When you build your business in Hiawatha, Iowa you can take advantage of a number of tax breaks and benefits. Below are some of the incentives:
- In Iowa, a single factor, non-unitary tax is based only on the percentage of your total sales income made within the state and not by sales made outside of Iowa.
- There is no Iowa corporate income tax on profits made out of state.
- Iowa Businesses receive a 50 percent federal tax deduction if they are subject to paying Iowa's corporate income tax. Iowa is one of only five states that offer a federal deductibility.
More Tax Advantages
- There are no sales or use taxes on industrial machinery, equipment, or computers.
- There is no sales tax on purchases of electricity or natural gas used directly in the manufacturing process.
- There is no sales tax on purchases of electricity used directly for qualifying data centers.
- There are no sales or use taxes on manufacturing machinery, equipment, or computers.
- There is no property tax on manufacturing machinery, equipment, or computers.
- There is no tax assessment on personal property, including corporate inventories of saleable goods, raw materials, or goods in process.
Hiawatha's Tax Increment Financing (TIF) Program Stands out Among other Iowa Business Assistance
The Tax Increment Financing program is a discretionary program in Hiawatha that starts by filling out an application. The term of the TIF is from one to five years and the amount of the TIF varies based on the City's policy and committee determinations.
The City of Hiawatha has developed a guide for Iowa business assistance looking for economic development incentives available under Chapters 15A and 403 of the Code of Iowa.
The goals of the guide and the TIF program are to encourage quality economic development and enhance the City's commercial and industrial tax base. To do this, the City of Hiawatha provides incentives to businesses and developers who want to expand or locate to Hiawatha and extend the City's infrastructure to promote commercial and industrial development. Learn about the policies, criteria, and application procedures for Hiawatha's Tax Increment Financing Program from the city website.