Senate File 2373 - Introduced SENATE FILE 2373 BY COMMITTEE ON LOCAL GOVERNMENT (SUCCESSOR TO SF 2252) A BILL FOR An Act modifying the major economic growth attraction program 1 to include incentivizing the building of a professional 2 sports stadium by a national football league franchise in 3 the state. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5891SV (1) 91 jm/jh

S.F. 2373 Section 1. Section 15.491, Code 2026, is amended by adding 1 the following new subsections: 2 NEW SUBSECTION . 4A. “Business affiliate” means an entity 3 that joins with or is an affiliate of a business and invests or 4 participates in the investment in a sports stadium. 5 NEW SUBSECTION . 24A. “Sports stadium” means a facility, 6 stadium, arena, or other structure where national football 7 league games are held. 8 Sec. 2. Section 15.492, subsection 1, paragraph a, Code 9 2026, is amended to read as follows: 10 a. The business’s proposed project must be located on a 11 site where the business has a controlling interest in , or 12 a certified site greater than two hundred fifty acres , or 13 a certified site where a sports stadium may be built . The 14 authority must determine a site is suitable for the project. 15 Sec. 3. Section 15.492, subsection 1, paragraph d, Code 16 2026, is amended to read as follows: 17 d. (1) (a) The business must be primarily engaged 18 in advanced manufacturing, biosciences, or research and 19 development , or must be a business specified in subparagraph 20 (2) . The business shall not be a data center business, 21 a retail business, or a business where a cover charge or 22 membership requirement restricts certain individuals from 23 entering the business. 24 (2) (b) Factors the authority shall consider to determine 25 if a business is primarily engaged in advanced manufacturing, 26 biosciences, or research and development shall include but are 27 not limited to all of the following: 28 (a) (i) The business’s North American industry 29 classification system code. 30 (b) (ii) The business’s main sources of revenue. 31 (c) (iii) The business’s customer base. 32 (2) The business is comprised of one or more entities 33 building a sports stadium. For purposes of this subparagraph, 34 the term “business” includes a business affiliate. 35 -1- LSB 5891SV (1) 91 jm/jh 1/ 2

S.F. 2373 EXPLANATION 1 The inclusion of this explanation does not constitute agreement with 2 the explanation’s substance by the members of the general assembly. 3 This bill modifies the major economic growth attraction 4 (MEGA) program to include incentivizing the building of a 5 professional sports stadium by a national football league 6 franchise in the state. 7 Currently, the MEGA program provides economic development 8 incentives designed to attract capital investments from 9 businesses who invest at least $1 billion in the state and who 10 are primarily engaged in advanced manufacturing, biosciences, 11 or research and development. The bill expands the MEGA 12 program to provide economic development incentives to a 13 national football league franchise building a professional 14 sports stadium in the state. The business incentives include 15 sales and use tax refunds, qualifying investment tax credits, 16 withholding tax credits, and other state tax incentives if 17 authorized by the economic development authority. 18 The bill defines “sports stadium” to mean a facility, 19 stadium, arena, or other structure where national football 20 league games are held. 21 Currently, tax incentives under the MEGA program may not be 22 awarded for more than two eligible businesses or after January 23 1, 2027, whichever comes first. 24 -2- LSB 5891SV (1) 91 jm/jh 2/ 2