credit. 35 -11- SF 657.2039 (1) 91 jm/jh 11/ 26 #64. #65. #66. #67. #68. #69. #70. #71. #72.

The business shall submit the application to the authority 1 during an annual application period designated by the authority 2 by rule. 3 5. Based on the applications submitted by qualifying 4 businesses pursuant to subsection 4, the authority shall make 5 an initial allocation of tax credits in the order in which 6 the applications are received until the maximum amount of tax 7 credits determined by the board pursuant to section 15.119, 8 subsection 2, is reached. Equity investors that are eligible 9 for a tax credit based on such initial allocation shall submit 10 any additional information requested by the authority necessary 11 to verify the eligibility of the investor and to issue a tax 12 credit certificate. An equity investor that does not submit 13 the required information may be denied a tax credit. If any 14 equity investor included in the initial allocation is denied 15 a tax credit, the authority may allocate such tax credits 16 to equity investors that were not included in the initial 17 allocation. 18 6. Upon receipt of all required information from a 19 qualifying business and an equity investor, the director of 20 the authority may approve issuance of a tax credit certificate 21 to be included with the equity investor’s tax return. The tax 22 credit certificate shall contain the taxpayer’s name, address, 23 tax identification number, the amount of tax credit, the name 24 of the qualifying business, and any other information required 25 by the department of revenue. The tax credit certificate, 26 unless rescinded by the authority, shall be accepted by the 27 department of revenue as payment for taxes imposed pursuant 28 to chapter 422, subchapters II, III, and V, and in chapter 29 432, and for the moneys and credits tax imposed in section 30 533.329, subject to any conditions or restrictions placed by 31 the authority upon the face of the tax credit certificate and 32 subject to the limitations of section 15E.27. > 33 73. Page 38, after line 12 by inserting: 34 < (3) A company that has, in the three consecutive years 35 -12- SF 657.2039 (1) 91 jm/jh 12/ 26 #73.

immediately preceding an application for a rebate, had the 1 company’s principal place of business in this state and 2 produced a qualified production. > 3 74. Page 38, by striking lines 20 through 35 and inserting 4 < facilities must require that a facility have an agreement 5 between the authority and the facility that the phrase “filmed 6 in Iowa” appears noticeably in the credits of the qualified 7 production. > 8 75. Page 39, by striking lines 3 and 4 and inserting: 9 < (a) A total production budget of at least one million 10 dollars, including at least five hundred thousand dollars in 11 qualified expenditures, and evidence that the total production 12 budget is fully funded. > 13 76. Page 39, line 10, after < of > by inserting < expenses > 14 77. Page 39, by striking lines 19 through 21 and inserting: 15 < (b) Documentation that all qualified expenses were 16 incurred following approval of the application for rebate by 17 the authority. > 18 78. Page 39, by striking lines 24 and 25 and inserting < for 19 approval in the form and manner prescribed by the authority. 20 In determining whether to approve a rebate, the factors the 21 authority may consider include but are not limited to all of 22 the following: 23 a. The extent to which the applicant will participate 24 in training, education, and recruitment programs that are 25 organized in cooperation with interested Iowa colleges and 26 universities, and that are designed to promote and encourage 27 the training and hiring of Iowa residents. 28 b. Whether the rebate will incentivize a qualified 29 production facility to choose an Iowa location for its 30 qualified production rather than an out-of-state location. 31 c. The likelihood that approval of the rebate will result in 32 an overall long-term positive impact to the state. > 33 79. Page 39, line 29, after < facility’s > by inserting 34 < documented > 35 -13- SF 657.2039 (1) 91 jm/jh 13/ 26 #74. #75. #76. #77. #78.

