Reynolds signs HF 2801 raising Iowa MEGA tax credit to 10% for steel mill

Key points

• House File 2801 passed the Iowa House 75-17 and the Senate 28-19 during the Oct. 2 special session; Reynolds signed it that evening.Iowa LegislatureThe Des Moines RegisterBleeding Heartland
• The law raises the MEGA investment tax credit from 5% to 10% of qualifying investment for one business in a county of 50,000 or fewer.Iowa LegislatureOffice of the Governor of IowaBleeding Heartland
• The credit is refundable, spread evenly over ten years, and transferable with state approval; none issues until operations begin or jobs are added.Iowa LegislatureOffice of the Governor of IowaBleeding Heartland
• Officials cite $1.36 billion in state incentives over a decade; Legislative Services Agency figures show $575 million in added credits plus $215 million otherwise.The Des Moines RegisterBleeding Heartland
• Opponents cited Mesabi Metallics' troubled Minnesota history, including the 2016 Essar Steel Minnesota bankruptcy, and questioned the rushed negotiation.Bleeding Heartland
• The Act took effect on enactment as of immediate importance; it amends Iowa Code sections 15.491 to 15.501 and adds section 432.12P.Iowa Legislature

Sources4 articles across 4 outlets

• Bleeding Heartland

  • Governor signs law allowing $1.4B in tax incentives for steel mill projectOct. 2, 2026

• Iowa Legislature

  • House File 2801 - EnrolledOct. 2, 2026

• Office of the Governor of Iowa

  • Gov. Reynolds signs legislative amendments to MEGA program paving way for historic $15 billion steel millOct. 2, 2026

• The Des Moines Register

  • Gov. Kim Reynolds signs massive tax credit legislation for steel plantOct. 3, 2026

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