Senate File 2506 S-5259 Amend Senate File 2506 as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < DIVISION I 4 HEADQUARTERS EXPANSION AND DEVELOPMENT FOR GROWTH EMPLOYMENT 5 PROGRAM 6 Section 1. NEW SECTION . 15.600 Short title. 7 This part shall be known and may be cited as the 8 “Headquarters Expansion and Development for Growth and Employment 9 Program” , or “EDGE Program” . 10 Sec. 2. NEW SECTION . 15.601 Definitions. 11 As used in this part, unless the context otherwise requires: 12 1. “Agreement” means an agreement entered into by an 13 eligible business and the authority pursuant to section 15.604. 14 2. “Base employment level” means the number of full-time 15 equivalent positions at a business, as established by the 16 authority and the business based on the business’s payroll 17 records, on the date the business applies for the program. 18 3. “Benefits” means nonwage compensation provided to an 19 employee. “Benefits” include medical and dental insurance, a 20 pension, a retirement plan, a profit-sharing plan, child care, 21 life insurance, vision insurance, and disability insurance. 22 4. “Community” means a city or county in the state. 23 5. “Corporate headquarters” means a location in the 24 state that serves as the principal executive office or 25 houses the core administrative operations for a business, 26 and that includes executive leadership offices, strategic 27 decision-making functions, and administrative and support staff 28 employees. 29 6. “Corporate job” means a position based at a corporate 30 headquarters that involves strategic planning, executive 31 decision-making, or core administrative functions. 32 7. “Created jobs” or “create jobs” means new, permanent, 33 full-time equivalent positions added to an eligible business’s 34 payroll, at the location of the eligible business’s project, in 35 -1- SF 2506.4557 (2) 91 (amending this SF 2506 to CONFORM to HF 2799) nls/ko 1/ 19 #1.

excess of the eligible business’s base employment level. 1 8. “Data center business” means the same as defined in 2 section 423.3, subsection 95. 3 9. “Eligible business” means a business that meets the 4 requirements of section 15.602. 5 10. “Full-time equivalent position” means a non-part-time 6 position for the number of hours or days per week considered 7 to be full-time work for the kind of service or work performed 8 for an employer. Typically, a full-time equivalent position 9 requires two thousand eighty hours of work in a calendar year, 10 including all paid holidays, vacations, sick time, and other 11 paid leave. 12 11. “Gross annual wages” means all regular wages and 13 salaries received by an employee for performing services as 14 an employee of an employer. “Gross annual wages” does not 15 include nonregular forms of compensation, such as bonuses, 16 unusual overtime pay, commissions, stock options, pensions, 17 retirement or death benefits, unemployment benefits, life or 18 other insurance, or other fringe benefits. 19 12. “New corporate job” means a corporate job that is a 20 created job. 21 13. “Program” means the headquarters expansion and 22 development for growth and employment program. 23 14. “Project” means the retention or location of a corporate 24 headquarters for an eligible business, proposed in an eligible 25 business’s application to the program, that will accomplish the 26 goals of the program. 27 15. “Qualifying wage threshold” means the mean wage level 28 represented by the wages within two standard deviations of 29 the mean wage within the laborshed area in which the eligible 30 business is located, as calculated by the authority by rule, 31 using the most current covered wage and employment data 32 available from the department of workforce development for the 33 laborshed area in which the eligible business is located. 34 16. “Retained corporate job” means a corporate job that is 35 -2- SF 2506.4557 (2) 91 (amending this SF 2506 to CONFORM to HF 2799) nls/ko 2/ 19

