The State of Iowa has several business tax incentives available based on the type of business venture and job creation efforts. Revolving loan funds are available through several organizations to assist businesses, of all sizes, in their growth in Buchanan County. Property tax relief and infrastructure enhancements are additional options for incentives that can be made by local governments to assist in growing business in Buchanan County, Iowa. The State is also investing heavily in job training and education through the Future Ready Iowa Initiative.
The Buchanan County (IA) Economic Development and the local community government will work with state and regional partners to assemble a competitive incentive package to attract an employer offer sustainable growth for the local area.
The BCEDC offers 2 different, low-interest revolving loans to provide gap financing to assist with your expansion needs. Funds are based on job creation, wages and private investment. All loans made at 3% interest with a 6-month delay in repaying the loan and interest accumulation.
* The 543 Kick-Starter Loan: $5,000 – 4 Years – 3% Interest: BCEDC 543 Loan Guidelines
* The Business Growth Loan: Up to $25,000 @ 3% Interest: BCEDC Business Growth Loan Guidelines
Interested? Check out the BCEDC RLF brochure
New RLF Available! The new CARES RLF is available businesses and industries within the INRCOG CARES RLF. Click CARES RLF Brochure for information and eligibility requirements and click CARES RLF Application Form for the application. Click HERE to go to the INRCOG page. There is a $100 application so contact INRCOG before submitting.
Additional local revolving loans available from East Central Iowa REC, East Buchanan Phone Coop, Indy Light & Power RLF Brochure and Black Hawk Economic Development. Some of these are gap-financing loans and will not provide the major funding for any project.
State of Iowa Incentives and Assistance for Business
Low cost of conducting business: The State of Iowa is ranked as the #9 best State in the US for Doing Business in 2016. Iowa was also noted as having the 2nd lowest business costs in the nation. CNBC.
Low utility rates: Iowa is among the lowest in the nation for natural gas rates and well below the national average for electricity rates. Iowa ranked 1st in the nation for % of wind generated electricity
Our state offers a comfortable corporate income tax based on total in-state sales revenue, no property, sales or use tax on industrial machinery and equipment, no personal property (inventory) tax, and no sales and use tax.
- Business Advantages of Iowa
- Compare Iowa to other states for business: We think you’ll like it here!
- Iowa Economic Development Authority Including:
- State Tax Incentive Programs: New Jobs Tax Credits; R & D Tax Credits; Innovation Fund Tax Credits
- High Quality Jobs Program
- Historic Preservation Tax Credits: Rehabilitating historic buildings.
- International Business Assistance
- Targeted Small Business Program: Business assistance for women, minorities and the disabled
- Demonstration Fund: Assistance for technology related businesses
- Future Ready Iowa: Assist with Iowa’s workforce with education or training beyond high school
Regional and Local Incentives for Business
The Cedar Valley Region offers a variety of tools to help new and expanding business make effective decisions on financing and cost savings of their project. These tools not only include loan programs, but may include tax incentives, special building and site pricing, direct financial assistance and more.
- Tax Increment Financing (TIF) – City councils or boards of supervisors may use new 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. TIF Basic explanation
- Local Tax Abatement – Iowa law allows cities and counties to abate local property taxes for value added to industrial and commercial real estate.
- Zero Interest loans, up to $1 million – USDA Rural Development, Rural Economic Development Loan & Grant Program (REDLG)
- Direct Financial Assistance – Communities and utilities have access to a variety of local and regional business growth incentive tools including revolving loan funds and local development corporation funds.
- CIRAS– Iowa State Center for Industrial Research and Service
Hawkeye Community College Employee Training Assistance
The community colleges serving the region provide an array of employee training resources to help businesses maintain a competitive edge and administer the State of Iowa jobs training assistance programs including:
- Iowa New Jobs Training Program (260E) For new employees: Provides no cost-or reduced-cost job training services to new employees of eligible businesses. The assistance can be used for basic skills training to highly specialized, customized training. Businesses entering into an agreement may also qualify for New Jobs Tax Credit.
- Iowa Jobs Training Program (260F) For current employees: Provides job training services to current employees of eligible businesses that are located in Iowa. The assistance can be used to train workers to learn new technologies, upgrade existing skills and enhance productivity in a variety of ways.
- Trade and Industry Training – Provides technical and industrial training for businesses and individuals including welding, safety and OSHA, electrical, carpentry, plumbing, and HVAC. Learn something new, brush up existing skills, or earn continuing education credits to maintain your professional license.
Small businesses and entrepreneurs are a valuable asset to any community. Below are links to help support your growth or new idea. Support is available for business planning, financing, licensing or educating you to be a better professional.
- UNI Regional Business Center
- Iowa Source Link: Your source for all information related to business start-up & expansion.
- Advance Iowa: Iowa’s comprehensive consulting program designed to work with mid-sized companies
- Renew Rural Iowa: Iowa Farm Bureau business assistance information
- ISU Center for Industrial Research and Service (CIRAS): Assistance for manufacturing.
- Iowa Entrepreneurs