Iowa 2023-2024 Regular Session

Iowa Senate Bill SSB1162

Introduced
2/15/23  
Introduced
2/15/23  

Caption

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

Impact

If enacted, the MEGA Program would significantly restructure the approach to attracting high-investment businesses in Iowa. The bill's provisions for substantial tax breaks, including property tax exemptions for improvements, could make Iowa a more appealing destination for domestic and foreign businesses alike. However, the bill emphasizes compliance with specific guidelines regarding land acquisition and job creation, limiting eligibility to those who maintain higher wage standards and provide comprehensive employee benefits. The authority will also evaluate the impact on local competition and prioritize businesses with few in-state rivals and a strong local supply chain.

Summary

Senate Study Bill 1162 (SSB1162) proposes the establishment of the Major Economic Growth Attraction Program (MEGA Program) to be administered by the economic development authority in Iowa. This program aims to attract large-scale businesses by offering various tax incentives and benefits for eligible entities that are willing to invest significantly within the state. The bill specifies that businesses seeking participation must invest over $1 billion and operate on certified sites greater than 250 acres. Additionally, it permits the acquisition of agricultural land by eligible foreign businesses under specific conditions, allowing such transactions in designated mega sites, provided that the foreign entities are from allied countries.

Contention

Notably, SSB1162 has sparked discussion regarding the potential implications of allowing foreign businesses to purchase agricultural land. Critics argue that allowing foreign entities access to vital resources could threaten local agricultural interests and alter community dynamics. Supporters, however, contend that the influx of investment can lead to broader economic benefits, job creation, and an enhanced state economy. The inclusion of penalties for businesses failing to meet their obligations will also necessitate robust monitoring, raising concerns about administrative resources and potential backlash from communities wary of losing local control over land use decisions.

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 HF642

Replaced by 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 SF574

Replaced by 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 HF642

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

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.