Incentives / Permits
INCENTIVES & ASSISTANCE
Business Climate
Cherokee County offers a favorable business climate. The State of Iowa has a tax structure that is business-friendly, and the community colleges in the Northwest Iowa region provide a number of employee training opportunities. Local Financial assistance includes "gap" financing programs (state and federal), SBA 504, 7A and guarantees along with USDA guarantee programs. Incentive programs include Tax Increment Financing or property tax abatement, sales tax abatement, sales tax relief (in certain circumstances), and training programs. Iowa is a "right to work" state.
Iowa Corporate Tax Structure
Iowa's corporate tax structure provides advantages to businesses that locate in our state.
Programs include the following:
- Single-factor, non-unitary tax is based only on the percentage of net sales income within the state of Iowa. There is no Iowa corporate income tax on profit from out of state sales.
- 50% deductibility of federal taxes from Iowa corporate income.
- Iowa corporate income tax can be reduced or eliminated by state tax credit programs.
Other tax advantages include:
- No personal property tax for corporate inventories of goods-in-process, raw materials or salable goods.
- No property tax on industrial machinery, equipment or computers.
- No sales or use tax on purchases of industrial machinery, equipment and computers used for manufacturing or to process data by insurance companies, financial institutions or certain commercial enterprises.
- No sales tax on materials used in the manufacturing process or purchases of electricity or natural gas used directly in the manufacturing process.
County Financial Incentive Programs
Intermediary Relending Program Revolving Loan Fund (IRP): The IRP is a local funding source with a goal of providing low interest loans to assist with local economic and community development projects. These monies are for gap financing only. This fund is administered by the IRP Committee, consisting of local business people dedicated to the growth of businesses in Cherokee County.
The Cherokee County IRP Revolving Loan Fund Enterprise Zones - Enterprise Zones are economically depressed areas in which state and local tax benefits are available to businesses and developers to make new investments, creating new jobs, and building or rehabilitating housing in those areas. Businesses locating or expanding in an Enterprise Zone may receive property tax exemptions, funding for employee training, sales tax refunds and more. An equal opportunity provider and requires loan recipients to adhere to all equal opportunity laws.
New Jobs Tax Credit - When businesses enter into an agreement under the Iowa New Jobs Training program, they may qualify for this additional credit to their Iowa corporate income tax.
For more information contact:
Bill Anderson
Executive Director, CAEDC
201 W. Main St.
Cherokee, IA 51012
712-225-5739
bill@cherokeeia.com
City of Cherokee Incentive Programs
Tax Increment Financing: The city has several designated Urban Renewal Areas or Tax Increment Financing Areas. If your business is located in one of those areas, it may be eligible for public improvement financing that uses the additional, or incremental taxes that the project will generate to help finance the cost of the project.
Tax Exemptions: Also called Tax Abatement. Under some circumstances, and within certain pre-defined geographical areas, the city has the authority to abate taxes that are to be paid on improvements to property within the area.
Industrial Revenue Bonds: The city can issue bonds for some economic development projects. The bonds are normally issued at a lower rate of interest than might otherwise be available to the business. Industrial revenue bonds are subject to a state maximum.
Redevelopment Incentive Fund: The Redevelopment Incentive Fund (RIF) provides financial incentives to property owners and business people within Cherokee's retail community to assist them in restoring and rehabilitating the storefronts of their property. See more information about RIF here.
New Business Incentive Program: The Cherokee Industrial Corporation/Cherokee Chamber of Commerce New Business Incentive Program offers free products, services, and memberships to new business start-ups. See more information about NBIP here.
City of Cherokee Revolving Loan Program: The City RLF is a local funding source with a goal of providing low interest loans to assist with local economic and community development projects. This fund is administered by the RLF Committee, consisting of local business people dedicated to the growth of businesses in the City of Cherokee.
Other City Incentives:
City of Marcus: Tax abatement program
City of Aurelia: Tax abatement program
City of Cleghorn: TIF District
City of Larrabee: TIF District
Iowa Economic Development Authority Assistance
Financial Assistance Application
The Cherokee County Economic Development staff will help you in your efforts to seek assistance from the State of Iowa. Click here for more information about the program.
High Quality Jobs Program
The State of Iowa offers qualifying businesses tax credits and direct financial assistance to off-set some of the costs to locate, expand or modernize a facility in Iowa. Click here for more information.
Workforce Training Programs
The success of a company depends on the strength of its workforce. Iowa has what it takes to provide a smart, productive workforce necessary to foster business growth. To help Iowa companies maintain their competitive edge, the Iowa Economic Development Authority will help you develop a workforce and access training programs to meet the specific needs of your company. Click here for more information.
Private Incentive Sources
Siouxland Economic Development Corporation (SEDC): The SEDC is a nonprofit corporation which administers several different loan programs, including a micro-loan program. The SEDC portfolio includes Small Business Administration (SBA) loans, Economic Development Administration (EDA) loans, Community Development Block Grant (CDBG) loans, and loans from its own internal sources of cash.
Mid American Energy: The utility company actively promotes economic development in its service area. As a part of those efforts, it has a program that can provide assistance to businesses that are starting up, moving to, or expanding in the SiouxIand area.
Northwest Iowa Power Cooperative (NIPCO): NIPCO is a generation and transmission (G&T) cooperative serving wholesale power to nine member rural electric cooperatives and many municipal electric systems in western Iowa. NIPCO promotes economic development in its service area and actively pursues business development and expansion projects. In addition, NIPCO can provide land and building data, demographics for the area, and financial assistance.
Western Iowa Tech Community College (WITCC): WITCC administers the Iowa Industrial New Jobs Training Program, the Iowa Small Business New Jobs Training Program and the Iowa Retraining Program.
Iowa Lakes Electric Coop (ILEC): A rural electric coop operating in Cherokee County promotes economic development activities throughout its service area with a variety of programs.
Alliant Energy: This utility company provides dollars for energy audits for businesses as well as providing access to site and building information in their service area.