House File 2799 - Reprinted HOUSE FILE 2799 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HSB 755) (As Amended and Passed by the House May 3, 2026 ) A BILL FOR An Act relating to matters under the purview of the economic 1 development authority, the utilities commission, and 2 the department of education, including creation of the 3 headquarters expansion and development for growth and 4 employment program, and the business incentives for growth 5 program training fund; repeal of the new jobs tax credit 6 program; the major economic growth attraction program; load 7 forecasting and analysis of electric transmission system 8 expansion plans; creation of the electric transmission 9 system expansion planning and analysis and load forecasting 10 fund; the industrial new jobs training program; and 11 establishing the new jobs training program interim study 12 committee; and including effective date provisions. 13 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 14 HF 2799 (4) 91 nls/ko/MD

H.F. 2799 DIVISION I 1 HEADQUARTERS EXPANSION AND DEVELOPMENT FOR GROWTH EMPLOYMENT 2 PROGRAM 3 Section 1. NEW SECTION . 15.600 Short title. 4 This part shall be known and may be cited as the 5 “Headquarters Expansion and Development for Growth and Employment 6 Program” , or “EDGE Program” . 7 Sec. 2. NEW SECTION . 15.601 Definitions. 8 As used in this part, unless the context otherwise requires: 9 1. “Agreement” means an agreement entered into by an 10 eligible business and the authority pursuant to section 15.604. 11 2. “Base employment level” means the number of full-time 12 equivalent positions at a business, as established by the 13 authority and the business based on the business’s payroll 14 records, on the date the business applies for the program. 15 3. “Benefits” means nonwage compensation provided to an 16 employee. “Benefits” include medical and dental insurance, a 17 pension, a retirement plan, a profit-sharing plan, child care, 18 life insurance, vision insurance, and disability insurance. 19 4. “Community” means a city or county in the state. 20 5. “Corporate headquarters” means a location in the 21 state that serves as the principal executive office or 22 houses the core administrative operations for a business, 23 and that includes executive leadership offices, strategic 24 decision-making functions, and administrative and support staff 25 employees. 26 6. “Corporate job” means a position based at a corporate 27 headquarters that involves strategic planning, executive 28 decision-making, or core administrative functions. 29 7. “Created jobs” or “create jobs” means new, permanent, 30 full-time equivalent positions added to an eligible business’s 31 payroll, at the location of the eligible business’s project, in 32 excess of the eligible business’s base employment level. 33 8. “Data center business” means the same as defined in 34 section 423.3, subsection 95. 35 -1- HF 2799 (4) 91 nls/ko/MD 1/ 18

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

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

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

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

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

H.F. 2799 incentives the authority issued to the eligible business. 1 (2) Repayment of any tax incentives that the business 2 has claimed, and payment of any penalties assessed by the 3 department of revenue. 4 d. The end date of the agreement. 5 e. The number of new corporate jobs and retained corporate 6 jobs to be created or retained as part of the project, the 7 qualifying wage threshold applicable to the project, and the 8 date on which the authority will initially verify the eligible 9 business employs the required number of new corporate jobs and 10 retained corporate jobs. 11 f. The maximum aggregate value of the tax incentives 12 authorized by the board. 13 g. The eligible business shall only employ individuals 14 legally authorized to work in this state. If the eligible 15 business is found to knowingly employ individuals who are 16 not legally authorized to work in this state, in addition to 17 any penalties provided by law, the eligible business may be 18 required to repay all or a portion of any tax incentives the 19 authority issued to the eligible business. 20 h. A requirement that the eligible business must continue to 21 own and operate a corporate headquarters in the state until the 22 end date of the agreement as specified in paragraph “d” . 23 i. Any terms deemed necessary by the authority to effect the 24 eligible business’s ongoing compliance with section 15.602. 25 2. The board shall not amend the terms of the agreement 26 to allow an increase in the maximum aggregate value of tax 27 incentives authorized by the board under section 15.603. 28 3. The eligible business shall comply with all applicable 29 terms of the agreement until the agreement end date. An 30 eligible business shall maintain the business’s base employment 31 level until the agreement end date. 32 4. The eligible business shall not assign the agreement 33 to another entity without the advance written approval of the 34 board. 35 -7- HF 2799 (4) 91 nls/ko/MD 7/ 18

