Business Expansion Incentives

Businesses locating or expanding in an established Enterprise Zone may be eligible to receive certain local and state tax incentives.

Eligibility Requirements

• The business must make a minimum qualifying investment of $500,000 over a three year period. Qualifying investment includes the cost of land, buildings, building improvements, manufacturing machinery and equipment, and/or computer hardware.
• The business must create or retain at least 10 full-time, project-related jobs over a three year period and maintain them for an additional two years.
• The business must provide some level of medical benefits to all full time employees. Additionally, the business must also provide all full-time employees with a standard medical and dental insurance plan of which the business pays 80% of the premiums for employee-only coverage, pays 50% of the premiums for family coverage, or provides a monetarily-equivalent benefit package.
• The business must pay new or retained employees a starting wage which is equal to or greater than 90% of the average county or regional wage, whichever is lower.
• The business cannot be a retail establishment or a business whose entrance is limited by coverage charge or membership.
• The business cannot close or relocate its operation in one area of the state and relocate substantially the same operation in the Enterprise Zone.
• The local Enterprise Zone Commission and IDED must approve the business' application for Enterprise Zone program incentives prior to project initiation.

Tax Incentives

• A local property tax exemption of up to 100% of the value added to the property to a period not to exceed 10 years may be available.
• There is additional funding for training new employees. If applicable, these funds would be in addition to those authorized under the Iowa New Jobs Training Program.
• A refund of state sales, service, or use taxes paid to contractors or subcontractors during construction.
• For distribution center projects, a refund of sales and use taxes paid on racks, shelving, and conveyor equipment.
• An investment tax credit of up to a maximum of 10% of the qualifying investment, amortized over 5 years. This tax credit is earned when the corresponding asset is placed in service and can be carried forward for up to seven additional years or until depleted, whichever occurs first.
• The State's refundable research activities credit may be increased while the business is participating in the program.

How to Apply

Businesses locating or expanding in an Enterprise Zone may apply for benefits by completing an application and submitting it to the Shelby County Enterprise Zone Commission. The Commission reviews the application and, upon approval, forwards it to the Iowa Department of Economic Development for final approval.
Contact Shelby County DevelopSource to start the application process.

Housing Development Incentives

Developers and contractors building or rehabilitating housing in an established Enterprise Zone may be eligible to receive certain state tax incentives.

Eligibility Requirements

• The developer or contractor must build or rehabilitate at least four single-family homes or at least one multi-family building containing three or more units in a certified Enterprise Zone.
• The housing must, when completed and made available for occupancy, meet HUD Housing Quality Standards and local housing codes.
• The housing project must be completed within two years of the start of construction or rehabilitation.
• The local Enterprise Zone Commission and IDED must approve the developer or contractor's application for Enterprise Zone program incentives prior to project initiation.

Tax Incentives

• A refund of state sales, service or use taxes paid during construction.
• An investment tax credit of up to a maximum of 10% of the investment directly related to the construction or rehabilitation of the housing.* The tax credit is based on the new investment used for the first $140,000 of value for each home or unit. This tax credit is earned when the home or unit is certified for occupancy and can be carried forward for up to seven additional years or until depleted, whichever occurs first.

*If the project is, in part, financed through federal, state, and local government tax credits, grants, and forgivable loans, these monies cannot be included for purposes of calculating the investment tax credit.

How to Apply

Developers or contractors building or rehabilitating homes in an Enterprise Zone may apply for benefits by completing an application and submitting it to the Shelby County Enterprise Zone Commission. The Commission reviews the application and, upon approval, forwards it to the Iowa Department of Economic Development for final approval.
Contact Shelby County DevelopSource to start the application process.