- The High Quality Jobs (HQJ) program provides qualifying businesses assistance to off-set some of the costs incurred to locate, expand or modernize an Iowa facility. This flexible program includes loans, forgivable loans, tax credits, exemptions and/or refunds. The Iowa Economic Development Authority offers this program to promote growth in businesses, which employ Iowans in jobs defined as high-quality by state statute.
- The Iowa Industrial New Jobs Training (260E) program assists businesses creating new positions with new employee training. Eligible businesses may be new to Iowa, expanding the Iowa workforce or relocating to the state.
- The Economic Development Set Aside (EDSA) program provides financial assistance to businesses and industries requiring assistance to create or retain job opportunities in Iowa. EDSA develops viable communities that provide economic opportunities for people, especially those with low- and moderate incomes. Priority is given to projects that create manufacturing jobs, add value to Iowa resources and/or increase exports. Preference is given to businesses that create or retain the greatest number of jobs with the least amount of program dollars. Projects must demonstrate a need for assistance. The only three valid criteria to determine need are: a financing gap, insufficient return on investment or location disadvantage.
- New Jobs Tax Credit is a one-time, corporate income tax credit that is available to participants in the New Jobs Training (260E) Program. Iowa offers this credit as an incentive for businesses that provide additional training to employees and expand their workforce.
- The Targeted Jobs Withholding Tax Credit is a pilot program that allows diversion of withholding funds paid by an employer to be matched by a designated pilot city to create economic incentives directed toward the growth and expansion of targeted businesses.
- Angel Investor tax credits are offered to increase the availability and accessibility of venture capital, particularly for ventures at the seed capital investment stage.
- The Butchery Innovation and Revitalization Fund includes $750,000 appropriated by the State of Iowa and administered by the Iowa Economic Development Authority (IEDA). The fund will provide financial assistance in the form of grants to businesses for projects relating to small-scale meat processing, licensed custom lockers and mobile slaughter units.
- Iowa incentivizes the creation of Employee Stock Ownership Programs (ESOPs) to retain businesses. Companies with an ESOP can sell the business to its employees when the owners retire or start a new business. An ESOP allows owners to share equity with employees and provides a retirement plan for those employees. The Iowa Economic Development Authority (IEDA) helps Iowa business owners complete the first step of setting up an ESOP – a feasibility study conducted by an independent financial professional. IEDA reimburses 50% (not to exceed $25,000) of the cost incurred to obtain a feasibility study. Reimbursement is dispersed in two stages: half is released upon conclusion of the feasibility study and the remaining half after successful formation of the ESOP. Iowa offers a 50% reduction from state income taxes for the net gain from the sale of stock to an ESOP.
