VALUE ADDED AGRICULTURE
IOWA: Essential Ingredients for Business
Iowa is well-known for the abundant food commodities it produces and its world-leading position in the development of cutting edge of food technology. The state is home to 32 of the 100 largest food manufacturers and processors, creating a critical mass of food companies and industry knowledge.
Many food industry innovations started in Iowa – advances in everything from ingredients and finished foods to processing and packaging machinery. New food varieties, processes and technologies are constantly being developed in Iowa – a place where food processors, ingredient innovators and research institutions come together to collaborate.
Iowa produces one-tenth of the nation’s food supply and leads the nation in the production of corn, soybeans, pork and eggs. More than 880 Iowa food processors generate more than $649 billion worth of food products annually.
Besides its innovative environment, Iowa offers food companies a central location and an efficient transportation infrastructure for shipping goods. Iowa recently was recognized by CNBC as having the lowest cost of doing business of any state.
This program is designed to promote the creation or retention of quality jobs by assisting businesses locating, expanding or modernizing their facilities in Iowa through a package of tax credits, exemptions, and/or refunds to approved businesses.
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 ten percent or more.
Iowa sets itself apart, being one of only a few 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. A company must meet the qualifications of the Federal Research Activities Credit in order to be eligible for the credit in Iowa.