also a retained job. 1 17. “Retained jobs” means a full-time equivalent position 2 that is in existence at the time an eligible business applies 3 for the program that remains continuously filled, and that is 4 at risk of elimination if the proposed project for which the 5 eligible business is applying to the program does not proceed. 6 18. “Tax incentives” means tax credits authorized under the 7 program by the authority for an eligible business. 8 Sec. 3. NEW SECTION . 15.602 Eligible business. 9 1. To be eligible to receive tax incentives under 10 the program, a business must meet all of the following 11 requirements: 12 a. The community in which the proposed project is located 13 must approve the project either by ordinance or resolution. 14 b. The business must have a global presence, significant 15 market share, or national recognition in the industry in which 16 the business operates. 17 c. The business must be able to provide documentation that a 18 minimum of fifty-one percent of the business’s gross revenue is 19 generated from business conducted outside the state. 20 d. The business must be able to provide documentation that 21 a state other than Iowa is meaningfully competing for the 22 location or retention of the business’s corporate headquarters. 23 e. (1) The business must be primarily engaged in advanced 24 manufacturing, bioscience, insurance and finance, technology 25 and innovation, or research and development. The business 26 shall not be a data center business, a retail business, or 27 a business where a cover charge or membership requirement 28 restricts certain individuals from entering the business. 29 (2) Factors the authority shall consider to determine if 30 a business is primarily engaged in advanced manufacturing, 31 bioscience, insurance and finance, technology and innovation, 32 or research and development shall include but are not limited 33 to all of the following: 34 (a) The business’s North American industry classification 35 -3- SF 2506.4557 (2) 91 (amending this SF 2506 to CONFORM to HF 2799) nls/ko 3/ 19

system code. 1 (b) The business’s main sources of revenue. 2 (c) The business’s customer base. 3 f. (1) The business must not be solely relocating 4 operations from one area of the state to another area of 5 the state. A proposed project that does not create jobs or 6 involve a substantial amount of new capital investment shall 7 be presumed to be a relocation of operations. For purposes of 8 this subparagraph, the authority shall consider a letter from 9 the affected local community’s government officials supporting 10 the business’s move away from the affected local community 11 in making a determination whether the business is solely 12 relocating operations. 13 (2) This paragraph shall not be construed to prohibit 14 a business from expanding the business’s operations in a 15 community if the business has similar operations in this state 16 that are not closing or undergoing a substantial reduction in 17 operations. 18 g. The business must offer comprehensive benefits to 19 each full-time equivalent employee employed at its corporate 20 headquarters. The authority may adopt rules under chapter 17A 21 to determine the requirements for comprehensive benefits. 22 h. (1) The business must not have a record of violations 23 of law or of rules, including but not limited to antitrust, 24 environmental, trade, or worker safety, that over a period of 25 time show a consistent pattern or that establish the business’s 26 intentional, criminal, or reckless conduct in violation of such 27 laws or rules. 28 (2) In making determinations and findings under 29 subparagraph (1), and making a determination whether a business 30 is disqualified from the program, the authority shall be exempt 31 from chapter 17A. 32 2. In determining if a business is eligible to participate 33 in the program, the authority shall consider a variety of 34 factors including but not limited to all of the following: 35 -4- SF 2506.4557 (2) 91 (amending this SF 2506 to CONFORM to HF 2799) nls/ko 4/ 19

a. The cost to the state of providing tax incentives 1 compared to the potential increase in state and local tax 2 collections from the project, the potential for population 3 growth resulting from the project, and the potential for wage 4 growth resulting from the project. 5 b. The impact of the business’s proposed project on 6 businesses that are in competition with the business. 7 The authority shall make a good-faith effort to identify 8 existing Iowa businesses in competition with the business 9 being considered for the program. The authority shall make 10 a good-faith effort to determine the probability that any 11 proposed tax incentives will displace employees of a competing 12 business. In determining the impact on a competing business, 13 employee displacement from the competing business shall not be 14 considered created jobs for the applying business’s project. 15 c. The business’s proposed project’s economic impact on 16 the state. The authority shall place greater emphasis on 17 businesses and proposed projects that meet the following 18 requirements: 19 (1) The business has a high proportion of in-state 20 suppliers. 21 (2) The proposed project will diversify the state economy. 22 (3) The business has few in-state competitors. 23 (4) The proposed project has the potential to create jobs on 24 an ongoing basis, or will result in increased skills and wages 25 for employees of the eligible business. 26 (5) The proposed project has the potential to increase the 27 state’s overall gross domestic product. 28 (6) The proposed project will result in a newly constructed 29 facility, or a facility with a significantly increased taxable 30 valuation. 31 (7) Any other factors the authority deems relevant in 32 determining the economic impact of a proposed project. 33 Sec. 4. NEW SECTION . 15.603 Applications —— authorization 34 of tax incentives. 35 -5- SF 2506.4557 (2) 91 (amending this SF 2506 to CONFORM to HF 2799) nls/ko 5/ 19

