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A description of the business advantages your company can realize in Iowa.
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Businessa d v a n t a g e s
Business Factors For a Brighter Forecast
companies doing business in iowa enjoy one of the nation’s most business-friendly economic climates. the proof is in the numbers.
•IowahasthelowestcostofdoingbusinessintheUnitedStates America’s Top States for Business, CNBC 2009
•Iowabusinesscontributionstofamilyhealthinsuranceplansare25percentbelowtheU.S.average Henry J. Kaiser Family Foundation 2008
•Iowa’saverageindustrialelectricitycostperkWhis30percentbelowtheU.S.average U.S. Energy Information Administration 2009
•Iowa’saverageleaseratesforindustrialspaceare25percentbelowtheU.S.average 2009 NAI Global
•Iowa’sconstructioncostsforindustrialspaceare23percentbelowtheU.S.average 2009 RSMeans
Iowa’s business climate has never been more favorable. With the lowest cost of doing business, companies operating
in Iowa benefit from a business-friendly state government, technology transfer from world-renowned research universities,
askilledandproductivelaborpoolandacentralizedgeographicallocation.Followingisabriefdescriptionofthemanybusiness
advantagescompaniesenjoyinIowa.Formoreinformation,pleasevisitusonlineatwww.iowalifechanging.com or contact us
anytimeat1.800.245.4692.
DO BUSINESS WHERE good things ARE GROWING
IOWA’S key BUSINESS ADVANTAGESIowa Corporate Income Tax
a number of features of iowa’s corporate income tax offer significant advantages,including:
•50percentdeductibilityoffederaltaxesfromIowacorporate income.
•Single-factor,non-unitarytax—Iowa’staxisbasedonlyonthe percentage of total sales income within the state.
•Iowacorporateincometaxmaybereducedoreliminatedby the high Quality Jobs program or enterprise Zone benefits.
No Personal Property Tax
Personalpropertyisnotassessedfortaxpurposes.InIowa, personalpropertyincludescorporateinventoriesofgoods-in-process, raw materials and salable goods.
No Sales and Use Tax on Industrial Machinery and Equipment Purchases
Thepurchaseofindustrialmachinery,equipmentandcomputersusedformanufacturingorusedtoprocessdatabyinsurancecompanies,financialinstitutions,orcertaincommercialenterprises,isexemptfromIowasalesorusetax.Inaddition,thereisnosalestaxonmaterialsused in the manufacturing process or for purchases of electricity or natural gas used directly in the manufacturing process.
No Property Tax on New Industrial Machinery and Equipment
Industrialmachinery,equipmentandcomputersareexempt from property tax.
Research and Development Tax Credit
Arefundablecreditforincreasingresearchactivitiesisupto 6.5percentofthecompany’sallottedshareofqualifyingresearch expendituresinIowa.Acompanymustmeetthequalificationsof thefederalresearchactivitiescreditinordertobeeligibleforthecreditontheIowareturn.Companiesapprovedforexpansioninanenterprise Zone or under the high Quality Jobs program may be eligiblefortheamountofthetaxcredittobedoubledforqualifyingresearchanddevelopmentactivities.
Local Property Tax Incentives
iowa law allows cities and counties to abate local property taxes for improvingindustrialrealestate.Themostcommonamountofactualvalueaddedataneworexpandedfacility,whichiseligibletoexemptfromtaxation,isasfollows:
Othertypesandtermsoflocalpropertytaxincentivesareavailable. Citycouncilsorcountyboardsofsupervisorsmayusetheproperty taxesresultingfromtheincreaseintaxablevaluationcausedby theconstructionofnewindustrialorcommercialfacilitiestoprovide economicdevelopmentincentivestoabusinessorindustry.Tax increment Financing may be used to offset the cost of public improvementsandutilitiesthatwillservethenewprivatedevelopment, tofinancedirectgrantsorloanstoacompany,ortoprovidethelocalmatchforfederalorstateeconomicdevelopmentassistanceprograms.
Workers’ Compensation
Iowa’sworkers’compensationcostsareamongthenation’slowest. Theaveragecostofworkers’compensationinsuranceformanufacturersinIowais28percentlowerthanthenationalaverage.Iowalaw providesforemployerchoiceofdoctor.
Unemployment Insurance
iowa has one of the lowest new employer unemployment insurance ratesinthenation.In2008,therateforallnewnon-construction businesses is one percent.
Regulatory Assistance
TheRegulatoryAssistanceProgramenhancestherangeofservices availabletoIowacompaniesbyadvisingandassistingcompaniesin the preparation and submission of permit applications with the iowa Department of natural resources (iDnr) and other iowa regulatory agencies. the purpose of the regulatory assistance Program is to facilitate communication between the business and regulators and to expedite the permitting process.
