IOWA INCENTIVES SUMMARY

Economic Development Set-Aside (EDSA)
EDSA provides direct or forgivable loans up to $1 million to companies seeking to create or retain jobs in Iowa. Projects that create manufacturing jobs, add value to state resources, and increase exports while creating or retaining the greatest number of jobs with the least amount of program funds are prioritized.

High-Quality Jobs
Assists companies involved in locating, expanding, or modernizing Iowa facilities. Criteria used to determine award amounts include the need for an incentive, quality of the jobs, number of high-quality jobs created or retained, and the economic impact of the project. The program offers loans, forgivable loans, tax credits, exemptions, and refunds of local property tax, capital investments, state sales & use tax, and research activities.

New Jobs Tax Credit
A one-time tax credit available to companies participating in the Jobs Training Program. The maximum tax credit in 2021 is $1,944 per new employee. Companies must be increasing their employment base by ten percent or more.

Iowa Industrial New Jobs Training (260E)
Provides companies expanding their workforce in Iowa with new employee training. 260E is designed to increase worker productivity and company profitability. The 15 communities colleges in Iowa fund the program by issuing bonds. Companies then apply 1.5 percent or three percent of the state withholding taxes generated by the jobs created to retire the bonds. Up to 50 percent of annual gross payroll costs associated with on-the-job training.