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INCENTIVES

ENTERPRISE ZONE PROGRAM- Iowa Economic Development Authority

In order to promote development in designated areas of Iowa, Iowa Department of Economic Development established the Enterprise Zone Program.  Businesses locating or expanding in an established Enterprise Zone may be eligible to receive certain local and state tax benefits.  Manufacturers and other businesses locating new facilities or expanding existing facilities while creating new jobs, now have an additional incentive to do so.

 

Tax Benefits

… A local property tax exemption on the value added to the property.

… Additional funding for training new employees.

… A refund of state sales, service or use taxes paid to contractors or subcontractors during construction.

… An investment tax credit of up to 10% of the new investment in machinery & equipment, land, buildings, and improvements to existing buildings.  This Iowa tax credit may be carried forward for up to seven years or until depleted. 

… An additional research and development tax credit of up to 6.5%, may be refundable.  This Iowa tax credit is based on increasing research activities within the state and is available while the business is participating in the program for up to 10 years.

… Other programs may give additional incentives.

Eligibility Requirements

 

… The business must make a minimum capital investment of $500,000.

… The business must create at least 10 full-time, project-related jobs and maintain them for at least 10 years.

… The business provides all full-time employees with the option of choosing a standard medical and dental insurance plan of which the business pays 80% of the premiums or a monetarily equivalent benefit.

… The business must pay an average wage that meets or exceeds 100% of the average county or regional wage, whichever is lower.

… The business can not be a retail establishment or a business whose entrance is limited by cover charge or membership.

… The business cannot close or reduce its operation in one area of the state and relocate substantially the same operation in the Enterprise Zone.

… The local Enterprise Zone Commission and the Iowa Department of Economic Development must approve the business’ proposed project prior to project initiation.

 

TAX INCREMENT FINANCING- Mitchell County

...When an industry erects a new building, the new (increment) property taxes can be returned to that industry for up to a period of 20 years

...Or those property taxes can go towards payment of needed infrastructure to assist the new industry in locating in an area. 

...TIF is an excellent tool to assist industry in locating to an area. 

 

 
Mitchell County Economic Development Commission  .  PO BOX 306  .  Osage, Iowa 50461  .  641-732-4790  .  mcedc@osage.net