Year One:
75%Year twO:
60%Year three:
45%Year FOur:
30%Year Five:
15%
Iowais10thinthenationinamountoffundingpercapitaforResearch•andDevelopmentattheacademiclevel(Development Report Card for the States 2007)
IowaranksastheninthSmartestStateinthenationfromthe2006-2007•SmartestStateAwards.Theawardisbasedon21factors(Morgan Quitno’s Education State Rankings 2006-2007)
Iowahasthesecondhighestlaborparticipationrateinthecountry.78.9•percent of the population is in the labor force (U.S. Census Bureau 2008)
Davenport-Moline-RockIsland,DesMoines,andOmaha-CouncilBluffs•arelistedasfive-starlogisticsmetros(Logistics Quotient -Expansion Management 2007)
AllnineofIowa’smetrosarelistedasFive-StarcommunitiesforQuality•of Life (Quality of Life Quotient-Expansion Management 2007)
AllnineofIowa’slargestcommunitiesrankedasBestPlacesfor•Business (Forbes Magazine 2009)
IowaranksfirstintheMidwestintermsofvalue-addedper•manufacturingworker(U.S. Census Bureau 2006)
Iowaisrankedsecondnationallyintermsoftheimportanceof•manufacturing to the state’s economy (Bureau of Economic Analysis 2008)
Thestateishometo32ofthe100largestfoodmanufacturers •in the world (Food Processing Magazine 2008)
Iowa’sinsuranceindustryranksthirdhighestinthenationinterms •of importance to the state’s gDP (Bureau of Economic Analysis 2007)
Iowahastheseventhhighestnumberofscienceandengineering•degreesawardedper100,000residents(National Science Foundation Science and Engineering Indicators 2008)
IOWA. PERFECTLY positioned IN THE GLOBAL ECONOMY
Technical Assistance
AmongIDED’smanyareasoftechnicalsupportiscomprehensivemanagementassistance;technicalandfinancialassistancefor
high-growthentrepreneurialventures;assistancefordevelopingandexpandingexports;assistanceforinternationalcompaniesinterested
inlocatinginIowa;andassistanceforIowabusinessesconsideringexpansionandthecreationofnewjobs.
Financial Assistance Programs
IowaoffersanarrayoffinancialinvestmentprogramsspecificallydesignedtopromotegrowthandprofitabilityforIowacompanies
whilecreatingqualityjobopportunitiesforIowans.LooktoIDEDtohelpyouidentifythemostappropriateassistanceprogramsforyourneeds.
Wewillcoordinateandadministertheseprogramsandhelpyouthroughouttheapplicationprocess.
Training and Support
Iowa’sworkforcetrainingprogramshaveevolvedfromabusinessexpansionincentivetoolintoacomprehensive,targetedhumanresource
initiativeavailabletoallIowabusinesses.TheIDEDworksinpartnershipwithpublic/privateserviceprovidersandotherstateagenciesto
activelypromotenewemployeetraining,incumbentworkerpreparation,lifelonglearning,anddevelopmentandexpansionofthestate’slabor
pool.TheseeffortshelpkeepIowa’sbusinessescompetitiveandsuccessfullyoperatinginthestate.
Confidential Location Reviews
TheIDEDisheretooffersitelocationassistancetobusinessesconsideringIowa.Wewillassistwithconfidentiallocationreviewsand
workwithlocaleconomicdevelopmentorganizationstohelpcompaniesfindtherightsitetomeettheircompany’sneeds.
Formoreinformation,onhowIDEDcanassistyourcompany,pleasevisitonlineatwww.iowalifechanging.com or contact us anytime
at 1.800.245.4692.
THE IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT is here to help
ItisthemissionoftheIowaDepartmentofEconomicDevelopment(IDED)toworkwithbusinessesandcommunitiestobolsterIowa’s
economyandpositionthestateforgrowthintheneweconomy.IDEDcanassistyourcompanybyproviding:
THE CLOSER YOU LOOK, THE MORE IOWA grows ON YOUFind out why iowa is the right choice for your company. call the
IowaDepartmentofEconomicDevelopmentandallowaproject
managertoprovidecustomizedinformationtomeetyourneeds.
Visit iowalifechanging.com to find the latest information on
Iowa’sbusinessclimate,assistanceprograms,developmentnews,
availablebuildingsandsitesandmuchmore.Ourservicesarefree
ofchargeandallinquirieswillbehandledconfidentially.
Iowa Department of Economic Development
200EastGrandAvenue•DesMoines,Iowa,50309U.S.A.
International:+1.515.725.3100
Domestic:1.800.245.4692
www.iowalifechanging.com
Jg10292009