Business Climate Advantage

Iowa's corporate tax law is specifically designed to provide your business with a distinct operational advantage.  These programs and others create a positive and profitable business environment, making the choice easier for your business.

Statistical Comparison's (business climate, quality of life, education, etc.):

Midwest, Northeast, South Central and Western States vs. Iowa.

Employment Cost Index: Total Compensation     Employment Cost Index: Wages and Salaries

Midwest: 177.6; Northeast: 173.7                         Midwest: 169.2; Northeast: 164.9

South: 169.5; West: 178.1                                     South: 161.6; West: 169.1

                          Source: Employment Cost Index for the Midwest, September 2004

Iowa Corporate Income Tax

• Fifty percent deductibility of federal taxes from Iowa corporate income tax.
• Single-factor, non-unitary tax.
• Iowa corporate income tax may be reduced or eliminated by the NJTC and EZ Tax Credit.

No Sales or Use Tax on Manufacturing Machinery and Equipment Purchases

No Property Tax on New Industrial Machinery and Equipment

No Personal Property (Inventory) Tax

No Sales and Use Tax

Unemployment Insurance - Iowa has one of the lowest, new employer, unemployment insurance rates in the nation. The rate for all non-construction businesses is 1% for a 3-year period.

Workers' Compensation Cost - Iowa's workers' compensation costs are the 9th lowest in the nation. The average cost of workers' compensation insurance for manufacturers in Iowa is 30% lower than the national average.