Businesses relocating or expanding in Pottawattamie County may be eligible for specific tax and financial incentives offered by the State of Iowa, the county and/or local community. Harrison County Development Corporation is prepared to assist you in coordinating a custom, aggressive incentives package based on your particular growth needs.
Iowa Tax Advantages
Corporate Income Tax
- Iowa’s corporate income tax is a single-factor, non-unitary tax and based only on the percentage of total sales income within the state of Iowa.
(An Iowa manufacturer selling all its products outside Iowa pays no Iowa corporate income tax.)
- 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.
- 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)
Unemployment Insurance Rate
Iowa has the lowest new employer unemployment insurance rate in the nation. The rate for all non-construction business is 1% for a three–year period until an experience rating is established. Iowa offers a zero rate for good experience; approximately 45% of Iowa employers are at a zero rate.
For more information on Iowa’s tax advantages, visit the Iowa Economic Development Authority website.
- Business planning
- Market research
- Financial analysis/cash flows
- Governmental procurement
- Government regulations compliance
- General management and personnel issues
- Information technology
- Loan application assistance
- Business-related education and training courses
Iowa Western Community College Entreprenurial Training Center provides Fast Trac® business planning and training for entrepreneurs.
Local and State Financial Incentives
County and Local Communities Incentives
Tax Increment Financing–City councils or boards of supervisors may use the property taxes resulting from the increase in taxable valuation caused by the construction of new industrial or commercial facilities to provide economic development incentives to a business.
How It Works
- Business constructs new industrial or commercial facility
- New facility increases property tax assessed on the business
- City councils or county board of supervisors may use the additional property tax to:
- Finance direct grants or loans to the business.
- Offset the costs of public improvements or provision of utilities to serve the new private development.
- Provide the local match for federal or state economic development assistance programs.
- Local Tax Abatement–Iowa law allows cities and counties to abate local property taxes for value added to industrial real estate.
- Direct Financial Assistance–Communities in Pottawattamie County have access to a variety of local and regional business growth incentive tools including revolving loan funds and local development corporation funds.
State of Iowa Incentives
The Iowa Values Fund (IVF) is the state’s premier 10–year economic development program designed to transform Iowa’s economy by creating high quality jobs through business development and expansion across Iowa. With a $35 million dollar annual appropriation for business development and marketing, the IVF assists Iowa companies to expand, as well as attract new businesses to the state. A variety of business development programs are available through the Iowa Values Fund. To learn more, visit the Iowa Economic Development Authority website.
Financial Assistance for Starting–Up a Business
Funds may be available from state–sponsored programs including:
- Entrepreneurial Venture Assistance (EVA) – Provides financial and technical assistance to early-stage technology companies.
- Targeted Small Business Assistance (TSB) – Designed to assist in the creation and expansion of certain Iowa small businesses.
- Self Employment Loan Program (SELP) – Financial assistance to low-income owners of new or expanding small businesses.
- Community Economic Betterment Account (CEBA) / Economic Development Set–Aside (EDSA) – Provides financial assistance to companies that create new quality employment opportunities and/or retain existing jobs, and make new capital investment in Iowa. The EDSA program is targeted toward low- and moderate–income individuals.
To learn more about financial resources for start-up businesses, visit the Iowa Economic Development Authority website.