State Tax Day - Current, S.2, Iowa—Sales and Use Tax: Guidance on Data Center Sales and Use Tax Incentives, (Nov 4, 2025)

The Iowa Department of Revenue has released tax guidance to explain data center sales and use tax incentives. To qualify for one of Iowa’s sales and use tax incentives for data centers, an eligible data center must make a minimum investment in Iowa and satisfy other requirements in the Iowa Code. The requirements for a data center business to claim a sales and use tax exemption include making a minimum investment of $200 million, registering with the Department using Web Search Portal/Data Center Registration (78-013), and filing an annual report with the Department beginning in January 2026. Once eligible, a data center may make qualifying purchases exempt from sales and use tax or claim a partial refund of sales and use tax paid on qualifying purchases. For added guidance on this topic interested taxpayers can visit the Department’s Data Center Sales and Use Tax Incentives page.

Press Release, Iowa Department of Revenue, November 3, 2025