USA - IOWA Trends and Developments Contributed by: David M Erickson, Robert J Douglas, Jr, Christopher S Talcott and Amy S Montgomery, Dentons Davis Brown
designated as foreign adversaries of the United States. There are protections for Iowa’s farmers included in the bill, including a prohibition on a MEGA Program applicant from actively engag - ing in farming. According to the proposed bill, the purpose of the proposed legislation is to attract businesses in the advanced manufactur - ing, biosciences, and research and development industries. The MEGA Program would provide a number of tax incentives to developers for devel - opment of sites consisting of over 1,000 acres of land with a project cost of over one billion dollars. Incentives would include an investment tax credit, a wage withholding tax credit, and a sales and use tax refund. The MEGA Program was proposed in legislation at the end of the leg - islative session last year with bipartisan support, but did not make it through both chambers for approval before the end of the session; however, it was proposed again this year and appears to be on track to be signed into law this session. The MEGA Program legislation could bring new industries to Iowa, create jobs, grow the state’s population, and allow the state to compete with other states that offer similar incentives to large projects. Iowa’s rural communities have faced a population decline over the years, and this leg - islation could help attract major projects to be built on the development-ready sites located in rural communities that are designated as “Certi - fied Sites” by the Iowa Economic Development Authority.
There is also pending legislation, House File 2420, that proposes to increase the annual maximum amount limits for the Iowa Workforce Housing Tax Credits for qualified housing pro - jects in both large and small cities. This pro - posed legislation would allow for more projects to receive tax credits. Conclusion The efforts to preserve Iowa’s historical agri - cultural identity sometimes conflict with the state’s goal of attracting new investment and development. This tension requires real estate developers in Iowa to navigate various local and state laws that continue to evolve. Developers and investors in development projects should consult with tax professionals and attorneys to determine eligibility for their projects, as Iowa’s incentive programmes are subject to changes at both the legislative and local government lev - els. While the state of Iowa values its agricultural identity and takes legislative steps to preserve it, there are plenty of attractive incentives offered in Iowa for developers to take advantage of for both large and small projects that enhance Iowa as a whole. Iowa’s incentive programmes and pending legislation clearly show that the state is making development a priority.
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