Iowa Incentives

New Jobs & Income Program (NJIP)

HOW IS NJIP USED

• Increase the number of higher income jobs
• Encourage major capital investment by companies
• Application process usually takes only 30-60 days

PROGRAM BENEFITS

• Exemption of property tax (0% to 100% for 0 to 20 years) on value-added improvements to real property
• Investment tax credit of up to 10% to be used against company's Iowa corporate tax liability (carry forward up to 7 years)
• 3% withholding tax credit to be applied to company's job training fund (double regular job training fund program)
• 13% research and development activity corporate tax credit/refund
• Refund of Iowa sales tax, service or use taxes (including local option tax) paid to contractors or subcontractors on the construction of the project
• Land ownership restriction exemptions for companies based outside the U.S.

ELIGIBILITY

• Creation of at least 50 new full-time jobs
• Pay a median wage of $11.42 per hour or 130% of the average county wage, whichever is higher
• Capital investment of at least $10.38 million
• Provide at least 80% of health and dental insurance costs
• Business has not closed operation in one area of state and relocated the operation
• Cannot receive CEBA funding
• Must meet at least 3 of the following additional criteria: 
• Pension 
  -Targeted industry (Value-added agriculture, drug company, insurance, soft wage etc) 
  - Provide day care services 
  - Invest 1% of pre-tax profits in research and development 
  - Invest 1% of pre-tax profits in workers training and skill enhancements     - Have an active productivity and safety improvement program 
  - Occupy an existing building of at least 20,000 square feet

WAIVER

• Waivers possible of the $10.38 million investment and/or 50 jobs creation, when good cause is shown
• Waiver qualification requirements: 
• Creation of at least 15 full-time positions 
  -$3 million capital investment minimum 
  - Possible community exemption(s) 
  - Lack of growth 
  - High unemployment level 
  - Prospect of downsizing