New tax incentive bill for major state projects set to be enacted

Hunter
04/17/24

A new tax incentive bill that’s aimed at attracting billion-dollar economic development projects to the state has been passed by the legislature and awaits Governor Kim Reynolds’ signature.

The Gazette reports the proposed incentive program, which was designed by the state’s economic development agency, would be made available to projects in Iowa that invest at least $1 billion and span at least 250 acres.

The incentives would include an investment tax credit, a sales tax refund on construction costs, and a withholding tax credit on wages.

Qualifying projects would have to be on a site greater than 250 acres, and primarily engaged in advanced manufacturing, biosciences, or research and development.  The businesses must be violation-free and offer comprehensive benefits with pay at least 40% over the qualifying wage.

Existing facilities that meet the guidelines will also be eligible for the tax incentives.

The bill passed the Iowa Senate unanimously Tuesday after the House overwhelmingly passed it earlier this year.