State & Federal Programs

Community Economic Betterment Account (CEBA) - If your business will create or retain jobs, The State of Iowa offers a program to to help you.  CEBA provides direct financial assistance to businesses for that very purpose. Forgivable and low interest loans are available to businesses to expand or relocate to Iowa communities.

Revitalization of Iowa's Sound Economy (RISE) Program - The State of Iowa Department of Transportation offers this program to provide financial assistance to cities for the purpose of constructing transportation access to facilitate business expansion or growth. Street or rail access projects are fundable under this program.

Iowa State Targeted Small Business Loan Program - Women and minorities can take advantage of a loan pool  established by the State of Iowa for the creation and expansion of small businesses. Loans are at a 4% interest rate with a maximum of $25,000 available.
You need only have 10% of the grant amount in cash equity.

State Enterprise Zone Programs - O'Brien County has been designated as a State Enterprise Zone. Tax credit incentives are offered to businesses that expand or developers who build housing units in an Enterprise Zone or businesses that hire workers who live in the Enterprise Zone.

Iowa Corporate Income Tax -  Iowa's single-factor, non-unitary tax is based only on the percentage of total sales income within the state. An Iowa manufacturer selling all its products outside Iowa would pay no Iowa corporate income tax. Iowa allows 50 percent deductibility of federal taxes from Iowa corporate income tax. Iowa corporate income tax may be reduced or eliminated by the New Jobs Tax Credit and Research and Development Tax Credit.

No Property Tax on New Industrial Machinery and Equipment - Manufacturing machinery and equipment, as well as computers used to process data by insurance companies and financial institutions installed and first assessed on or after January 1, 1995, is exempt from property tax.

No Sales or Use Tax on Manufacturing Machinery and Equipment - The purchase of industrial machinery and equipment, and computers assessed as real property and used for manufacturing or used to process data by insurance companies, financial institutions, or certain commercial enterprises, is exempt from Iowa sales or use tax. No sales tax is due on purchases of electricity or natural gas used directly in the manufacturing process.

No Personal Property (Inventory) Tax - Personal property is not assessed for tax purposes. In Iowa, personal property includes corporate inventories of salable goods, raw materials and goods in process.

New Jobs Tax Credit - Businesses entering into an agreement under the state's training program, and which increase their workforce by at least 10 percent, may qualify for this credit to its Iowa corporate income tax. This credit is equal to 6 percent of the state unemployment insurance taxable wage base. The credit for 2002 is $1,116 per new employee. The tax credit can be carried forward up to 10 years.

New Jobs and Income Program - The Iowa New Jobs and Income Program provides a package of tax credits and exemptions to businesses making a capital investment of at least $10.38 million and creating 50 or more jobs meeting wage and benefit targets.

New Jobs Tax Credit - Businesses entering into an agreement under the state's training program, and which increase their workforce by at least 10 percent, may qualify for this credit to its Iowa corporate income tax. This credit is equal to 6 percent of the state unemployment insurance taxable wage base. The credit for 2002 is $1,116 per new employee. The tax credit can be carried forward up to 10 years.

Pollution Control or Recycling Property Tax Exemption - Pollution control and recycling equipment may be eligible for a property tax exemption. Improvements to real property that are primarily used to control pollution of air or water, or primarily used for recycling, may qualify. An application must be filed for exemption.

Small Business Administration 7a Program – The 7a program is a loan guarantee program whereby a business will borrow financing from a local lender of choice for fixed assets or working capital. The loan can be a maximum of $750,000 with 20% - 50% down payment with terms set by the lending financial institution. The loan is guaranteed by the Small Business Administration.

Small Business Administration 504 Program - The 504 program is direct financing from SBA through a local certified development corporation. Rates are fixed for a 20 year term at a rate reduced from bank financing. A total $1,000,000 is available per project and you can get away with having less down payment than standard financing.

Research Activities Tax Credit - A credit for increasing research activities is 6.5 percent of the company's apportioned share of qualifying research expenditures in Iowa. A company must meet the qualifications of the federal research activities credit in order to be eligible for the credit on the Iowa return.

For more information about state programs https://www.iowaeda.com/