80. Page 40, line 16, by striking < ten > and inserting < four > 1 81. By striking page 40, line 34, through page 42, line 31. 2 82. Page 45, line 16, by striking < REPEAL > 3 83. By striking page 45, line 17, through page 48, line 32, 4 and inserting: 5 < Sec. ___. Section 15E.303, subsections 1, 2, and 6, Code 6 2025, are amended by striking the subsections. 7 Sec. ___. Section 15E.305, subsection 2, unnumbered 8 paragraph 1, Code 2025, is amended to read as follows: 9 The aggregate amount of tax credits authorized pursuant to 10 this section shall not exceed a total of six three million five 11 hundred thousand dollars annually. 12 Sec. ___. Section 15E.305, subsection 2, paragraph a, Code 13 2025, is amended to read as follows: 14 a. The maximum amount of tax credits granted to a taxpayer 15 shall not exceed one hundred fifty thousand dollars. 16 Sec. ___. Section 15E.305, Code 2025, is amended by adding 17 the following new subsection: 18 NEW SUBSECTION . 3A. In addition to the other eligibility 19 requirements for receiving a tax credit under this section, to 20 be eligible to receive a tax credit pursuant to this section 21 all of the following must apply: 22 a. The endow Iowa qualified community foundation and 23 permanent endowment fund do not contain the name of a 24 corporation or other business entity. 25 b. The endow Iowa qualified community foundation submitted 26 a report to the general assembly by January 31 detailing the 27 specific grants provided during the calendar year preceding the 28 applicable tax year. 29 c. The community foundation that administers a permanent 30 endowment fund for which a taxpayer requests a tax credit has 31 provided any information requested by the authority to verify 32 whether a contribution to the permanent endowment fund is 33 eligible for the tax credit. 34 Sec. ___. Section 15E.311, subsection 4, paragraph c, Code 35 -14- SF 657.2039 (1) 91 jm/jh 14/ 26 #80. #81. #82. #83.

2025, is amended to read as follows: 1 c. “Eligible county recipient” means an endow Iowa qualified 2 community foundation or community affiliate organization, as 3 defined in section 15E.303 , that is selected , in accordance 4 with the procedures described in section 15E.304 , to receive 5 moneys from an account created in this section for a particular 6 county. To be selected as an eligible county recipient, a 7 community affiliate organization shall establish a county 8 affiliate fund to receive moneys as provided by this section . 9 Sec. ___. Section 15E.311, subsection 6, Code 2025, is 10 amended by striking the subsection. > 11 84. Page 48, after line 34 by inserting: 12 < Sec. ___. EFFECTIVE DATE. This division of this Act takes 13 effect January 1, 2026. 14 Sec. ___. APPLICABILITY. This division of this Act applies 15 to tax years beginning on or after January 1, 2026. > 16 85. Page 51, after line 18 by inserting: 17 < 3. A business that shall not be considered to be engaged 18 in advanced manufacturing, bioscience, insurance and finance, 19 or technology and innovation under subsection 1, and thus is 20 not eligible for the credit, includes but is not limited to all 21 of the following: 22 a. A business engaged in agriculture production as defined 23 in section 423.1. 24 b. A business that is a contractor, subcontractor, builder, 25 or a contractor-retailer that engages in commercial and 26 residential repair and installation, including but not limited 27 to heating or cooling installation and repair, plumbing and 28 pipe fitting, security system installation, and electrical 29 installation and repair. For purposes of this paragraph, 30 “contractor-retailer” means a business that makes frequent 31 retail sales to the public or to other contractors and that 32 also engages in the performance of construction contracts. 33 c. A finance or investment company. 34 d. A retailer. 35 -15- SF 657.2039 (1) 91 jm/jh 15/ 26 #84. #85.

e. A wholesaler. 1 f. A transportation company. 2 g. An ethanol biorefinery. 3 h. An agricultural cooperative association as defined in 4 section 502.102. 5 i. A real estate company. 6 j. A collection agency. 7 k. An accountant. 8 l. An architect. 9 m. A publisher. > 10 86. Page 51, line 33, after < business > by inserting < that 11 continues to meet the requirements of the program and the 12 agreement entered pursuant to subsection 3 > 13 87. Page 51, line 35, after < increments. > by inserting < A 14 business that does not demonstrate an increase in eligible 15 expenditures may be denied recertification by the authority. A 16 business that is denied certification or recertification may 17 reapply. The authority may specify the length of time after 18 the denial when the business is eligible to reapply. > 19 88. Page 52, by striking lines 4 through 16 and inserting: 20 < 4. Each year after certification as a qualified business, 21 the qualified business shall submit an application to the 22 authority for a tax credit based on the amount of eligible 23 expenditures that were included in Section F of Internal 24 Revenue Form 6765 that was submitted with the qualified 25 business’s most recently filed and accepted federal tax return. 26 The application shall include a verification of eligible 27 expenditures by procedures prescribed by the authority by rule. 28 The qualified business shall engage an independent certified 29 public accountant authorized to practice in this state to 30 conduct the verification. A qualified business shall submit 31 the application to the authority by January 31 following the 32 most recently filed and accepted federal tax return for a tax 33 year in which the business is determined to be a qualified 34 business. 35 -16- SF 657.2039 (1) 91 jm/jh 16/ 26 #86. #87. #88.

