TAX CREDITS
High Quality Jobs Creation Program (HQJCP): Provides tax credits and exemptions to off-set the cost incurred to locate, expand or modernize a facility. Some of the incentives include a local property tax exemption of up to 100% of the value added to the property and an investment tax credit equal to a percentage of the qualifying investment.
New Jobs and Income Program: Provides corporate income tax credits equal to 6% of the state unemployment insurance taxable wage base to businesses increasing their workforce by at least 10%. The maximum amount per employee is $1,422 and unused tax credits may be carried forward up to 10 years.
Research and Development Tax Credit: Provides R&D tax credits equal to 6.5% of the company’s allotted share of qualifying research expenditures in Iowa for increasing research activities within the state.
GRANTS
New Jobs Training Program: Provides reimbursement grants to new or expanding companies for some of the cost of training their employees.
SPECIAL ZONING
Enterprise Zone Program: Businesses located or expanding in the zone may be eligible for certain incentives including property tax exemptions on land and buildings; an investment tax credit (up to 10% against state corporate income taxes); refunds of sales, services, or use taxes paid to contractors during construction; R&D activities credit (up to 13% against corporate income taxes); and double the usual income tax withholding increment to use for job training.
LOCAL INCENTIVES
Municipalities have the discretionary authority to provide certain incentives including property tax abatements. The increase in assessed value due to new construction, rehabilitation or renovation may be left untaxed for a term set by local ordinance. Municipalities also have the authority to provide Tax Increment Financing, designed to finance the public costs associated with a private development project. The property tax increases resulting from a development will be targeted to repay the public investment required by a project.
