Business Incentives
State of Iowa Incentives
Iowa's corporate tax structure provides several advantages to businesses that locate in the state, including:
Other tax advantages include:
New Markets Tax Credits (NMTC) for low income tracts. The census tracts qualify by being designated as either economically distressed or as areas of population loss and outmigration. The NMTC provides the incentive of a 39% federal tax credit to qualifying investors.
Community Economic Betterment Account (CEBA) - Provides financial assistance to companies that create new quality employment opportunities and/or retain existing jobs, and make new capital investment in Iowa.
Economic Development Set-Aside Program (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.
Employee Training Programs
High Quality Jobs Program - The High Quality Jobs program provides qualifying businesses tax credits and direct financial assistance to off-set some of the costs incurred to locate, expand or modernize an Iowa facility.
- Single-factor, non-unitary tax is based only on the percentage of net sales income within the state of Iowa. There is no Iowa corporate income tax on profit from out of state sales.
- 50% deductibility of federal taxes from Iowa corporate income.
- Iowa corporate income tax may be reduced or eliminated by state tax credit programs.
Other tax advantages include:
- 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 process.
New Markets Tax Credits (NMTC) for low income tracts. The census tracts qualify by being designated as either economically distressed or as areas of population loss and outmigration. The NMTC provides the incentive of a 39% federal tax credit to qualifying investors.
Community Economic Betterment Account (CEBA) - Provides financial assistance to companies that create new quality employment opportunities and/or retain existing jobs, and make new capital investment in Iowa.
Economic Development Set-Aside Program (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.
Employee Training Programs
High Quality Jobs Program - The High Quality Jobs program provides qualifying businesses tax credits and direct financial assistance to off-set some of the costs incurred to locate, expand or modernize an Iowa facility.
City of Harlan Incentives
Tax abatement incentives may be available for commercial or residential building that is newly constructed or rehabilitated. The property improvements must increase the actual value of the property by at least 10%. The commercial tax abatement is 100% of the actual value added by the improvements for a period of three years. The commercial tax abatement is available for properties located within the Harlan city limits. The residential tax abatement is 100% of the first $75,000 of actual value added by the improvements for a period of five years. The residential tax abatement is only available in areas not located in an Urban Renewal Area. If you are building or rehabilitating any structure in the City of Harlan, contact the City Hall at 712-755-5137. They can help you decide what incentives you may qualify for and assist you with the application process. Job Creation Incentive Plan Shelby County has approved a new job creation incentive plan to help small businesses in the county grow and prosper in the future. Currently we are targeting small and entrepreneurial businesses (businesses with 10 employees or less at time of application) in Shelby County. This plan is to encourage/support new and existing businesses in Shelby County in their efforts to expand their workforce. Most of the job incentive plans statewide and nationwide are tied to large companies that bring in hundreds of jobs, officials said. While the county continues to attempt to attract large firms to the area, expansion of small business in Shelby County also is becoming a priority. Interested businesses will complete an application for the program, which will indicate the number of planned jobs to be created. The program will be limited to a maximum of 25 jobs created within each fiscal year. Highlights of the incentive include: |
We are developing another incentive program that addresses companies that create more than 25 jobs in a year. The job incentive plan went into effect January 1, 2017. Shelby County Incentives The actual value added to industrial real estate from new construction of industrial real property, research – service facilities, warehouses, distribution centers, owner-operated cattle facilities, and the acquisition of or improvement of machinery is eligible to receive a partial exemption from taxation for a period of five years. The amount of actual value added, which is eligible to be exempt from taxation, shall be as follows: First year 75% Second year 60% Third year 45% Fourth year 30% Fifth year 15% An application for exemption must be filed by the owner of the property with the Shelby County Assessor by February 1st of the assessment year in which the value added is first assessed for taxation. Alternatively, a person may submit a proposal to the Shelby County Board of Supervisors to receive prior approval for eligibility. If you are interested in preparing an application or have questions about this program, contact the Shelby County Assessor at 712-755-5718. In addition, we have low interest loans available. |
There are numerous incentives available to businesses depending on the type, location, and number of employees.
Contact Shelby County Chamber of Commerce & Industry to discuss what incentives are most advantageous for your business.
Contact Shelby County Chamber of Commerce & Industry to discuss what incentives are most advantageous for your business.