High Quality Job Creation Program (HQJC)
As businesses change and grow, flexible programs are needed to help Iowa businesses meet the demand of providing valued-added goods on a world-economy scale. Financial programs are available to assist companies like yours to promote growth and profitability while creating quality job opportunities for Iowans.
The High Quality Job Creation Program provides qualifying businesses tax credits to off-set the cost incurred to locate, expand or modernize an Iowa facility. To qualify for this very flexible assistance package that includes tax credits, exemptions and/ or refunds, a business must be a non-retail or non-service business and meet at least four of the eligibility requirements.
Eligibility Requirements
A business must meet at least four of the following requirements:
- Offer a pension or profit sharing plan for all employees.
- Produce value-added goods or be in one of 11 targeted industries.
- Provide medical and dental insurance and pay 80% of the premiums.
- Offer child care services.
- Invest at least 1% of pretax profits in research and development.
- Invest at least 1% of pretax profits in worker training.
- Have active productivity and worker safety improvement program(s).
- Purchase and occupy a vacant building which is at least 20,000 square feet.
- Must meet wage thresholds requirements.
Actual award amounts will be based on the business's level of need; the quality of the jobs; the percentage of created jobs defined as high-quality; and the economic impact of the project. Once at least four of those criterions are met, the following tax incentives may be available:
- A local property tax exemption of up to 100% of the value added to the property to a period not to exceed 20 years.
- A refund of state sales, service, or use taxes paid to contractors or subcontractors during construction.
- For warehouse or distribution center projects, a refund of sales and use taxes paid on racks, shelving, and conveyor equipment.
- An investment tax credit equal to a percentage of the qualifying investment, amortized over 5 years. This tax credit is earned when the corresponding asset is placed in service and can be carried forward for up to seven additional years or until depleted, whichever occurs first.
- The State's refundable research activities credit may be doubled while the business is participating in the program.
How to Apply
Applications for this and other financial programs are taken on a first-come, first-served basis. To assure your addition/expansion can benefit from this program, businesses are encouraged to apply prior to the beginning of the project. Also, the HQJC program can be used in combination with other state programs, except for the Wage-Benefit Tax Credit (awarded by the Department of Revenue) and the Enterprise Zone Program.
To Learn more:
Your first step in the process is contacting IDED. We can guide you through the qualification process and help create the optimum package of assistance for your businesses' individual needs.
Phone: 515.242.4819 or 800.532.1215
E-mail: businessfinance@iowalifechanging.com
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