Governor Calls Special Election
The Governor has called a special session for Friday, October 2 in order to provide incentives for the $15 billion steel mill locating in SE Iowa. By law, the Governor must state the cause for the special session and debate is limited to the topic designated by the Governor. The Governor’s proclamation is limited to changes to the state’s existing Major Economic Growth Attraction (MEGA) program – and no other topics. While we have heard rumors that legislators would like to consider other items, any additional laws passed beyond what is in the Governor’s proclamation would likely end up in court.
The changes the Governor is asking legislators to consider to the existing MEGA program allow use in a rural county and authorize a refundable tax credit up to 10% of the investment spread out equally over a ten year period.
Typically legislators in both parties have been concerned about refundable tax credits to companies, so that could be an issue when the special session convenes. We have heard several legislators in both parties are uncomfortable with the size of this offering, the refundability of the tax credit, and the Governor’s desire to allow it to be transferable if the business is bought out.
Check the blog on October 2 – we’ll post updates from the Capitol.