State Financial Incentives

Community Economic Betterment Account (CEBA)
The CEBA program provides financial assistance to companies that create new employment opportunities and/or retain jobs that are in jeopardy. The amount of funding is based, in part, on the number of jobs to be created/retained.
Funds are provided in the form of loans and forgivable loans.

Tax Increment Financing
Elkader has certain areas designated for property tax increment financing.

Enterprise Zone (EZ)
Eligible businesses must locate or expand within established enterprise zones. To qualify for benefits, a business must have an average wage above 90% of the county/regional average at the time of application, create at least 10 full-time positions, not be a retail business, pay at least 80% of standard medical and dental insurance and make a capital investment of at least $500,000. Qualified businesses are eligible for the following:

Tax Abatement: Elkader can exempt from property taxation of newly added value for a period of 3 years.
Investment Tax Credit: A business may claim an investment tax credit on its Iowa corporate income tax return for up to a maximum of 10 percent of the new investment.
Research Activities Credit: A business is eligible to claim a research activities credit for a period of 10 years from the date the their business application was approved by the department.
Refund of Sales, Service and Use Taxes: A business is eligible for a refund of sales, service and use taxes paid to contractors and subcontractors relating to the construction or equipping of a facility within the enterprise zone.
New Jobs Training Supplemental Credit:Supplemental new jobs credit from withholding in an amount equal to 1.5% of the gross wages paid by the business is available.
     
Economic Development Set-Aside Program (EDSA)
The EDSA program provides financial assistance to companies that create new employment opportunities and/or retain existing jobs, and make new capital investment in Iowa. At least 51 percent of the created or retained employment opportunities must be made available to individuals presently earning wages defined as low-and-moderate income.

Value-Added Products and Processes
Financial Assistance Program (VAAPFAP)

The Value-Added Agricultural Products and Processes Financial Assistance Program seeks to increase the innovative utilization of Iowa's agricultural commodities. It accomplishes this by investing in the development of new agri-products and new processing technologies.

LINK (Link Investment for Tomorrow)
The Small Business Linked Investments Program will inject capital into small businesses owned and operated by Iowa residents. The loan may be used for the purchase of land, improvements, fixtures, machinery, inventory, supplies, equipment, information technology, licenses, patents, trademarks, or copyright fees and expenses

New Jobs & Job Training Programs

Job Training
Iowa's unique job-training programs provided by area community colleges can provide any training services required by a business for new employees. Traditionally the amount of the credit is approximately $2,000 - $2,500 per job.

New Jobs Training Program Tax Credit
Businesses entering into an agreement under the state's jobs training program and increasing their work force by at least 10% may qualify for this credit on their Iowa corporate income tax. The credit for 2007 is $1,320 per new employee.

High Quality New Jobs Program
The High Quality New Jobs Program provides a series of investment tax credits, sales tax refunds, research and development credits and property tax abatements based on a graduated scale of capital investment and job creation.

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