‘MEGA’ incentives approved for businesses planning over $1 billion capital investment in Iowa

DES MOINES — State officials may now offer far larger tax incentives for up to two businesses that plan to spend at least $1 billion on a new facility.

Wednesday, Governor Kim Reynolds approved up to $93 million in tax incentives for the so-called “MEGA” program.  “This legislation presents a tremendous opportunity for Iowa,” Reynolds said.

To qualify as a “MEGA” or “Major Economic Growth Attraction,” the business would have to be engaged in research, advanced manufacturing or bioscience. Reynolds says there are seven “certified” development sites in Iowa that would qualify as a location since a business has to build on at least 250 acres to qualify for the MEGA program.  “There’s also a component that helps some of our rural communities that helps some of our rural communities really try to participate in the process,” Reynolds says.

The new law provides some state money to help 88 Iowa counties that are outside of urban areas improve tracts of land, so it’s immediately ready for business development. Reynolds says there “possibly” may be a business that’s ready to spend over a BILLION dollars in capital on a MEGA site in Iowa.  “We want those big investments, those capital investments in our state,” Reynolds says, “and we need to be competitive for that as well.”

Reynolds signed the MEGA incentive program into law Wednesday.