Iowa

Sectors it is courting

• Agribusiness
• Food and Beverage
• Energy
• Chemicals
• Consumer Goods
• Industrial Materials
• Information and Communication Technology
• Cleantech/Clean Energy
• Advanced Manufacturing

Investment it is seeking from

• Canada
• Mexico
• India
• Germany
• Italy
• Japan
• Netherlands
• Brazil
• Switzerland
• United Kingdom
• Belgium
• France
• Austria
• South Korea
• Malaysia

Supply-chain projects it is looking for

Active Pharmaceutical Ingredients (APIs), Biotechnology, Critical Minerals and Materials

Incentive programmes

• Tax Credit

  New Jobs Tax Credit is a one-time, corporate income tax credit available to participants in the New Jobs Training (260E) Program. Iowa offers this credit as an incentive for businesses that provide additional training to employees and expand their workforce. The maximum tax credit in 2023 is $2,166 per new employee. The High Quality Jobs (HQJ) program provides qualifying businesses assistance to off-set some of the costs incurred to locate, expand or modernize an Iowa facility. This flexible program includes loans, forgivable loans, tax credits, exemptions and/or refunds. Investment tax credit equal to a percentage of qualifying investment amortized over 5 years, which offsets Iowa income taxes owed. Tax credit earned when corresponding asset is placed in service. The credit can be carried forward for up to 7 additional years or until depleted, whichever occurs first.

• Tax Exemption

  The High Quality Jobs (HQJ) program provides qualifying businesses assistance to off-set some of the costs incurred to locate, expand or modernize an Iowa facility. This flexible program includes loans, forgivable loans, tax credits, exemptions and/or refunds. Local property tax exemption of up to 100% of the value added to the property to a period not to exceed 20 years may be available.

• Tax Refund or Rebate

  The High Quality Jobs (HQJ) program provides qualifying businesses assistance to off-set some of the costs incurred to locate, expand or modernize an Iowa facility. This flexible program includes loans, forgivable loans, tax credits, exemptions and/or refunds. Refund of state sales, service or use taxes paid to contractors or subcontractors during construction. Refund of sales and use taxes paid on racks, shelving and conveyor equipment for distribution projects.

• Loan/Loan Participation

  The High Quality Jobs (HQJ) program provides qualifying businesses assistance to off-set some of the costs incurred to locate, expand or modernize an Iowa facility. This flexible program includes loans, forgivable loans, tax credits, exemptions and/or refunds. The Iowa Economic Development Authority offers this program to promote growth in businesses, which employ Iowans in jobs defined as high-quality by state statute. Actual award amounts based on the level of need; quality of the jobs; percentage of created or retained jobs defined as high-quality; and the project’s economic impact. This flexible program includes 0% loans and forgivable loans.

Shovel-ready sites

• The Lincolnway Industrial Rail & Air Park is a developing rail park on the west side of Clinton. The park is located adjacent to US Highway 30 and the Clinton Regional Airport. The Union Pacific East-West Mainline runs to the south, with a dedicated spur running into the park.Targeted industries for the Clinton region include chemicals processing, metal fabrication and value-added agriculture. There are very few heavy industrial sites in the upper Midwest that offer the logistics capabilities of the Greater Clinton Region and the Lincolnway Rail Park.

  Site details

• The Innovation Park in Oskaloosa is an Iowa-certified site zoned General Industrial offering 490 acres of development-ready property ideal for advanced manufacturing, biotech industries, warehousing, and distribution. The Park is multimodal - located at the confluence of highways US 63, IA 163, IA 92, IA 23, and 30 minutes to Interstate 80, providing easy access to raw goods and markets. Union Pacific Railroad is on-site, plans for a transload facility are being studied, and three general service airports are located within 25 minutes of the Park. Multigig fiber-to-the-premise internet is offered by locally owned Mahaska Communication Group, which provides a robust system and same-day customer service - a strategic advantage for users with data demands that require unlimited bandwidth. MidAmerican Energy provides natural gas and electric service with affordable rates 33 percent lower than the national average, and 88% of the electric load is derived from renewable sources. All utilities are in place, and due diligence studies are completed. The Innovation Park property is owned or under option to the Mahaska Chamber & Development Group and is ready for immediate development.

