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The Iowa Economic Development Authority (IEDA) Board announced Friday that Collins Aerospace’s planned $22 million expansion project in Cedar Rapids will receive $1.85 million in tax benefit grant funds through the state’s High Quality Jobs Program. The project, with a minimum investment of $22 million, involves developing and manufacturing microchips in an existing building on the Cedar Rapids campus of Collins Aerospace, Cedar Rapids’ largest employer. The budget for the project includes $9.5 million for building renovation and $12.5 million for machinery and equipment. The tax credits approved by the IEDA board Friday included $1.54 million in investment tax credits, amortized over five years, and $285,000 in refunds for sales, service or use taxes paid during construction. The award is also contingent upon application sponsorship and approval of a local match by the city of Cedar Rapids. That local match, $1.05 million, was approved by the city council Tuesday, in the form of three consecutive annual economic development incentive payments of $350,000 each, from August 2025 to August 2027, from the Rockwell Collins Urban Renewal Area’s TIF fund. The standard 10-year schedule for those payments will be consolidated for completion before the TIF district expires, economic development manager Caleb Mason told the council. As part of the plan, an existing 20,000-square-foot light industrial building will be renovated, including modernization and environmental controls, to create a 6,000-square-foot class 100/1000 clean room, safe chemical storage and handling, water treatment, a 5,000-square-foot plating area, and associated equipment and furnishings. The Cedar Rapids City Council approved a resolution Tuesday, March 14 on a term sheet for the project, as well as authorizing sponsorship of a financial assistance application for state incentives through the IEDA’s High Quality Jobs Program. City council documents indicate the project will allow the company to “develop and manufacture microelectronic (microchip) technologies for Collins Aerospace communications products and positions (the company) for future growth into adjacent commercial and defense markets.” Under the proposal, the city would also provide three consecutive annual economic development incentive payments of $350,000 each, from August 2025 to August 2027, from the Rockwell Collins Urban Renewal Area’s TIF fund. The standard 10-year schedule for those payments would be consolidated for completion before the TIF district expires, economic development manager Caleb Mason told the council. The renovation is set to begin in April and be completed by January 2026. As part of its agreement with the city, Collins Aerospace will retain 25 existing employees and create at least 16 more full-time positions. THe 41 positions will be paid an average of $30.24, well above the current High Quality Jobs Program threshold of $25.20 per hour, according to the IEDA grant announcement.