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Iowa's Business Incentives - 5
LOCAL TAX ABATEMENT
Iowa law allows cities and counties to abate local property taxes for value added to industrial real estate. The maximum amount of actual value added at a new or expanded facility that is eligible to be exempt from taxation is:
Year One Year Two
Year Three Year Four Year Five
75% 60%
45% 30% 5%
TAX INCREMENT FINANCING
City councils or county boards of supervisors may use the property taxes resulting from the increase in taxable valuation due to construction of new industrial or commercial facilities to provide economic development incentives to a business or industry. Tax Increment Financing may be used to offset the coast of public improvements and utilities which will serve the new private development, to finance direct grants or loans to a company, or to provide the local match for federal or state economic development assistance
programs.
RESEARCH AND DEVELOPMENT TAX CREDIT
A credit for increasing research activities is 6.5 percent of the company's apportioned share of qualifying research expenditures in Iowa. A company must meet the qualifications of the federal research activities credit in order to be eligible for the credit on the Iowa
return.
POLLUTION CONTROL OR RECYCLING PROPERTY TAX EXEMPTION
Pollution control and recycling equipment may be eligible for a property tax exemption. Improvements to real property that are primarily used to control pollution of air or water, or primarily used for recycling, may qualify. An application must be filed for
exemption.
NO PERSONAL PROPERTY (INVENTORY) TAX
Personal property is not assessed for tax purposes. In Iowa, personal property includes corporate inventories of salable goods, raw materials and
goods-in-process.
OTHER SIGNIFICANT FACTORS
- Industrial Leasing Costs:
Compare favorably with other metro markets
- Industrial Electric Power
Industrial electric power is reliable and affordable
- Affordable Lifestyle & Low Crime Rate
- Short Commute Times
(ave. 16.2 minutes)
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