Iowa provides valuable assistance to businesses seeking to locate or expand in the state. City staff will work with regional and state partners to identify and apply for assistance to support businesses making investments and creating jobs in Iowa. The Iowa Economic Development Authority has created an Iowa Project Questionnaire to help identify the programs for which a project may qualify.
High Quality Jobs
Iowa’s main business assistance program is the High Quality Jobs program. It provides qualifying businesses tax credits to off-set the cost incurred to locate, expand or modernize an Iowa facility. To qualify for this very flexible assistance package that includes tax credits, exemptions and/ or refunds, a business must be a non-retail or non-service business and meet wage requirements.
Research Activities Credit
Iowa is one of only a few states to offer a refundable research activities credit. Iowa companies earn refundable tax credits for research and development investments that may be paid directly in cash to the company once its tax liabilities have been met. A company must meet the qualifications of the Federal Research Activities Credit in order to be eligible for the credit in Iowa.
New Jobs Tax Credit
The Iowa New Jobs Tax Credit is an Iowa corporate income tax credit and is available to a company that has entered into a New Jobs Training Agreement (260E) and expands their Iowa employment base by 10% or more. The amount of this 1-time tax credit will depend upon the wages a company pays and the year in which the tax credit is first claimed.