Iowa is a Right-to-Work state offering maximum labor flexibility. A "right-to-work" law is a statute in the United States that prohibits agreements between labor unions and employers, that govern the extent to which an established union can require employees' membership, payment of union dues, or fees as a condition of employment, either before or after hiring.
Iowa's corporate income tax structure offers significant advantages including:
Personal property is not assessed for tax purposes. In Iowa, personal property includes corporate inventories of goods-in-process, raw materials and salable goods.
The purchase of industrial machinery and computers assessed as real property and used for manufacturing or used to process data by insurance companies, financial institutions, or certain commercial enterprises, is exempt from Iowa sales or use tax. In addition, there is no sales tax on materials used in the manufacturing process or for purchases of electricity or natural gas used directly in the manufacturing process.
Manufacturing, machinery, equipment, and computers are exempt from property tax.
A refundable credit for increasing research activities is up to 6.5% of the company's allotted share of qualifying research expenditures in Iowa. This can also e doubled under certain programs.
Several state, county and city financial incentives are also available. See our incentives page for more information.
Source: Iowa Department of Economic Development