A HELPING HAND
Make the move with these incentives
Beyond the list of advantages our excellent business climate provides, the state of Iowa and our local governments offer an assortment of financial enticements to support companies looking to expand or relocate. Our economic development team works with you to find incentives available for your company at both local and state levels. Our team tailors the best possible package for your project. Here are just a few of the possibilities:
High Quality Jobs Program
Provides direct financial assistance and tax credits to qualifying businesses to offset the costs incurred to locate, expand, and/or modernize. The direct financial assistance typically is a forgivable loan and/or a zero or low interest loan. The tax credits include an investment tax credit against your Iowa corporate income tax liability; a refund on construction-related sales tax; and an increase in the Iowa statutory research activities tax credit, which is refundable if you don’t have an Iowa corporate income tax liability.
Iowa New Jobs Training (260E)
Provides businesses expanding their Iowa workforce with funding for new employee training. Available through Kirkwood Community College, the program is financed through bonds sold by the college. Depending on wages paid, the business then diverts 1.5% or 3 % of the Iowa state withholding taxes generated by the new positions to the community college to retire the bonds. Because of this structure, the training fund is made available to the company at what is essentially no cost since the bonds are retired with dollars that otherwise would have been paid to the state as withholding taxes. In addition to increasing worker productivity and company profitability through structured training activities, businesses participating in the Iowa Industrial New Jobs Training Program may also be eligible for reimbursement of costs associated with on-the-job training, as well as a corporate tax credit if Iowa employment is increased by at least 10 percent.
Iowa Industrial Property Tax Exemption
Available to qualifying businesses for value added to real estate through new construction and/or renovation. This exemption is graduated over five years to help reduce your start-up and operating costs.
Property Tax Exemptions/Rebates/Abatements
- 427B Industrial Property Tax Abatement-15% sliding scale/per year over 5 years: 75%, 60%, 45%, 30%, 15%
- Tax Increment – Property taxes rebated to company for new real property tax investment and job creation. Typically rebated back over time.
Tax Increment Financing (TIF)/Abatements
Available to qualifying businesses that build new facilities or substantially expand existing facilities. Cities or counties may refund a portion of the value-added property taxes for a specified period of time.
Research Activities Tax Credit
- Iowa is one of few states where a Research & Development tax credit is refundable
- Up to 6.5% qualified research and development investment
- Opportunity for supplemental +3% or +10% based on company sales while under High-Quality Jobs Program
- Iowa follows federal Research & Development requirements
Need more inside info on taxes?
Here’s a breakdown on taxes in Iowa:
|Tax Description||Benefit in Iowa|
|Utilities Sales Tax||NO Tax on utilities (electricity / natural gas) used in the manufacturing process|
|Computers / Pre-Installed Software||NO Tax|
|Inventory Tax||NO Tax|
|Sales Tax (Machinery & Equipment)||NO Tax|
|Personal Property Tax||NO Tax|
|Property Tax (Machinery & Equipment)||NO Tax|
IT’S EASIER HERE!
See what others are saying about doing business here:
- Platte Institute: Nebraskanomics: Iowa’s Incredible Tax Reform Turnaround
- Wall Street Journal: Is This Taxpayer Heaven? No, it’s Iowa
- Tax Foundation: Iowa Enacts Sweeping Tax Reform
- Quad City Times: Follow Iowa’s Example