Iowa Incentives

Iowa's Business Incentives - 1 

Iowa is entering a new century with an unparalleled sense of energy and growth. Our business climate is strong and so are the bottom line benefits our state brings to new and expanding companies. As the good news about Iowa's advantages continues to spread, businesses from across the country and around the world are locating or expanding their operations in the state. 

Economic indicators confirm Iowa's heightened prosperity. While maintaining a high quality of life, Iowa's overall cost of living is below the Midwest and national medians. Manufacturing exports are up 13.1 percent, continuing a 234 percent increase over the past 10 years. Currently, 43 percent of private employers subject to unemployment insurance are paying zero tax rates. 

While Iowa's world-renowned education and labor force are a big part of our success, we are continuously working to improve our business environment. A record $200 million-a-year cut in personal income taxes has gone into effect. The property tax on machinery and equipment (M&E) has been eliminated. Iowa does not have a computer tax; computers used in data processing as well as M&E are exempt from both property and sales tax. Our Regulatory Assistance Program helps businesses speed up the permitting process with Iowa's regulatory agencies. 

Along with the commitment to welcoming new businesses to the state, an essential part of the mission of the Iowa Department of Economic Development is to help Iowa's existing industry prosper. Whether new or long-established, in-state or out-of-state, your business can count on quick and confidential access to the full range of programs, services and benefits described in the following pages. 

Consider how the Iowa advantage can help bring your company into the exciting new era of the 21st century Then pay us a visit and find out why Iowa is the Smart State for Business®. 

There are many reasons to choose Iowa: a prosperous economy, excellent schools, an educated work force, reasonable living costs, affordable buildings, a low crime rate, flexible job training program, tax advantages and a high quality of life--all can be found in Iowa. The following pages about Iowa and its business operating environment provide the information you need when making critical site location determinations. When you need more detailed material within Iowa, the Iowa Department of Economic Development staff can utilize its state-of-the-art I-MEDIA system to provide you with information customized to your needs, including a detailed inventory of available buildings.