House File 872 - Introduced HOUSE FILE 872 BY COMMITTEE ON ECONOMIC GROWTH AND TECHNOLOGY (SUCCESSOR TO HF 112) A BILL FOR An Act relating to the maximum annual gross income for an 1 enterprise to qualify as a targeted small business. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1259HV (3) 91 nls/ko

H.F. 872 Section 1. Section 15.102, subsection 12, paragraph a, Code 1 2025, is amended to read as follows: 2 a. “Targeted small business” means a small business any 3 enterprise which is fifty-one percent or more owned, operated, 4 and actively managed by one or more women, minority persons, 5 service-disabled veterans, or persons with a disability 6 provided the business enterprise meets all of the following 7 requirements: 8 (1) Is located in this state. 9 (2) Is operated for profit and under a single management . 10 (3) Has either fewer than twenty employees or an annual 11 gross income of less than four ten million dollars computed as 12 an average of the three preceding fiscal years. 13 EXPLANATION 14 The inclusion of this explanation does not constitute agreement with 15 the explanation’s substance by the members of the general assembly. 16 This bill relates to the maximum annual gross income for 17 an enterprise to qualify as a targeted small business. Under 18 the bill, an enterprise must have an annual gross income of 19 less than $10 million to qualify as a targeted small business. 20 Under current law, the maximum is $4 million. 21 -1- LSB 1259HV (3) 91 nls/ko 1/ 1