H.F. 2198 Section 1. Section 422.20, subsection 3, paragraph a, Code 1 2026, is amended to read as follows: 2 a. Unless otherwise expressly permitted by section 8G.4 , 3 section 11.41 , section 96.11, subsection 6 , section 421.17, 4 subsections 22, 23, and 26 , section 421.17, subsection 27 , 5 paragraph “k” , section 421.17, subsection 31 , section 252B.9 , 6 section 321.40, subsection 6 , sections 321.120 , 421.19 , 421.28 , 7 421.59 , 421.65 , 422.72 , section 423.3, subsections 92, 93, 8 and 95, section 423.4, subsections 7 and 8, section 452A.63 , 9 and 556.19, subsection 2 , this section , or another provision 10 of law, a tax return, return information, or investigative 11 or audit information shall not be divulged to any person 12 or entity, other than the taxpayer, the department, or 13 internal revenue service for use in a matter unrelated to tax 14 administration. 15 Sec. 2. Section 423.3, subsection 92, paragraph b, 16 subparagraph (5), Code 2026, is amended to read as follows: 17 (5) (a) The web search portal business shall register 18 with the department as a web search portal. To maintain its 19 registration, the web search portal business shall file an 20 annual report with the department, by January 31, 2026, and by 21 each January 31 thereafter. The annual report shall describe 22 the aggregate sales price amount of backup power generation 23 fuel and electricity purchased and the amount used in the 24 previous calendar year for the purposes described in paragraph 25 “a” , subparagraphs (2) and (3), and any other information the 26 department requires. 27 (b) Beginning with an annual report due on or after January 28 31, 2027, the annual report shall also contain the aggregate 29 sales price amount of exempt property purchased under paragraph 30 “a” , subparagraph (1). 31 (c) (i) For annual reports due on or after January 31, 32 2027, the department of revenue shall estimate the amount of 33 tax saved under this subchapter by the business solely based 34 upon the aggregate sales price amounts disclosed in the annual 35 -1- LSB 5416YH (2) 91 jm/jh 1/ 5

H.F. 2198 report. 1 (ii) The name of the web search portal business filing 2 the annual report and the amount of estimated tax saved that 3 is described in this subparagraph division shall be a public 4 record on or after January 31, 2027. 5 Sec. 3. Section 423.3, subsection 93, paragraph b, 6 subparagraph (5), Code 2026, is amended to read as follows: 7 (5) (a) The web search portal business shall register with 8 the department as a web search portal business. To maintain 9 its registration, the web search portal business shall file an 10 annual report with the department, by January 31, 2026, and by 11 each January 31 thereafter. The annual report shall describe 12 the aggregate sales price amount of backup power generation 13 fuel and electricity purchased and the amount used in the 14 previous calendar year for the purposes described in paragraph 15 “a” , subparagraphs (2) and (3), and any other information the 16 department requires. 17 (b) Beginning with an annual report due on or after January 18 31, 2027, the annual report shall contain the aggregate sales 19 price amount of exempt property purchased under paragraph “a” , 20 subparagraph (1). 21 (c) (i) For annual reports due on or after January 31, 22 2027, the department of revenue shall estimate the amount of 23 tax saved under this subchapter by the business solely based 24 upon the aggregate sales price amounts disclosed in the annual 25 report. 26 (ii) The name of the web search portal business filing 27 the annual report and the amount of estimated tax saved that 28 is described in this subparagraph division shall be a public 29 record on or after January 31, 2027. 30 Sec. 4. Section 423.3, subsection 95, paragraph b, 31 subparagraph (5), Code 2026, is amended to read as follows: 32 (5) (a) The data center business shall register with 33 the department as a data center business. To maintain its 34 registration, the data center business shall file an annual 35 -2- LSB 5416YH (2) 91 jm/jh 2/ 5

