Iowa
IEDA chief seeks to revamp incentives as Iowa’s tax climate shifts, job growth lags
Watch: Iowa homeowners talk property taxes with Des Moines Register
Homeowners discuss Iowa’s property taxes as Iowa legislative leaders make property tax reform their No. 1 goal this legislative session.
Iowa’s economic development chief is laying out how she believes the state should overhaul and scale back business development incentives after Iowa legislators cut corporate, income and other taxes in recent years.
With Iowa’s more competitive tax climate for business, Debi Durham said, she hopes a smaller, more targeted set of tax credits, capped at $110 million annually, can help raise the standard of living for Iowans while bringing more transparency and certainty to state budgeting.
“The Legislature’s going to know exactly how much we’re handing out in any given year,” Durham said.
The executive director of the Iowa Economic Development Authority since 2011 and Iowa Finance Authority since 2019, Durham said she wants to replace the longtime High-Quality Jobs Program, which currently receives $68 million annually, with Business Incentives for Growth — and recommends spending $18 million less doing so.
Created in 2005, the High Quality Jobs Program provides a mix of tax credits for investment and research activities, refunds of sales and use tax, forgivable loans and direct financial assistance if companies meet certain hiring, wage, retention and other standards.
The program, whose funding has been scaled back from $130 million over time, also has allowed the use of 20-year property tax abatements, like those used to help Meta, owner of Facebook, expand its data warehouse campus of 11 buildings in Altoona. In 2024, the value of those controversial tax abatements in the growing city reached $1.1 billion.
But as the Register reported earlier this month, Meta’s data centers and its property won’t be subject to property taxes until 2034 and in the meantime, changes in Iowa’s property tax system at the Legislature could reduce the payout the city is counting on.
Durham said last week that IEDA no longer allows municipalities to use 20-year abatements as part of the incentive program. And she said state leaders need to evaluate whether data warehouses, which are expanding rapidly across the country while their demand for energy and water grows, need to continue to be incentivized in Iowa, like the ethanol and wind industries before them.
“The question is, should any industry, once they’ve established themselves in the marketplace, continue to receive incentives?” she said. “That is a legislative question.”
Durham said the IEDA also is proposing replacing an existing uncapped tax credit program for research activities currently administered by the Iowa Department of Revenue with one that would be run by IEDA and have a $40 million annual cap.
The current research activities tax credit can provide individual and corporate income tax refunds for qualifying research expenditures, including wages and supplies. The proposal says businesses’ research in Iowa must be “experimental” and aimed at discovering technological information or developing a new product.
Both the Business Incentives for Growth and the new research and development tax credits would apply to tax liability first and then be refundable.
John Fuller, a spokesperson for the revenue department, said the agency “supports proposals that increase efficiencies in state government, including changes in how state tax credit programs are administered. This aligns with the Governor’s continued efforts to improve how government agencies work together for the people of Iowa.”
Tax credits are no angel
The IEDA also wants to sunset the state’s Angel Investment Tax Credit program, established in 2002 to jumpstart venture capital investment in Iowa startups, and create a new Seed Investor Program in combination with an existing Innovation Fund so the state can offer up to $10 million annually in tax credits.
The hope, Durham said, would be to better help rural Iowa businesses with a lower investment threshold qualify for the credits.
A report by the Department of Revenue in December found no hard evidence the existing Angel Investor tax credits, which amount to 25% of a qualifying business’s capital investment, benefit the state. The report said it was “not possible to definitively establish that the tax credit leads to investment that, in the absence of the tax credit, would not occur.”
Another 2022 state report said while studies have found that angel tax credits, offered in numerous states across the country, are associated with increased investment activity, their availability “does not necessarily result in robust growth of new firms in terms of employment growth and other measures of success.”
The IEDA’s proposal, which has not been filed at the Legislature or assigned a bill number, also would replace an existing tax credit program for chemical production with one for aviation fuel, and increase allowable credits by $5 million to $10 million annually. It would sunset or repeal tax credits for targeted jobs, assistive devices and employer child care.
And the agency wants to establish a two-year pilot program for in-state film production. That program would provide a rebate after expenses to projects that qualify — up to a total of $10 million annually, Durham said.
The Legislature has been reluctant to consider any proposed film incentives since a 2009 scandal, closely covered by the Des Moines Register, that involved a poorly administered tax credit for film production. A state audit in fall 2010 uncovered $26 million in tax credits that were improperly issued — about 80% of what had been doled out.
Widespread abuse of the credit led to the firings of a half-dozen people at the Iowa Department of Economic Development — the IEDA’s predecessor — millions in settlements and the convictions of seven people on fraud or theft charges. The scandal also hounded then-Gov. Chet Culver as he made a failed bid for re-election against former Gov. Terry Branstad.
