Possible incentives for new and expanding business

Following content is courtesy of the Council Bluffs Chamber of Commerce

Enterprise Zones

To qualify for benefits, a business must have an average wage of $9.40, create at least 10 full-time positions, not be a retail business, pay at least 80% of standard medical and dental insurance and make a capital investment of at least $500,000. Businesses locating to these areas qualify for the following:

- Investment Tax Credit - A business may claim an investment tax credit on its Iowa corporate income tax return for up to a maximum of 10 percent of the new investment. Any credit in excess of tax liability for the tax year may be credited to the tax liability for the following 7 years or until depleted, whichever occurs first. The capital expenditures eligible for the investment tax credit under the enterprise zone program are the costs of machinery and equipment used in the operation of the eligible business and the cost of improvements to real property, which is used in the operation of the business.

- Research Activities Credit - A business is eligible to claim a research activities credit for a period of 10 years from the date the business's application was approved by the department. This credit equals 6.5% of the state's apportioned share of the qualifying expenditures for increasing research activities. Any tax credit in excess of the tax liability shall be refunded to the eligible business with interest computed. In lieu of claiming a refund, the eligible business may elect to have the overpayment credited to its tax liability for the following year.

- Refund of Sales, Service and Use Taxes - A business is eligible for a refund of sales, service and use taxes paid to contractors and subcontractors relating to the construction or equipping of a facility within the enterprise zone. Taxes attributable to intangible property and furniture and furnishings shall not be refunded.

- New Jobs Training Supplemental Credit - A supplemental new jobs credit from withholding in an amount equal to 1.5% of the gross wages paid by the business is available. The supplemental new jobs credit is in addition to and not in lieu of the program and withholding credit of 1.5% authorized under the Iowa New Jobs Training Program


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