- 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.