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The Iowa Pro-Entrepreneurship & AI Workforce Act (IA-AI-Workforce)

Iowa state companion to the AI Workforce Act. Extends the Iowa Secretary of State Fast Track Filing system, the Iowa Economic Development Authority, and the Iowa Code Sec. 422.10 Research Activities Credit.

THE IOWA PRO-ENTREPRENEURSHIP & AI WORKFORCE ACT (IA-AI-WORKFORCE)

Vehicle: State passage. Iowa General Assembly, regular session. Primary referral to House Economic Growth and Technology / Ways and Means and Senate Commerce / Ways and Means.

SECTION 1. SHORT TITLE

This Act may be cited as the “Iowa Pro-Entrepreneurship & AI Workforce Act (IA-AI-Workforce).”

SECTION 2. LEGISLATIVE FINDINGS AND INTENT

The General Assembly finds that Iowa operates business-formation services through the Secretary of State under Iowa Code Ch. 489 (Revised Uniform LLC Act) and Ch. 490 (Business Corporation Act); that the Iowa Economic Development Authority administers incentives under Iowa Code Ch. 15; that Iowa Code Sec. 422.10 provides the Research Activities Credit; that IWD administers Individual Training Accounts under Iowa Code Ch. 84A; and that the Iowa Consumer Data Protection Act under Iowa Code Ch. 715D governs consumer data handling. This Act extends these frameworks.

TITLE I — DEFINITIONS & COORDINATION WITH IOWA LAW

Sec. 101. Definitions

  1. (a) “Qualified AI startup” means an Iowa-formed business entity under Iowa Code Ch. 489 or Ch. 490 whose principal business is AI-related software or services, with fewer than 50 FTE employees at claim.
  2. (b) “AI-displaced worker” means an Iowa-domiciled worker with AI-driven separation.
  3. (c) “IWD provider” means a provider on the Iowa ETPL.

Sec. 102. Coordination with Existing Iowa Law

  1. (a) Consistent with:
  • Iowa Code Ch. 489 (RULLCA); Ch. 490 (Business Corporation Act).
  • Iowa Code Sec. 422.10 (Research Activities Credit); Ch. 15 (High Quality Jobs Program).
  • Iowa Code Ch. 84A (IWD; Future Ready Iowa).
  • Iowa Code Ch. 256 and Ch. 260C (K-12 and community colleges).
  • Iowa Code Ch. 715D (Consumer Data Protection Act).

TITLE II — STATE BUSINESS-FORMATION REFORM

Sec. 201. Secretary of State Business-Formation Streamlining

  1. (a) Same-business-day formation pathway via the Secretary of State Fast Track Filing system for LLCs under Ch. 489 and corporations under Ch. 490.
  2. (b) Machine-readable API within 12 months.

Sec. 202. One-Stop Iowa Business Portal

  1. (a) Iowa Economic Development Authority, in coordination with the Secretary of State, Department of Revenue, and IWD, shall operate a One-Stop Iowa Business Portal integrating entity formation; tax registration; unemployment-insurance registration; and IWD Employer of Record registration.

TITLE III — IOWA AI WORKFORCE TRANSITION

Sec. 301. AI Workforce Transition Accounts

  1. (a) An AI-displaced worker may establish an Account at a Regional Workforce Development Board under Iowa Code Ch. 84A to pay tuition to an IWD provider for reskilling to an IARMC under IA-ACSA Sec. 201 or Federal FRAC.
  2. (b) Funding through state appropriations and Iowa’s allocation of Federal workforce funds under 29 U.S.C. Sec. 3161 et seq.

Sec. 302. IWD Integration

  1. (a) Administered through existing Regional Workforce Development Boards and IowaWORKS centers.
  2. (b) Administrative overhead not to exceed 10 percent.

TITLE IV — IOWA AI ENTREPRENEURSHIP INCENTIVES

Sec. 401. Iowa AI-Startup Research Activities Credit Enhancement

  1. (a) A qualified AI startup may claim an enhanced credit under Iowa Code Sec. 422.10 equal to a percentage of qualified in-State research expenditures, subject to annual cap.
  2. (b) Iowa Department of Revenue administers consistent with existing Sec. 422.10 mechanics.

Sec. 402. Capital Access via IEDA

  1. (a) IEDA is authorized to prioritize qualified AI startups under the High Quality Jobs Program under Iowa Code Ch. 15.
  2. (b) No expansion beyond appropriated amounts.

TITLE V — K-12 & POSTSECONDARY AI FLUENCY

Sec. 501. K-12 AI-Fluency Curriculum Option

  1. (a) The State Board of Education, consistent with Iowa Code Ch. 256 and the Iowa Core standards, shall approve optional AI-fluency curriculum packages for use by districts, charter schools, and Students First ESA participating schools.
  2. (b) Optional.

Sec. 502. Community-College & University AI-Fluency Programs

  1. (a) Iowa community colleges under Iowa Code Ch. 260C and Iowa Board of Regents universities may offer AI-fluency certificate programs aligning with the IARMC Registry under IA-ACSA Sec. 201.

TITLE VI — IMPLEMENTATION & GENERAL PROVISIONS

Sec. 601. Severability

If any provision is held invalid, the invalidity shall not affect the remainder.

Sec. 602. Effective Date

This Act shall take effect July 1 of the year following enactment.

Canonical federal version: AI Workforce. Other Iowa bills: IA-ACSA, IA-MEWRA, IA-GT&P.