Lawmaker Wants to End Orascom Tax Credits
DES MOINES, Iowa (AP) - An Iowa Senate Democrat has introduced legislation intended to halt the last transfer of state tax credits to a fertilizer plant in southeastern Iowa.
Sen. Joe Bolkcom, of Iowa City, proposed a bill Tuesday meant to prevent Orascom, an Egyptian multinational corporation, from requesting a final $25 million tax credit installment.
In 2012, Gov. Terry Branstad promised the company $100 million in investment tax credits, in addition to other federal, state and local incentives, in exchange for the creation of 165 permanent jobs in Iowa. Bolkcom's proposal would cap the amount of investment tax credits any corporation can receive at $75 million.
Bolkcom said in a statement that this is Iowa's last chance to avoid "needlessly" giving away more money.
Senate Republicans defended Branstad's negotiation on the floor last month.