H.F. 2799 5. The authority may enforce the terms of the agreement as 1 necessary and appropriate. 2 Sec. 6. NEW SECTION . 15.605 Qualifying wage tax credit. 3 1. If the authority has entered into an agreement with an 4 eligible business pursuant to section 15.604, the authority 5 may authorize a qualifying wage tax credit with the eligible 6 business for a period not to exceed three years according 7 to the start and end date specified in the agreement. The 8 authority may issue a qualifying wage tax credit to the 9 eligible business for each year of the authorized period upon 10 verification under section 15.604, subsection 1, paragraph 11 “e” , that the eligible business employed the required number 12 of employees in new corporate jobs and retained corporate jobs 13 that pay at least two hundred percent of the qualifying wage 14 threshold. The tax credit for each year of the authorized 15 period shall equal no more than the sum of all of the 16 following: 17 a. Up to fifteen percent of the gross annual wages of new 18 corporate jobs that pay at least two hundred percent of the 19 qualifying wage threshold. 20 b. Up to one percent of the gross annual wages of retained 21 corporate jobs that pay at least two hundred percent of the 22 qualifying wage threshold, not to exceed one million dollars. 23 2. A tax credit shall be allowed against the taxes imposed 24 in chapter 422, subchapters II, III, and V, and against the 25 moneys and credits tax imposed in section 533.329. 26 3. In order for a taxpayer to claim a tax credit under 27 subsection 1, a tax credit certificate issued by the authority 28 shall be included with the taxpayer’s tax return. The tax 29 credit certificate shall contain the taxpayer’s name, address, 30 tax identification number, the amount of the credit, and other 31 information required by the authority. 32 4. An individual may claim a tax credit under subsection 33 1 on behalf of a partnership, limited liability company, 34 S corporation, estate, or trust electing to have income 35 -8- HF 2799 (4) 91 nls/ko/MD 8/ 18

H.F. 2799 taxed directly to the individual. The amount claimed by the 1 individual shall be based upon the pro rata share of the 2 individual’s earnings from the partnership, limited liability 3 company, S corporation, estate, or trust. 4 5. Any tax credit in excess of the taxpayer’s liability 5 for the tax year is refundable. In lieu of claiming a refund, 6 an eligible business may elect to have the overpayment shown 7 on the eligible business’s final, completed return credited 8 to the eligible business’s tax liability for the immediately 9 succeeding tax year. A tax credit shall not be carried back 10 to a tax year prior to the tax year in which the tax credit is 11 first claimed by the eligible business. 12 6. Tax credit certificates issued pursuant to this section 13 are not transferable. 14 Sec. 7. NEW SECTION . 15.606 Other incentives. 15 The authority, in its discretion, may prohibit an eligible 16 business that has been issued tax incentives under the program 17 from receiving any additional tax incentive, tax credit, 18 grant, loan, or other financial assistance under any program 19 administered by the authority. 20 Sec. 8. NEW SECTION . 422.12R Qualifying wage tax credit. 21 The taxes imposed under this subchapter, less the credits 22 allowed under section 422.12, shall be reduced by a qualifying 23 wage tax credit allowed under section 15.605. 24 Sec. 9. Section 422.33, Code 2026, is amended by adding the 25 following new subsection: 26 NEW SUBSECTION . 4. The taxes imposed under this subchapter 27 shall be reduced by a qualifying wage tax credit allowed under 28 section 15.605. 29 Sec. 10. Section 422.60, Code 2026, is amended by adding the 30 following new subsection: 31 NEW SUBSECTION . 2. The taxes imposed under this subchapter 32 shall be reduced by a qualifying wage tax credit allowed under 33 section 15.605. 34 Sec. 11. Section 533.329, subsection 2, Code 2026, is 35 -9- HF 2799 (4) 91 nls/ko/MD 9/ 18

