Iowa Approves $1.36 Billion Tax Deal For Essar Steel Plant
On Friday, Oct. 2, 2026, Iowa approved $1.36 billion in tax incentives over 10 years for a Mesabi Metallics steel plant in Lee County.[1]
The Iowa House approved the measure 75-17 and the Senate approved it 28-19, and Gov. Kim Reynolds signed it into law Friday night.[1] President Trump announced Monday that Mesabi Metallics plans a $15 billion plant promising about 1,750 permanent jobs and roughly 6,000 construction jobs in Iowa's 1st Congressional District.[1] The incentives equal about $777,000 in tax credits per promised permanent job over the 10-year period.[1]
Mesabi Metallics and its parent, the India-based Essar Group, previously ran a Minnesota iron ore and steel project that stalled, filed for bankruptcy in 2016, and was later restructured under Essar's control.[1] The plant's location in Iowa's 1st Congressional District places it in a competitive, swing-seat area that drew political attention.[1]
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📌 Key Facts
- On Friday, October 2, 2026, Iowa held a one-day special session and approved $1.36 billion in tax incentives over 10 years for a Mesabi Metallics steel plant in Lee County.
- The Iowa House passed the measure 75-17 and the Senate 28-19, and Gov. Kim Reynolds signed it into law Friday night.
- President Trump announced Monday that Mesabi Metallics plans a $15 billion steel plant promising 1,750 permanent jobs and about 6,000 construction jobs in Iowa's 1st Congressional District.
- The incentives equate to roughly $777,000 in credits per promised permanent job over 10 years, excluding temporary construction employment.
- Mesabi Metallics and parent Essar Group previously oversaw a Minnesota iron ore and steel project that stalled, went bankrupt in 2016, and was later restructured and brought back under Essar's control.
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