State/Federal Incentives
Companies are encouraged to contact the City of Waterloo's Noel Anderson at 319-291-4366 or email noel.anderson@waterloo-ia.org. Noel will review your project and work as your advocate to access state and local business incentive programs that best meet your needs. All inquires are handled in confidence. Download the Incentives Publication by clicking here.
STATE PROGRAMS
Iowa Industrial New Jobs Training Program
Reimbursement of trainees' and trainers' wages, travel, materials. No wage threshold requirements under this program. Funds disbursed and administrated locally by Hawkeye Community College. Award based on expected annual payroll and jobs created over 3-10 year period.
New Jobs Tax Credit
State income tax credit of $1,320 per job created for 2007 as it applies to hiring new Iowa workers. May be carried forward up to 10 years against your Iowa Corporate Income Tax. To qualify, you must be involved in the Iowa Industrial New Jobs Training Program.
Iowa's Enterprise Zone Program
Double job training assistance, extended property tax abatement over 10 years, 10% investment tax credit against state corporate income tax form, 13% research & development tax credit against state corporate income tax form. 6% sales, service and use tax refund paid during construction or equipping facility.
Company must create at least 10 new full-time average wage of $12.75/hr. (1st Quarter 2007 figure), $500,000 investment, excludes retail. Positions must be maintained for 10 years.
Value-added production or business service in downtown Waterloo, Iowa.
Map of Enterprise Zone Area Coming soon
Iowa Community Economic Betterment Account (CEBA)
No interest/low interest loan program. $2,000-$3,000 per job created. Up to $1,000,000. Project can't be a competitor of existing Iowa businesses. Customer service, retail and warehousing operations excluded from program. Award can be used to finance fixed assets and working capital. Company must pay wage of $14.16/hr. including select benefits (1st Quarter 2007 figure) required for 50% of the jobs created due to the expansion or new location. Jobs created must be maintained for 5 years for funding up to $500,000.
Wage of $21.17/hr. starting including select benefits (1st Quarter 2007 figure) required for 50% of the new jobs created; maintained for 5 years for funding requests $500,000-$1,000,000.
Iowa Value Funds/High Quality Jobs Program (IVF/HQJC)
Forgivable/low-interest loan/tax credit combination ($6,000 per qualifying job, sales tax refund on construction related costs (5%), double (12%) research and development state tax credit, state investment tax credit. Qualifying uses of the award include new construction, working capital, machinery and equipment.
To qualify, 51% of the jobs must have a starting wage including benefits of $26.06/hr. including select benefits (1st Quarter 2007 figure). Qualifying benefits include: medical and dental plans, pension and profit sharing plans, child care services, life insurance coverage, vision insurance plans and disability coverage. Business must be a targeted industry in Information Technology, Finance, Advanced Manufacturing or Biotechnology.
Value-Added Agricultural Products And Processes Financial Assistance Program (VAAPFAP)
Assistance provided for Innovative Agricultural Produces and Processes; Renewable Fuels and Co-Products; Agricultural Biotechnology Industry, Biomass and Alternative Energy; or Organic Processing and Emerging Markets.
Available for projects that may be ineligible under the regular program because of their "pre-commercial" status. No single project may receive more than 25% of the program's annual fund appropriation. Financial assistance is provided to qualifying projects in the form of loans and forgivable loans and must meet the following qualifications.
- The feasibility of the existing or proposed facility to remain a viable enterprise
- The degree to which the facility will increase the utilization of agricultural commodities produced in Iowa
- The extent to which the existing or proposed facility is located in a rural region of the state
- The proportion of private funds to be contributed to the project
- The level of economic development need in the region where the value-adding facility is to be located
- The degree to which the facility produces a co-product that is marketed in the same locality as the facility
- The proposed project must be located in Iowa
- The applicant must have a business plan demonstrating a viable market and managerial and technical capabilities to execute the plan
- The business should also have a third-party feasibility study confirming the viability of the proposed business
- The grantee must not use funds for any activity directly related to farming
- Jobs created must pay a starting wage of $21.17/hr. including select benefits (1st Quarter 2007 figure).
RISE Economic Development Program
Assistance offered to help with infrastructure costs including road extension and improvements. Request must be filed through the City of Waterloo.
Rail Revolving Loan and Grant Program
Assistance offered to help with infrastructure and construction costs. Limited funding per cycle state wide. Uses of award include railroad mainlines, branch lines, switching yards, sidings, rail connections, intermodal yards and highway grade separation. Request must be filed through the City of Waterloo.
State Environmental Permitting - Iowa's Regulatory Assistance Program
Technical help with filing documents including help with document preparation and submission of permit applications with the Iowa Department of Natural Resources and other state regulatory agencies. A member of the Iowa Department of Economic Development will be assigned the project and act as the company's counsel and advocate.
FEDERAL PROGRAMS
SBA 504 Loan Program
Application process is administered local and through area banks. Assistance of 40% of total project cost, second lien, term 20 years for real estate; 10 years equipment. Use includes land, building, and certain equipment. Qualifying businesses must employ less than 500 people.
Opportunity Zones
The Opportunity Zones program offers investors a capital gains tax reduction in exchange for investing capital gains income into designated census tracts, known as opportunity zones. In fact, investors can defer and reduce realized capital gains on the principal invested, and even eliminate their capital gains tax burden on returns earned through the sale of investments in qualified Opportunity Zones.
The zones are comprised of U.S. Census tracts where the poverty rate is 20 percent or greater and/or family income is less than 80 percent of the area’s median income. The governor of each state is permitted to designate 25 percent of its “low income community census tracts” (LIC) as Opportunity Zones, subject to approval from the U.S. Treasury. Iowa has 247 eligible LICs, of which a maximum of 62 can be nominated. The tracts will be in place for 10 years.
View the Waterloo Opportunity Zones Prospectus by clicking here.