Iowa offers a variety of economic incentives to attract new businesses, foster innovation, and support existing companies across a range of industries.  With a focus on creating high-quality jobs, boosting capital investment, and promoting sustainable business practices, Iowa's incentive programs are tailored to help businesses thrive in a competitive environment.  Below are some of the key programs available in Iowa.

Iowa Industrial New Jobs Training Program (260E)

Overview

The 260E program helps businesses create new jobs and train their workforce to meet specific industry needs.  It is designed to benefit businesses that are expanding operations or relocating to Iowa.

Eligibility

• Businesses must create new, full-time jobs and offer qualifying wages.

• The company must invest in workforce development and demonstrate a need for new training programs.

Incentive Value

• The program provides funding for job training, including the cost of classroom and on-the-job training.

• Funding is available for companies that create 25 or more new jobs.

Application Process

Companies apply through the Iowa Economic Development Authority (IEDA) and work with community colleges or training providers to develop a customized training plan.

Iowa High Quality Jobs Program (HQJP)

Overview

The HQJP provides incentives to businesses that create high-wage, high-skill jobs.  The program is aimed at attracting, retaining, and expanding companies in Iowa that offer significant economic impact.

Eligibility

• Businesses must be creating or retaining full-time jobs that meet wage and benefits criteria.

• The project must have a substantial positive economic impact, such as new capital investment or expansion.

Incentive Value

• The program offers a combination of tax credits, grants, and loans.

• Eligible businesses can receive sales and use tax exemptions, property tax abatements, and income tax credits.

Application Process

To apply, businesses must submit a detailed proposal to IEDA, outlining job creation, wage standards, and the expected economic impact.

Iowa Research Activities Tax Credit

Overview

The Iowa Research Activities Tax Credit encourages businesses to invest in research and development (R&D) by offering a tax credit on qualified R&D expenses.  This incentive helps foster innovation and technological advancements in Iowa.

Eligibility

• Businesses must conduct research and development activities that qualify under state law.

• The R&D must be related to developing new products or improving existing products or processes.

Incentive Value

• The tax credit is equal to 6.5% of qualifying R&D expenditures for Iowa-based businesses.

• The credit can be claimed against the business’s state income tax liability.

Application Process

Businesses must submit an R&D tax credit claim to the Iowa Department of Revenue, providing documentation of R&D activities and associated expenses.

Iowa New Capital Investment Program

Overview

The New Capital Investment Program provides incentives for businesses to invest in new facilities and equipment.  The program aims to stimulate growth by encouraging capital investment in Iowa.

Eligibility

• Businesses must make a significant investment in new equipment, facilities, or machinery.

• The investment must result in job creation or retention in the state.

Incentive Value

• Businesses may receive tax credits based on the amount of the new investment.

• The credit can be applied to offset Iowa’s state income and franchise taxes.

Application Process

Applications must be submitted to IEDA, detailing the amount of the investment, the projected impact on job creation, and the business’s expansion plans.

Iowa Tax Credit for Renewable Energy Investment

Overview

This program offers tax credits for businesses that invest in renewable energy systems, such as solar, wind, and geothermal technologies.  The goal is to promote sustainable energy practices and reduce environmental impact.

Eligibility

• Businesses must install qualifying renewable energy systems in Iowa.

• The systems must be used for commercial or industrial purposes.

Incentive Value

• A tax credit of up to 50% of the eligible investment cost, up to a maximum of $500,000 per project.

• The credit can be applied to Iowa state income taxes.

Application Process

To apply, businesses must submit an application to IEDA, detailing the renewable energy installation and the associated costs.

Iowa Property Tax Exemption for New and Expanding Businesses

Overview

The Iowa Property Tax Exemption program provides property tax relief for businesses that make new investments or expand existing operations.  The program aims to make Iowa more competitive for capital investment.

Eligibility

• Businesses must invest in tangible property, such as machinery, equipment, or facilities.

• The business must create or retain full-time jobs as a result of the investment.

Incentive Value

• The program offers a property tax exemption on the increased value of the property due to new investments.

• Exemptions can last up to 10 years, depending on the project and job creation.

Application Process

Businesses must apply through IEDA and provide details about the investment and job creation projections.

Iowa Targeted Jobs Tax Credit Program (TJTC)

Overview

The TJTC Program provides incentives to businesses located in designated areas of economic distress.  The program aims to create jobs in areas that need economic revitalization.

Eligibility

• Businesses must be located in a targeted area identified by the IEDA.

• The business must create at least 10 new full-time jobs or make a significant capital investment.

Incentive Value

• The credit provides up to 5% of the wages paid to new employees over a 5-year period.

• Additional incentives may be available based on the number of jobs created and the location of the business.

Application Process

Applications must be submitted to IEDA, which will review the proposed project and determine eligibility.

Iowa Workforce Development Programs

Overview

Iowa’s workforce development programs help businesses train and upskill their employees to meet industry needs.  These programs support both new and existing businesses by improving the quality and productivity of the workforce.

Eligibility

• Businesses located in Iowa that need assistance with workforce development.

• Businesses must demonstrate a commitment to improving the skills of their employees.

Incentive Value

• The program offers financial assistance for employee training, including tuition reimbursement, training materials, and certification fees.

• The financial assistance can cover up to 50% of training costs.

Application Process

Businesses must apply through Iowa Workforce Development, detailing their training needs and the number of employees to be trained.