1. Applications for the program shall be submitted to the 1 authority in the form and manner prescribed by the authority by 2 rule. Each application must be accompanied by an application 3 fee in an amount determined by the authority by rule. 4 2. In determining the eligibility of a business to 5 participate in the program the authority may engage outside 6 experts to complete a technical, financial, or other review 7 of an application submitted by a business if such review is 8 outside the expertise of the authority. 9 3. The authority and the board may negotiate with an 10 eligible business regarding the terms of, and the aggregate 11 value of, the tax incentives the eligible business may receive 12 under the program. 13 Sec. 5. NEW SECTION . 15.604 Agreement. 14 1. An eligible business that is approved by the authority to 15 participate in the program shall enter into an agreement with 16 the authority that specifies the criteria for the successful 17 completion of all requirements of the program. The agreement 18 must contain, at a minimum, provisions related to all of the 19 following: 20 a. The eligible business must certify to the authority 21 annually that the business is in compliance with the agreement. 22 b. If the eligible business fails to comply with any 23 requirements of the program or the agreement, the eligible 24 business may be required to repay any tax incentives the 25 authority issued to the eligible business. After a final 26 determination by the authority, the authority will notify 27 the department of revenue of any required repayment of a 28 tax incentive, which shall be considered a tax payment due 29 and payable to the department of revenue by any taxpayer 30 that claimed the tax incentive, and the failure to make the 31 repayment may be treated by the department of revenue in the 32 same manner as a failure to pay the tax shown due, or required 33 to be shown due, with the filing of a return or deposit form. 34 c. If the eligible business undergoes a layoff or 35 -6- SF 2506.4557 (2) 91 (amending this SF 2506 to CONFORM to HF 2799) nls/ko 6/ 19

permanently closes any of its facilities within the state, the 1 eligible business may be subject to all of the following: 2 (1) A reduction or elimination of some or all of the tax 3 incentives the authority issued to the eligible business. 4 (2) Repayment of any tax incentives that the business 5 has claimed, and payment of any penalties assessed by the 6 department of revenue. 7 d. The end date of the agreement. 8 e. The number of new corporate jobs and retained corporate 9 jobs to be created or retained as part of the project, the 10 qualifying wage threshold applicable to the project, and the 11 date on which the authority will initially verify the eligible 12 business employs the required number of new corporate jobs and 13 retained corporate jobs. 14 f. The maximum aggregate value of the tax incentives 15 authorized by the board. 16 g. The eligible business shall only employ individuals 17 legally authorized to work in this state. If the eligible 18 business is found to knowingly employ individuals who are 19 not legally authorized to work in this state, in addition to 20 any penalties provided by law, the eligible business may be 21 required to repay all or a portion of any tax incentives the 22 authority issued to the eligible business. 23 h. A requirement that the eligible business must continue to 24 own and operate a corporate headquarters in the state until the 25 end date of the agreement as specified in paragraph “d” . 26 i. Any terms deemed necessary by the authority to effect the 27 eligible business’s ongoing compliance with section 15.602. 28 2. The board shall not amend the terms of the agreement 29 to allow an increase in the maximum aggregate value of tax 30 incentives authorized by the board under section 15.603. 31 3. The eligible business shall comply with all applicable 32 terms of the agreement until the agreement end date. An 33 eligible business shall maintain the business’s base employment 34 level until the agreement end date. 35 -7- SF 2506.4557 (2) 91 (amending this SF 2506 to CONFORM to HF 2799) nls/ko 7/ 19

