Iowa Redevelopment Tax Credit ProgramMegan Kopp
“Did you know that state and federal tax incentives exist that can make the purchase and redevelopment of undervalued or environmentally challenged sites a good economic opportunity for a business?
One of my primary duties at the Iowa Economic Development Authority (IEDA) is the administration of the Redevelopment Tax Credit Program. The program is designed to provide financial assistance to the redevelopment of “brownfield” and “grayfield” sites in Iowa. Specific definitions exist in Iowa law, but put simply, a brownfield is a site that has real or perceived environmental challenges that have led to it going un-redeveloped, and a grayfield is a site that has vacancy issues or the assessed valuation has fallen significantly.
An owner’s equity investment in a project is used in calculation of tax credits that can be utilized to offset a State of Iowa tax obligation. The current maximum tax credit available per project is $1,000,000 and the program is capped at $10 million per fiscal year. Successful applicants to the program are required to enter into a contract with IEDA in order to receive the tax credits. Eligible applicants range from individuals to corporations and the only entities that are not eligible are local, state and federal governments.
Applications can be made to the program online only beginning July 1, of each year. The online application is not yet available, but is expected to be ready in May or June of 2016. Deadline to apply is September 1 of each year.
The program has become quite popular and applications are scored on a competitive basis and awards are usually announced around mid-October. For more information or any question regarding the program, please call me directly at 515-725-3126 or email me at [email protected].
Matt Rasmussen, Iowa Economic Development Authority