Tax and spending incentives and enterprise zones

financial support for this research. They also wish to thank Bob Tannenwald for his support. In early 1994, IPSCO steel corporation, which had been negotiating with several states regarding the location of a new steel mill, was offered a $75.6 million package of incentives by the State of Iowa if the company located its plant along the Mississippi River in Muscatine County, Iowa. The package included several new incentives available only in the “Quality Jobs Enterprise Zone ” created especially for IPSCO: a complete exemption from local property taxes on all manufacturing machinery and equipment in IPSCO’s plant, exemption from paying sales tax on construction materials and services, and a 10 percent investment tax credit. The package also included incentives from programs already in existence: a $1.5 million grant from a state program to build access roads, a $1 million forgivable loan from the Community