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

H.F. 2799 an agreement entered into pursuant to section 15.506 shall be 1 credited to the fund from the withholding payments made by an 2 eligible business pursuant to section 422.16. Such jobs shall 3 be identified by the authority as having a sufficient economic 4 impact to warrant assistance with training. 5 2. On a quarterly basis, an eligible business shall disclose 6 the amount of gross wages that qualify under subsection 1 to 7 the authority and to the department of revenue. Based upon 8 the gross wage amount provided to the authority, the authority 9 shall calculate the amount of gross wages to be deposited into 10 the fund for the quarter, and the department of revenue shall 11 deposit that amount into the fund. 12 3. Moneys in the fund shall be used to reimburse training 13 expenses incurred by an eligible business that are associated 14 with the eligible business’s project. 15 4. An eligible business’s training expenses that may be 16 eligible for reimbursement must meet all of the following 17 criteria: 18 a. The expenses are paid to a third party. 19 b. The expenses are for training that is specific to the 20 project of the eligible business and necessary for the success 21 of the project. 22 c. The expenses were incurred over the period of time 23 identified in the agreement under section 15.506, but not to 24 exceed four years. 25 d. The expenses are documented to the satisfaction of the 26 authority. 27 5. An eligible business that has been approved by the 28 authority to receive a reimbursement from the fund shall not be 29 eligible to receive any other state incentive to be used for 30 the same purpose. 31 DIVISION IV 32 REPEAL OF THE NEW JOBS TAX CREDIT 33 Sec. 16. Section 2.48, subsection 3, paragraph e, 34 subparagraph (7), Code 2026, is amended by striking the 35 -11- HF 2799 (4) 91 nls/ko/MD 11/ 18

H.F. 2799 subparagraph. 1 Sec. 17. Section 422.33, subsection 6, Code 2026, is amended 2 by striking the subsection. 3 Sec. 18. REPEAL. Section 422.11A, Code 2026, is repealed. 4 Sec. 19. PRESERVATION OF EXISTING RIGHTS. This division of 5 this Act shall not limit, modify, or otherwise adversely affect 6 any amount of tax incentive issued, awarded, or allowed before 7 the effective date of this division of this Act, nor shall 8 it limit, modify, or otherwise adversely affect a taxpayer’s 9 right to claim or redeem a tax incentive issued, awarded, or 10 allowed before the effective date of this division of this Act, 11 including but not limited to any tax incentive carryforward 12 amount. 13 Sec. 20. EFFECTIVE DATE. This division of this Act, being 14 deemed of immediate importance, takes effect upon enactment. 15 DIVISION V 16 LOAD FORECASTING 17 Sec. 21. NEW SECTION . 15.120A Load forecasting report and 18 analysis of electric transmission system expansion plans. 19 To support economic development in the state, the authority 20 shall commission Iowa state university of science and 21 technology to produce a report forecasting the probable future 22 growth of the use of electricity within Iowa and within the 23 midwest region. The report shall include a load forecast and 24 an analysis of electric transmission system expansion plans. 25 The authority must commission such report from the university 26 at least every two years. In developing the report, the 27 university shall solicit the input of residential, commercial, 28 and industrial consumers and the electric industry. The 29 published report shall only rely on information provided by 30 utilities as required by section 476.2 in aggregate form and 31 exclude identifying information about an individual utility’s 32 electric system. The load forecast and state electric 33 transmission system expansion planning analysis must be 34 published by December 31, 2028, and biennially published on or 35 -12- HF 2799 (4) 91 nls/ko/MD 12/ 18

H.F. 2799 before December 31 thereafter. The authority may commission 1 other reports as necessary to evaluate energy needs including 2 but not limited to natural gas. A report commissioned pursuant 3 to this section must be publicly available on the authority’s 4 internet site. 5 Sec. 22. Section 476.1A, subsection 2, Code 2026, is amended 6 to read as follows: 7 2. However, sections section 476.2, subsection 7, section 8 476.20, subsections 1 through 4, sections 476.21 , 476.51 , 9 476.56 , 476.58 , 476.62 , and 476.66 , and chapters 476A and 478 , 10 to the extent applicable, apply to such electric utilities. 11 Sec. 23. Section 476.1B, subsection 2, Code 2026, is amended 12 to read as follows: 13 2. Section 476.20, subsections 1 through 4 , Section 476.2, 14 subsection 7, section 476.20, subsections 1 through 4, sections 15 476.51 , 476.56 , 476.58 , 476.62 , and 476.66 , and chapters 476A 16 and 478 , to the extent applicable, apply to such electric and 17 gas utilities. 18 Sec. 24. Section 476.2, Code 2026, is amended by adding the 19 following new subsection: 20 NEW SUBSECTION . 7. The commission shall have the authority 21 to compel all public utilities to share with Iowa state 22 university of science and technology the utility’s information 23 necessary to develop state load forecasts and state electric 24 transmission system expansion planning analysis pursuant to 25 section 15.120A. A public utility may use a third party 26 to prepare such information to be shared with Iowa state 27 university of science and technology. A public utility may 28 enter into a nondisclosure agreement with Iowa state university 29 of science and technology requiring the shared information be 30 kept confidential if the public utility reasonably believes 31 the information is a confidential record pursuant to section 32 22.7. The state load forecast and state electric transmission 33 system expansion planning aggregate analysis published pursuant 34 to section 15.120A may be used as evidentiary support in any 35 -13- HF 2799 (4) 91 nls/ko/MD 13/ 18

