Business Advantages

Business Advantages

Tax Advantages

  • No sales and use tax on manufacturing machinery and business equipment purchases.
  • No property tax on new industrial machinery and business equipment.
  • No personal property tax, including corporate inventories of goods-in-process, raw materials and salable goods.

Iowa Corporate Income Tax

  • 50% deductibility of federal taxes from Iowa corporate income
  • Single-factor, non-unitary based only on the percentage of total sales income within the state

 

FINANCIAL ASSISTANCE & TAX INCENTIVE PROGRAMS

State Tax Incentives

Iowa offers a variety of avenues for financial assistance options to assist with relocations and expansions to locations within Iowa. Assistance is provided in the form of loans and/or forgivable loans, based in part on job creation, capital investment, the ability to meet certain wage standards, quality of employment, and economic benefits for the state and local community.

The High Quality Jobs Program (HQJ) is the state's premier financial assistance program designed to support innovation and job growth. Applications for this program are filed by cities, counties or community colleges on behalf of eligible businesses.

Additional incentive programs available at the state level include Renewable Chemicals Production Tax Credit, New Jobs Tax Credit, and Research Activities Credit.

Local Tax Incentives

Counties and communities within the region have the ability to offer Tax Increment Financing (TIF) and tax abatement options within their jurisdiction. Decisions are made on a per-project basis and are determined by factors such as capital investment, job creation, and wage scale. Further information can be found by contacting a representative in the region. WIAD partners will work with the business to discuss options with the community or county in which your preferred site lay.

Revolving Loan Funds

Local revolving loan funds are available to businesses making an investment in the region. These loans are low-interest instruments that are generally tied to the creation of jobs in the region. The entire WIAD region has access to one or more of these funds, and specific terms and applicability will depend upon the selected business location. Region XII Development Corporation offers one of these funds. Loans range from $5,000 to $300,000 and serve as gap financing for a project following commercial loans being sought. Applicants must contribute a minimum of 10% of the total project cost. There is a 1.5% application fee for this fund. Further program detail, application documents and contact information can be found here.

 

Other loan funds include those offered by individual counties, cities, rural electric cooperatives, or councils of governments.

Incentives
PARTNERING WITH COMMUNITY COLLEGES TO ENHANCE IOWA’S WORKFORCE The Accelerated Career Education (ACE) program is designed to provide businesses with an enhanced, skilled workforce. ACE assists Iowa's community colleges to either...
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Category: IA State Programs, Workforce

ENCOURAGING VENTURE CAPITAL INVESTMENT IN IOWA STARTUPS AT THE SEED CAPITAL STAGE Angel Investor tax credits are offered to increase the availability and accessibility of venture capital, particularly for ventures at...
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Category: IA State Programs, Investor Tax Credits

RESPONDING TO CONFIDENTIAL INQUIRIES AND PROVIDING SITE LOCATION ASSISTANCE The Iowa Economic Development Authority’s (IEDA) business development team is experienced in working with existing industry expansions and confidential site location reviews....
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Category: IA State Programs, Site Location Assistance

Business Expansion and Strategic Trends (BEST of Iowa) is a statewide business retention and expansion program. The program is an existing business collaborative effort between the local developer, MidAmerican Energy, Alliant...
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Category: IA State Programs

HELPING BUSINESSES LEARN ABOUT IOWA LICENSING REQUIREMENTS Iowa does not have a “general business license.” Licensing and other compliance requirements are based on the nature of a business or professional occupation. For...
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Category: IA State Programs, Small Business Assistance

DESIGNATING DEVELOPMENT-READY SITES Companies looking to build new facilities are searching for sites suitable for development and relatively risk free. Certified sites fill the demand for project-ready industrial sites - making...
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Category: IA State Programs, Site Location Assistance

FUNDING COMMUNITY COLLEGE-SPONSORED EMPLOYEE TRAINING PROJECTS The Community College Consortium (260F) program provides funding assistance for community college-sponsored employee training projects in which two or more businesses participate.  Iowa's 15 community colleges...
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Category: IA State Programs, Workforce

