JOHNSTON, Iowa -- Iowa may not be gaining a merged Dow-DuPont ag company headquarters, but community leaders are calling the deal reached Friday a "victory," regardless.
While the deal has all the bells and whistles for DuPont, some of Iowa’s Democratic lawmakers feel part of the money could have been allocated differently.
The deal breaks down the $16 million into $14 million for research tax credits and $2 million in a forgivable loan.
Sen. Tony Bisignano says while he's okay with the $14 million in research tax credits, he has a problem with the forgivable loan at a time when the state is struggling to fund other areas like education.
He said he also doesn't agree with giving incentives to corporations who are downsizing. And although the deal promises to maintain 500 positions, it doesn't require any additional ones to be added.
“It’s very disappointing because I’m sure $2 million is low for their corporate bonuses. And $2 million in the state of Iowa is a lot of money and could provide a number of things we’re having trouble funding,” Bisignano said.
Bisignano also says he questions why multibillion-dollar corporations like DuPont and Dow need a forgivable loan at the expense of Iowa tax payers.
“It seems like it’s become the trend that we give incentives to corporations that are downsizing just to maintain the jobs that they are leaving. And we don’t want to lose all our jobs, but at the same time, incentives for downsizing at a time when dollars are scarce for essentials like education,” Bisignano said.
Sen. Joe Bolkcom is also not happy with the deal. He said extremely generous taxpayer subsidies to large profitable corporations are the reason we don't have money for Iowa’s local schools and community colleges.