There was an article about this in today's Des Moines Register.

Posted by Jane Clark

OFFICE OF THE GOVERNOR 

Governor Terry E. Branstad < Lt. Governor Kim Reynolds

 

FOR IMMEDIATE RELEASE: Wednesday, September 5, 2012

CONTACT: Governor's Office (515) 725-3518

                                

Branstad, Reynolds celebrate largest capital investment in Iowa history,
calls for Iowa income tax reform

 

(DES MOINES) - Branstad and Lt. Gov. Reynolds celebrated the single largest
capital investment project in the history of the state and called on
lawmakers to turn their focus to income tax reform during the next
legislative session. They joined representatives of the Iowa Fertilizer
Company to announce their final selection of a Lee County site for their
$1.4 billion project that will create 165 permanent jobs and more than 2,000
construction-related jobs.

  

To successfully compete for this project, Iowa had to offer incentives to
overcome its current corporate income tax structure.  The governor used this
project as an example of why tax reform is necessary.

 

"If our income tax structure was more competitive, we would be better able
to compete for job and capital investment creation projects like this one.
It also will level the playing field for our existing Iowa companies,
allowing them to grow and create even more jobs," said Branstad.

 

Iowa Fertilizer Company is a subsidiary of Orascom Construction Industries,
one of the world's largest fertilizer producers.  The new plant would supply
needed ammonia and other nitrogen fertilizers to farmers in Iowa and the
Midwest. 

 

Lt. Governor Reynolds added, "In addition to the jobs and massive capital
investment this project will mean for Iowa, it also will have a tremendous
impact for our ag economy. In fact, when this fertilizer plant comes online,
it could save Iowa farmers hundreds of millions of dollars annually."

 

In February 2012, the Iowa Economic Development Authority (IEDA) Board
awarded Iowa Fertilizer Company incentives to locate in Lee County, Iowa.
Due to some unforeseen challenges with the original site, the company
resumed its search for a suitable location and was pursued by other states
to locate outside of Iowa.  

 

Earlier today, the IEDA Board met to amend its original award to ensure Iowa
would win this project. The amendment that was passed includes an increase
to the investment tax credit portion of the High Quality Jobs award,
increasing the total tax credits to $57.5 million. The IEDA board will also
be asked to consider future amendments in FY14 and FY15 to increase the ITC
portion of the award by $25 million in each of those years. If the board
passes those amendments, the final award to Iowa Fertilizer Co. would amount
to $100 million of tax credits. The direct financial assistance award
remains unchanged at $1.6 million (half loan, half forgivable loan).  

 

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