4. The eligible business shall not assign the agreement 1 to another entity without the advance written approval of the 2 board. 3 5. The authority may enforce the terms of the agreement as 4 necessary and appropriate. 5 Sec. 6. NEW SECTION . 15.605 Qualifying wage tax credit. 6 1. If the authority has entered into an agreement with an 7 eligible business pursuant to section 15.604, the authority 8 may authorize a qualifying wage tax credit with the eligible 9 business for a period not to exceed three years according 10 to the start and end date specified in the agreement. The 11 authority may issue a qualifying wage tax credit to the 12 eligible business for each year of the authorized period upon 13 verification under section 15.604, subsection 1, paragraph 14 “e” , that the eligible business employed the required number 15 of employees in new corporate jobs and retained corporate jobs 16 that pay at least two hundred percent of the qualifying wage 17 threshold. The tax credit for each year of the authorized 18 period shall equal no more than the sum of all of the 19 following: 20 a. Up to fifteen percent of the gross annual wages of new 21 corporate jobs that pay at least two hundred percent of the 22 qualifying wage threshold. 23 b. Up to one percent of the gross annual wages of retained 24 corporate jobs that pay at least two hundred percent of the 25 qualifying wage threshold, not to exceed one million dollars. 26 2. A tax credit shall be allowed against the taxes imposed 27 in chapter 422, subchapters II, III, and V, and against the 28 moneys and credits tax imposed in section 533.329. 29 3. In order for a taxpayer to claim a tax credit under 30 subsection 1, a tax credit certificate issued by the authority 31 shall be included with the taxpayer’s tax return. The tax 32 credit certificate shall contain the taxpayer’s name, address, 33 tax identification number, the amount of the credit, and other 34 information required by the authority. 35 -8- SF 2506.4557 (2) 91 (amending this SF 2506 to CONFORM to HF 2799) nls/ko 8/ 19

4. An individual may claim a tax credit under subsection 1 1 on behalf of a partnership, limited liability company, 2 S corporation, estate, or trust electing to have income 3 taxed directly to the individual. The amount claimed by the 4 individual shall be based upon the pro rata share of the 5 individual’s earnings from the partnership, limited liability 6 company, S corporation, estate, or trust. 7 5. Any tax credit in excess of the taxpayer’s liability 8 for the tax year is refundable. In lieu of claiming a refund, 9 an eligible business may elect to have the overpayment shown 10 on the eligible business’s final, completed return credited 11 to the eligible business’s tax liability for the immediately 12 succeeding tax year. A tax credit shall not be carried back 13 to a tax year prior to the tax year in which the tax credit is 14 first claimed by the eligible business. 15 6. Tax credit certificates issued pursuant to this section 16 are not transferable. 17 Sec. 7. NEW SECTION . 15.606 Other incentives. 18 The authority, in its discretion, may prohibit an eligible 19 business that has been issued tax incentives under the program 20 from receiving any additional tax incentive, tax credit, 21 grant, loan, or other financial assistance under any program 22 administered by the authority. 23 Sec. 8. NEW SECTION . 422.12R Qualifying wage tax credit. 24 The taxes imposed under this subchapter, less the credits 25 allowed under section 422.12, shall be reduced by a qualifying 26 wage tax credit allowed under section 15.605. 27 Sec. 9. Section 422.33, Code 2026, is amended by adding the 28 following new subsection: 29 NEW SUBSECTION . 4. The taxes imposed under this subchapter 30 shall be reduced by a qualifying wage tax credit allowed under 31 section 15.605. 32 Sec. 10. Section 422.60, Code 2026, is amended by adding the 33 following new subsection: 34 NEW SUBSECTION . 2. The taxes imposed under this subchapter 35 -9- SF 2506.4557 (2) 91 (amending this SF 2506 to CONFORM to HF 2799) nls/ko 9/ 19

