- 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.
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 establish or expand programs that train individuals in the occupations most needed by Iowa businesses.
Encouraging Venture Capital Investment in Iowa Startups
Angel Investor tax credits are offered to increase the availability and accessibility of venture capital, particularly for ventures at the seed capital investment stage. Businesses must first obtain Qualifying Business certification before investors can apply.
Program Cap: Total amount of ta...
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. The IEDA provides the needed information to make a decision; schedules location tours; accompanies busines...
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 Energy, Black Hills Energy, Iowa Area Development Group and the Iowa Economic Development Authority. BEST i...
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 more information on the legal requirements for Iowa businesses, visit the Business License Information Center.
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 the decision to locate in Iowa easy.
Iowa’s Certified Sites program parallels a typical site locatio...
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 work with eligible businesses to assess training needs, determine funds needed and provide training
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 potential for commercial viability.
Assists companies with marketing and business development activities
Helps businesses with high-growth potential reac...
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 develops viable communities that provide economic opportunities for people, especially those with low- and moderat...
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 start a new business. An ESOP allows owners to share equity with employees and provide...
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 with an Iowa location a huge competitive edge. Those business advantages paired with a lo...
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 anerkannten Forschungszentren sowie gut ausgebildeten und produktiven Arbeitskräften. Weitere Standortvorteile, wie die niedrigen durchschnittlichen Unternehmenskosten...
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 to assist Iowa companies with global market research, trade missions and trade shows.
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 an Iowa facility. This flexible program includes loans, forgivable loans, tax credits, exemptions and/or refunds...
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 start and grow a business. Utilize IASourceLink to access:
Resource Navigator - a portal connecting entrepreneurs t...
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 job creation requirements are met. The Iowa Economic Development Authority (IEDA) identifies and certifies Targete...
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 credits equal to 25 percent of an equity investment in a certified Innovation Fund. I...
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 products.
IOWA DIRECTORY OF EXPORTERS
The Iowa Directory of Exporters includes Iowa companies interested in or currently exporting products...
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 financial assistance to eligible Iowa small companies to help companies market their products and service...
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 market research through IEDA’s global offices and representatives.
Trade Missions and Trade Shows
Trade missions offer ...
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 consultation is offered via one-on-one export counseling. This provides Iowa businesses with invaluable resource...
Quarterly newsletter from the IEDA's International Trade Office.
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 jobs and meeting the needs of business for a highly skilled workforce that can innovat...
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 worker productivity and company profitability.
Administered by Iowa's 15 community colleges and financed through bonds sol...
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. Funds are designed to accelerate the pace of market development, leverage private investment and industria...
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 with the local community college, which will assess training needs, determine funds available and provide training
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 with a goal of transitioning interns to full-time employment in Iowa upon graduation. The goa...
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 businesses that provide additional training to employees and expand their workforce.
Maximum tax credit in 2018 i...
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 in low interest loans with a 1:2 (private:public) match
Recommend the applicant has completed initial inquir...
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 site or location.
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 of Agriculture, the credit represents the “strongest” incentive package for the bio-based chemical industry.
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 companies earn refundable tax credits for research and development investments that may be paid directl...
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 Program to the Iowa Innovation Corporation to help companies apply for federal small business funding...
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 employment in Iowa upon graduation. The goal is to retain educated workers in Iowa.
Maximum award to an employe...
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 by a designated pilot city to create economic incentives directed toward the growth and expansio...
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 some of the hurdles to start or grow a small business in Iowa.
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 for the types of businesses eligible for assistance.
Jobs must pay a starting wage of 100...