Iowa House Bill HF682

Iowa 2025-2026 Regular Session

• Introduced: 2/28/25
• Refer: 2/28/25

Caption

A bill for an act relating to the recapture of tax expenditures and disbursed by departments of the state to businesses that violate child labor laws.

Impact

The implications of HF682 include a more stringent enforcement of labor regulations in the business sector, particularly concerning the employment of minors. By conditioning tax incentives on compliance with child labor laws, the bill aims to ensure that businesses act responsibly and adhere to legal standards concerning the treatment of young workers. As a result, it is likely that businesses will have greater incentive to educate themselves and ensure compliance with these laws to avoid the financial repercussions associated with tax recapture.

Summary

House File 682 introduces a framework for recapturing tax expenditures granted to businesses that violate child labor laws in Iowa. The bill mandates that beginning July 1, 2025, any tax incentives provided to businesses under state-administered programs will be subject to recapture if those businesses or their affiliates breach applicable state or federal child labor laws. This includes contractors and subcontractors, expanding the scope of accountability for businesses receiving tax benefits.

Contention

Although the bill looks to improve child labor law enforcement, it may also provoke debate regarding its impacts on business operations. Critics may argue that such stringent measures could deter businesses from applying for tax incentives, reducing economic development opportunities in the state. Proponents highlight the urgency of protecting vulnerable workers and hold that the potential financial impact on businesses is a necessary trade-off for ensuring that minors are not exploited in the labor market. This ongoing tension between regulatory scrutiny and business facilitation is likely to shape the discussions around the bill.