The Iowa Economic Development Authority (IEDA) has approved a package of tax incentives to support International Paper’s planned $103 million expansion of its Cedar Rapids plant. The IEDA’s board voted Friday, Jan. 20 to approve a total package of $1.2 million in state tax incentives for the International Paper project, comprising a combination of investment […]
The Iowa Economic Development Authority (IEDA) has approved a package of tax incentives to support International Paper’s planned $103 million expansion of its Cedar Rapids plant.
The IEDA’s board voted Friday, Jan. 20 to approve a total package of $1.2 million in state tax incentives for the International Paper project, comprising a combination of investment tax credits and tax refunds through the state’s High-Quality Jobs program.
At its meeting Jan. 10, the Cedar Rapids City Council voted unanimously on a resolution to
authorize sponsorship of an application to the IEDA for state tax incentives to support the International Paper project.
According to council documents,
International Paper is planning to build a new 20,000-square-foot building on the company’s Cedar River Mill campus at 4600 C St. SW. The building will house natural gas boilers and a water treatment plant for steam boilers for the International Paper plant.
Steam for the plant was previously provided through the Alliant Energy’s coal-powered Prairie Creek generating station, which is in the process of being shut down.
The $103 million investment for the project includes $20 million for the new building and $83 million for new machinery and equipment, according to council documents.
The project will create seven new jobs, all of which meet the state’s High-Quality Wage threshold of $25.20 per hour, and retain the plant’s 240 existing employees.
The project will qualify for a 10-year, declining-scale property tax exemption on the increased value generated by the project. In this case, the project is expected to generate $2.37 million in new taxes over the 10-year period, $961,000 of which will be exempted, council documents show.
International Paper’s
Cedar River Mill began operations in 1995, making it one of the newest paper mills in the United States, according to a company fact sheet. It is the largest 100% recycled paper mill in the Americas, manufacturing containerboard for boxes and other packaging.
