Iowa Governor Kim Reynolds signed House File 2801 on Friday, amending tax credit incentives in the state's Major Economic Growth Attraction (MEGA) program and clearing the way for a $15 billion steel manufacturing plant in Iowa.
MEGA was created to help Iowa compete for large-scale development projects exceeding $1 billion in capital investment. As originally enacted, the program allowed tax incentives of up to 5% each for two eligible businesses, for a total fiscal impact of 10% of qualifying investments. Under HF 2801, the program will now 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 with transferability.
The change makes it possible for Mesabi Metallics, a Minnesota-based iron ore mining company, to invest $15 billion in the construction and operation of a steel manufacturing plant in Iowa. According to the release, 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," 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."
House Speaker Pat Grassley said the investment marks "a monumental win for rural Iowa," adding 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."
Senate Majority Leader Mike Klimesh said the bill "allows us to bring the largest private investment in history to our state," citing additional money for infrastructure, workforce training and jobs.