Targeted Jobs Withholding Tax Credit:  The Targeted Jobs Withholding Tax Credit is a pilot program that allows diversion of withholding funds paid by an employer, and matched by a designated pilot city, to create economic incentives directed toward the growth and expansion of targeted businesses. Withholding agreements allow up to 3% of gross wages paid by the employer to be directed to the project budget on a quarterly basis, for a term of up to 10 years.

New Jobs Tax Credit: Provides a one-time corporate income tax credit to businesses that increase the size of their workforce by at least 10% and participate in the New Jobs Training (260E) Program. The maximum credit per new job is resized annually and is $1,836 for 2019.  Tax credits are non-refundable and non-transferable; however unused tax credits may be carried forward for up to 10 years.

Angel Investor Tax Credit: Program designed to increase availability and accessibility of early state capital for qualified and pre-certified Iowa business. Provides a tax credit of 25% of an investor’s equity investment in a qualified business. Limit of $100,000 credits per year for investors, $500,000 per year for businesses, and total annual credit amount is capped at $2 million. Credits can apply to investor’s personal income tax, corporate income tax, franchise tax, gross premiums tax or moneys and credits taxes. Credits are refundable for investors who file personal net income tax.

Research Activities Tax Credit (R&D): All businesses within the state that meet the qualifications of the federal research credit may claim the Iowa Research Activities Tax Credit which is equal to 6.5% of qualified research expenditures in Iowa above a base amount.  Supplemental research credits are available to companies that participate in the High Quality Jobs Program. Any research credit in excess of the tax liability may be refunded to the taxpayer or credited for the following year.