High Quality Jobs
As businesses change and grow, flexible programs are needed to help businesses meet
the demand of providing valued-added goods on a world-economy scale. Financial programs are available to assist companies like yours to promote
growth and profitability while creating quality job opportunities for Iowans.
The High Quality Jobs program provides qualifying businesses tax credits to off-set
the cost incurred to locate, expand or modernize
an Iowa facility. To qualify for this very flexible assistance package that
includes tax credits, exemptions and/ or refunds, a business must be a non-retail
or non-service business and meet wage threshold requirements.
Eligibility Requirements:
- A business must meet wage thresholds requirements.
- Actual award amounts will be based on the business's level of need;
the quality of the jobs; the percentage of created or retained jobs defined as high-quality;
and the economic impact of the project.
- Created jobs must pay at least 100% of the qualifying wage threshold
at the start of the project and 130% of the qualifying wage threshold by project
competion and through the project maintenance period.
- Retained jobs must pay at least 130% of the qualifying wage
threshold throughout the project completion and maintenance periods.
- The business must provide a sufficient benefits package to all full
time employees that includes at least one of the following:
- Business pays 80% of medical and dental premiums for single coverage plans,
OR
- Business pays 50% of medical and dental premiums for family coverage plans,
OR
- Business pays for some level of medical and dental coverage and provides the monetary
equivalent value through other employee benefits.
Tax Incentives
The following tax incentives may be available:
- A local property tax exemption of up to 100% of the value added
to the property to a period not to exceed 20 years may be available.
- An investment tax credit equal to a percentage of the qualifying
investment, amortized over five years. This tax credit is earned when the corresponding
asset is placed in service and can be carried forward for up to seven additional
years or until depleted, whichever occurs first.
- A refund of state sales, service, or use taxes paid to contractors
or subcontractors during construction.
- For distribution center projects, a refund of sales and use taxes
paid on racks, shelving, and conveyor equipment.
- Download a Schedule of the Maximum Tax Incentive Award Available to a
Business Based on Qualifying Jobs, Wages, & Investment.
- The State's refundable research activities credit may be increased
while the business is participating in the program.
How to Apply:
IDED staff welcomes the opportunity to work with companies to determine the most
beneficial programs and resources to support each project. Please access the
Business Assistance Project Review process to get started. The High Quality
Jobs program can be used in combination with other state programs with the exception
of the Wage-Benefit Tax Credit (awarded by the Department of Revenue) and the Enterprise Zone Program. To assure your addition/expansion
can benefit from this program, businesses must apply prior to the beginning of the
project.
To Learn more:
Contact the Iowa Department of Economic Development at any time. Our staff will
guide you through the qualification process and help create the optimum package
of assistance for your business.
Phone: 515.725.3133 or 800.532.1215
E-mail: businessfinance@iowa.gov