Reynolds signs $1.36B steel-plant incentives after special session

Gov. Kim Reynolds signed House File 2801 into law late Friday night, capping a rare single-day special session that amended Iowa's Major Economic Growth Attraction (MEGA) program to clear up to $1.36 billion in tax credits for Mesabi Metallics' proposed $15 billion steel plant in Lee County — the largest incentive award in state history. The House passed it 75–17 in the afternoon; the Senate followed 28–19 in the evening, with six Republicans breaking ranks. The bill's text was released publicly the same morning lawmakers voted on it.

The plant, announced by President Trump in the Oval Office on Monday, is projected to create 1,750 permanent jobs averaging $48 an hour plus 6,000 construction jobs, with steelmaking targeted for 2030. The credits would be refundable and amortized over 10 years, paid only once the plant is in service with half its jobs created. The week was not without friction: at least two GOP senators declared no votes over the $1.36 billion figure and the compressed timeline, and Mesabi's history — a Minnesota project that entered Chapter 11 in 2016 — drew scrutiny.

Sources: Des Moines Register, Bleeding Heartland.