SF 2373 (LSB 5891SV (1) 91)

SENATE FILE 2373

BY  COMMITTEE ON LOCAL GOVERNMENT

(SUCCESSOR TO SF 2252)

A BILL FOR

An Act modifying the major economic growth attraction program to include incentivizing the building of a professional sports stadium by a national football league franchise in the state.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 15.491, Code 2026, is amended by adding the following new subsections:
   NEW SUBSECTION.  4A.  “Business affiliate” means an entity that joins with or is an affiliate of a business and invests or participates in the investment in a sports stadium.
   NEW SUBSECTION.  24A.  “Sports stadium” means a facility, stadium, arena, or other structure where national football league games are held.
    Sec. 2.  Section 15.492, subsection 1, paragraph a, Code 2026, is amended to read as follows:
   a.  The business’s proposed project must be located on a site where the business has a controlling interest in, or a certified site greater than two hundred fifty acres, or a certified site where a sports stadium may be built. The authority must determine a site is suitable for the project.
    Sec. 3.  Section 15.492, subsection 1, paragraph d, Code 2026, is amended to read as follows:
   d.  (1)  (a)  The business must be primarily engaged in advanced manufacturing, biosciences, or research and development, or must be a business specified in subparagraph (2). The business shall not be a data center business, a retail business, or a business where a cover charge or membership requirement restricts certain individuals from entering the business.
   (2)  (b)  Factors the authority shall consider to determine if a business is primarily engaged in advanced manufacturing, biosciences, or research and development shall include but are not limited to all of the following:
   (a)  (i)  The business’s North American industry classification system code.
   (b)  (ii)  The business’s main sources of revenue.
   (c)  (iii)  The business’s customer base.
   (2)  The business is comprised of one or more entities building a sports stadium. For purposes of this subparagraph, the term “business” includes a business affiliate.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill modifies the major economic growth attraction (MEGA) program to include incentivizing the building of a professional sports stadium by a national football league franchise in the state.
   Currently, the MEGA program provides economic development incentives designed to attract capital investments from businesses who invest at least $1 billion in the state and who are primarily engaged in advanced manufacturing, biosciences, or research and development. The bill expands the MEGA program to provide economic development incentives to a national football league franchise building a professional sports stadium in the state. The business incentives include sales and use tax refunds, qualifying investment tax credits, withholding tax credits, and other state tax incentives if authorized by the economic development authority.
   The bill defines “sports stadium” to mean a facility, stadium, arena, or other structure where national football league games are held.
   Currently, tax incentives under the MEGA program may not be awarded for more than two eligible businesses or after January 1, 2027, whichever comes first.