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Iowa Senate Advances Steel Plant Tax Breaks After Committee Row

An Iowa Senate committee has advanced a 15 billion dollar tax incentive package for a steel plant. The Ways and Means committee passed the bill 10 to 8 on October 2 during a special session.

The measure would expand the state’s MEGA tax credit programme for Mesabi Metallics, which wants to build a steel mill in Lee County. The credit would rise from 5 percent to 10 percent of the company’s investment, worth up to 1.36 billion dollars over 10 years.

The project promises about 6,000 construction jobs and 1,750 permanent jobs. President Donald Trump announced the plant at a September 28 Oval Office ceremony. Supporters say it would transform southeast Iowa’s economy.

The vote came after a political row. Senator Dave Sires first said Senate President Mike Klimesh removed two senators, Jeff Taylor and Dawn Driscoll, from the committee after they opposed the bill. He later corrected himself, saying Driscoll had removed herself. Sires had called it “dirty politics.”

The bill had been expected to die in committee. After the reshuffle, it survived 10 to 8 and now goes to the full Senate. The House has already passed it overwhelmingly.

Critics say the state is giving away too much. Supporters say Iowa must compete for big projects.

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