shall be reduced by a qualifying wage tax credit allowed under 1 section 15.605. 2 Sec. 11. Section 533.329, subsection 2, Code 2026, is 3 amended by adding the following new paragraph: 4 NEW PARAGRAPH . m. The moneys and credits tax imposed under 5 this section shall be reduced by a qualifying wage tax credit 6 allowed under section 15.605. 7 Sec. 12. CODE EDITOR DIRECTIVE. The Code editor is directed 8 to designate sections 15.600 through 15.606, as enacted in this 9 division of this Act, as part 37 of subchapter II. 10 DIVISION II 11 MAJOR ECONOMIC GROWTH ATTRACTION PROGRAM 12 Sec. 13. Section 15.491, subsection 12, Code 2026, is 13 amended to read as follows: 14 12. “Foreign adversary” means a the following: 15 a. A foreign government or foreign non-government person as 16 determined in 15 C.F.R. §7.4 , and that is listed in 15 C.F.R. 17 §7.4(a) at any time from March 4, 2024, through the termination 18 of the program July 17, 2024 . 19 b. A foreign government or foreign non-government person as 20 determined in 15 C.F.R. §791.4, and that is listed in 15 C.F.R. 21 §791.4 at any time from July 18, 2024, through the termination 22 of the program. 23 Sec. 14. Section 15.501, Code 2026, is amended to read as 24 follows: 25 15.501 Restrictions on board. 26 The board shall not authorize tax incentives available under 27 the program, or an exemption to restrictions on agricultural 28 land holdings pursuant to this part , for more than two eligible 29 businesses, or on or after January 1, 2027 2030 , whichever 30 occurs first. 31 DIVISION III 32 BUSINESS INCENTIVES FOR GROWTH PROGRAM TRAINING FUND 33 Sec. 15. NEW SECTION . 15.512 Training fund. 34 1. A business incentives for growth program training fund 35 -10- SF 2506.4557 (2) 91 (amending this SF 2506 to CONFORM to HF 2799) nls/ko 10/ 19

is created in the state treasury under the control of the 1 authority. An amount up to one and one-half percent of the 2 gross wages an eligible business pays to employees specified in 3 an agreement entered into pursuant to section 15.506 shall be 4 credited to the fund from the withholding payments made by an 5 eligible business pursuant to section 422.16. Such jobs shall 6 be identified by the authority as having a sufficient economic 7 impact to warrant assistance with training. 8 2. On a quarterly basis, an eligible business shall disclose 9 the amount of gross wages that qualify under subsection 1 to 10 the authority and to the department of revenue. Based upon 11 the gross wage amount provided to the authority, the authority 12 shall calculate the amount of gross wages to be deposited into 13 the fund for the quarter, and the department of revenue shall 14 deposit that amount into the fund. 15 3. Moneys in the fund shall be used to reimburse training 16 expenses incurred by an eligible business that are associated 17 with the eligible business’s project. 18 4. An eligible business’s training expenses that may be 19 eligible for reimbursement must meet all of the following 20 criteria: 21 a. The expenses are paid to a third party. 22 b. The expenses are for training that is specific to the 23 project of the eligible business and necessary for the success 24 of the project. 25 c. The expenses were incurred over the period of time 26 identified in the agreement under section 15.506, but not to 27 exceed four years. 28 d. The expenses are documented to the satisfaction of the 29 authority. 30 5. An eligible business that has been approved by the 31 authority to receive a reimbursement from the fund shall not be 32 eligible to receive any other state incentive to be used for 33 the same purpose. 34 DIVISION IV 35 -11- SF 2506.4557 (2) 91 (amending this SF 2506 to CONFORM to HF 2799) nls/ko 11/ 19

