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U.S. Edition Est. 2026 Oct. 5, 2026

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Iowa Approves $1.36 Billion in Tax Incentives for Proposed Lee County Steel Plant

Iowa lawmakers voted 75-17 in the House and 28-19 in the Senate to approve up to $1.36 billion in incentives for a proposed Mesabi Metallics steel plant, with Gov. Kim Reynolds signing the bill Friday night.

Construction cranes and steel framework rising on farmland at an industrial building site under cloudy skies

Iowa lawmakers have approved up to $1.36 billion in state tax incentives over ten years for a proposed Mesabi Metallics steel plant in Lee County, and Gov. Kim Reynolds signed the measure into law Friday night after a one-day special session, according to the Associated Press.

The Iowa House passed the bill 75-17 and the Senate approved it 28-19, according to Factsnap News. The incentives are tied to the plant actually operating, with production not expected before 2030.

A $15 billion project, years from opening

President Donald Trump announced the project at the White House last week, describing a plant costing about $15 billion. Supporters point to construction work and long-term manufacturing jobs in southeast Iowa, while critics in both parties questioned the size of the public commitment and asked for stronger safeguards.

Mesabi Metallics is owned by India’s Essar Group, according to the Associated Press. The company still must complete the state application process before a contract is finalized.

Reporting based on coverage by the Associated Press (via Barchart) and Factsnap News.