Iowa lawmakers could double the investment incentive the state can offer a proposed steel plant in southeast Iowa.
That’s part of the bill under consideration in Friday’s special session.
Minnesota-based Mesabi Metallics wants to build a $15 billion steel plant in Lee County.
Under the proposed changes, the state could offer tax breaks worth up to 10 percent of the company’s investment.
Economic Development Authority Director Debi Durham told a Senate panel that Mesabi said the 5 percent tax credit in current law is not competitive with other states.
“We offered the maximum amount that we are to by code and if that had been accepted we wouldn’t be here today (seeking 10 percent), that is true," she said.
Durham says she believes Arkansas is a competitor for the project.
Any incentive proposal would have to go before the Iowa Economic Development Authority Board to become a contract between Mesabi Metallics and the state of Iowa.
Governor Kim Reynolds was in the Oval Office when President Donald Trump announced the project on Monday. White House officials said the plant was not dependent on any local tax breaks.
