IA
Iowa House Bill HSB147

Iowa 2023-2024 Regular Session

Iowa House Bill HSB147

Introduced
2/7/23  
Introduced
2/7/23  

Caption

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

Impact

The MEGA program is structured to grant various tax incentives including sales and use tax refunds and property tax exemptions, significantly benefiting participating businesses by reducing operational tax burdens. For communities, the bill frames a collaborative approval process, requiring local endorsement for projects, thereby integrating community interests with economic growth. However, the program emphasizes that any tax incentives issued could be subject to repayment if the business fails to comply with job creation or investment requirements. This strict compliance criterion aims to ensure that the economic benefits are realized as intended.

Summary

House Study Bill 147 establishes the Major Economic Growth Attraction Program (MEGA) designed to incentivize substantial investment in Iowa by eligible businesses. The bill outlines that to qualify, a business must propose projects on certified sites greater than 250 acres and demonstrate a qualifying investment of over $1 billion. The program aims to attract businesses engaged in advanced manufacturing, biosciences, or research and development, while excluding data centers and retail operations. This setup intends to facilitate growth in sectors that potentially bring high-paying jobs and sustainable economic benefits to the state of Iowa.

Contention

There is a potential point of contention regarding the eligibility of foreign businesses for agricultural land. The criteria set forth require that the foreign business be incorporated in an allied country and not actively engaged in farming, which may lead to debates about land use and agricultural sovereignty. Critics could argue that allowing foreign entities access to Iowa's agricultural land under such circumstances may sidestep local concerns regarding food security and land stewardship. The bill's provisions for economic incentives might attract considerable attention, especially if they are perceived as prioritizing foreign investments over local enterprises.

Latest HSB147 Activity

Companion Bills

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 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 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 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.

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.

CA SB1121

California Consumer Privacy Act of 2018.

CA SB666

Small business: commercial financing transactions.

IA HF580

A bill for an act establishing a dairy innovation fund and program to be administered by the department of agriculture and land stewardship.(Formerly HSB 155; See HF 700.)