Tax & Financial Incentives
The State of Iowa, the City of Webster City and utility partners
offer an array of innovative, flexible local and state tax and financial
incentive programs. The programs are designed to provide new, existing
and entrepreneurial companies with assistance to grow and create
new opportunities for our community and state. Webster City Area Development is your smart connection to
accessing state and local tax and financial incentives for your
expansion project. Let us help you find the resources you need to
be grow and expand your business in our community.
- No corporate income tax on profits from sales outside
of Iowa
- Fifty percent deductibility of Federal Taxes from Iowa
Corporate Income Tax
- New jobs tax credit
- No property tax on manufacturing machinery,
equipment and computers used in processing
- No sales or use tax on manufacturing machinery, equipment
and computers used in processing
- No sales tax on purchases of electricity or natural gas
- No personal property (inventory) tax
- Research and Development Tax Credit
- Right-to-work
|
To learn more about local and state financial assistance programs
available to businesses locating or expanding in our community,
click on a category.
Tax Increment Financing
If your business is located in one of the designated urban renewal
areas or tax increment financing areas, it may be eligible for public
improvement financing that uses the incremental taxes that the project
will generate.
Industrial Revenue Bonds
The City has the ability to issue bonds for some economic development
projects. Such bonds are normally issued at a lower rate of interest
than otherwise available to the business.
Webster City Business and Industry Revolving Loan Fund
This fund provides loans usually at zero percent interest for up
to ten years for a new or expanding business located in Webster
City. To date the funds have generally been used for industry, but
have been accessed by commercial and retail businesses. There is
no minimum or maximum requirement for these loans.
Hamilton County SEED Revolving Loan Fund
This fund is administered by Hamilton County SEED with seed money
from the Hamilton County Supervisors. These funds can be loaned
to any new or expanding business in Hamilton County if job and wage
targets are met. They are low-interest loan funds generally loaned
for a term of five years.
City of Webster City Economic Development Set-Aside Revolving
Loan Fund
This fund is established through the repayment of loans from companies
who have accessed federal CDBG -EDSA Funds. The funds are controlled
locally and can be used for a variety of purposes. The parameters
for use of these funds are examined on a case-by-case basis.
MIDAS Council of Governments Revolving Loan Fund
The MIDAS Council of Governments, which includes Hamilton County/Webster City in its service territory, manages a small business revolving fund. This fund is intended to provide low interest loans as gap financing to qualifying businesses within Webster, Calhoun, Hamilton, Humboldt, Pocahontas, and Wright counties. The minimum loan amount is $5,000 per project and the maximum loan amount is $70,000. Eligible activities to be financed by the program are primarily the purchase or renovation of fixed assets. However, in certain instances, working capital may also be eligible. To view the entire parameters of this program and to attain an application, visit the MIDAS Council of Governments EDA Revolving Loan Fund website.
In addition to these programs, there are a wide variety of programs
available through the Small Business Development Center in Fort
Dodge, the Small Business Administration in Fort Dodge and Ames,
and USDA Rural Development. All of these programs have been
accessed by Webster City and Hamilton County businesses.
Community Economic Betterment Account (CEBA)
The CEBA program provides financial assistance to companies that
create new employment opportunities and/or retain existing jobs,
and make new capital investment in Iowa. 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.
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. 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. At least
51 percent of the created/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. Financial
assistance is provided in the form of loans and forgivable loans.
New Jobs and Income Program (NJIP)
The Iowa New Jobs and Income Program provides a package of tax credits
and exemptions to businesses making a capital investment of at least
$11,835,000 and creating 50 or more jobs meeting wage and benefit
targets. Qualifying businesses participating in NJIP receive substantial
benefits.
Iowa Industrial New Jobs Training Program (260E)
The Iowa Industrial New Jobs Training Program provides customized
classroom instruction, on-the-job training and other training activities
for employees in newly created jobs. An employer may be reimbursed
up to 50 percent of new employees' wages for on-the-job training.
