Loading...
INCENTIVES 2016-10-14T08:40:45+00:00

INCENTIVES

Businesses relocating or expanding in Pottawattamie County may be eligible for specific tax and financial incentives offered by the State of Iowa, the county and/or local community. Western Iowa Development Association is prepared to assist you in coordinating a custom, aggressive incentives package based on your particular growth needs.

IOWA TAX ADVANTAGES

Corporate Income Tax

  • Iowa’s corporate income tax is a single-factor, non-unitary tax and based only on the percentage of total sales income within the state of Iowa. (An Iowa manufacturer selling all its products outside Iowa pays no Iowa corporate income tax.)
  • Iowa is one of only five states that offers federal deductibility. This allows 50 percent deductibility of federal taxes on corporate income tax in Iowa.
  • Iowa corporate income tax may be reduced or eliminated by state tax credit programs.

Property and Sales or Use Taxes

  • No personal property tax for corporate inventories of goods-in-process, raw materials or salable goods.
  • No property tax on industrial machinery, equipment or computers.
  • No sales or use tax on purchases of industrial machinery, equipment and computers used for manufacturing or to process data by insurance companies, financial institutions or certain commercial enterprises.
  • No sales tax on materials used in the manufacturing process or purchases of electricity or natural gas used directly in the manufacturing provess.

Unemployment Insurance Rate

Iowa has the lowest new employer unemployment insurance rate in the nation. The rate for all non-construction business is 1.9% for a three-year period until an experience rating is established. Iowa offers a zero rate for good experience; approximately 45% of Iowa employers are at a zero rate.

For more information on Iowa’s tax advantages, visit the Iowa Department of Economic Development’s website.

LOCAL & STATE FINANCIAL INCENTIVES

County and Local Communities Incentives

  • Tax Increment Financing—City councils or boards of supervisors may use the property taxes resulting from the increase in taxable valuation caused by the construction of new industrial or commercial facilities to provide economic development incentives to a business.

How It Works

  • Business constructs new industrial or commercial facility
  • New facility increases property tax assessed on the business
  • City councils or county board of supervisors may use the additional property tax to:
    • Finance direct grants or loans to the business.
    • Offset the costs of public improvements or provision of utilities to serve the new private development.
    • Provide the local match for federal or state economic development assistance programs.
  • Local Tax Abatement—Iowa law allows cities and counties to abate local property taxes for value added to industrial real estate.
  • Direct Financial Assistance—Communities in Pottawattamie County have access to a variety of local and regional business growth incentive tools including revolving loan funds and local development corporation funds.

State of Iowa Incentives

The  Grow Iowa Values Financial Assistance Program (GIVAP)  serves as the funding source for projects that are focused on job creation or retention, value-added agriculture and entreprenuerual efforts.  In addition to GIVFAP funding , IDED also administers fedral funds for job creation purposes.  Additional requirements for federal funding can be found on the Iowa Department of Economic Development website.

FINANCIAL ASSISTANCE FOR STARTING-UP A BUSINESS

Funds may be available from state-sponsored programs including:

  • Entrepreneurial Venture Assistance (EVA) — Provides financial and technical assistance to early-stage technology companies.
  • Targeted Small Business Assistance (TSB) — Designed to assist in the creation and expansion of certain Iowa small businesses.
  • Self Employment Loan Program (SELP) — Financial assistance to low-income owners of new or expanding small businesses.
  • Community Economic Betterment Account (CEBA) / Economic Development Set-Aside (EDSA) — Provides financial assistance to companies that create new quality employment opportunities and/or retain existing jobs, and make new capital investment in Iowa. The EDSA program is targeted toward low- and moderate-income individuals.

To learn more about financial resources for start-up businesses, visit the Iowa Department of Economic Development’s website.