HELPING BUSINESSES DEVELOP AND BRING NEW TECHNOLOGIES AND CONCEPTS TO MARKET The Demonstration Fund is designed to provide assistance to companies with market-ready innovative technologies or products that have a clear...
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Category: IA State Programs, Entrepreneur and Innovation Support

WORKING WITH BUSINESSES TO PROVIDE EMPLOYMENT OPPORTUNITIES The Economic Development Set Aside (EDSA) program provides financial assistance to businesses and industries requiring assistance to create or retain job opportunities in Iowa. EDSA...
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Category: IA State Programs, Business Incentives

ASSISTANCE CREATING AN ESOP FEASIBILITY STUDY Iowa incentivizes the creation of ESOPs to retain businesses. Companies with an ESOP can sell the business to its employees when the owners retire or...
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Category: IA State Programs, Business Finance

The state of Iowa is the perfect place to expand, locate or start a business. The state’s pro-business policies, nationally recognized research centers and legendary Midwestern work ethic give businesses...
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Category: IA State Programs, International Business Assistance

Der Bundesstaat Iowa bietet ein hervorragendes Geschäftsumfeld für wachstumsorientierte Unternehmen, die ihren Marktanteil und ihre Wirtschaftlichkeit in den USA steigern möchten. Unternehmen in Iowa profitieren von einer unternehmerfreundlichen Politik, national...
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Category: IA State Programs, International Business Assistance

The Iowa Economic Development Authority has international trade offices in Des Moines, Iowa and throughout the globe in locations including China, Germany,  Mexico and Singapore, working with offices and representatives...
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Category: IA State Programs, International Trade Assistance

ASSISTING BUSINESSES AND CREATING OPPORTUNITIES FOR IOWA’S SKILLED WORKFORCE The High Quality Jobs (HQJ) program provides qualifying businesses assistance to off-set some of the costs incurred to locate, expand or modernize...
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Category: IA State Programs, Business Incentives

CONNECTING ENTREPRENEURS AND SMALL BUSINESSES TO RESOURCES IASourceLink.com is where business begins in Iowa. The mission is to help small businesses succeed by providing complimentary and easy access to assistance needed to...
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Category: IA State Programs, Small Business Assistance

CERTIFYING HIGH UNEMPLOYMENT TARGETED EMPLOYMENT AREAS The EB-5 program is administered by United States Citizenship and Immigration Services (USCIS) and allows foreign investors to obtain a visa if certain investment and...
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Category: IA State Programs, Business Finance

ENCOURAGING INVESTMENTS IN VENTURE CAPITAL FUNDS THAT INVEST IN IOWA STARTUPS The Innovation Fund Tax Credit was created to stimulate venture capital investment in innovative Iowa businesses. Individual investors receive tax...
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Category: IA State Programs, Investor Tax Credits

PROVIDING IOWA COMPANIES RESOURCES TO SUCCEED IN THE GLOBAL MARKETPLACE The Iowa Economic Development Authority’s (IEDA) International Trade Office markets the directory to buyers outside the United States interested in Iowa...
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Category: IA State Programs, International Trade Assistance

ASSISTING IOWA SMALL BUSINESSES EXPAND IN NEW MARKETS The Iowa Economic Development Authority's (IEDA) International Trade Office (ITO), in partnership with the U.S. Small Business Administration’s State Trade Expansion Program (STEP), offers...
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Category: IA State Programs, International Trade Assistance

PROMOTING IOWA GOODS AND SERVICES INTERNATIONALLY The Iowa Economic Development Authority's (IEDA) International Trade Office (ITO) organizes trade missions, trade shows and in-bound international buyers groups. Iowa businesses can also access international...
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Category: IA State Programs, International Trade Assistance

STRENGTHENING IOWA’S PRESENCE IN THE GLOBAL MARKETPLACE The Iowa Economic Development Authority's (IEDA) International Trade Office (ITO) assists Iowa companies in developing or expanding into international markets and marketing products and services. Individual...
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Category: IA State Programs, International Trade Assistance

Quarterly newsletter from the IEDA's International Trade Office. DOWNLOAD THE LATEST ISSUE
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Category: IA State Programs, International Trade Assistance

