Business Advantages

People

The people of Iowa make this the great state that it is. Iowans are well educated, productive, and known for their work ethic, giving Iowa one of the highest labor force participation rates in the country.

Sales and Use Tax on Machinery and Equipment

In Iowa, the purchase of industrial machinery or computers assessed as real property that will be used in manufacturing or other industries such as financial institutions and insurance companies, is exempt from sales and use taxes.

Iowa Corporate Income Tax

The Iowa corporate income tax offers significant advantages for businesses when compared to other states. These Advantages include:

• The reduction or elimination of Iowa corporate income tax through the New Jobs Tax Credit
• Single factor apportionment means that Iowa’s tax is based solely on the percentage of sales income within Iowa
• 50% of federal taxes are deductible from Iowa’s corporate income tax

No Personal Property Tax

Personal property, which includes inventories of finished goods, raw materials, and goods-in-process, is not assessed for tax purposes.

Property Tax on Industrial Machinery and Equipment

Machinery and equipment are not taxed.

Workers’ Compensation

Iowa’s workers compensation costs are approximately 11% less than the national average.

Iowa is a Right-To-Work State

Right to Work law guarantees that no person can be compelled, as a condition of employment, to join or not to join, nor to pay dues to a labor union. Section 14(b) of the Taft-Hartley Act affirms the right of states to enact Right to Work laws.

Iowa Economic Development Authority (IEDA)

For more information on doing business in Iowa, please visit the Iowa Economic Development Authority website. Start at the Iowa Advantage page and go from there.