State of Iowa

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Iowa is a Right-to-Work State

Under Iowa law an employee may not be required to join a union or pay dues or fees to any labor union, association or organization as a condition of employment.

Unemployment Insurance

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

Workers' Compensation Cost

Iowa's workers' compensation costs are the 12th lowest in the nation. The average cost of workers' compensation insurance for manufacturers in Iowa is 30% lower than the national average.

Regulatory Assistance

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 application with the Iowa Department of Natural Resources (DNR) and other Iowa regulatory agencies. The mission of the Regulatory Assistance Program is to facilitate communication between the business and regulators and to expedite the permitting process.

State Incentive Programs

Iowa Values Fund (IVF) - The Iowa Values Fund is the state's premier 10-year economic development program designed to transform Iowa's economy by creating high-quality jobs through business development and expansion across Iowa. With a $35 million dollar annual appropriation for business development and marketing, the IVF assists Iowa companies to expand, as well as attract new businesses to the state. To be eligible, a business must provide a wage, plus benefits, that is equivalent to 130 percent of the county average. A business must also be in one of the state's targeted industries, which include life sciences, information solutions/financial services, and advanced manufacturing.

Community Economic Betterment Account (CEBA) - The CEBA program provides financial assistance to businesses that plan a major capital investment that will create new job opportunities and/or retain existing jobs in Iowa. Assistance may be provided to encourage new business start-ups, expand or retain existing businesses, or recruit out-of-state businesses to Iowa. CEBA also contains a modernization project component, specifically designed for businesses making equipment and technology upgrades and employee-training investments to maintain their competitive advantage.

Assistance is provided in the form of loans and/or forgivable loans, up to a maximum award of $1 million, based in part on job creation, capital investment, the ability to meet certain regional/county wage standards, quality of employment, and economic benefits for the state and local community. Applications are filed by cities, counties or commnity colleges on behalf of eligible businesses. Please contact The Alliance to determine eligibility or to obtain information specific to your needs.

Economic Development Set-Aside (EDSA) - EDSA provides assistance to businesses that plan to make a capital investment and create and/or retain quality employment opportunities for low- and moderate-income individuals. Assistance may be provided to encourage business start-ups, the expansion or retention of existing businesses, or the recruitment of out-of-state businesses into Iowa. EDSA funds business projects located in Iowa cities of less than 50,000 population.

Assistance is provided in the form of loans and/or forgivable loans. The maximum award is $1 million per project. Applications are filed by cities or counties on behalf of eligilbe businesses, which need to meet certain regional/county wage standards. Please contact The Alliance to determine eligibility or to obtain information specific to your needs.

Iowa Value-Added Agricultural Products and Processes Financial Assistance Program (VAAPFAP) - The VAAPFAP provides financial assistance to new or existing companies that utilize the state's agricultural commodities to create new, innovative products or to produce renewable fuels (including soy diesel, ethanol and other renewable fuels). VAAPFAP can also assist those companies engaged in organic processing, bio-mass and the creation of alternative energies. Financial assistance is provided in the form of loans and forgivable loans. Please contact The Alliance to determine eligibility or to obtain information specific to your needs.

Revitalize Iowa's Sound Economy (RISE) - This program is administered by the Iowa Department of Transportation (DOT) and provides funding for expenditures on city and county highways to help attract new development or to support growth with existing developments. Projects are evaluated on economic potential and impact. RISE funding may be used in conjunction with other sources of federal, state, local and private financing to improve area highways and specific access to roads. Assistance is provided in the form of grants and/or loans. Use this link to view the Iowa DOT funding guide.

Public Facilities Set-Aside Program (PFSA) - The PFSA program provides financial assistance to cities with less than 50,000 in population and to counties for public infrastructure improvements that enable businesses to create new job opportunities. Projects that will create manufacturing jobs, add value to Iowa resources and/or increase out-of-state exports will be given priority.

Eligible projects include adding or improving sanitary sewer systems, water systems, streets, roads, and storms sewers.

