Iowa Lawmakers Commit Funds for Job Creation, Renewable Energy

Iowa legislators adjourned the 2009 session last week after voting in favor of Gov. Chet Culver's multi-million dollar I-JOBS initiative, providing $35 million for broadband access and alternative energy projects. The compromise plan approved by lawmakers allocates $715 million for investments in infrastructure, jobs, the environment, and flood relief through the issuance of bonds paid for with gaming revenue and existing tax revenues, according to the governor's office.

To improve the state's telecommunications infrastructure, $25 million will be leveraged with up to $500 million in federal funding for improved broadband access. The goal is to put in place a system worth about $1 billion when combined with private investments to replace the current system of low- and high-speed connections scattered throughout the state, according to a Des Moines Register article.

Another $10 million will be used to create a revolving loan program to support alternative energy projects for both new job creation and energy independence.

Lawmakers passed a measure that reorganizes the Grow Iowa Values Fund and establishes a Grow Iowa Values Fund assistance program for economic development projects that meet certain criteria. This includes an entrepreneurial component of the program that will focus on early-stage companies and a value-added agricultural component for innovative agricultural products and processes, innovative and new renewable fuels, agricultural biotech, biomass, and alternative energy production.  The bill also establishes an accelerated career education fund and High Quality Jobs program that provides tax incentives to businesses based on the number of jobs created or retained. The appropriation for the Grow Iowa Values Fund is $32 million in FY10. However, budget language stipulates that $1 million from the fund be transferred to the general fund.

Gov. Culver signed into law SF 142 providing for an innovation and commercialization development fund to enhance commercialization in targeted industries of advanced manufacturing, bioscience, information technology and entrepreneurship and to increase the availability of skilled workers for those industries. The bill appropriates $3 million annually from the Grow Iowa Values Fund through FY15.

Two other bills signed by the governor during the session are designed to expand Iowa's wind energy industry. SF 456 utilizes unused tax credits to promote small wind energy projects across the state and HF 817 provides economic incentives for wind component manufacturers who are looking to build or expand in the state.

A third installment of $25 million was approved for the Iowa Power Fund. The four-year, $100 million fund invests in private sector renewable and alternative energy industries (see the May 7, 2007 issue of the Digest).