Incentive Programs Aim to Help Iowans Hire and Train Workers, Grow Businesses

May 11, 2018 | A sense of community: What makes Iowa a great place for manufacturers? Mark D. Wyzgowski, CPA, Managing Principal, CliftonLarsonAllen LLP,

The national media has caught on and the word is out: Iowa is a great place to live and work. Just this year Iowa was ranked No. 1 in U.S. News and World Report’s Best States. For those of us already here, this comes as no surprise. What is surprising is how few people outside of Iowa truly know our story. Also surprising is how many incentive programs Iowa has for businesses that are not fully utilized.

We thought a refresher on some of the numerous incentive programs that aim to help hire and train workers or grow the business presence within the state would be beneficial. This is a partial list and is under current law. While not every program will match up to a business’s objectives, it is certainly worth a look. The list below just scratches the surface of eligible programs. We encourage you to talk with your trusted adviser to find out more.

  • Work Opportunity Tax Credit – A Federal tax credit available to employers for hiring individuals from certain “target” groups who consistently face significant barriers to employment. This could include unemployed veterans, TANF and SANP recipients, and ex-felons.
  • High Quality Jobs Program – An Iowa program that provides qualifying businesses assistance to offset some of the costs incurred to locate, expand or modernize an Iowa facility. This could include loans (may qualify as forgivable), tax credits, exemptions and refunds.
  • New Jobs Tax Credit – An Iowa tax credit available to businesses providing additional training to employees and expanding their workforce via the New Jobs Training Program.
  • Research Activities Tax Credit – Iowa companies meeting the qualifications of the Federal Research Credit may also be eligible for refundable Iowa tax credits for qualifying research expenditures.
  • Targeted Jobs Withholding Tax Credit Pilot Program – For businesses located in Burlington, Council Bluffs, Fort Madison, Keokuk and Sioux City, this program allows these “pilot” cities to match funds withheld by an employer to create economic incentives that can be directed toward the growth/expansion of targeted local businesses.
  • Redevelopment Tax Credit – An Iowa program aimed at redeveloping brownfield or grayfield sites, this program offers tax credits as an incentive to developers and businesses undertaking these projects.

Long story short, don’t miss out on these and other opportunities to assist you in hiring and training workers and/or growing your business presence within the state of Iowa.