Iowa 2023-2024 Regular Session

Iowa Senate Bill SF574

Introduced
4/24/23  
Engrossed
5/3/23  
Introduced
4/24/23  
Engrossed
5/3/23  
Refer
5/4/23  
Refer
5/3/23  
Enrolled
4/29/24  
Refer
5/4/23  
Passed
5/1/24  
Enrolled
4/29/24  

Caption

A bill for an act relating to programs administered by the economic development authority by establishing the economic growth attraction program, modifying the certified site and high-quality jobs programs, making appropriations, providing penalties, and including effective date provisions. (Formerly SSB 1162.) Effective date: 05/10/2024.

Impact

The bill significantly modifies existing programs administered by the Iowa Economic Development Authority, enhancing their ability to attract large-scale investments. It provides mechanisms such as tax credits, grants, and property tax exemptions to incentivize eligible businesses. However, the conditions for foreign businesses acquiring agricultural land have been amended to include restrictions based on relationships with foreign adversaries, intending to safeguard local interests. This can potentially reshape the landscape of agricultural investment in Iowa.

Summary

Senate File 574 establishes the Major Economic Growth Attraction Program (MEGA Program), aimed at encouraging significant capital investments and job creation in Iowa. The bill is focused on advancing manufacturing, biosciences, and research and development sectors by offering substantial tax incentives to qualifying businesses. To be eligible, businesses must invest over one billion dollars, create new jobs that pay at least 140% of the qualifying wage threshold, and establish operations on certified sites. The overall goal is to enhance economic growth, particularly in underdeveloped areas of the state.

Sentiment

The sentiment surrounding Senate File 574 is mixed, reflecting both optimism and concern among stakeholders. Proponents argue that the bill will drive economic growth, create jobs, and attract much-needed investment into the state’s economy. However, critics raise alarms regarding the potential for excessive foreign influence in local agricultural sectors and the implications for smaller businesses that may find it challenging to compete for incentives against larger entities. Overall, the discussion highlights a vigorous debate about balancing economic development with local interests.

Contention

Notable points of contention include the specific eligibility criteria for businesses and the restrictions placed on foreign investments in agricultural land. Critics are particularly concerned that the focus on very large businesses might overlook the needs and contributions of smaller local enterprises. There is also apprehension regarding the potential for large tax incentives to diminish the state's revenue base. The future effectiveness of this program will rely heavily on the implementation and adherence to its conditions, particularly related to job maintenance and compliance with local laws.

Companion Bills

IA HF642

Similar To A bill for an act establishing the major economic growth attraction program to be administered by the economic development authority, and providing penalties.(Formerly HSB 147.)

IA HSB147

Related A bill for an act establishing the major economic growth attraction program to be administered by the economic development authority, and providing penalties.(See HF 642.)

IA SSB1162

Related A bill for an act establishing the major economic growth attraction program to be administered by the economic development authority, and providing penalties.(See SF 574.)

Previously Filed As

IA SF2301

A bill for an act relating to matters under the purview of the economic development authority, the utilities commission, and the department of education, including creation of the headquarters expansion and development for growth and employment program, and the business incentives for growth program training fund; repeal of the new jobs tax credit program; the major economic growth attraction program; load forecasting and analysis of electric transmission system expansion plans; creation of the electric transmission system expansion planning and analysis and load forecasting fund; the industrial new jobs training program; and including effective date provisions.(Formerly SSB 3103; See SF 2506.)

IA HF2799

A bill for an act relating to matters under the purview of the economic development authority, the utilities commission, and the department of education, including creation of the headquarters expansion and development for growth and employment program, and the business incentives for growth program training fund; repeal of the new jobs tax credit program; the major economic growth attraction program; load forecasting and analysis of electric transmission system expansion plans; creation of the electric transmission system expansion planning and analysis and load forecasting fund; the industrial new jobs training program; and establishing the new jobs training program interim study committee; and including effective date provisions. (Formerly HSB 755.) Effective date: 06/02/2026, 07/01/2026.

IA HF2772

A bill for an act relating to and making appropriations for the economic development of the state, including to the economic development authority, Iowa finance authority, department of workforce development, and state board of regents and certain regents institutions, and codifying the housing renewal program. (Formerly HSB 773.) Effective date: 07/01/2026

IA SF652

A bill for an act relating to economic development and housing by modifying provisions concerning economic development programs and modifying provisions concerning Iowa's urban renewal law, and including applicability provisions.(Formerly SSB 1214.)

IA SF2506

A bill for an act relating to matters under the purview of the economic development authority, the utilities commission, and the department of education, including creation of the headquarters expansion and development for growth and employment program, and the business incentives for growth program training fund; repeal of the new jobs tax credit program; the major economic growth attraction program; load forecasting and analysis of electric transmission system expansion plans; creation of the electric transmission system expansion planning and analysis and load forecasting fund; the industrial new jobs training program; establishing the new jobs training program interim study committee; the research activities credit; and including effective date provisions.(Formerly SF 2301, SSB 3103.)

IA SSB3103

A bill for an act relating to matters under the purview of the economic development authority, the utilities commission, and the department of education, including creation of the headquarters expansion and development for growth and employment program, and the business incentives for growth program training fund; repeal of the new jobs tax credit program; the major economic growth attraction program; load forecasting and analysis of electric transmission system expansion plans; creation of the electric transmission system expansion planning and analysis and load forecasting fund; the industrial new jobs training program; and including effective date provisions.(See SF 2301, SF 2506.)

IA HSB755

A bill for an act relating to matters under the purview of the economic development authority, the utilities commission, and the department of education, including creation of the headquarters expansion and development for growth and employment program, and the business incentives for growth program training fund; repeal of the new jobs tax credit program; the major economic growth attraction program; load forecasting and analysis of electric transmission system expansion plans; creation of the electric transmission system expansion planning and analysis and load forecasting fund; the industrial new jobs training program; and including effective date provisions.(See HF 2799.)

IA SF645

A bill for an act relating to and making appropriations for the economic development of the state, including to the economic development authority, Iowa finance authority, department of workforce development, and the state board of regents and certain regents institutions, and extending the repeal date for the housing renewal pilot program. (Formerly SSB 1236.) Effective date: 07/01/2025.

IA HF1054

A bill for an act relating to matters under the purview of the Iowa economic development authority and the department of workforce development, including tax credit limits, the major economic growth attraction program, layoffs and facility closures, the brownfield redevelopment fund, and the Iowa economic emergency fund; creation of the business incentives for growth program, the seed investor tax credit program, the Iowa film production incentive program, the research and development tax credit program, and the sustainable aviation fuel production tax credit program; elimination of the high quality jobs program, the investments in qualifying businesses tax credit, employer child care tax credits, assistive device tax credits, endow Iowa tax credits, and research activities tax credits; and including effective date provisions and criminal penalties.(Formerly HSB 305.)

IA HF2735

A bill for an act relating to programs administered by the Iowa finance authority including the firsthome program and home ownership assistance program for military members, making appropriations, and including effective date provisions.

Similar Bills

No similar bills found.