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Microsoft Among 7 Companies Receiving Iowa Tax Incentives For Plant Expansion

07/25/2016
Microsoft Corporation is among major companies receiving financing incentives and tax benefits from the Iowa Economic Development Authority, resulting in nearly $456 million in capital investment across Iowa.

The board approved assistance for planned or proposed projects located in Cedar Falls, Cedar Rapids, Council Bluffs, Fairfield, Iowa City, Johnston, Keokuk, Sioux City, Waukee and West Des Moines.

In West Des Moines, Microsoft Corporation, a company that develops, manufactures, licenses and supports a range of services, devices and software products, was awarded nearly $4.7 million in tax benefits from High Quality Jobs Program for phase one of a four-phase regional data center and associated support infrastructure to house servers and computer equipment to operate large-scale web portal services. As part of Microsoft's online services business, the company’s $417.7 million capital investment in West Des Moines is expected to create 57 jobs.

Also in West Des Moines, ePATHUSA, a software development company that specializes in business intelligence, application development, web design and hosting and software quality assurance, is proposing to relocate into a new office building to accommodate the expansion and future growth of the company. The board awarded ePATHUSA $40,000 in direct financial assistance as well as tax benefits via the HQJ to create five new jobs. The project is expected to have a capital investment of $405,750.

Keokuk Mills plans to reopen steel casting foundry in Keokuk, Iowa, with state incentives. Keokuk Mills, a company recently formed to reopen the Keokuk Steel Manufacturing Company, which was closed in March 2016 by its parent company, proposes to restart operations of the steel casting foundry . The plant produces castings for manufacturers in the agricultural, construction and utility industries. The project has a capital investment of $4.5 million and is expected to create 200 jobs. The board awarded the project direct financial assistance of $1 million and tax benefits via HQJ. Additionally, the TJWTC program will also be accessed in the amount of $400,000 to assist with this project in Keokuk.

In Sioux City, Cloverleaf Cold Storage Company, a family-owned and operated warehouse company offering public and contract storage in refrigerated, frozen and dry environments, plans to expand the existing facility to meet increased sales demand. This expansion complements their Farmer's Produce business and will help enable the storage of produce after manufacturing. The company received tax benefits via HQJ for this $18 million capital investment. The project is expected to create eight jobs.

In Council Bluffs, Future Foam, Inc., a major manufacturer of polyurethane foam products used in furniture, bedding, carpet padding, packaging and other applications, was awarded tax benefits through the Targeted Jobs Withholding Tax Credit (TJWTC) program for the construction of a new building to house the expansion of the IT department. This $720,000 capital investment is expected to create six jobs.

In Fairfield, Hawthorne Direct, a technology-based firm that utilizes proprietary analytics, data science and systems to develop accountable broadcast and digital campaigns, is looking to grow and relocate to accommodate expansion of research and development, data science, media management and operation positions. Hawthorne received $75,000 in direct financial assistance as well as tax benefits via HQJ for this $385,000 capital investment. The project is expected to create 15 jobs.

ReConserve, Inc., parent company of Cedar Rapids-based ReConserve of Iowa, Inc., owns and operates plants for the collection and processing of bakery waste materials into animal feed ingredients. ReConserve is planning a project that includes land acquisition and site improvements that will keep the company in Iowa and help them operate more efficiently. The board awarded ReConserve tax benefits through HQJ for this $12 million modernization project.

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