Prepared remarks by Senator Joe Bolkcom of Iowa City, chair of the Senate Ways and Means Committee
We all want to help create jobs here in Iowa.
And everyone in this chamber believes tax credits and incentives CAN be a great tool to get that done.
Take, for example, the clean energy incentives we passed last year.
Put your own money into a solar, wind or geothermal project at your home or business. You get a state tax credit, and the chances are that the work will be done by a local Iowa contractor.
And we all voted for the Endow Iowa tax credit.
Iowans who give back to their communities by contributing to a community foundation receive a state tax credit.
Are we using tax credits to rebuild and revitalize Iowa Main Streets?
We sure are. The Historic Tax Credit helps local communities turn decaying local landmarks into viable commercial buildings.
Does the Earned Income Tax Credit for working families help grow the Iowa economy?
Yes it does.
When working families get back some of the money they pay in taxes, they spend that money in the communities where they live.
When they buy necessities like food, car repairs, and make rent payments, they are helping Iowa businesses.
So, I am someone who believes tax credits can be a great help in creating Iowa jobs.
Note the key phrase “can be.”
Let’s consider Governor Branstad’s decision to give more than 200 million dollars in state and local tax credits and tax incentives to the Orascom Corporation.
I think that decision was the worst economic development decision in state history….the worst economic development decision in state history.
And I thought that BEFORE last week’s news that the feds are suing Orascom for lying about a $332 million contract.
Both Democratic and Republican members of the Senate have expressed their concerns to me about the Orascam deal and the Governor’s decisions in this matter.
Over the next week, I’m going to make several points on this issue.
I’ll do my best to lay out what I know and what is still unknown.
I will close today with Governor Branstad’s claim that The Iowa won the Orascom fertilizer plant by the “skin of its teeth.”
The facts, unfortunately, flatly contradict that claim.
Tomorrow, I’ll talk about the $300 million dollar advantage the Iowa sites had over the Illinois sites, an advantage we had BEFORE Governor Branstad starting handing over what would eventually become more 200 million dollars in tax incentives, paid for by Iowa families and businesses.