IA HSB727

Data center businesses claiming sales tax exemptions or sales/use tax refunds must invest a minimum of 5% of the aggregate value of those tax benefits from the previous calendar year by the end of each calendar year

Required investments must be made as equity investments in either a qualifying business under section 15E.28 or an innovation fund under section 15E.52

The Iowa Economic Development Authority will verify compliance with investment requirements, while the Department of Revenue will annually provide the aggregate value of exemptions and refunds claimed by each data center business

Non-compliant data center businesses will have their registration canceled, lose eligibility for future sales tax exemptions, and must repay the full aggregate amount of exemptions and refunds claimed for the year of non-compliance

Annual reporting requirements for data center businesses are expanded to include the aggregate sales price of exempt property purchased and the amount of sales/use tax refunds claimed, beginning with reports due January 31, 2027