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Enterprise Zone
offers tremendous
opportunities
Eligible businesses locating or expanding in an Enterprise Zone may receive
property tax exemptions and expanded state tax
credits.
Business locating or expanding in an Enterprise Zone may receive:
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Property tax exemptions on all or part of the costs of improvements to land and buildings for up to 10 years.
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An investment tax credit of up to 10% on corporate income taxes for investments in machinery and equipment, land, buildings, and improvements to existing buildings.
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Refund of sales, services, or use taxes paid to contractors or subcontractors during construction.
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A 6.5% research and development activities tax credit (refundable) on corporate income taxes.
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Supplemental new jobs training withholding credit of 1 1/2% of the gross wages. This credit is in addition to, and not in lieu of, the withholding credit of 1 1/2% authorized for the Iowa New Jobs Training Program.
Housing locating in an Enterprise Zone may receive:
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10% state income tax credit on the investment that is directly related to new house construction or rehabilitation. If the tax credit is not entirely used during the first year, it can be carried over and applied against future state tax liability for the next seven years.
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100% refund of the project's sales and utility taxes for the developer of an approved housing project in an Enterprise Zone.
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A 1.5% employee withholding tax credit for eligible new jobs for a business located in an Enterprise Zone for employee down payment and rental
assistance.
The Shelby County Enterprise Zone Commission reviews and approves business applications and submits them to IDED, on behalf of the business, for final approval.
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