This bill establishes a new section in Iowa law regarding the recapture of tax expenditures granted to businesses that violate child labor laws. Effective July 1, 2025, any tax expenditures authorized by state departments will be subject to recapture if the business, or any associated contractors or third parties, is found to have violated state or federal child labor laws. The bill defines key terms such as "business," "proceeds," and "tax expenditure" by referencing existing legal definitions.

Additionally, the bill mandates that businesses must inform the administering department of any violations within 30 days after the conclusion of the contest or appeal period. The process for recapturing these tax expenditures will follow the procedures outlined in existing law, specifically in Code section 15.330(2), which treats the repayment as a tax payment due to the Department of Revenue. Failure to repay may result in similar consequences as failing to pay taxes, and counties may also pursue recovery of property taxes that were not collected due to tax exemptions granted to the business.