All training is customized to the company's special needs. Community
colleges finance the program by the sale of tax-exempt bonds, which
are repaid by the diversion of a portion of the new employee's withholding tax. As a result, company profits are
not used to repay the bonds.
Rail Economic Development Program
The Iowa Department of Transportation provides funds for construction or rehabilitation of rail spurs to serve new or existing industries. The rail project must be a key to the creation or retention of jobs.
Revitalize Iowa's Sound Economy (RISE)
This program is administered by the Iowa Department of Transportation for expenditures on city, county and state highways to help attract new development or to support growth with existing developments. Projects are evaluated on economic potential and impact. Funding may be used in conjunction with other sources of federal, state, local and private financing for the purpose of improving area highways and specific access to roads.
Public Facilities Set-Aside Program (PFSA)
The program, administered by the Iowa Department of Economic Development, provides financial assistance to cities and counties to provide infrastructure improvements for businesses which require such improvements in order to create new job opportunities. The form of assistance is limited to grants to cities under 50,000 population and counties for the provision of or improvements to sanitary sewer systems, water systems, streets and roads, storm sewers, rail lines and airports. Assistance is limited to two-thirds of the total cost of the improvements needed. The emphasis of this program is to increase the productive capacity of the state. Priority will be given to projects that will create manufacturing jobs, add value to Iowa resources and/or export out-of-state.
For more information on State of Iowa financial assistance programs, visit the Iowa Department of Economic Development website.
Webster City is served by the Webster City Municipal Electric
Utility. The City works with our organization to offer businesses
expanding or locating in our community financial assistance and
various energy management and efficiency programs. Financial assistance
is generally in the form of zero or low interest loans over a term
of five to seven years and provided with the assistance of our electric
wholesaler, Corn Belt Power Cooperative.
Corn Belt Power and Webster City Municipal Utilities also provide
various business development and energy-related services to meet
the unique needs of businesses they serve including distribution
and transmission reliability, energy efficiency audits, back-up
generation and engineering/site location assistance.
Corn Belt is a member of the Iowa
Area Development Group, the marketing and economic development
agency for over 80 member-owned electric cooperatives and utilities
throughout the state. IADG's team of economic development professionals
work with the local municipals and RECs and the communities they
serve to provide valuable resources and assistance on issues related
to business expansion, retention and location.
Aquila provides natural gas
to Webster City and works with our local business and industry to
provide assistance in the form of rate rebates based on usage and
other services to new, expanding or retention projects in the community.
Entrepreneurial Ventures Assistance (EVA)
The Entrepreneurial Ventures Assistance (EVA) program provides financial
and technical assistance to early-stage technology companies. An
eligible business must be located in Iowa and in an industry sector
offering the greatest start-up and growth potential for the state,
including but not limited to: biotechnology, recyclable materials,
software development and computer related products, advanced materials,
advanced manufacturing, and medical and surgical instruments. To
qualify, applicants must have completed or must be participating
in entrepreneurial training from a John Pappajohn Entrepreneurial
Center, or have comparable training and/or experience. Businesses
engaged in retail sales, the provision of health care or professional
services, and distributors of products or services are not eligible
for EVA funds. Financial assistance of up to $250,000 may be awarded
for the purchase of machinery and equipment, and other business
acceleration expenses.
Targeted Small Business Financial Assistance Program (TSBFAP)
The TSB Financial Assistance Program is designed to assist in the creation and expansion of Iowa small businesses that have an annual gross sales under $3 million and are at least 51 percent owned, operated and managed by women, minorities or persons with a disability; or have an annualized family income that does not exceed current income guidelines for the program. Assistance is up to $50,000 in the form of a loan and/or grant.
Entrepreneurs With Disabilities (EWD)
The EWDI program helps qualified individuals with disabilities establish,
acquire, maintain or expand a small business by providing technical
and financial assistance. To be eligible for the program, applicants
must be active clients of the Iowa Department of Education Division
of Vocational Rehabilitation Services or the Iowa Department for
the Blind.
For more information on State of Iowa Entrepreneurial/Small Business
Development Programs, visit the Iowa
Department of Economic Development's website.
|
Economic
Development
