Iowa 2023-2024 Regular Session

Iowa House Bill HF642

Introduced
3/7/23  
Introduced
3/7/23  

Caption

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.)

Impact

The MEGA Program provisionally simplifies the process for foreign businesses seeking to invest in agricultural land under certain conditions. This provision is expected to foster increased foreign investment in Iowa's economy, contingent on specific compliance requirements such as retaining a significant level of in-state jobs and suppliers. Critics, however, express concerns that the bill might facilitate the acquisition of valuable agricultural land by foreign entities without adequate oversight, potentially compromising local interests.

Summary

House File 642 introduces the Major Economic Growth Attraction Program (MEGA Program), which is designed to enhance Iowa's economic growth by providing tax incentives to eligible businesses. The bill stipulates that businesses must propose a project located on a certified site larger than 250 acres, with a minimum qualifying investment of $1 billion. The program aims to attract high-wage jobs and sustainable economic activities, particularly in advanced manufacturing, biosciences, and research and development sectors, while placing restrictions on data centers and retail businesses.

Contention

Notable contention surrounding HF642 includes concerns over the long-term implications for local economies and agricultural land usage. Proponents argue that the program will significantly stimulate economic growth and job creation, while opponents fear it may allow foreign corporations to gain too much control over local resources. Additionally, there are debates about the effectiveness and accountability of the tax incentives provided, particularly regarding the potential for misuse and whether these investments will truly benefit Iowans in the long run.

Companion Bills

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.)

IA SF574

Similar To 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.

Similar Bills

IA SF574

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.

IA SSB1162

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.)

IA HSB147

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 SF657

A bill for an act related to state taxation and finance and other related matters, by creating, modifying, and eliminating tax credits and tax incentive programs, providing for penalties, and including effective date and retroactive applicability provisions. (Formerly SSB 1205.) Effective date: 06/06/2025, 07/01/2025, 12/31/2025, 01/01/2026. Applicability date: 01/01/2017, 01/01/2025, 01/01/2026.

IA SSB1205

A bill for an act relating to matters under the purview of the Iowa economic development authority, including tax credit limits, targeted jobs tax credits, and the major economic growth attraction program; 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.(See SF 657.)

IA HSB305

A bill for an act relating to matters under the purview of the Iowa economic development authority, including tax credit limits, targeted jobs tax credits, and the major economic growth attraction program; 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.(See HF 1054.)

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.)

CA SB1121

California Consumer Privacy Act of 2018.