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A proposal that stalled at the end of the 2023 legislative session is starting to move again, and this time it appears headed toward approval by lawmakers.
DES MOINES — A $93 million tax incentive program designed to attract economic development projects at so-called megasites (projects that span at least 250 acres and involve investments of at least $1 billion) has stalled in its decline. It is being carried out at the Iowa State Capitol. 2023 Congressional Schedule.
Iowa Rep. Bobby Kaufman, R-Wilton, said Wednesday he believed the bill could be quickly approved by the end of the year.
Rep. Bobby Kaufman, R-Wilton
The proposal was introduced late in the 2023 session and approved by the Iowa Senate, but was shelved by the Iowa House Republican leadership over concerns it was not given time for proper scrutiny.
“We just didn’t have enough time,” Kaufman said last year about the proposal’s fate. Asked if he thought the bill would move forward by the end of the year, Kaufman said, “I do.”
The proposal was introduced by the Iowa Economic Development Authority, the state’s economic development agency. The bill would provide qualified projects with qualified investment tax credits, sales tax refunds, and withholding tax credits. The state’s nonpartisan Legislative Services Agency estimates that if eligible projects are approved, the program will cost $93 million initially and $18 million to $19 million when fully implemented. Separately, local governments may offer property tax reductions as an additional incentive, officials noted.
To qualify for incentives, projects must:
- Located on more than 250 acres and with a total investment of at least $1 billion
- Mainly engaged in advanced manufacturing, bioscience, and research and development
- Create jobs that pay at least 140% of qualifying wages and provide comprehensive benefits to each employee
- No record of violations, as determined by the state economic development agency.
The bill would allow foreign companies to purchase land in Iowa to qualify for the program, as long as the companies are from U.S. allies.
An amendment to the proposal introduced during a subcommittee hearing Wednesday in the Iowa House of Representatives would expand eligibility to include businesses with existing facilities that qualify.
Eleven business organizations and labor unions testified in support of the proposal.
“Iowa needs bills like this to stay competitive. So we need to support them,” Stacey Lobban, senior vice president of economic development for the Greater Des Moines Partnership, said at the hearing. I mentioned it at the meeting.
Iowa Economic Development Authority Director Debi Durham told the Gazette last year that the state was unable to attract major solar energy manufacturers to Iowa because the agency’s proposal lacked such incentives. . An agency spokesperson reiterated that during a Congressional hearing Wednesday.
Lawmakers moved the proposal, Senate File 574, out of the subcommittee for consideration by the full House Committee on Tax Policy.
Comments: (515) 355-1300, erin.murphy@thegazette.com
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