Iowa Corporate Income Tax
A number of features of Iowa's corporate income tax offer significant advantages when compared to the corporate taxes of other states.
1. 50 percent deductibility of federal taxes from Iowa corporate income tax.
2. Single-factor, non-unitary tax: Iowa's tax is based only on the percentage of total sales income within the state.
3. Iowa corporate income tax may be reduced or eliminated by the New Jobs Tax Credit.

No Sales and Use Tax on Machinery and Equipment
The purchase of industrial machinery and computers assessed as real property and used in manufacturing or data processing by insurance companies, financial institutions or certain commercial enterprises, is exempt from Iowa sales or use tax.

Property Tax on Industrial Machinery and Equipment
There is no property tax on new industrial machinery and equipment.

No Personal Property (Inventory) Tax
Personal property is not assessed for tax purposes. Personal property includes corporate inventories of salable goods, raw materials and goods-in-process.

Iowa is a Right-To-Work State
Under Iowa law, an employee may not be required to join a union or pay dues or fees to any labor union, association or organization, as a condition of employment.

Unemployment Insurance
Iowa has the lowest new employer unemployment insurance rate in the nation. The rate for all non-construction businesses is 1 percent (for a taxable wage base of $18,600 in 2002) for a three-year period.

Workers' Compensation
Iowa's workers' compensation costs currently are among the nation's lowest, about 30% less than the national average.

Check out the Iowa Department of Economic Development website