Iowa Business Tax Incentives
The state of Iowa offers a number of programs providing tax credits or other incentives which can reduce taxable obligations and help increase your company’s bottom line.
- High Quality Jobs Program can provide tax credits and direct financial assistance to help off-set costs incurred to locate, expand or modernize a facility located in Iowa. To be eligible, businesses must meet certain wage threshold requirements.
- New Jobs Tax Credit is an Iowa corporate income tax credit available to a business that has entered into an Industrial New Jobs Training Agreement (260E) that will be expanding their Iowa employment base by 10% or more.
- Redevelopment Tax Credit Program provides tax credits for the redevelopment of Brownfield sites (abandoned, idled or underutilized commercial properties where real or perceived environmental contamination exists), and Grayfield sites (abandoned public buildings or commercial properties that are vacant, blighted, obsolete or underutilized).
- Research Activities Tax Credit is a refundable tax credit for increasing a company's research activities. Under certain conditions, this credit may be doubled. A company must meet the qualifications of the Federal Research Activities Credit in order to be eligible for the credit in Iowa.
- Targeted Jobs Withholding Tax Credit Pilot Program allows the diversion of withholding funds paid by an employer to be matched by a designated "pilot" city to create economic incentives that can be directed toward the growth and expansion of targeted businesses located within Urban Renewal areas.
- Pollution Control or Recycling Property Tax Exemption: Businesses making improvements to properties primarily used to control air or water pollution, or used primarily for recycling, may qualify for a property tax exemption. The application is filed with the Iowa Department of Natural Resources (IDNR). For information contact IDNR at one of the following: for solid waste machinery and equipment, 515.281.8176; for wastewater and animal waste pollution control equipment, 515.242.5260; or for air quality pollution control equipment, 515.242.5100.
For more information on other potential property tax credits and exemptions, see the complete list
from the Iowa Department of Revenue
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