REPEAL OF THE NEW JOBS TAX CREDIT 1 Sec. 16. Section 2.48, subsection 3, paragraph e, 2 subparagraph (7), Code 2026, is amended by striking the 3 subparagraph. 4 Sec. 17. Section 422.33, subsection 6, Code 2026, is amended 5 by striking the subsection. 6 Sec. 18. REPEAL. Section 422.11A, Code 2026, is repealed. 7 Sec. 19. PRESERVATION OF EXISTING RIGHTS. This division of 8 this Act shall not limit, modify, or otherwise adversely affect 9 any amount of tax incentive issued, awarded, or allowed before 10 the effective date of this division of this Act, nor shall 11 it limit, modify, or otherwise adversely affect a taxpayer’s 12 right to claim or redeem a tax incentive issued, awarded, or 13 allowed before the effective date of this division of this Act, 14 including but not limited to any tax incentive carryforward 15 amount. 16 Sec. 20. EFFECTIVE DATE. This division of this Act, being 17 deemed of immediate importance, takes effect upon enactment. 18 DIVISION V 19 LOAD FORECASTING 20 Sec. 21. NEW SECTION . 15.120A Load forecasting report and 21 analysis of electric transmission system expansion plans. 22 To support economic development in the state, the authority 23 shall commission Iowa state university of science and 24 technology to produce a report forecasting the probable future 25 growth of the use of electricity within Iowa and within the 26 midwest region. The report shall include a load forecast and 27 an analysis of electric transmission system expansion plans. 28 The authority must commission such report from the university 29 at least every two years. In developing the report, the 30 university shall solicit the input of residential, commercial, 31 and industrial consumers and the electric industry. The 32 published report shall only rely on information provided by 33 utilities as required by section 476.2 in aggregate form and 34 exclude identifying information about an individual utility’s 35 -12- SF 2506.4557 (2) 91 (amending this SF 2506 to CONFORM to HF 2799) nls/ko 12/ 19

electric system. The load forecast and state electric 1 transmission system expansion planning analysis must be 2 published by December 31, 2028, and biennially published on or 3 before December 31 thereafter. The authority may commission 4 other reports as necessary to evaluate energy needs including 5 but not limited to natural gas. A report commissioned pursuant 6 to this section must be publicly available on the authority’s 7 internet site. 8 Sec. 22. Section 476.1A, subsection 2, Code 2026, is amended 9 to read as follows: 10 2. However, sections section 476.2, subsection 7, section 11 476.20, subsections 1 through 4, sections 476.21 , 476.51 , 12 476.56 , 476.58 , 476.62 , and 476.66 , and chapters 476A and 478 , 13 to the extent applicable, apply to such electric utilities. 14 Sec. 23. Section 476.1B, subsection 2, Code 2026, is amended 15 to read as follows: 16 2. Section 476.20, subsections 1 through 4 , Section 476.2, 17 subsection 7, section 476.20, subsections 1 through 4, sections 18 476.51 , 476.56 , 476.58 , 476.62 , and 476.66 , and chapters 476A 19 and 478 , to the extent applicable, apply to such electric and 20 gas utilities. 21 Sec. 24. Section 476.2, Code 2026, is amended by adding the 22 following new subsection: 23 NEW SUBSECTION . 7. The commission shall have the authority 24 to compel all public utilities to share with Iowa state 25 university of science and technology the utility’s information 26 necessary to develop state load forecasts and state electric 27 transmission system expansion planning analysis pursuant to 28 section 15.120A. A public utility may use a third party 29 to prepare such information to be shared with Iowa state 30 university of science and technology. A public utility may 31 enter into a nondisclosure agreement with Iowa state university 32 of science and technology requiring the shared information be 33 kept confidential if the public utility reasonably believes 34 the information is a confidential record pursuant to section 35 -13- SF 2506.4557 (2) 91 (amending this SF 2506 to CONFORM to HF 2799) nls/ko 13/ 19

22.7. The state load forecast and state electric transmission 1 system expansion planning aggregate analysis published pursuant 2 to section 15.120A may be used as evidentiary support in any 3 proceedings before the commission, provided the confidentiality 4 of any information provided by a public utility is maintained. 5 Sec. 25. NEW SECTION . 476.10C Load forecasts and analyses 6 of state electric transmission system expansion plans —— fund. 7 1. An electric transmission system expansion plans analysis 8 and load forecasting fund is created in the state treasury 9 under the control of the economic development authority. The 10 commission shall direct all electric utilities to remit to the 11 treasurer of state for deposit in the electric transmission 12 system expansion plans analysis and load forecasting fund not 13 more than two one-hundredths of one percent of the total gross 14 operating revenues during the last calendar year derived from 15 the utilities’ intrastate public utility operations. Moneys in 16 the fund are appropriated to the economic development authority 17 to be used for the purposes of commissioning a report pursuant 18 to section 15.120A. Notwithstanding section 8.33, moneys in 19 the fund that remain unencumbered or unobligated at the close 20 of a fiscal year shall not revert but shall remain available 21 for expenditure for the purposes designated. Notwithstanding 22 section 12C.7, subsection 2, interest or earnings on moneys in 23 the fund shall be credited to the fund. 24 2. The commission shall, by rule, establish a maximum 25 amount of remittances in aggregate and provide a schedule 26 for remittances. The remittances collected pursuant to this 27 section shall be in addition to the assessments permitted 28 pursuant to section 476.10. The commission shall allow 29 inclusion of these remittances in the budgets approved by the 30 commission pursuant to section 476.6, subsection 15, paragraph 31 “c” , but such remittances shall not be included when computing 32 the projected cumulative average annual cost for an electric 33 utility’s energy efficiency plan and demand response plan under 34 section 476.6, subsection 15, paragraph “c” . 35 -14- SF 2506.4557 (2) 91 (amending this SF 2506 to CONFORM to HF 2799) nls/ko 14/ 19

