Iowa Senate passes Major Economic Growth and Attraction (MEGA) Program

On Tuesday, April 16, the Iowa Senate passed a compromised version of the Major Economic Growth and Attraction (MEGA) Program. This closes two years of work to create a new incentive to help Iowa compete for large-scale economic development projects, defined in the bill as more than $1 billion in investment on a certified site of at least 250 acres. 

The compromise includes more clarity on language related to foreign adversaries to ensure funds don’t make their way to bad actors, and a $300,000 appropriation for new certified sites in each congressional district. 

The bill now awaits Governor Reynold’s signature and is expected to take effect quickly thereafter. 

“This is a big win for the Quad Cities community. In recent years, the Chamber has seen significant interest from projects projecting more than $1 billion in investment. The MEGA program will help to make our region more competitive for those projects,” said Ryan Sempf, Executive Director for Government Affairs with the Quad Cities Chamber. “This was a multi-year initiative and we’re happy to see it get through the legislature in the waning days of this year’s session."

About this program: 

• Eligible businesses could receive a 5% investment tax incentive for projects with at least a $1 billion investment on certified sites larger than 250 acres. 
• Sales and use tax refunds are available, as well as qualifying investment tax credits and withholding tax credits for eligible businesses. 
• Eligible businesses must primarily engage in advanced manufacturing, biosciences or research and development, but not as data center businesses or retail.  
• Requirements for job creation include jobs paying at least 140% of the qualifying wage threshold and providing comprehensive benefits. 
• Specific provisions for foreign businesses acquiring agricultural land as part of their investment project. 
• $300,000 for the Iowa Economic Development Authority (IEDA) to certify two new industrial sites in each congressional district. 

Every Quad Cities legislator voted for this legislation. Please consider taking a moment to thank your legislator for voting yes.