Advantages to Doing Business in Pocahontas County

 

Pocahontas County offers the ideal setting for your new business to compete locally, regionally, and globally.  Here are some examples:

Iowa Corporate Income Tax
A number of features of Iowa's corporate income tax offer significant advantages, including:

  • 50 percent deductibility of federal taxes from Iowa corporate income.
  • Single-factor, non-unitary tax — Iowa's tax is based only on the percentage of total sales income within the state.
  • Iowa corporate income tax may be reduced or eliminated by the High Quality Jobs program or Enterprise Zone benefits.


No Personal Property Tax
Personal property is not assessed for tax purposes. In Iowa, personal property includes corporate inventories of goods-in-process, raw materials and salable goods.

No Sales and Use Tax on Industrial Machinery and Equipment Purchases
The purchase of industrial machinery, equipment and computers used for manufacturing or used to process data by insurance companies, financial institutions, or certain commercial enterprises, is exempt from Iowa sales or use tax. In addition, there is no sales tax on materials used in the manufacturing process or for purchases of electricity or natural gas used directly in the manufacturing process.

No Property Tax on New Industrial Machinery and Equipment
Industrial machinery, equipment and computers are exempt from property tax.

Research and Development Tax Credit
A refundable credit for increasing research activities is up to 6.5 percent of the company's allotted share of qualifying research expenditures in Iowa. A company must meet the qualifications of the federal research activities credit in order to be eligible for the credit on the Iowa return. Companies approved for expansion in an Enterprise Zone or under the High Quality Jobs program may be eligible for the amount of the tax credit to be doubled for qualifying research and development activities.

Local Property Tax Incentives
Iowa law allows cities and counties to abate local property taxes for improving industrial real estate. The most common amount of actual value added at a new or expanded facility, which is eligible to exempt from taxation, is as follows:

Year 1 = 75%    Year 2 = 60%    Year 3 = 45%    Year 4 = 30%    Year 5 = 15%

Other types and terms of local property tax incentives are available. City councils or county 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 or industry. Tax Increment Financing may be used to offset the cost of public improvements and utilities that will serve the new private development, to finance direct grants or loans to a company, or to provide the local match for federal or state economic development assistance programs.

Workers' Compensation
Iowa's workers' compensation costs are among the nation's lowest. The average cost of workers' compensation insurance for manufacturers in Iowa is 28 percent lower than the national average. Iowa law provides for employer choice of doctor.

Unemployment Insurance
Iowa has one of the lowest new employer unemployment insurance rates in the nation. In 2008, the rate for all new non-construction businesses is one percent.

Regulatory Assistance
The Regulatory Assistance Program enhances the range of services available to Iowa companies by advising and assisting companies in the preparation and submission of permit applications with the Iowa Department of Natural Resources (IDNR ) and other Iowa regulatory agencies. The purpose of the Regulatory Assistance Program is to facilitate communication between the business and regulators and to expedite the permitting process.

For a comparative analysis on how the favorability of Iowa's business climate compares nationally, please click here


For more information on Business Tax Advantages in Iowa, please click here