Partnership Advocates for Pro-Growth strategies, 91st General Assembly Adjourns

Economic Growth

Property Tax Reform (SF 2472)

The Governor, Senate and House each had their own property tax proposals starting at the beginning of the session. Each proposal was unique and sought to address different property tax priorities. The Partnership engaged with legislative leaders throughout the process and advocated for consensus-based, pro-growth policies. The final bill passed the Senate 41-4, House 64-23, and awaits the Governor’s signature. Following negotiations, the final bill:

• Applies a 2% hard cap to the general fund levies and 3% hard cap on DART and EMS levies. New valuation is exempted from the growth limit. Debt service, city special revenue and most county supplemental levies are excluded from the cap.
• Removes the $5.40 school foundation levy from future TIF districts and projects (including within perpetuals), applying to agreements entered after Jan. 1, 2027.
• Allows school districts to opt-in to divert their school foundation levy with no backfill from the state.
• Limits increment usage to 60% after 20 years with no new debt permitted if above the 60% threshold.
• Limits new TIF districts to 23 years.
• Reestablishes multi-residential as a separate class in 2027 and sets rollback at 3% higher than residential in 2027 and 6% higher than residential in 2028.

The Partnership has a long-standing commitment to protecting TIF to ensure communities have resources to drive investment, maintain strong bond ratings and support economic growth. The Partnership will continue to advocate for pro-growth policies with legislative and executive leaders during the interim and into the next legislative session.

Iowa Economic Development Authority HQ Incentives and 260E (HF 2799)

This legislation establishes the Headquarters Expansion and Development for Growth and Employment (EDGE) Program which provides incentives for businesses to build or expand headquarters in Iowa, including tax incentives for companies with a global presence, significant market share or national recognition. The bill extends the end date of the Major Economic Growth Attraction Program by three years and establishes the Business Incentives for Growth (BIG) Program Training Fund. The Training Fund will be used to reimburse certain training expenses incurred by a business for a project under the BIG Program.

The legislation also makes adjustments to the 260E training program by changing the bonding limit from 10 years to seven years, refines the definitions of permissible administrative costs and training uses, and creates a study committee to make further recommendations regarding the program. The Partnership advocated to protect the funding stream and effectiveness of the program. Overall, this legislation preserves the program, and the funding stream remains intact. This bill passed the Senate 41-0, the House 78-7 and awaits the Governor’s signature.

Workforce Readiness

Childcare Assistance Program Eligibility for Childcare Workers (HF 2514)

This legislation makes children of childcare workers in Iowa eligible for the state Child Care Assistance Program. The program will provide childcare workers with an affordable option for childcare and the ability to continue working, aiding in the retention of the childcare workforce. The Act passed the Senate 46-0 and the House 86-3. Members of The Partnership team attended the bill signing on April 9.

Skilled Workforce – Career Training Physical Expansion Program (SF 2168)

This legislation includes a provision that provides financial assistance for new capital projects that will expand the capacity of community colleges and union/non-union private sector apprenticeship programs to provide education and training for workers in high-demand fields in this state. The bill passed the Senate 40-0, House 87-0 and awaits the Governor’s signature.

Housing

Iowa Housing Renewal Program (HF 2772)

This legislation establishes the Housing Renewal Program that currently exists as a pilot program. The Program provides grants to nonprofit Iowa affiliates for the acquisition, rehabilitation and resale of homes, focusing on reducing blight, supporting rural communities (25% allocation) and creating affordable homeownership. The bill passed the Senate 30-16, the House 57-32 and awaits the Governor’s signature.

Sustainability

Water Quality Reform and Funding (SF 2484)

The legislation reforms the current state water quality funding and directs $25 million to Central Iowa Water Works to upgrade its nitrate removal facilities. The funding package also provides funding to the Iowa Department of Natural Resources’ water quality monitoring system, increases funding for wastewater and drinking water treatment grant programs and creates a low-interest loan program for rural communities statewide seeking to upgrade their facilities. The bill passed the Senate 45-0, House 59-26 and awaits the Governor’s signature.

What’s Next

With the legislature adjourned, elected officials will now shift focus to primary and general elections, and interim activities including constituent engagement, fundraising and preparation for the 2027 session. The First Regular Session of the 92nd General Assembly will convene on Jan. 11, 2027.

During the interim, The Partnership will continue engaging with elected officials, Investors, Affiliate Chambers of Commerce, Regional Chamber Members, city and county leaders and other stakeholders to advance Partnership state policy priorities. We’ll also begin holding GPC meetings this fall to develop our 2027 State Policy Agenda and invite your input throughout that process.

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