Capitol Briefs 11-19-09

Culver orders review of tax credits

Gov. Chet Culver on Thursday ordered a wide-ranging review of the state's 30 tax credit programs.

The review comes in the wake of the suspension and criminal probe of the state's film tax credit program.

Problems with that program and the state's tight budget situation have brought calls for curbs on the state's tax credit programs.

A report by the Iowa Department of Revenue predicts the state's tax credit liabilities could total more than $566 million by fiscal year 2011.

Directors of the six state agencies that administer tax credit programs will be required to submit a review of their department's programs. Those directors also will serve on a panel that will submit a report to Culver addressing issues such as oversight, accountability, public reporting and which programs should be continued or eliminated.

The panel's review is due Dec. 4, and public hearings on the matter will be held in Des Moines and Cedar Rapids during the week of Dec. 7. Dates and locations of those meetings will be announced later.

Business projects awarded incentives

The Iowa Department of Economic Development's board approved inventive packages Thursday for eastern Iowa companies looking at expanding their operations or recovering from last year's floods. They include the following:

-- Approved a $600,000 loan and tax incentives to Agri Star Meat & Poultry to modernize the kosher beef and poultry plant in Postville formerly operated by Agriprocessors. Before its closure, the plant was the largest kosher beef processing facility in the nation. Agri Star currently is operating the plant's poultry processing line and plans a $6.85 million upgrade to the beef processing line with a remodel and new equipment.

The company also plans to offer oven-baked beef poultry, which will mean the installation of ovens and fryers.

The investment will create 168 jobs and allow the plant to slaughter and process 500 cattle each day.

-- Approved $1.5 million in enterprise zone tax credits for Kraft Foods Global Inc., which is considering a $25 million expansion of its Davenport facility to meet demands for its products. If Davenport is selected as the company's site for expansion, the Kraft would create 45 new jobs over the next two years there.

-- Approved roughly $900,000 in enterprise zone tax credits to Von Maur of Davenport for an $8.6 million office, warehouse and distribution facility for its Internet retailing business.

-- Awarded $385,000 to Sign Productions in Linn County to relocate to a new building and acquire new manufacturing equipment after the 2008 floods.

-- Awarded Stamats Communications in Cedar Rapids $500,000 toward its flood recovery costs.

Chuck Norris teams with Vander Plaats

More than three dozen Iowans are heading to Texas to rub elbows with action movie star Chuck Norris Friday evening.

They'll also be contributing $5,000 per couple to Bob Vander Plaats' campaign for the Republican nomination for governor.

Norris, who has endorsed Vander Plaats for governor, offered to host an event for the Sioux City businessman at his ranch at Navasota, Texas, about 30 miles south of College Station.

Vander Plaats spokesman Eric Woolson said about 40 people are expected to attend.

Vander Plaats is one of six Republicans seeking the party's nomination to challenge first-term Democrat Gov. Chet Culver in 2010. Vander Plaats is one of three gubernatorial candidates around the country who have been endorsed by Norris.

The actor and martial arts teacher and competitor campaigned for former Arkansas Gov. Mike Huckabee during the Iowa precinct caucus campaign. Vander Plaats worked for Huckabee and has the former governor's backing in his bid for governor.