A bill for an act relating to the disclosure of tax incentives provided to web search portal businesses and data center businesses, and including effective date provisions.

Iowa House File 2198 requires web search portal and data center businesses that receive sales and use tax incentives to file annual reports with the Department of Revenue. These reports must detail the total sales price of tax-exempt purchases, including fuel, electricity, and other items, starting January 31, 2027. The Department will use this information to estimate the tax savings for each business and make these estimates publicly available.

Supporters argue that HF2198 promotes transparency by disclosing the extent of tax incentives received by large tech companies, allowing the public to assess the effectiveness of these incentives in fostering economic growth and job creation.

Critics contend that the bill could discourage tech companies from establishing or expanding operations in Iowa due to concerns over public disclosure of tax benefits, potentially impacting the state's competitiveness in attracting such businesses.