Railroad Revolving Loan & Grant Program - The Railroad Revolving Loan & Grant Program (RRLGP) provides assistance to improve rail facilities that will spur economic development and job growth and provide assistance to railroads for the preservation and improvement of the rail transportation system.

The program can provide assistance as either loans or grants, but grant funding is limited to 50% of the total funds available. In the current round of funding, approximately $1 million will be available for assistance. Industries, railroads, local governments or local economic development agencies may apply for financial assistance for projects such as:

• building rail spurs to a new or expanding development;
• building or rebuilding sidings to accomodate growth;
• purchasing or rehabilitating existing rail infrastructure;
• rehabilitating existing rail lines to increase capacity; or
• other rail related developments.

Public benefits can be described in terms of new jobs created, transport costs, and capital investment. Public costs can be described in terms of the funding requested.

Job Training Programs

Iowa Industrial New Jobs Training Program (260E) - Assist businesses, which are creating new positions, with new employee training. Eligible businesses may be new to Iowa, expanding their Iowa workforce, or relocating to the state. Employees qualifying for training services must be in newly created positions and pay Iowa withholding tax. A business must be engaged in interstate or intrastate commerce for the purpose of manufacturing, processing, assembling products, warehousing, wholesaling, or conducting research and development. A business, which provides services, must have customers outside of Iowa. A business cannot have closed or substantially reduced its employment base at any of its other business sites in Iowa in order to relocate substantially the same operation to another area of the state. The employees who will receive training must occupy job positions which did not exist during the 6 months prior to the date that the business and community college agree to pursue a training project.

Community College sells bonds to finance the cost of the established training. Dollars available through the program are dependent upon the training and development needs and the projected tax revenue from the new positions created. Business diverts 1½% or 3% (depending on the wage paid) of the Iowa state withholding taxes generated by the new positions to the Community College to retire the bonds. Technically the company received the training for free because the bonds are retired with dollars that would be paid to the state as withholding taxes.

Additionally, up to 50% of the annual gross payroll costs expended for on-the-job training can be reimbursed for up to one year of the new jobs. A corporate tax credit is available to a company that has entered into a 260E agreement and has increased Iowa employment by at least 10%.

The 260E Program is administered and operated by Iowa's 15 Community Colleges. Each community college works with eligible businesses to assess training needs, determine funds availability and provide training. Contact your local Community College if you would like more information regarding the Iowa New Jobs Training Program (260E) or contact The Alliance.

Iowa Jobs Training Program (260F) - The Iowa Jobs Training Program (260F) provides job training services to current employees of eligible businesses that are located in Iowa. Job training services are defined, as any training needed to enhance the performance of a business' employees. A business must be engaged in interstate or intrastate commerce for the purpose of manufacturing, processing, assembling products, warehousing, wholesaling, or conducting research and development. A business, which provides services, must have customers outside of Iowa. Within the 36 month period prior to the date of applying for program services, a business cannot have closed or reduced its employment base by more than 20 percent at any of its other business sites in Iowa in order to relocated substantially the same operation to another are of the state. Employees who will receive training must be currently employed by the business and the business must pay Iowa withholding tax for them.

Individual business sites are eligible for maximum awards of $25,000 per training project. A business site is eligible for a maximum of $50,000 in program assistance during a three-year period. Training projects costing $5,000 or more require a 25% cash match for the business. Training projects costing less than $5,000 do not require a business cash match.

The 260F Program is administered by the Iowa Department of Economic Development and services are provided by Iowa's 15 Community Colleges. Each community college works with eligible businesses to assess training needs, determine funds availability and provide training. Contact your local Community College if you would like more information regarding the Iowa Jobs Training Program (260F). The 260E Program is administered and operated by Iowa's 15 Community Colleges. Each community college works with eligible businesses to assess training needs, determine funds availability and provide training. Contact your local Community College if you would like more information regarding the Iowa New Jobs Training Program (260E) or contact The Alliance.