H.F. 2198 report with the department, by January 31, 2026, and by each 1 January 31 thereafter. The annual report shall describe the 2 aggregate sales price amount of backup power generation fuel 3 and electricity purchased in the previous calendar year for the 4 purposes described in paragraph “a” , subparagraphs (2) and (3), 5 and any other information the department requires. 6 (b) Beginning with an annual report due on or after January 7 31, 2027, the annual report shall also contain the aggregate 8 sales price amount of exempt property purchased under paragraph 9 “a” , subparagraph (1). 10 (c) (i) For annual reports due on or after January 31, 11 2027, the department of revenue shall estimate the amount of 12 tax saved under this subchapter by the business solely based 13 upon the aggregate sales price amounts disclosed in the annual 14 report. 15 (ii) The name of the data center business filing the annual 16 report and the amount of estimated tax saved that is described 17 in this subparagraph division shall be a public record on or 18 after January 31, 2027. 19 Sec. 5. Section 423.4, subsection 7, Code 2026, is amended 20 by adding the following new paragraph: 21 NEW PARAGRAPH . 0g. The name of the owner of a data center 22 business and the annual amount of sales and use tax refunds 23 that are provided to the data center business under this 24 subsection shall be considered a public record on or after 25 January 1, 2027. 26 Sec. 6. Section 423.4, subsection 8, Code 2026, is amended 27 by adding the following new paragraph: 28 NEW PARAGRAPH . 0h. The name of the owner of a data center 29 business and the annual amount of sales and use tax refunds 30 that are provided to the data center business under this 31 subsection shall be considered a public record on or after 32 January 1, 2027. 33 Sec. 7. 2025 Iowa Acts, chapter 155, section 4, is amended 34 to read as follows: 35 -3- LSB 5416YH (2) 91 jm/jh 3/ 5

H.F. 2198 SEC. 4. FINANCIAL ASSISTANCE REPORTING —— ECONOMIC 1 DEVELOPMENT AUTHORITY. 2 1. The economic development authority shall submit an 3 annual report to the general assembly no later than November 1, 4 2025, that details the amount of every direct loan, forgivable 5 loan, tax credit, tax exemption, tax refund, grant, or any 6 other financial assistance awarded to a person during the prior 7 fiscal year by the authority under an economic development 8 program administered by the authority. The report shall 9 identify the county where the project associated with each such 10 award is located. 11 2. Notwithstanding any other Code provision to the 12 contrary, the tax incentives described in subsection 1 that 13 are provided to a web search portal business or a data center 14 business shall be posted and maintained on the economic 15 development authority’s internet site in a searchable database 16 for public viewing within thirty days of the effective date of 17 this subsection of this Act. The searchable database shall 18 include the name of the web search portal business or data 19 center business and the aggregate amount of tax incentives 20 received by such a business disclosed in the report. For 21 purposes of this subsection, “web search portal business” means 22 the same as defined in section 423.3, subsection 92 or 93, and 23 “data center business” means the same as defined in section 24 423.3, subsection 95. 25 Sec. 8. EFFECTIVE DATE. The following, being deemed of 26 immediate importance, takes effect upon enactment: 27 The section of this Act amending 2025 Iowa Acts, chapter 155, 28 section 4. 29 EXPLANATION 30 The inclusion of this explanation does not constitute agreement with 31 the explanation’s substance by the members of the general assembly. 32 This bill relates to the disclosure of tax incentives 33 provided to web search portal businesses and data center 34 businesses (business). 35 -4- LSB 5416YH (2) 91 jm/jh 4/ 5

H.F. 2198 Currently, beginning January 31, 2026, and by each 1 January 31 thereafter, a business receiving sales and use 2 tax incentives is required to file an annual report with the 3 department of revenue (DOR). The annual report shall describe 4 the aggregate sales price amount of fuel or electricity 5 purchased that is exempt from sales and use tax in the previous 6 calendar year. 7 For annual reports filed on or after January 31, 2027, the 8 bill requires the annual report to contain the aggregate sales 9 price amount of all items exempt from sales and use taxes 10 purchased by the business. The bill requires DOR to estimate 11 the amount of sales and use taxes saved by the business solely 12 based upon the aggregate sales price amounts disclosed in 13 the annual report to DOR in annual reports filed on or after 14 January 31, 2027. The bill specifies the name of the business 15 and the amount of estimated tax saved by the business shall be 16 a public record on or after January 31, 2027. 17 Currently, a business is entitled to a sales and use tax 18 refund under certain circumstances under Code section 423.4(7) 19 and (8). The bill makes the name of the business and the amount 20 of such a refund a public record on or after January 1, 2027. 21 The bill amends 2025 Iowa Acts, chapter 155, section 4, 22 enacted during the 2025 legislative session. The amendment 23 requires the economic development authority to aggregate and 24 post all tax incentives provided to a business in a searchable 25 database for public viewing on the authority’s internet site 26 within 30 days of the effective date of this provision. The 27 provision takes effect upon enactment. 28 -5- LSB 5416YH (2) 91 jm/jh 5/ 5