Business Development and Resources
Business Resources
Taxes
Iowa's numerous tax benefits will ensure your business has every opportunity to achieve profitability and productivity.
Single-Factor Nonunitary Tax
Iowa's corporate income tax is a single-factor nonunitary tax and is based only on the percentage of total sales income within the state. An Iowa manufacturer selling all of its products outside Iowa pays no Iowa corporate income tax.
Federal Deductibility
Iowa is one of only five states that offers Federal Deductibility. This allows 50% deductibility of federal taxes on corporate income tax in Iowa
What You Won't Pay Taxes On
- no sales tax on purchases of electricity or natural gas used directly in the manufacturing process
- no sales or use tax on computer/peripherals used in the processing or storage of data
- no property tax on manufacturing machinery/equipment/computers
- no tax assessment on personal property (includes corporate inventories of salable goods, raw materials, and goods in process)
Tax Reduction Programs
These tax reduction programs, available through the State of Iowa, may help your company experience higher profitability: Research and Development Tax Credit, New Jobs Tax Credit, and High Quality Job Creation Program.
Tax Increment Financing
City councils or boards of supervisors may use the property taxes resulting from the increase in taxable valuation caused by the construction of new industrial or commercial facilities to provide economic development incentives to a business.
Local Tax Abatement
Iowa law allows cities and counties to abate local property taxes for value added to industrial real estate.
Pollution control or Recycling Property Tax Exemption
Improvements to real property that are primarily used to control pollution of air or water, or primarily used for recycling, may qualify for a property tax exemption
Financial Resources
Below are our Financial Resource Partners
State Incentives: Click Here
The ECIA Revolving Loan Fund supplies up to $250,000 to purchase fixed assets and targets manufacturing, high tech, and service industries located in Cedar, Clinton, Delaware, Dubuque, and Jackson Counties. The cities of Dubuque and Clinton are excluded.
Eligible Projects
Fixed-asset acquisition or expansion including:
- Acquisition/installation of machinery or equipment
- Purchase of land and/or construction of new buildings
- Purchase and/or renovation of existing buildings
- Financing of working capital in special situations
Advantages
Low down payment - as little as 10%. Allows the small business owner to preserve critical working capital;
Short term - flexible (typically 7 years);
Low interest rate - generally 4%
Lending Parameters
$250,000 Maximum project size1.5% processing fee and legal costs, no servicing fee
Goal of 1 Full Time Equivalent (FTE) position created for each $100,0000 lent
Personal Guarantee usually required, other security as necessary
Approval of the ECIA Business Growth, Inc. Board of Directors
The SBA 504 Loan Program is the Small Business Administration's (SBA) economic development financing program that helps American small businesses grow while benefiting communities through tax base expansion, business growth, and job creation. Loan are available for all types of small, for-profit businesses to purchase and/or renovate capital assets including land, buildings, and equipment.
A small business is defined as having a net worth under $15 million and net annual profit under $5 million with some exceptions
Eligible Projects
Fixed-asset acquisition or expansion including:
- Purchase of land and/or construction of new buildings
- Purchase and/or renovation of existing buildings
- Acquisition/installation or machinery
- Construction and/or remodeling of buildings on leased land>
Advantages
Low down payment - as little as 10%. Allows small business owner to preserve critical working capital
Long term - SBA 504 loans are for 10 to 20 years. Because the CDC is in a second lien position, the bank or other lender providing the 50% first line loan is willing to lend for a longer term.
Fixed, low interest rate - The mortgage payment amount is fixed for 10 or 20 years. No worries about prime lending rate going up. Even with fees and closing costs included in the rate, it is still a low rate for a subordinate mortgage loan, particularly for a small business.
Lending Parameters
$50,000 minimum loan amount
No maximum project size; $5 million maximum loan amount
If business is a manufacturer or energy-related project, $5.5 million maximum loan amount
Typical 504 Loan Structure
| Entity | Loan Amount | % of Project | Security |
| Lender | $500,0000 | 50% | 1st Deed of Trust |
| CDC/SBA | $400,000+fees | 40% | 2nd Deed of Trust |
| Borrower | $100,000 | 10% | |
| Total | $1,000,000 | 100% |
The Community/Economic Development Revolving Loan Fund (RLF) was created to improve the quality of life in rural areas by contributing to long-term improvement in the local economy. The RLF is a local funding source with a goal of providing low interest loans to assist with local economic and community development projects.
Maquoketa Valley Electric Cooperative works closely with local, regional, and state economic development professionals to ensure our member businesses and potential businesses receive the information and assistance they need to locate, grow, and prosper within our service area in east central Iowa. For personal attention to your project, contact Patty Manuel, Director of Business Development, at pmanuel@mvec.coop or 800-927-6068.
Business Support
Through powerful partnerships, we can provide assistance with site selection, feasibility studies, business plans, financial packaging, utilities, taxes, regulating, permitting, and much more. Visit these sites for more information on some of the resources at our fingertips.
- Iowa Source Link (iasourcelink.com)
- Iowa Area Development Group (iadg.com)
- Prosperity Eastern Iowa (prosperityeasterniowa.org)
- Iowa Economic Development Authority (iowaeconomicdevelopment.com)
- Central Iowa Power Cooperative (cipco.net)
- Questline (24-hour Ask-An-Expert Hotline Services) (members.questline.com)
- ISU Center for Industrial Research and Service (www.ciras.iastate.edu)
Electric Energy
Maquoketa Valley Electric Cooperative prides itself on reliable service. During the past year, our members were on line 99.99% of the time. When power outages do occur, local linemen and state-of-the-art technology allow us to restore service quickly. As a member-owned cooperative, our rates are priced fairly and equitably with a focus on service rather than profit. Margins are returned to member-owners through patronage dividends.
Labor
When considering filling open positions, note that since Cascade is centrally located between Dubuque and Cedar Rapids, the labor pool is much larger. This area has over 208,820 individuals in their labor pool.
| County | Labor Force | Number Unemployed | Unemployment Rate % | Number Employed |
| Delaware | 10,380 | 410 | 4 | 9,970 |
| Dubuque | 54,900 | 3,200 | 5.9 | 51,700 |
| Jackson | 10,620 | 650 | 6.1 | 9,980 |
| Jones | 10,300 | 600 | 5.7 | 9,700 |
| Linn | 118,900 | 7,600 | 6.4 | 111,300 |
| Total | 205,100 | 12,460 | Average 5.62% | 192,650 |
*Data compiled from Iowa Workforce Development 2020 Local Area Unemployment Statistics
Resources