(KIWA Staff Photo)Des Moines, Iowa (RI) — Gov. Kim Reynolds has called the Iowa Legislature back to Des Moines for a special session Friday to vote on new incentives for a proposed steel mill project in southeast Iowa.
Reynolds announced the special session after joining President Donald Trump and other elected officials at the White House on Monday, where the project was unveiled.
Reynolds indicated she had engaged in tough negotiations with the company that plans to build the plant.
In a news release issued Tuesday, Reynolds said Iowa has reached a memorandum of understanding with Mesabi Metallics outlining the terms of a partnership. Lawmakers will be asked to make reasonable and limited changes to an existing state economic development program.
Under the current Major Economic Growth Attraction program, qualifying projects can receive sales tax rebates on construction materials, tax credits to hiring full-time workers, and a refundable tax credit equal to 5% of a company’s investment. For the proposed $15 billion steel mill, that incentive could be worth $750 million under current program rules.
Reynolds also said a program called “Source Iowa” will launch later this week to help connect Iowa businesses with opportunities related to the project.
The governor’s proclamation calls on lawmakers to convene at 8:30 a.m. Friday.