5. Each fiscal year, the authority will approve tax credit 1 awards by apportioning the amount of tax credits available 2 pursuant to section 15.119 on a pro rata basis, based on 3 the total amount of eligible expenditures incurred by all 4 qualified businesses that are awarded a tax credit. Up to 5 five percent of the amount of tax credits available pursuant 6 to section 15.119 may be awarded as additional tax credits to 7 qualified businesses that demonstrate an increase in eligible 8 expenditures. 9 6. If the qualified business fails to comply with any 10 requirements of the program or the agreement entered pursuant 11 to subsection 3 as determined by the authority, the qualified 12 business may have its certification as a qualified business 13 revoked or be required to repay any tax credit the authority 14 issued to the qualified business. After a final determination, 15 the authority will notify the department of revenue of any 16 required repayment of a tax credit. Such repayment shall be 17 considered a tax payment due and payable to the department of 18 revenue by any taxpayer that claimed the tax incentive, and the 19 failure to make the repayment may be treated by the department 20 of revenue in the same manner as a failure to pay the tax shown 21 due, or required to be shown due, with the filing of a return or 22 deposit form. 23 7. A qualified business that claims a research activities 24 credit pursuant to section 422.10 or 422.33, Code 2025, 25 shall not claim a research and development tax credit awarded 26 pursuant to this part on the same tax return. > 27 89. Page 52, by striking lines 22 through 24 and inserting: 28 < 2. Upon submission of the documentation required pursuant 29 to section 15.523, subsection 4, and verification of eligible 30 expenditures by the authority, the authority may issue a tax 31 credit > 32 90. Page 52, line 29, by striking < for the tax year > and 33 inserting < in the tax year immediately following the tax year > 34 91. Page 53, by striking lines 25 through 32 and inserting: 35 -17- SF 657.2039 (1) 91 jm/jh 17/ 26 #89. #90. #91.

< 8. A qualified business that was approved to receive a 1 research activities credit pursuant to section 15.335, Code 2 2025, prior to January 1, 2026, shall not claim such tax credit 3 and a research and development tax credit pursuant to this part 4 on the same tax return. > 5 92. Page 54, line 3, after < The > by inserting < qualified > 6 93. Page 55, by striking lines 17 and 18 and inserting < oil, 7 soybean oil, animal fats, used cooking oil, and algae. > 8 94. By striking page 55, line 24, through page 56, line 9, 9 and inserting: 10 < 5. “Sustainable aviation fuel” means the portion of a 11 liquid fuel meeting the requirements of ASTM D7566 or the 12 Fischer Tropsch provisions of ASTM D1655, Annex A1, derived 13 from feedstock not including palm fatty acid distillates and 14 that achieves at least a fifty percent life cycle greenhouse 15 gas emissions reduction as determined by any of the following: 16 a. The fuel production pathway achieves at least a fifty 17 percent life cycle greenhouse gas emission reduction in 18 comparison with petroleum-based aviation gasoline, aviation 19 turbine fuel, and jet fuel utilizing the most recent version 20 of the GREET (Argonne national laboratory’s greenhouse gases, 21 regulated emissions, and energy use in technologies) model that 22 accounts for reduced emissions throughout the fuel production 23 process. 24 b. The fuel production pathway achieves at least a fifty 25 percent reduction in comparison with petroleum-based aviation 26 gasoline, aviation turbine fuel, and jet fuel utilizing the 27 most recent version of the default life cycle emission value or 28 actual core life cycle emissions value under the most recent 29 carbon offsetting and reduction scheme for international 30 aviation methodology for sustainable aviation fuels adopted by 31 the international civil aviation organization. > 32 95. Page 57, by striking lines 23 through 31 and inserting: 33 < 3. The failure by an eligible business in fulfilling any 34 requirement of the program or any of the terms and obligations 35 -18- SF 657.2039 (1) 91 jm/jh 18/ 26 #92. #93. #94. #95.