DIVISION VI 1 IOWA INDUSTRIAL NEW JOBS TRAINING PROGRAM 2 Sec. 26. Section 260E.2, subsection 10, Code 2026, is 3 amended by striking the subsection and inserting in lieu 4 thereof the following: 5 10. “New job” means a new, permanent, full-time equivalent 6 position added to an employer’s payroll, at the location of the 7 employer’s project, in excess of the employer’s base employment 8 level. 9 Sec. 27. Section 260E.3, subsection 2, Code 2026, is amended 10 to read as follows: 11 2. a. Payment For an agreement entered into on or 12 before June 30, 2026, payment of program costs shall not be 13 deferred for a period longer than ten years from the date of 14 commencement of the project , and the agreed upon period shall 15 not be extended . 16 b. For an agreement entered into on or after July 1, 2026, 17 payment of program costs shall not be deferred for a period 18 longer than seven years from the date of commencement of the 19 project. 20 Sec. 28. Section 260E.3, Code 2026, is amended by adding the 21 following new subsection: 22 NEW SUBSECTION . 6. Upon receipt of a notice that a 23 community college and an employer have entered into an 24 agreement, the department of revenue shall provide a copy of 25 the agreement to the department of workforce development for 26 review. The department of workforce development may provide 27 feedback regarding the agreement to the department of revenue 28 within seven calendar days after the date of receipt of the 29 copy of the agreement. The department of revenue must share 30 any such feedback with the community college. 31 Sec. 29. Section 260E.5, Code 2026, is amended by adding the 32 following new subsection: 33 NEW SUBSECTION . 7. A bond issued to a community college 34 for a project shall not exceed seventy percent of total program 35 -15- SF 2506.4557 (2) 91 (amending this SF 2506 to CONFORM to HF 2799) nls/ko 15/ 19

costs related to training expenses. 1 Sec. 30. Section 260E.7, Code 2026, is amended by adding the 2 following new subsection: 3 NEW SUBSECTION . 4. A community college that receives 4 a new jobs credit from withholding under section 260E.5 5 shall annually report a detailed accounting of the community 6 college’s bond interest to the department of workforce 7 development, the department of education, and the department 8 of revenue. 9 Sec. 31. NEW SECTION . 260E.8 Eligible program costs. 10 To be eligible to receive a new jobs credit from withholding, 11 a community college must document to the satisfaction of the 12 department that the community college’s program costs meet all 13 of the following criteria: 14 1. The program costs are incurred over the period of time 15 specified in the agreement under section 260E.3. 16 2. The program costs are not incurred to reimburse travel, 17 conferences, or legal fees. 18 3. Administrative expenses account for no more than fifteen 19 percent of the program costs. 20 4. The program costs are not incurred for a project that 21 leads directly to a professional degree in medicine, law, 22 accounting, or other professional area, or a project that 23 includes onboarding or basic computer skills. 24 Sec. 32. IOWA INDUSTRIAL NEW JOBS TRAINING PROGRAM INTERIM 25 STUDY COMMITTEE. 26 1. The legislative council is requested to establish an 27 interim study committee to meet during the 2026 legislative 28 interim to review the new jobs training program and make 29 recommendations regarding the program. 30 2. The membership of the committee shall consist of, at a 31 minimum: 32 a. Three members of the senate, two republicans and one 33 democrat, appointed by the majority leader of the senate. 34 b. Three members of the house of representatives, two 35 -16- SF 2506.4557 (2) 91 (amending this SF 2506 to CONFORM to HF 2799) nls/ko 16/ 19

