Iowa Governor Signs $1.36 Billion Tax Incentive Package for Mesabi Steel Mill

Iowa Governor Kim Reynolds signed legislation late Friday paving the way for up to $1.36 billion in tax credits for Mesabi Metallics’ planned $15 billion steel mill in southeast Iowa — the largest tax incentive award in state history, according to the Des Moines Register.

Reynolds signed House File 2801 hours after lawmakers approved it during a rare special session convened for the sole purpose of considering the legislation. The Iowa House passed the bill 75-17 on Friday afternoon, and the Senate followed with a 28-19 vote before the governor signed it at a small ceremony at the Capitol late at night.

“Today, we advance the most consequential economic development project ever to come to our state,” Reynolds said, calling the deal a “once in a lifetime opportunity”.

The legislation amends Iowa’s Major Economic Growth Attraction (MEGA) programme, doubling the investment tax credit from 5 to 10 per cent for a single qualifying company in a rural county, spread over ten years. Iowa’s nonpartisan Legislative Services Agency projects the total tax credits for Mesabi could reach $1.36 billion by 2041.

The project follows President Donald Trump’s announcement on Sept 28 that Mesabi Metallics would build the largest steel plant in US history in Lee County, supporting 6,000 construction jobs and 1,750 permanent jobs, with steelmaking expected to begin in 2030.

Support in both chambers was bipartisan, but several lawmakers expressed discomfort with the size and speed of the deal. Representative Dave Jacoby, a Democrat who voted for the bill, said lawmakers have a duty to audit the money at every step.

Sources

• Des Moines Register
• Bleeding Heartland (Iowa Capital Dispatch)
• Governor’s press release (EIN Presswire)