TRAINING EMPLOYEES THROUGH APPRENTICESHIPS  There are more than 1,000 occupations eligible for apprenticeship training grants, from accounting specialists to nurses. Registered apprenticeships are a proven approach to preparing workers for in-demand...
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Category: IA State Programs, Workforce

HELPING IOWA BUSINESSES PROVIDE TRAINING OPPORTUNITIES FOR NEW JOBS The Iowa Industrial New Jobs Training (260E) program provides businesses expanding Iowa’s workforce with new employee training. 260E is designed to increase...
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Category: IA State Programs, Workforce

HELPING EMERGING INDUSTRIES COMMERCIALIZE TECHNOLOGY The Iowa Innovation Acceleration Fund promotes formation and growth of businesses that engage in the transfer of technology to competitive, profitable companies that create high-paying jobs....
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Category: IA State Programs, Entrepreneur and Innovation Support

TRAINING CURRENT EMPLOYEES OF IOWA COMPANIES The Iowa Jobs Training Program (260F) provides job training services to current employees of eligible businesses. Helps companies train current employees with new skills Eligible businesses work...
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Category: IA State Programs, Workforce

ASSISTING BUSINESSES WITH A FUTURE WORKFORCE AND LINKING IOWA STUDENTS TO CAREERS The Iowa Student Internship Program provides grants to small and medium-sized companies in targeted industries to support internship programs...
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Category: IA State Programs, Workforce

ASSISTING BUSINESSES AND EXPANDING EMPLOYMENT OPPORTUNITIES This one-time, corporate income tax credit is available to participants in the New Jobs Training (260E) Program. Iowa offers this credit as an incentive for...
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Category: IA State Programs, Business Incentives

HELPING COMPANIES REACH COMMERCIALIZATION The Proof of Commercial Relevance (POCR) program is designed to define and articulate the opportunity for businesses that demonstrate a proof-of-concept for innovative technology. Awards up to $25,000...
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Category: IA State Programs, Entrepreneur and Innovation Support

FINDING THE RIGHT LOCATION FOR BUSINESSES TO GROW Iowa Economic Development Authority (IEDA) provides access to robust information for companies looking to expand or relocate and can help find the perfect...
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Category: IA State Programs, Site Location Assistance

Iowa offers the first in the nation Renewable Chemicals Production Tax Credit. The program incentivizes the production of 30 high-value chemicals derived from biomass feedstocks. According to the U.S. Department...
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Category: IA State Programs, Business Incentives

REFUNDABLE TAX CREDITS FOR RESEARCH AND DEVELOPMENT INVESTMENTS MAKE COMPANIES MORE PROFITABLE Iowa sets itself apart as being one of the few states to offer a refundable research activities credit. Iowa...
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Category: IA State Programs, Business Incentives

HELPING COMPANIES APPLY FOR FEDERAL SMALL BUSINESS FUNDING The Iowa Economic Development Authority has delegated the delivery of the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Outreach...
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Category: IA State Programs, Entrepreneur and Innovation Support

HELPING IOWA EMPLOYERS HIRE STEM STUDENTS The Science Technology Engineering and Mathematics (STEM) Internship program provides grants to Iowa companies for internship programs with a goal of transitioning interns to full-time...
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Category: IA State Programs, Workforce

ASSISTING BUSINESSES AND ENCOURAGING DEVELOPMENT IN PILOT CITIES The Targeted Jobs Withholding Tax Credit is a pilot program that allows diversion of withholding funds paid by an employer to be matched...
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Category: IA State Programs, Business Incentives

ASSISTING MINORITIES IN STARTING OR GROWING A BUSINESS The Targeted Small Business (TSB) program is designed to help women, individuals with minority status, service-connected disabled veterans and individuals with disabilities overcome...
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Category: IA State Programs, Small Business Assistance

Laborshed wages are calculated based on an employment area's actual commuting patterns and exclude retail and healthcare wages, among others; the resulting wage is more representative of a true starting wage...
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Category: IA State Programs, Business Incentives