Redeveloping abandoned or underutilized industrial spaces, commercial properties or public buildings
Developers in Iowa can receive tax credits for redeveloping properties know as brownfield and grayfield sites. Additional tax credits are available for projects that meet or exceed sustainable design standards as defined by state law.
Brownfield sites are abandoned, idled or underutilized industrial or commercial properties where real or perceived environmental contamination prevents productive expansion or redevelopment. Examples of brownfield sites include former gas stations, dry cleaners and other commercial operations that may have utilized products or materials potentially hazardous to the environment.
Grayfield sites are abandoned public buildings, industrial or commercial properties that are vacant, blighted, obsolete or otherwise underutilized. A grayfield has been developed and has infrastructure in place but the property's current use is outdated or prevents a better or more efficient use of the property.
This tax credit program is offered as a way to promote the economic health of communities by reducing environmental potential hazards, cleaning up eyesores, creating new jobs and boosting tax revenue.
- Tax credits of up to 24% for qualifying costs of a brownfield project and 30% if the project meets green building requirements
- Tax credits of up to 12% of qualifying costs of a grayfield project and 15% if the project meets green building requirements
- The maximum tax credit per project is $1,000,000 and recipients can receive $10,000,000 maximum for each fiscal year
- Applicants must be an individual, limited liability company, S corporation, estate or trust
- Projects must meet the rules listed in the Iowa Redevelopment Tax Credit Program Rules Chapter 261.65.11 (15)
How to Apply
- Applications are accepted annually during the months of July and August with a September 1 deadline
- Visit taxcredit.iowa.gov to apply