(Des Moines) On Friday, Iowa Governor Kim Reynolds signed House File 2801, amending tax credit incentives offered through the state’s Major Economic Growth Attraction (MEGA) program for qualifying investments.
MEGA was created to help Iowa compete for large-scale development projects of more than $1 billion in capital investment. As originally enacted, the program allows tax incentives up to 5% each for two eligible businesses, for a total fiscal impact of 10% of qualifying investments.
According to the press release, the amendments passed in HF 2801 will allow a tax incentive of up to 10% of qualifying investments for a single eligible business located in a rural county, spread evenly over ten years and transferable.
The bill allows Mesabi Metallics, a Minnesota-based iron ore mining company, to invest $15 billion to construct and operate a steel manufacturing plant in Iowa. The project is the single largest investment in American steel manufacturing in U.S. history.
“Today’s special session advances the most consequential economic development ever to come to our state,” Governor Reynolds said. “By enacting reasonable and limited changes to the Major Economic Growth Attraction program, we’re clearing a path for Mesabi Metallics to make the largest steel investment in the U.S. right here in Iowa. This means $15 billion flowing into our economy and thousands of high-paying, family-sustaining jobs. Higher wages attract workforce, strengthen local businesses, and grow communities. This opportunity will accelerate the economic trajectory of our state and our country for generations.”
“This historic $15 billion investment marks a monumental win for rural Iowa and a defining moment for our state’s industrial future,” House Speaker Pat Grassley said. “By pairing record-setting economic growth with taxpayer-first safeguards, this legislation ensures that not a single dollar in performance incentives is earned until real facilities are built and high-paying manufacturing jobs are delivered to Iowa families. The House remains steadfast in our commitment to driving conservative, pro-growth policies that protect our taxpayers while positioning Iowa as a national leader in modern steel production, energy independence, and generational prosperity.”
“For years we have been talking about growth and opportunity in our state, and the steel mill project announced this week is a result of our efforts for growth and opportunity,” Senate Majority Leader Mike Klimesh said. “The bill passed today allows us to bring the largest private investment in history to our state and all the opportunity it provides – additional money for infrastructure, workforce training, good-paying jobs, and more investment in our communities. As we work to strengthen our economy, attract more people to Iowa, grow our state, and bring more investment into Iowa, we need to take these opportunities when they present themselves, which is why it was so important to come in for a special session today. I’m proud to see this bill pass and am looking forward to seeing the positive changes it will have on our state.”
