Iowa

2025 duration limits on data center fuel and electricity exemptions

Enacted legislation or regulation

In effect This instrument is recorded as currently in effect as of the dataset date.

Scope

2025 Iowa Acts chapter 148 (House File 976), Division XII, limits the backup-fuel and electricity sales tax exemptions for data center construction or additions on or after the division's effective date to the first 10 or 15 years of operation, depending on city size, and states that operations begun before that date keep an unlimited exemption duration. The division also routes revenue from expired exemption periods to the energy infrastructure revolving loan fund and has related provisions for web search portals and property taxes.

Geographic scope
Iowa
Jurisdiction
State
Authority type
Legislature
Issuing authority
Iowa General Assembly

Dates

Adopted
6 June 2025
Effective
6 June 2025
Scheduled expiration
See completion condition
Ended
Not recorded as ended
Completion condition
The division took effect on enactment and states no expiration.
Source document
6 June 2025
Last checked
23 September 2026 (earlier than tracker date 5 October 2026; not an automatic status change)

Summary

Iowa's 2025 Acts chapter 148 (House File 976) amended the state's data center sales tax exemptions. For data center construction or additions on or after the division's 6 June 2025 effective date, the exemptions for backup generation fuel and electricity last only for the first 10 or 15 years of operation, depending on city size, while data centers already operating keep an unlimited duration. The act does not repeal the exemption and does not stop any data center from operating.

What this does not establish

  • The act was approved on 6 June 2025, and section 87 makes the division effective on enactment, so the approval day is stored as the effective day.
  • This record is the amending act. The exemption it amends is recorded separately as Iowa Code section 423.3(95).
  • Other divisions of chapter 148 are outside this record.

Unresolved questions

None recorded.

Relationships

Supersession means a later instrument replaces the earlier legal effect. Repeal links identify the repeal instrument and the measure it ends. A later implementation or related letter is not treated as a replacement unless the record says so.

Sources

Primary source

https://www.legis.iowa.gov/docs/acts/2025/CH0148.pdf

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