POPULATION: 3,002,555 (2008 estimate)
LABOR FORCE: 1,678,700 (2009)
Right to Work: Yes
TRADITIONAL INDUSTRIES: Value-added agriculture, manufacturing
EXPANDING INDUSTRIES: Renewable energy, information solutions, financial services/insurance, advanced manufacturing, biosciences
COLLEGE GRADUATES: (Age 25 and over) 25.2%
BASIC BUSINESS TAXES:
Corporate Income Tax: Imposed on net income from sales within Iowa, after deducting 50 percent of federal corporate income tax;
rates are 6 percent on the first $25,000, or any part thereof;
8 percent on the excess over $25,000 but less than $100,000;
10 percent on the excess over $100,000 but less than $250,000;
and 12 percent on the excess over $250,000
Sales Tax: 6 percent on transactions involving the transfer, exchange, or barter of tangible personal property, on certain enumerated services, and gross receipts from the sale of optional service of warranty contracts; communities and schools may impose a local option sales tax
Use Tax: 6 percent
Property Tax: Manufacturing machinery and equipment, as well as computers used to process data, are exempt from taxation; pollution-control equipment is also exempt.
BUSINESS INCENTIVES:
Grow Iowa Values Financial Assistance Program (GIVF)
Economic Development Set-Aside Program — ESDA (loans, grants)
Iowa Demonstration Fund (prototype development)
Information Technology Joint Venture Fund
Tax credit programs:
- • Enterprise zones
- • High Quality Jobs Program
Public Facilities Set-Aside Program — PFSA (infrastructure improvements)
Iowa New Jobs Training Assistance
Targeted Small Business Financing — TSB (loans, grants)
Iowa Self-Employment — ISE (loans)
Export Trade Assistance Program
Urban revitalization areas
Tax exemptions for industrial property
Tax credits for new employees and research & development
Local Tax Increment Financing Authority
Federal SBA direct loans and guaranteed loan programs
