This bill establishes new investment requirements for data center businesses in Iowa that claim certain sales tax exemptions and sales and use tax refunds. Specifically, it mandates that these businesses must invest a minimum of 5 percent of the aggregate value of the exemptions and refunds claimed in the previous calendar year into either a qualifying business or an innovation fund by the end of that year. The Department of Revenue is tasked with providing the aggregate value of the exemptions and refunds claimed, while the Economic Development Authority is responsible for verifying compliance with the investment requirement. If a data center fails to meet this requirement, the authority will notify the Department of Revenue, which will then cancel the data center's registration and eligibility for the sales tax exemption. Additionally, the data center must repay the total amount of exemptions and refunds claimed for the year in which the investment was not made.

The bill also amends the requirements for the annual report that data centers must file with the Department of Revenue. It specifies that the report must include the aggregate sales price amount of backup power generation fuel and electricity purchased in the previous year. Starting with the report due on January 31, 2027, the report will also need to include the aggregate sales price amount of exempt property purchased and the amount of sales and use tax refunds received. These changes aim to enhance transparency and ensure that data centers are held accountable for their investment commitments.

Statutes affected:
Introduced: 423.3