H.F. 2799 proceedings before the commission, provided the confidentiality 1 of any information provided by a public utility is maintained. 2 Sec. 25. NEW SECTION . 476.10C Load forecasts and analyses 3 of state electric transmission system expansion plans —— fund. 4 1. An electric transmission system expansion plans analysis 5 and load forecasting fund is created in the state treasury 6 under the control of the economic development authority. The 7 commission shall direct all electric utilities to remit to the 8 treasurer of state for deposit in the electric transmission 9 system expansion plans analysis and load forecasting fund not 10 more than two one-hundredths of one percent of the total gross 11 operating revenues during the last calendar year derived from 12 the utilities’ intrastate public utility operations. Moneys in 13 the fund are appropriated to the economic development authority 14 to be used for the purposes of commissioning a report pursuant 15 to section 15.120A. Notwithstanding section 8.33, moneys in 16 the fund that remain unencumbered or unobligated at the close 17 of a fiscal year shall not revert but shall remain available 18 for expenditure for the purposes designated. Notwithstanding 19 section 12C.7, subsection 2, interest or earnings on moneys in 20 the fund shall be credited to the fund. 21 2. The commission shall, by rule, establish a maximum 22 amount of remittances in aggregate and provide a schedule 23 for remittances. The remittances collected pursuant to this 24 section shall be in addition to the assessments permitted 25 pursuant to section 476.10. The commission shall allow 26 inclusion of these remittances in the budgets approved by the 27 commission pursuant to section 476.6, subsection 15, paragraph 28 “c” , but such remittances shall not be included when computing 29 the projected cumulative average annual cost for an electric 30 utility’s energy efficiency plan and demand response plan under 31 section 476.6, subsection 15, paragraph “c” . 32 DIVISION VI 33 IOWA INDUSTRIAL NEW JOBS TRAINING PROGRAM 34 Sec. 26. Section 260E.2, subsection 10, Code 2026, is 35 -14- HF 2799 (4) 91 nls/ko/MD 14/ 18

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

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

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

H.F. 2799 (8) Sectors that may require more focus and support from the 1 program. 2 b. Gather qualitative data through surveys or interviews 3 with program participants, and identify the strengths 4 and weaknesses of the new jobs training program from the 5 perspective of the participants. 6 c. Review partnerships with community colleges and training 7 providers to evaluate whether the partnerships are effective in 8 delivering relevant training, and identify ways to strengthen 9 or expand partnerships. 10 d. Assess the effectiveness of the program’s compliance 11 monitoring and oversight of the use of program funds and 12 participants’ adherence to the program requirements. 13 e. Compare the benefit that employers receive from 14 participating in the program to the benefits available to the 15 same employers through other incentive programs. 16 f. Review how community colleges participating in the 17 program use bond interest. 18 g. Evaluate whether skills gained by employees through the 19 program are transferable. 20 h. Review the program’s payment mechanism. 21 4. Meetings of the interim study committee may be held 22 electronically or in person, provided that the final meeting of 23 the interim study committee is held in person. 24 5. The interim study committee shall submit a report 25 detailing the committee’s findings and recommendations to the 26 general assembly no later than December 15, 2026. 27 6. The interim study committee shall hold the committee’s 28 first meeting on or before August 1, 2026. 29 -18- HF 2799 (4) 91 nls/ko/MD 18/ 18