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Iowa's Business Incentives - 4
 IOWA IS A RIGHT-TO-WORK STATE
Under Iowa law, an employee may not be required to join a union or pay dues or fees to any labor union, association or organization as a condition of
employment.
REGULATORY ASSISTANCE
The Regulatory Assistance Program enhances the range of services available to Iowa companies by advising and assisting companies in the preparation and submission of permit applications with the Iowa Department of Natural Resources and other Iowa regulatory agencies. The mission of the Regulatory Assistance Program is to facilitate communication between the business and regulators, and to expedite the permitting
process.
FINANCIAL ASSISTANCE PROGRAMS
The Iowa Department of Economic Development offers an array of financial assistance programs to aid businesses with their expansions. Funds are awarded from the Community Economic Betterment Account
(CEBA) and the Economic Development
Set-Aside (EDSA) programs based on factors such as job creation, employee wage rates, competition with other Iowa firms, and impact of the project on the economy of the political subdivision of the state. A political subdivision applies for the funds on behalf of the company. The funds may be awarded as a forgivable loan,
low- or no-interest loan, or principal or interest rate buy-down on a loan. Funding for rail and road improvements is available through the Iowa Department of Transportation's Revitalize Iowa's Sound Economy (RISE)
program.
NEW JOBS AND INCOME PROGRAM
The Iowa New Jobs and Income Program provides a package of tax credits and exemptions to businesses making a capital investment of at least $10 million and creating 50 or more jobs meeting wage and benefit targets. In its first year, this development tool facilitated more than $1.4 billion in new business capital investments and created nearly 900 new
jobs.
NO SALES OR USE TAX ON MANUFACTURING MACHINERY AND EQUIPMENT
The purchase of industrial machinery and computers assessed as real property and used for manufacturing or used to process data by insurance companies, financial institutions or certain commercial enterprises is exempt from Iowa sales or use tax. No sales tax is due on purchases of electricity or natural gas used directly in the manufacturing
process.
NO PROPERTY TAX ON NEW INDUSTRIAL MACHINERY AND EQUIPMENT
Manufacturing machinery and equipment, as well as computers used to process data by insurance companies and financial institutions installed and first assessed on or after January 1, 1995, is exempt from property tax. Pollution control equipment is eligible for exemption from property tax. An application must be filed for exemption. |
