To encourage investment in Iowa, local and state tax benefits are available for qualifying companies that expand or locate in designated Business Enterprise Zones.
Eligibility Requirements
Create 10 or more full-time jobs and maintain them for 10 years.
Provide all full-time employees with the option of choosing a standard medical and dental insurance plan which the business pays 80% of the premiums or a monetary equivalent benefit.
Pay new employees an average starting wage which is equal to or greater than 90% of the average county or regional wage, whichever is lower.
No retail businesses or businesses whose entrance is limited by cover charges or memberships.
Cannot close/reduce operations elsewhere in Iowa and relocate substantially the same operation in the Enterprise Zone.
Invest at least $500,000 in machinery and equipment, land, buildings, and improvements to buildings.
Other considerations are reviewed such as economic impact to the area, company history of environmental and worker safety violations, need for benefits, and other financing sources.
Tax Benefits
Local property tax exemptions on the value added to the property.
Additional funding for training new employees
Refund of state sales, service, and use taxes paid to contractors or subcontractors during construction.
Investment tax credit of up to 10% of the new investment s in machinery and equipment, land, buildings, and improvements to existing buildings
Additional R&D tax credit of up to 6.5%
For Developers
Eligibility Requirements
Construct, expand, or rehabilitate a building space to be used for manufacturing, processing, cold storage, distribution, or office facilities.
Make a minimum capital investment of $500,000.
Prior to applying for benefits, enter into a lease agreement for a minimum of five years with a business that meets certain requirements, such as job creation, wage levels, employee benefits, etc...
Tax Benefits
Local property tax exemptions on the value added to the property.
Refund of state sales, service, and use taxes paid to contractors or subcontractors during construction.
Investment tax credit of up to 10% of the purchase price of land and cost of improvements to real property.
