IOWA BUSINESS INCENTIVES

Photo of money A variety of local and state incentives are available to new and exisiting business.

IFADC Revolving Loan Fund (RLF)

The Revolving Loan Fund is a local funding source to provide low-interest loans to assist with local economic and business development projects. These monies are generally for gap financing, working with a local bank to cover unmet need in the financing package. This fund is administered by the IFADC Revolving Loan Fund Committee, consisting of local business people dedicated to the growth of businesses in the Iowa Falls Area.

This institution is an equal opportunity provider.

Iowa Economic Development Programs

Economic Development Set-Aside (EDSA) - The Economic Development Set Aside (EDSA) program provides financial assistance to businesses and industries requiring assistance to create or retain job opportunities in Iowa. EDSA develops viable communities that provide economic opportunities for people, especially those with low- and moderate incomes.

High Quality Jobs - The High Quality Jobs (HQJ) program provides qualifying businesses assistance to off-set some of the costs incurred to locate, expand or modernize an Iowa facility. This flexible program includes loans, forgivable loans, tax credits, exemptions and/or refunds. The Iowa Economic Development Authority (IEDA) offers this program to promote growth in businesses, which employ Iowans in jobs defined as high-quality by state statute.

Iowa Business Tax Incentives

New Jobs Tax Credit - This one-time, corporate income tax credit is available to participants in the New Jobs Training (260E) Program. Iowa offers this credit as an incentive for businesses that provide additional training to employees and expand their workforce.

Renewable Chemicals Production Tax Credit - Iowa offers the first in the nation Renewable Chemicals Production Tax Credit. The program incentivizes the production of 30 high-value chemicals derived from biomass feedstocks. According to the U.S. Department of Agriculture, the credit represents the “strongest” incentive package for the bio-based chemical industry.

Research Activities Credit - Iowa sets itself apart as being one of the few states to offer a refundable research activities credit. Iowa companies earn refundable tax credits for research and development investments that may be paid directly in cash to the company once its tax liabilities have been met.

Targeted Jobs Withholding Tax Credit - The Targeted Jobs Withholding Tax Credit is a pilot program that allows diversion of withholding funds paid by an employer to be matched by a designated pilot city to create economic incentives directed toward the growth and expansion of targeted businesses locally. 

Wage Requirements - Laborsed wages are calculated based on an employment area's actual commuting patterns and exclude retail and healthcare wages, among others; the resulting wage is more representative of a true starting wage for the types of businesses eligible for assistance.

For more information about the Iowa Business Incentives and Economic Development Programs, call (641) 648-5549 or contact us.