But a bill that would provide the new moviemaking tax credits, House File 2662, passed the House last year.
Rep. Ray Sorenson, who chairs the House economic growth and tech committee and an ex officio member of the IEDA Board, said the committee is looking forward to digging into the specifics of the proposals, as the session progresses.
“We of course share the IEDA’s goal of bringing economic development to every corner of the state and work to help them get their proposals through committee and to the floor,” he said.
Proposal comes as Iowa’s economy sputters. Would it help?
When asked what the net difference would be in all the proposed incentives changes from the 2024 fiscal year, Staci Hupp Ballard, a spokesperson for the IEDA, said the Legislative Services Agency will do an analysis of the changes and “we believe the fiscal note will show a significant savings.”
Ballard said the new tax credits were proposed after the agency took into “account the types of projects we’re seeing, feedback from industry and stakeholders, and what other states are offering.”
It’s impossible how to know how the changes, if enacted, would benefit the state, as Iowa has faced increasingly stark revenue and economic forecasts.
The Register reported last week that as of January, Iowa’s overall employment growth since 2019 was 0.6%, while it was 4.6% for the U.S. as a whole. Companies filed 99 notifications of plant closings or mass layoffs last year, the largest total for any year since 2016, and nearly 30 more than the 71 recorded in 2023.
In 2022-23, Iowa experienced a drop in real personal income of 2%, the worst in the nation, according to U.S. Bureau of Economic Analysis statistics released last month.
Peter Orazem, a professor emeritus of economics at Iowa State University, said that doesn’t paint a rosy picture of Iowa’s economic outlook.
“Greater dependence on agriculture drags down income growth with weakness in that sector,” Orazem said. He noted that Iowa is lagging in finance and manufacturing, as well as in its agricultural sector.
In December, Iowa’s three-member Revenue Estimating Conference predicted Iowa will take in $9.15 billion in fiscal year 2025 — enough money to cover the $8.91 billion budget that began in July. But in fiscal year 2026, the panel said, the state will take in $8.73 billion, less money than budgeted.
Lee Rood’s Reader’s Watchdog column helps Iowans get answers and accountability from public officials, the justice system, businesses and nonprofits. Reach her at lrood@registermedia.com, at 515-284-8549, on Twitter at @leerood or on Facebook at Facebook.com/readerswatchdog.
Following a years-long legal saga, the Iowa Supreme Court recently upheld a decision to evict Short’s Burger and Shine from its South Clinton Street building.
The May 22 decision, delivered by Chief Justice Susan Christensen, agreed with the Johnson County District Court’s decision to evict the downtown burger restaurant after finding that it did not notify the building’s owner — a trust operated by Midwest One Bank — of its intent to extend the lease.
The decision concludes one part of the Short’s legal saga. The now-closed restaurant is also in litigation for a discrimination and retaliation lawsuit Short’s owner, Kevin Perez filed in 2024 against Midwest One Bank, the trust of late building owner Haywood Belle, Belle’s widow, a bank employee, and the City of Iowa City
Iowa City’s Short’s Burgers and Shine closed in 2024
Short’s closed in early 2024 after the court determined Perez hadn’t renewed the business’s lease on time.
Short’s opened at 18 S. Clinton Street in 2008 with the goal of honoring the legacy and story of former building owner H.D. Short, who shined shoes for 50 years, beginning in 1920. The original ownership group included Perez, Dan Ouverson, and former Hawkeye and NFL player Nate Kaeding, who now runs the Gold Cap Hospitality ownership group.
Eviction proceedings started when Short’s temporarily closed in April 2022 “to fix poor building conditions” without notifying Midwest One Bank, the executor of Belle’s trust.
The closure breached a part of the lease agreement that said the restaurant would default on its lease if it “failed to engage” in normal business for more than 15 consecutive business days, the court found. The renovations also violated a provision that forbade structural changes or improvements without prior written approval.
Midwest One Bank sent notice on May 10, 2022, that Short’s would default on its lease if it did not reopen for regular business and cease renovations within 10 days, according to court documents. Shorts responded, claiming it could not reopen for business until renovations were complete because the gas could not be turned back on until repairs were finished.
Midwest One Bank “terminated” the lease and started eviction proceedings in May 2022. Shorts was allowed to continue operating and occupying the building while the case was litigated.
Midwest One Bank filed two eviction claims and delivered notice that Short’s needed to vacate the building by the end of the lease on April 30. Short’s did not vacate, and Midwest One Bank pursued a third eviction claim, accusing the owners of failing to provide notice of renewal.
Short’s argued that because they continued renovations, disputed eviction, and secured insurance, it was evidence of their intent to renew.
