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Tax Incentives Sparks Manufacturing Expansion In DeWitt, Council Bluffs, and Davenport Iowa

01/26/2017
State Economic Development Authority board members awarded direct financial assistance and tax benefits to three companies for job creation and expansion projects in DeWitt, Council Bluffs and Davenport, Iowa.

According to state officials, these awards will assist in the creation of 535 jobs and will result in over $81 million in new capital investment for the state.

In DeWitt, Iowa, Latham Pool Products, the largest manufacturer of swimming pool components and pool accessories in North America, plans to lease and renovate an existing building and surrounding ground to create a manufacturing facility and outdoor warehouse.

Iowa Economic Development Authority awarded tax benefits through the High Quality Jobs (HQJ) program for this $2 million capital investment. The project is expected to create 23 jobs.

In Council Bluffs, Rasmussen Mechanical Services, a company that provides mechanical services to commercial, industrial and institutional clients throughout the central U.S., is acquiring an existing building in Council Bluffs for warehousing and manufacturing services.

The company also plans to relocate its corporate accounting department from Sioux City. RMS accounting employees in Sioux City will either retain their duties at the current facility or transfer to other positions within the Sioux City facility -- no employees will transfer to Council Bluffs.

As an incentive, the board awarded RMS tax benefits via HQJ based on a qualifying hourly wage of $19.08. Additionally, the company received tax benefits through the Targeted Jobs Withholding Tax Credit program based on a qualifying hourly wage of $17.93. This project represents a capital investment of $6.5 million and is expected to create 12 jobs, of which 11 are incented.

In Davenport, Sterilite Corporation, the largest plastic housewares company in North America, plans to build a manufacturing and distribution facility in Davenport. The company was awarded $1,011,000 in direct financial assistance as well as tax benefits from HQJ for this $73 million capital investment. The project is expected to create 500 jobs, of which 100 are incented at a qualifying wage of $18.74 per hour.
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