First Funnel Deadline is Next Week - Where ABI Stands

SSB 3105 - Net Controlled Tested Income (NCTI) Fix
A pillar of the Iowa tax system affecting businesses is the single-factor formula which, put simply, ensures that businesses are not taxed on activity outside of Iowa. Federal tax changes in 2017 and this past year in the One Big Beautiful Bill Act would have subjected business activity outside of Iowa to state taxation. SSB 3105 preserves the Iowa single-factor formula. Senators Bousselot, Bisignano and Warme moved the bill out of subcommittee unanimously and the full Senate Commerce Committee advanced the bill on Wednesday of this week.

ABI Position: Support

HSB 674 - Iowa Skilled Workforce Act
Last week, we reported on the House introduction of the Iowa Skilled Workforce Act, a bill that increases funding for apprenticeship training facilities, highlights training for the construction trades and increases collaboration between Iowa Workforce Development and community colleges for curriculum under the last dollar scholarship program. This week, the bill advanced through subcommittee, and ABI provided testimony supporting the concept of the bill but highlighting a troubling section that would pay unemployment benefits for those participating in training programs.

Iowa Workforce Development estimates that each week of training allowed would cost the unemployment trust fund between $6 and $8 million a year. Union groups testified that some occupations could require up to 6 weeks of training annually. Unemployment benefits are to be reserved for those who are separated from the workforce through no fault of their own and are able and available for work. An amendment is being proposed to this portion of the bill.

ABI Position: Neutral

SSB 3086 - Consumer Fraud Penalty Expansion
On Wednesday, the Senate Technology Committee considered legislation that would increase penalties against bitcoin ATMs, which have been subject to recent scrutiny. Though the original bill intended to target just these kiosks, it was written in a way that captured all businesses under the heightened penalties, which could have led to lawsuits worth millions of dollars against companies. ABI staff flagged this issue with the bill manager and thanks to our work, an amendment was adopted that struck this provision from the legislation. The bill, as amended, now clearly applies to the kiosks, and not other businesses.

ABI Position: Neutral

SSB 3075 - Public Funds 
A bill that would repatriate deposits of local government property tax revenues to Iowa institutions passed the Senate State Government Committee with bipartisan support. If enacted, the bill would rein in the practice of pooling revenues by local government associations for deposit out of state in return for royalty payments to the associations. The simple introduction of the bill has already had the intended effect, as there are reports of county supervisors requesting their governing bodies to voluntarily end the practice.

ABI Position: Support

SSB 3133/HSB 693 - Greenhouse Gas Liability Reform 
In certain jurisdictions across the country, lawsuits have been filed against the agriculture industry and related businesses, alleging that the greenhouse gases they emit are responsible for damages or injuries. To address these challenges, these bills strengthen protections against meritless lawsuits that drive up the cost of doing business. Passing this legislation is vital as it will help prevent the challenges other states are experiencing from impacting farmers, ranchers, and businesses in Iowa. The House bill has passed the full Agriculture Committee, and the Senate bill has advanced out of subcommittee.

ABI Position: Support

SSB 3103 - IEDA Omnibus Bill
The Iowa Economic Development Authority (IEDA) has introduced legislation that seeks to encourage companies to place their headquarters in Iowa. In addition to creating a new incentive, the legislation makes changes to the new jobs credit and includes a load forecasting proposal to be produced by Iowa State University. The proposal would include input from residential, commercial and industrial consumers, as well as the electric industry. The bill advanced out of a Senate Commerce subcommittee and the full committee this week. A description of the legislation provided by IEDA is available here.

ABI Position: Undecided

SSB 3112/HSB 659 - Regulation of Security Alarm Systems
The House and Senate Local Government Committees passed legislation that sets statewide standards for battery-charged security alarm systems on nonresidential property. The bill ensures there cannot be a patchwork of ordinances across Iowa’s cities and counties in this space. This is critical as it provides certainty for businesses who would like to install this anti-crime infrastructure on their property. Both bills are funnel-proof.

ABI Position: Support

SSB 3097 - National Electrical Code Adoption 
On Thursday, a subcommittee of the Senate Local Government Committee passed a bill requiring Iowa to adopt certain provisions of the 2023 National Electrical Code. The bill also preempts political subdivisions from implementing standards more restrictive than the NEC. One of the stated goals of the bill manager is to facilitate the passage of policy that will make housing more affordable. ABI supports this goal, and the bill moves us in a direction towards accomplishing that.

ABI Position: Support

HSB 692 - Renewable Electric Power Project Siting Standards 
On Wednesday, a subcommittee of the House Commerce Committee unanimously advanced legislation aimed at preventing counties from passing ordinances that deter investments in renewable energy infrastructure. The bill creates standards related to setbacks, moratoriums and other items for renewable energy projects. There has been a recent rise in NIMBY, which is harming the development of initiatives that will create more energy generation in the state. Members of the subcommittee noted they want companies and investors to know that Iowa is open for business. The bill now moves to the full Commerce Committee.

ABI Position: Support

SSB 3092 - Community Solar 
As noted above, time is running out for legislation to be passed by a committee and remain eligible for further consideration this session. A community solar bill passed subcommittee this week and was scheduled for Senate Commerce Committee deliberation but was pulled from consideration. Similar bills in other states have increased the cost of utility service for non-participating customers and do not comport with ABI’s policy against cross-subsidization.

ABI Position: Oppose

SSB 3107 - Workers' Compensation Second Injury Fund Monies
ABI has been collaborating with the Iowa Attorney General’s office to advance legislation addressing a spike in costs the AG’s office has experienced in defending the Second Injury Fund against improper claims. Much of the increase can be traced to an adverse Iowa Supreme Court decision that has led more attorneys to attempt to qualify claims into the Fund as body-of-the-whole injuries. ABI is working to address both the legal and budget issues together, rather than simply appropriate additional funding to meet the increased demand for legal services from the AG’s office. A subcommittee this week passed the bill, anticipating an amendment will be forthcoming.

ABI Position: Neutral

HSB 663 - E-verify for State Government Employees
On Tuesday, a House subcommittee of the Judiciary Committee signed off on a bill requiring newly hired state employees and licensed professionals to use the E-Verify system to confirm eligibility to work in the United States. Governor Reynolds’ legislation, which contains a few other provisions, codifies an executive order she issued last fall. ABI hasn’t taken a position on the bill, but is tracking it to ensure that an amendment is not adopted to the bill that would apply to the private sector.

ABI Position: Monitoring

HSB 684 - Right to Repair
This week, ABI testified in support of manufacturers in the agricultural implement business and against a bill that would allow federally required diesel exhaust fluid systems to be disabled or removed from farm equipment. The legislation would put implement manufacturers and dealers in the untenable position of choosing how to comply with state laws and federal regulations that are at odds. While the bill did pass out of the House Agriculture Committee, it did so by the slimmest margin, and a Senate companion did not advance. 

ABI Position: Oppose