Iowa Gov. Terry Branstad has signed legislation which will help encourage hydroelectric development in the state. The bill exempts hydroelectric conversion equipment from state sales and use taxes. As a result, hydroelectric power projects will receive the same tax exemptions that are currently provided to wind energy projects. The first beneficiary of the new law will be the Red Rock Hydroelectric Project, which Missouri River Energy Services is developing at the Red Rock Dam. Construction of the $224 million dollar Red Rock project is expected to begin in early 2014 and to be completed by late 2016.