republicans and one democrat, appointed by the speaker of the 1 house of representatives. 2 c. Three representatives of community colleges located 3 within the state. 4 d. A representative of the Iowa economic development 5 authority. 6 e. A representative of the department of workforce 7 development. 8 f. Three business owners who have participated in the new 9 jobs training program. 10 g. One business owner who has not participated in the new 11 jobs training program. 12 h. A representative of the office of the governor. 13 i. A local director of economic development. 14 3. The interim study committee shall do all of the 15 following: 16 a. Review the new jobs training program, including but not 17 limited to all of the following: 18 (1) The original objectives of the program, and an 19 evaluation of whether the objectives are aligned with the 20 current workforce needs in the state. 21 (2) The number of jobs created as a result of the program. 22 (3) Wage increases for participants in the program prior to 23 and after participating in the program. 24 (4) Employee retention rates for employers participating 25 in the program. 26 (5) The financial impact of the program, including an 27 evaluation of the cost-effectiveness of the program, a 28 comparison of state funding versus economic output and job 29 creation, and an assessment of the return on investment for the 30 state and businesses that participate in the program. 31 (6) The quality and relevance of the training programs that 32 are offered, including whether each training program meets 33 industry standards and needs, and whether participants in the 34 training gain necessary skills to succeed in each participant’s 35 -17- SF 2506.4557 (2) 91 (amending this SF 2506 to CONFORM to HF 2799) nls/ko 17/ 19

job. 1 (7) The effectiveness of the program in targeting 2 industries with the highest demand for skilled labor. 3 (8) Sectors that may require more focus and support from the 4 program. 5 b. Gather qualitative data through surveys or interviews 6 with program participants, and identify the strengths 7 and weaknesses of the new jobs training program from the 8 perspective of the participants. 9 c. Review partnerships with community colleges and training 10 providers to evaluate whether the partnerships are effective in 11 delivering relevant training, and identify ways to strengthen 12 or expand partnerships. 13 d. Assess the effectiveness of the program’s compliance 14 monitoring and oversight of the use of program funds and 15 participants’ adherence to the program requirements. 16 e. Compare the benefit that employers receive from 17 participating in the program to the benefits available to the 18 same employers through other incentive programs. 19 f. Review how community colleges participating in the 20 program use bond interest. 21 g. Evaluate whether skills gained by employees through the 22 program are transferable. 23 h. Review the program’s payment mechanism. 24 4. Meetings of the interim study committee may be held 25 electronically or in person, provided that the final meeting of 26 the interim study committee is held in person. 27 5. The interim study committee shall submit a report 28 detailing the committee’s findings and recommendations to the 29 general assembly no later than December 15, 2026. 30 6. The interim study committee shall hold the committee’s 31 first meeting on or before August 1, 2026. > 32 2. Title page, by striking lines 1 through 14 and inserting 33 < An Act relating to matters under the purview of the economic 34 development authority, the utilities commission, and the 35 -18- SF 2506.4557 (2) 91 (amending this SF 2506 to CONFORM to HF 2799) nls/ko 18/ 19

department of education, including creation of the headquarters 1 expansion and development for growth and employment program, 2 and the business incentives for growth program training fund; 3 repeal of the new jobs tax credit program; the major economic 4 growth attraction program; load forecasting and analysis of 5 electric transmission system expansion plans; creation of the 6 electric transmission system expansion planning and analysis 7 and load forecasting fund; the industrial new jobs training 8 program; and establishing the new jobs training program interim 9 study committee; and including effective date provisions. > 10 ______________________________ MIKE BOUSSELOT -19- SF 2506.4557 (2) 91 (amending this SF 2506 to CONFORM to HF 2799) nls/ko 19/ 19