In this section, you’ll learn about all the incentives in the Clinton Region, that provide companies a competitive advantage. These incentives might include Tax Increment Financing (TIF) in either state or the Enterprise Zone Program in Illinois.
For more information on these and other programs, please email Erin Cole. Also, see the attachments located at the bottom of this page for detailed information on these financial programs.
In this bi-state community, we work with localities and states on each side of the river to help new and local companies thrive in our region. Each city and town each have their own incentives tools which are leveraged to increase productivity and job creation.
Iowa Incentives
Provides direct financial assistance and tax credits to qualifying businesses to offset the costs incurred to locate, expand, and/or modernize. The direct financial assistance typically is in the form of a forgivable loan and a zero or low-interest loan. The tax credits include an Investment tax credit against your Iowa corporate income tax liability; a refund on construction-related sales tax; and an increase in the Iowa statutory research activities tax credit, which is refundable if you don’t have an Iowa corporate income tax liability.
The wage threshold for this program has recently increased. Read full details on the Iowa Economic Development Authority’s website.
Provides businesses expanding their Iowa workforce with funding for new employee training. Available through each of Iowa’s 15 community colleges, the program is financed through bonds sold by the administering college. Depending on wages paid, the business then diverts 1.5% or 3 % of the Iowa state withholding taxes generated by the new positions to the community college to retire the bonds. Because of this structure, the training fund is made available to the company at what is essentially no cost, since the bonds are retired with dollars that otherwise would have been paid to the state as withholding taxes. In addition to increasing worker productivity and company profitability through structured training activities, businesses participating in the Iowa Industrial New Jobs Training Program may also be eligible for reimbursement of costs associated with on-the-job training, as well as a corporate tax credit if Iowa employment is increased by at least 10 percent.
Used by companies in various industries, including manufacturing and technology, that can benefit from the credit if they develop new or improved products, manufacturing processes, software applications for sale to customers.
Iowa Urban Revitalization Property Tax Exemption
Available to qualifying businesses for value-added to real estate through new construction and/or renovation. This exemption is graduated over ten years to help reduce your start-up and operating costs.
Iowa Industrial Property Tax Exemption
Available to qualifying businesses for value-added to real estate through new construction and/or renovation. This exemption is graduated over five years to help reduce your start-up and operating costs.
Property Tax Exemption/Rebates
- 427B Industrial Property Tax Abatement-15% sliding scale/per year over 5 years: 75%, 60%, 45%, 30%, 15%
- Tax Increment – Property taxes rebated to the company for new real property tax investment and job creation. Typically rebated back over time.
Brownfield/Grayfield Redevelopment Tax Credits Program
Provides tax credits to projects for redeveloping brownfield or grayfield sites in Iowa. The tax credits are based upon a percentage of the qualifying expenditures made to redevelop a qualifying site. You may use the tax credits to offset Iowa corporate income tax liability or sell the credits to entities that can use them. Allocations of tax credits are typically made annually in August or September.
Tax Increment Financing (TIF)
Available to qualifying businesses that build new facilities or substantially expand existing facilities. Cities or counties may refund a portion of the value-added property taxes for a specified period of time.
Workforce Housing Tax Incentive Program
The Workforce Housing Tax Incentive Program (WHTIP) is a statewide program that focuses on development in existing communities. Housing businesses utilizing WHTIP will produce a net increase in affordable housing units in their community of operation. In return, the Iowa Economic Development Authority (IEDA) can provide a sales and use tax refund and an investment tax credit based on qualifying new investment.
WHTIP is further designed to encourage housing development where existing public infrastructure already exists – vacant lots, dilapidated properties, and mixed-use buildings to suggest a few. Communities with a severe housing need can work with IEDA to seek designation as a Distressed Workforce Housing Community. This designation allows WHTIP assistance to be provided towards new housing development on previously undeveloped land.
Research Activities Tax Credit
- Iowa is one of few states where R&D tax credit is refundable
- Up to 6.5% qualified research and development investment
- Opportunity for supplemental +3% or +10% based on company sales while under HQJP program
- Iowa follows federal R&D requirements
Rail Funding
Funding for new or improved rail infrastructure administered by the Iowa Department of Transportation (IDOT).
Rail Development Financial Assistance is available to strengthen, enhance, and preserve Iowa’s rail transportation system and encourage economic development and job growth.
Learn more
RISE Road Funding
Funding for new or improved streets, roads, and bridges administered by the Iowa Department of Transportation (IDOT).
Projects funded by the Revitalize Iowa’s Sound Economy (RISE) Program promote economic development in Iowa through the establishment, construction, and improvement of roads and streets. The RISE program is targeted toward value-adding activities that feed new dollars into the economy and provide maximum economic impact to the state on primary or secondary roads, and city streets open for public use.
Learn more
Illinois Incentives
A program is designed to offer a special tax incentive to encourage companies to locate or expand operations in Illinois when there is active consideration of a competing location in another State.
A program designed to stimulate economic growth and neighborhood revitalization in economically depressed areas of the state.
Available to small business owners and not for profits to provide tax credits for job creation at Illinois small business.
