With the favorable tax environment, access to transportation, energy and technology, connections to training and education and the strength of the workforce, the region served by Midwest Partnership is an ideal location for new and expanding businesses. In fact, the entire state of Iowa is a pro-business environment. Learn more about the programs that make it easy to do business in west central Iowa.
Iowa is one of only five states that offer corporations 50 percent deductibility of federal taxes from corporate income. Using the single factor formula, corporate income tax is levied only on net income derived from sales conducted with the state. In Iowa, corporate income tax can also be reduced or eliminated by the New Jobs Tax Credit and the High Quality Job Creation Program. In addition, there are no corporate personal property taxes and no sales and use tax on manufacturing machinery and equipment purchases in Iowa. Click here to learn more.
Sales tax in Iowa is 6 percent, though some Midwest Partnership communities feature a Local Option Sales Tax of 1 percent, making for a 7 percent consolidated sales tax rate. Our communities also have low property taxes for businesses and residents alike. Midwest Partnership will provide detailed reports on how local taxes would affect your project.
Iowa law allows cities and counties to abate local property taxes for improving industrial real estate. Depending on the size of project, communities may offer three to 10-year abatement schedules for up to 100 percent of project costs. The exact amounts will be determined with local officials and adjusted depending on job creation, investment, etc.
An Iowa corporate income tax credit is available to a company that has entered into a New Jobs Training Agreement (260E) and expands their Iowa employment base by 10 percent or more. The maximum tax credit in 2014 will be $1,608 per new employee. Unused tax credits may be carried forward up to 10 years. We work closely with our area community colleges to provide the training your business needs to succeed.
The NMTC program was created to address the lack of capital available to business and community development ventures in federally defined tracts throughout the country. The NMTC provides the incentive of a 39 percent federal tax credit to qualifying investors, typically on projects over $5 million.
Eligible census tracts are based on the 2006-2010 American Community Survey (ACS) data on income and is being used to determine eligibility.