|
Housing Development
Enterprise Zone Program
An Incentive for Business Expansion
Manufacturers and other businesses locating new facilities or expanding existing facilities and creating new jobs in economically distressed areas of Iowa now have an additional incentive to do so. In order to promote development in economically distressed areas of the state, Iowa established the Enterprise Zone Program. Businesses locating or expanding in an established Enterprise Zone may be eligible to receive certain local and state tax benefits.
Eligibility Requirements
- The business must make a minimum capital investment of $500,000.
- The business must create at least 10 full-time, project-related jobs and maintain them for at least 10 years.
- The business provides all full-time employees with the option of choosing a standard medical and dental insurance plan of which the business pays 80% of the premiums or a monetarily equivalent benefit.
- The business must pay an average wage that meets or exceeds 90% of the average county or regional wage, whichever is lower. (Check with the IDED for the community’s current wage requirement.)The business cannot be a retail establishment or a business whose entrance is limited by cover charge or membership.
- The business cannot close or reduce its operation in one area of the state and relocate substantially the same operation in the Enterprise Zone.
- The local Enterprise Zone Commission and the Iowa Department of Economic Development must approve the business’ proposed project prior to project initiation.
Tax Benefits
- A local property tax exemption on the value added to the property.
- Additional funding for training new employees. If applicable, these funds would be in addition to those authorized under the Iowa New Jobs Training Program.
- A refund of state sales, service, or use taxes paid to contractors or subcontractors during construction.
- An investment tax credit of up to a maximum of 10% of the new investment in machinery and equipment, land, buildings, and improvements to existing buildings. This Iowa tax credit may be carried forward for up to seven years or until depleted.
- An additional research and development tax credit of up to 6.5%, which may be refundable. This Iowa tax credit is based on increasing research activities within the state and is available while the business is participating in the program for up to 10 years.
For Further information about Enterprise Zones in Crawford County please contact CDC.
Contact Information
|
|
Enterprise Zone ProgramResidential Back to Top
An Incentive for Housing Development
Housing developers and contractors building or rehabilitating housing in economically distressed areas of Iowa now have an additional incentive to do so. In order to promote development in economically distressed areas of the state, Iowa established the Enterprise Zone Program. Developers and contractors building or rehabilitating housing in an established Enterprise Zone may be eligible to receive certain state tax benefits.
Eligibility Requirements
- The developer or contractor must build or rehabilitate at least four single-family homes or at least one multi-family building containing three or more units in a certified Enterprise Zone.
- The housing must, when completed and made available for occupancy, meet HUD Housing Quality Standards and local housing codes.
- The housing project must be completed within two years of the start of construction or rehabilitation.
- The local Enterprise Zone Commission and the Iowa Department of Economic Development must approve the proposed housing project prior to project initiation.
Tax Benefits
- The developer or contractor may receive a refund of state sales, service, or use taxes paid during construction.
- The developer or contractor may receive an investment tax credit of up to a maximum of 10% of the investment directly related to the construction or rehabilitation of the housing. The tax credit is based on the new investment used for the first $140,000 of value for each home or unit.* This Iowa tax credit may be carried forward for up to seven years or unit depleted.
* If the project is, in part, financed through federal, state, and local government tax credits, grants, and forgivable loans, these monies cannot be included for purposes of calculating the investment tax credit.
For Further information about Enterprise Zones in Crawford County please contact CDC.
Contact Information
|
|
