TAX CREDITS

High Quality Jobs Program: Companies that create new jobs and make capital investments may qualify for a variety of state and local incentives.  Available incentives include property tax exemptions, investment tax credits, sales and use tax refunds, and an expanded Research Activities Credit.  To qualify, the newly created jobs must have wages at or above the average wage of the county where the project is located.  

New Jobs Tax Credit: Provides a one-time corporate income tax credit to businesses that increase the size of their workforce by at least 10%. The maximum credit per new job is $1,698.  Tax credits are non-refundable and non-transferable; however unused tax credits may be carried forward  for up to 10 years.

Research Activities Tax Credit: Businesses that meet the qualifications of the federal research credit may claim the Iowa Research Activities Tax Credit which is equal to 6.5% of qualified research expenditures made within the State above a base amount.  Any research credit in excess of the tax liability may be refunded to the taxpayer or credited for the following year

JOB TRAINING

Iowa Industrial New Jobs Training: Administered by Iowa's 15 community colleges, this discretionary training program is financed through bonds sold by the colleges. Depending on the wages of the trainees, a business will divert 1.5% or 3.0% of its Iowa state withholding taxes generated by the new positions to the community college to retire the bonds.  This structure enables the training to be of low to no cost since the bonds are retired with dollars that otherwise would have been paid to the state as withholding taxes.  

 

Last updated: April 2016

 

 


 
BIGGINS LACY SHAPIRO & COMPANY
PRINCETON
47 Hulfish Street, Suite 320
Princeton, NJ 08542
(609) 924-9775
NEW YORK
215 Park Ave South
New York, NY 10003
(646) 652-7555
CHICAGO
30 S. Wacker, Suite 2200
Chicago, IL 60606
(312) 924-2490