FINANCING

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So Many Reasons to Say YES!

Local and State programs offer an assortment of financial assistance programs to support companies in an expansion or relocation mode. Dyersville Economic Development Corporation will work with you and evaluate programs available to your company at the local and state levels to determine the best possible package for your project.

High Quality Jobs Program

Tax Increment Financing

New Jobs Tax Credit

New Jobs Training Program (260E)

Research Activities Credit

Brownfield/Grayfield Tax Credit Program

 

The following is a general overview of what's available:

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High Quality Jobs Program

The High Quality Jobs program provides qualifying businesses tax credits and direct financial assistance to off-set some of the costs incurred to locate, expand or modernize an Iowa facility. To qualify for this very flexible assistance package that includes loans, forgivable loans, tax credits, exemptions and/or refunds, eligible businesses must meet certain wage threshold requirements.

>> Potential tax incentives in addition to the direct financial assistance may be available through the High Quality Job Creation Program, including:

  • A local property tax exemption of the value added to the property 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.

  • The state's refundable research activities credit may be increased while the business is participating in the program.


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Tax Increment Financing

Tax Increment Financing (TIF) is available in urban renewal districts only. The Dyersville City Councils or boards of supervisors may use the property taxes resulting from the increase in taxable valuation caused by the construction of new industrial or commercial facilities to provide economic development incentives to a business.

>> TIF in Dyersville is generally structured as a tax rebate, with debt service paid from the future flow of new taxes generated by the project, generally over a 10 year period.


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New Jobs Tax Credit

The Iowa New Jobs Tax Credit is an Iowa corporate income tax credit and is available to a company that has entered into a New Jobs Training Agreement (260E) and expands their Iowa employment base by 10% or more.

>> The amount of this one-time tax credit will depend upon the wages a company pays and the year in which the tax credit is first claimed. The maximum tax credit in 2014 will be $1,608 per new employee. Unused tax credits may be carried forward up to ten years.


High Quality Jobs Program  The High Quality Jobs program provides qualifying businesses tax credits and direct financial assistance to off-set some of the costs incurred to locate, expand or modernize an Iowa facility. To qualify for this very flexible assistance package that includes loans, forgivable loans, tax credits, exemptions and/or refunds, eligible businesses must meet certain wage threshold requirements.   >> Potential tax incentives in addition to the direct financial assistance may be available through the High Quality Job Creation Program, including:   A local property tax exemption of the value added to the property 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.  The state's refundable research activities credit may be increased while the business is participating in the program.

New Jobs Training Program (260E)

The Iowa New Jobs Training Program provides funding to meet the wide variety of employee training and development needs of companies that are expanding operations or locating a facility in the state. Administered through Northeast Iowa Community College (NICC), the program helps meet your needs, whether you require highly specialized educational programs or basic skills training for new positions.

>> The program is financed through bonds sold by the NICC. Depending on wages paid, the business then diverts 1.5 or 3 percent of the Iowa state withholding taxes generated by the new positions to the community college to retire the bonds. Because of this structure, the training is available at what is essentially no cost since the bonds are retired with dollars that otherwise would have been paid to the state as withholding taxes.

In addition to increasing worker productivity and company profitability, businesses participating in the Iowa Industrial New Jobs Training Program may also be eligible for reimbursement up to 50 percent of the annual gross payroll costs expended for on-the-job training, as well as a corporate tax credit if Iowa employment is increased by at least 10 percent. Training can be provided by NICC, local colleges, or private contractors, including in-house trainers.

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Research Activities Credit

Iowa sets itself apart, being one of only a few states in the United States to offer a refundable research activities credit. Iowa companies earn refundable tax credits for research and development investments that may be paid directly in cash to the company once its tax liabilities have been met.

>> This is a critical difference and a huge benefit in Iowa because each research or development decision depends on a delicate balance between the inherent financial risk and the return of profitability. The weight of that risk is mitigated with the refundable aspect of the state's Research Activities Credit.

Specifically, the qualified research expenditures include:

  • Wages paid to an employee for performing or supporting a research activity conducted at an Iowa facility or for an employee in Iowa who directly supervises or directly supports research activities

  • Wages paid to an employee for performing or supporting a research activity conducted at an Iowa facility or for an employee in Iowa who directly supervises or directly supports research activities

  • 65% of expenses related to contract research

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Brownfield/Grayfield Tax Credit Program

The Brownfield/Grayfield Tax Credit Program offers qualifying projects tax credits of up to 24% for qualifying costs of a Brownfield project and 30% if the project meets green building requirements. "Grayfield" is also included in the tax credit program. A Grayfield project can receive tax credits of up to 12% of qualifying costs and 15% if the project meets green building requirements.

>> Tax credits are available on a first come first served basis, with a maximum tax credit per project of $1,000,000 and a $10,000,000 maximum for each fiscal year. An audit of qualifying expenses from an independent Iowa certified public accountant is required prior to issuance of all tax credit certificates.

For more information regarding any of these incentives