HF2799: EDA Reform

Creates the EDGE Program to incentivize headquarters expansion and high-wage job creation, establishes a new training fund for business incentives, repeals the New Jobs Tax Credit, modifies the Major Economic Growth Attraction Program's definitions and deadlines, and mandates regular statewide electric load forecasting and transmission planning. It also creates mechanisms for state agencies to collect and use utility data and funding for energy planning, and restricts certain job training credits to agreements before a specified deadline. Effective 7/1/2026 (except changes to New Jobs Credit effective 6/2/2026).

Key Points & Impacts:

• Establishes the EDGE Program to provide refundable qualifying wage tax credits for eligible businesses creating or retaining high-wage corporate jobs at Iowa headquarters, with specific eligibility, compliance, and clawback provisions.

• Creates a Business Incentives for Growth Program Training Fund, funded by up to 1.5% of eligible business payroll withholdings, to reimburse project-specific training expenses; prohibits double-dipping for the same training purpose.

• Repeals the New Jobs Tax Credit (Code section 422.11A), with immediate effect upon enactment, but preserves rights for credits issued or awarded before the effective date, including carryforward claims.

• Amends the Major Economic Growth Attraction Program by updating the definition of 'foreign adversary' and extending the sunset date for authorizing incentives or exemptions from January 1, 2027, to January 1, 2030.

• Requires the Economic Development Authority to commission Iowa State University to produce biennial public reports on statewide and regional electricity load forecasting and transmission expansion plans, with input from consumers and the electric industry.

• Empowers the utilities commission to compel all electric utilities to share information with Iowa State University for energy planning, and allows these reports to serve as evidence in commission proceedings.

• Creates the Electric Transmission System Expansion Planning and Analysis and Load Forecasting Fund, funded by mandatory utility remittances, and appropriates it for the state's energy planning reports.

• Limits the new jobs credit from withholding under the Iowa Industrial New Jobs Training Program to agreements entered into on or before June 30, 2026, with corresponding adjustments to eligible project cost funding mechanisms.