(Radio Iowa) – State officials may now offer far larger tax incentives for up to two businesses that plan to spend at least a BILLION dollars on a new facility. Yesterday (Wednesday), Governor Kim Reynolds approved up to 93 MILLION dollars in tax incentives for the so-called “MEGA” program.

“This legislation presents a tremendous opportunity for Iowa,” Reynolds said. To qualify as a “MEGA” or “Major Economic Growth Attraction,” the business would have to be engaged in research, advanced manufacturing or bioscience. Reynolds says there are seven “certified” development sites in Iowa that would qualify as a location since a business has to build on at least 250 acres to qualify for the MEGA program.

“There’s also a component that helps some of our rural communities that helps some of our rural communities really try to participate in the process,” Reynolds says. The new law provides some state money to help 88 Iowa counties that are outside of urban areas improve tracts of land, so it’s immediately ready for business development.

Reynolds says there “possibly” may be a business that’s ready to spend over a BILLION dollars in capital on a MEGA site in Iowa.  “We want those big investments, those capital investments in our state,” Reynolds says, “and we need to be competitive for that as well.” Reynolds signed the MEGA incentive program into law yesterday (Wednesday). She also signed legislation that will cut Iowa’s personal income taxes by a billion dollars next year.

“As far as we’ve come, I’m also confident that we’re not done yet,” Reynolds says. “…It increases our competitiveness and sends an unmistakable message to the rest of the country.” Reynolds has said she wants to eliminate the state income tax by the end of 2026.