Sac Economic and Tourism Development works with communities and prospective and expanding businesses to help lower capital costs to facility job and wealth creation. You will find information on common resources of funds below. For any questions, contact Brandy Ripley at (712) 664-2940 or firstname.lastname@example.org.
Revolving Loan Funds
Region XII Development Corporation (RDC) provides loans and financial packaging assistance to businesses throughout the six counties Region XII serves through its Business Revolving Loan Fund Program. Since 1995, the RDC has provided loans to over 80 businesses totally over $6.8 million. As a result, 830+ jobs have been created/retained, and over $38 million has been invested in our communities.
State of Iowa Programs
Iowa offers a variety of avenues for financial assistance options to assist with relocations and expansions to locations within Iowa. Assistance is provided in the form of loans based in part on job creation, capital investment, the ability to meet certain wage standards, quality of employment, and economic benefits for the state and local community.
The High Quality Jobs Program (HQJ) is the state’s premier financial assistance program designed to support innovation and job grown. Applications for the program are filed by cities, counties or community colleges on behalf of eligible businesses.
Banks and Lenders
Sac County is home to many great local banks and lenders that are great partners for small businesses and make significant contributions to our communities.
Iowa Corporate Income Tax
Iowa’s corporate income tax structure offers significant advantages, including:
- 50% deductibility of federal taxes from Iowa corporate income. Iowa is one of only five states that offers this important deductible.
- A single-factor, non-unitary tax-Iowa’s tax is based only on the percentage of total sales income within the state.
- An Iowa manufacturer selling all its products outside Iowa would pay no Iowa corporate income tax
- Iowa’s corporate income tax can also be reduced or eliminated by the New Jobs Tax Credit, High Quality Job Creation Program or Enterprise Zone Benefits.
No Personal Property Inventory Tax
Personal property is not assessed for tax purposes. In Iowa, personal property includes corporate inventories of goods-in-process, raw materials and salable goods.
No Sales and Use Tax on Manufacturing Machinery and Equipment Purchases
The purchase of industrial machinery and computers assessed as real property and used for manufacturing or used to process data by insurance companies, financial institutions, or certain commercial enterprises, is exempt from Iowa sales or use tax. In addition, there is no sales tax on materials used in the manufacturing process or for purchases of electricity or natural gas used directly in the manufacturing process.
No Property Tax on New Industrial Machinery, Equipment and Computers
Manufacturing machinery and equipment, as well as computers used to process data by insurance companies and financial institutions, are exempt from property tax.
Research and Development Tax Credit
A credit for increasing research activities is 6.5 percent of the company’s allotted share of qualifying research expenditures in Iowa. A company must meet the qualifications of the federal research activities credit in order to be eligible for the credit on the Iowa return.
Local Tax Abatement
Iowa law allows cities and counties to abate local property taxes for value added to industrial real estate. The maximum amount of actual value added at a new or expanded facility which is eligible to be exempt from taxation is:
- Year One: 75 percent
- Year Two: 60 percent
- Year Three: 45 percent
- Year Four: 30 percent
- Year Five: 15 percent
Tax Increment Financing
City councils or county 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 or industry. Tax Increment Financing may be used to offset the cost of public improvements and utilities that will serve the new private development, to finance direct grants or loans to a company, or to provide the local match for federal or state economic development assistance programs.
Pollution Control or Recycling Property Tax Exemption
Pollution control and recycling equipment may be eligible for a property tax exemption. Improvements to real property that are primarily used to control pollution of air or water, or primarily used for recycling, may qualify. An application must be filed for exemption.
Iowa has the lowest new employer unemployment insurance rate in the nation. The rate for all non-construction business is 1 percent for a three-year period until an experience rating is established. Iowa offers a zero rate for good experience; approximately 45 percent of Iowa employers are at a zero rate.
New Jobs Tax Credit
A business entering into an agreement under the state’s training program – and increasing its workforce by at least 10 percent – may qualify for this Iowa corporate income tax credit. This credit is equal to 6 percent of the state unemployment insurance taxable wage base.
Iowa’s worker’s compensation costs are among the nation’s lowest. The average cost of worker’s compensation insurance for manufacturers in Iowa is 25% lower than the national average.
The Regulatory Assistance Program enhances the range of services available to Iowa companies by advising and assisting companies in the preparation and submission of permit applications with the Iowa Department of Natural Resources (IDNR) and other Iowa regulatory agencies. The purpose of the Regulatory Assistance Program is to facilitate communication between the business and regulators and to expedite the permitting process.