The bill introduces significant changes to Iowa's economic development programs, particularly focusing on tax credits and incentives. It establishes a new Business Incentives for Growth (BIG) program, effective January 1, 2026, which will provide tax incentives to eligible businesses that meet specific criteria, including the submission of a water conservation plan for projects with high water consumption. The bill caps the total amount of tax credits authorized in a fiscal year at $110 million and outlines allocations for various programs, including innovation funds and renewable energy credits. It also repeals the high-quality jobs program and the investments in qualifying businesses tax credit program, while creating a new research and development tax credit program for businesses in targeted sectors.

Additionally, the bill introduces a Sustainable Aviation Fuel (SAF) production tax credit program, allowing eligible businesses to apply for tax credits for SAF produced from 2026 to 2035, with a credit set at 25 cents per gallon and a maximum of $1 million in credits per eligible business per calendar year. The bill mandates annual reporting to the authority and includes provisions for the major economic growth attraction program, allowing for quarterly sales and use tax refunds. It also establishes compliance requirements and potential repayment of tax incentives for businesses that do not meet program standards. Overall, the legislation aims to streamline and enhance Iowa's economic development efforts while ensuring accountability and compliance among participating businesses.

Statutes affected:
Introduced: 15.119, 15E.191, 15.293A, 15.293B, 15.318, 15.354, 15.355, 2.48, 8G.3, 15.106B, 15.106A, 15.330, 15.329, 15.319, 15.499, 15.326, 476.42, 15H.5, 159A.6B, 422.10, 422.11F, 422.12, 422.33, 15E.193B, 422.60, 427B.17, 432.12C, 533.329, 15.508, 15E.25, 15E.52, 15E.65, 15.517, 422.12O, 432.12O, 421.60, 15E.303, 15E.305, 15E.311, 15E.301, 15.522, 15.520, 15.530, 15.495, 8.55, 15.293