The restaurant owners also argued that pending eviction proceedings prevented them from renewal. The court argued that Short’s simply did not declare intent to renew for “whatever reason.”
“Mere forgetfulness does not entitle a party to equitable relief,” the decision reads.
Liam Halawith covers Johnson County local government and public safety for the Press-Citizen. Reach him by email at lhalawith@registermedia.com. Follow him on X at @liam_halawith.
WEST DES MOINES, Iowa (IOWA CAPITAL DISPATCH) – An Iowa nursing home worker fired after being accused of repeatedly neglecting residents’ needs is entitled to unemployment benefits, a judge has ruled.
State records indicate certified nurse aide Abigail Kromah worked for Pine Acres Rehabilitation and Care Center in West Des Moines from May 2024 through December 2025, when she was fired. She subsequently applied for unemployment benefits, which led to a recent hearing before an administrative law judge.
The hearing records indicate Kromah testified that when she was fired on Dec. 19, 2025, the employer informed her that the discharge was due to “numerous resident complaints” regarding the care she had been providing.
According to the judge’s findings in the case, Kromah had received multiple disciplinary warnings related to resident care. In August 2024, she allegedly received verbal and written warnings for failing to answer residents’ call-lights in a timely manner, failing to properly assist residents with their personal care, and for complaining about the residents in common areas of the workplace.
Her employer testified Kromah was also given warnings for refusing work instructions from the nursing staff, and for telling a resident who needed to be toileted to go the bathroom in their briefs.
In August 2025, it was alleged that Kromah failed to check on a resident throughout the entire night. During that shift, a nurse had neglected to unclamp a feeding tube, which caused the tube to leak. When another nurse checked on the resident at 5 a.m., the resident was “drenched in feeding solution from head to toe,” according to the judge’s findings.
‘I can’t live this way… She’s horrible.’
Days later, the home alleged, a resident of the facility entered the hallway in his wheelchair at about 6 a.m., loudly complaining, “I can’t do this anymore,” and, “I can’t live this way.” The man allegedly refused to go back to his room, explaining that Kromah was there and “she’s horrible.”
The man reportedly stated had had switched on his call-light to have his urinal emptied, but Kromah never came to assist him, which meant the urinal overflowed and spilled on him. When Kromah eventually came to the room, the man allegedly said, she changed him into dry clothing but did not clean him.
The home alleged Kromah was given additional warnings in October 2025 for reportedly failing to answer residents’ call lights and failing to complete her rounds every two hours. One resident of the home had allegedly became so frustrated by the lack of response to his call-light that he contacted the police on one occasion, according to the judge’s findings.
State inspection reports indicate Pine Acres Rehabilitation and Care Center was cited for insufficient staff in January 2026, with one resident complaining the issue with call-lights had been a longstanding problem. According to the inspectors, the man said that on one occasion, he couldn’t get help to clear his airway and was afraid he was going to die unless he managed to clear it himself, which he did.
In ruling that Kromah was entitled to jobless benefits, Administrative Law Judge Michael Lunn noted that while she had clearly been warned about deficiencies in resident care, she appeared to have been fired for a separate issue — attendance — for which she had received no such warnings.
A discharge for misconduct cannot be based on past acts such as the resident-care issues, Lunn ruled, but must instead be based on a current act. With no current act of disqualifying misconduct, Lunn stated, Kromah was entitled to collect unemployment benefits.
Iowa Capital Dispatch was unable to locate Kromah to seek comment for this article.
Copyright 2026 IOWA CAPITAL DISPATCH. All rights reserved.
CEDAR RAPIDS, Iowa (KCRG) – With some schools already on summer break, programs are helping make sure Iowa kids don’t go hungry.
The state’s Seamless Summer Option program provides free meals to children and teens 18 and younger during summer break.
Those meals are served at schools, parks and community centers. Children are served on first come, first served basis.
You can find a full list of those on the USDA’s Summer Meal Finder.
This year, the state has returned to the federal SUN Bucks program.
Eligible families can get up to $120 per child. That is then divided up to $40 a month to help pay for healthy food purchases.
The Des Moines Area Religious Council told KCRG after the state announced its return to the program that area businesses, as well as those in need, would benefit.
“Those dollars are going to go back into local grocery stores. It’s an investment in our community. When we look at feeding programs like SNAP, we know that it has that multiplier effect every time a dollar is spent, you’re getting more out of it,” said Blake Wiladsen, the council’s communication manager.
The state will regulate the program similarly to the state’s SNAP program. Things like candy, soda, vitamins, minerals, pre-made foods, and juice made with less than 50% fruit or vegetables cannot be purchased with Iowa SUN Bucks.
Copyright 2026 KCRG. All rights reserved.
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