THERE ARE MANY BUSINESS ADVANTAGES IN THE IOWA CITY AREA

Workforce

What has historically differentiated the Iowa City area from other regions of the country is its forward thinking approach to embrace education as its primary cornerstone.  Home to the University of Iowa, the first public institution to enroll women, the area is known for its diverse and vibrant culture.

Why do companies build and expand in this area? Simple. Better workers and bottom line savings. The quality the area’s workforce is a result of the strong educational capacity of the area communities as well as Midwestern work ethic.

Join the ranks of growing Fortune 500 companies, as well as scores of smaller industries and businesses.

Location

The Iowa City area is the southern anchor of ICR Iowa and is located at the crossroads of I80 (San Francisco to New York City) and I380 (part of the St. Paul/St. Louis Avenue of the Saints).

Tax Advantages & Incentives

Single-factor, Nonunitary tax

Iowa’s corporate income tax is a single-factor, nonunitary tax and based only on the percentage of total sales income within the state (Iowa manufacturer selling all its products outside Iowa pays no Iowa corporate income tax).

Federal Deductibility

Iowa is one of only five states that offers Federal Deductibility. This allows 50 percent deductibility of federal taxes on corporate income tax in Iowa.

Right-to-Work State

Under Iowa law, an employee is not required to join a union as a condition of employment. Management/employee relations are extremely positive in our area.

Unemployment Insurance

At 1% Iowa has the lowest unemployment insurance rate of any state in the nation. This rate is given to all non-construction employees who do not have a prior employment history in Iowa.

Tax Advantages

Iowa has eliminated the following tax burdens:

• No sales or use tax on industrial machinery/equipment/computers
• No sales tax on purchases of electricity or natural gas used directly in the manufacturing process
• No sales or use tax on computer/peripherals used in the processing or storage of data
• No property tax on manufacturing machinery/equipment/computers
• No tax assessment on personal property (includes corporate inventories of salable goods, raw materials and goods in process)

Incentives

There are many, from local to state incentives.

Assistance is provided in the form of tax increment financing, loans and/or forgivable loans, all based in part on job creation, capital investment, the ability to meet certain wage standards, quality of employment, and economic benefits for the state and local community.