  Site details

• Mills Crossing offers prospective users a strategic advantage for rapid development, access to a population center of 1 million+ people, and a location in the central United States connected to markets and ports throughout the country. The 667 hectare (1,650 acres) site is located on a BNSF Railways dual track main line and is minutes from I-29 and I-80 via 4-lane Highway 34. Mills Crossing is fully served by MidAmerican's electric and natural gas systems. MidAmerican offers the 11th lowest electric rates in the U.S. and leads the nation in deployment of renewable generation with 88.5% of customers’ electric load served with renewable resources on an annual basis. Robust fiber optics are onsite and water/wastewater service can be readily and economically extended for a wide variety of uses.

  Site details

Technology-sector sub-sectors sought

AgTech (including FoodTech), CleanTech, FinTech

Programmes for international technology startups

1. Helping Emerging Industries Commercialize Technology https://www.iowaeda.com/innovate/ 2. Proof of Commercial Relevance is designed to define and articulate the opportunity for eligible businesses that demonstrate a proof-of-concept for innovative technology. Awards up to $50,000. 3. Demonstration Fund is designed to provide assistance to companies with market-ready innovative technologies or products that have a clear potential for commercial viability. Awards up to $175,000. Both are low interest loans with a 1:2 (private:public) match. 4. Awards in the form of royalty arrangements or loans with a 1:1 (private:public) match

Programmes for international clean-energy projects

1. Iowa Energy Office The Iowa Energy Office manages a diverse mix of state, federal and utility-funded programs and initiatives that provide energy-economic benefits for Iowa’s citizens, businesses and organizations. 2. Clean Cities Program increases the adoption of alternative fuels, advanced vehicle technologies and energy efficient transportation strategies. 3. Green Streets provides guidance in developing and implementing sustainable practices. Iowa Carbon Sequestration allows you to explore carbon sequestration opportunities. 4. Iowa Energy Office Plans and Reports Iowa Energy Center The Iowa Energy Center (IEC) is funded from an assessment on the intrastate revenues of Iowa's gas and electric utilities. The mission of the IEC is to support projects that align with the key focus areas of the Iowa Energy Plan, including: technology-based energy research and development, energy workforce development, support for rural and underserved areas, biomass conversion, natural gas expansion, electric grid modernization and alternative fuel vehicles. 5. Iowa Energy Center Grant Program has grants to eligible applicants for projects that provide a benefit to Iowa ratepayers. 6. Energy Infrastructure Revolving Loan Program offers loans for the development and modernization of energy infrastructure projects. 7. Iowa Energy Center Board Iowa Energy Center Plans and Reports https://www.iowaeda.com/renewable-energy/

Incubators and accelerators

• The Global Insurance Accelerator

  The Global Insurance Accelerator (GIA) is a mentor-driven business accelerator designed to foster innovation in the insurance industry by supporting startups targeting the global insurance industry. We take in early-stage companies who are building solutions that support the insurance industry. We provide seed funding, networking with our mentors, 100-days of ongoing support and a final presentation to a large audience of insurance professionals. The GIA Fund, backed by insurance company investors, will make an equity-based investment of no less than $50,000, converting to 5% of the company in the form of a post-money SAFE (Simple Agreement for Future Equity). Each selected company will receive the same standard investment terms and amount (guaranteed to be at least $50,000). Final key investment terms, including the investment amount, will be communicated to all applicants prior to accepting an interview with the selection committee. Terms are not negotiable. The insurtech companies will meet 1:1 with over 75 mentors covering a range of expertise and backgrounds during a three-week window at the beginning of the program and form a small roster to work 1:1 with for the remainder of the program.

• Cultivo Virtual Academy

  Cultivo Virtual Academy is hosted by America’s Cultivation Corridor and presented by Iowa Economic Development Authority. Cultivo is a six-week fee-based program for international startups. a unique opportunity for global startup and scale-up companies preparing for their entry into the U.S. agriculture, food, or bioscience market. The fee-based program connects entrepreneurs with Iowa leaders for networking, learning, and exposure to U.S. financing, regulatory, and market systems. Participants meet online through virtual workshops facilitated each week with industry leaders and interact with Iowa’s agricultural leaders, startup community, researchers, and farmers. The online curriculum focuses on assisting food and agriculture startups with U.S. market entry, customer perspectives, business alliances, and financing.

University and workforce programmes

• Iowa State University

  Iowa State University Office of the Vice President for Research is the purpose-driven research community at Iowa State and understands the value of collaboration across disciplines and with partners outside of the university. Iowa State University knows meaningful innovation that drives economic development and benefits society doesn’t happen in a vacuum. That’s why the university prioritizes and has a proven track record of forging productive partnerships with industry collaborators and commodity organizations.

Additional services

Global Investment in Iowa The state of Iowa is the perfect place to expand, locate or start a business. The state’s pro-business policies, nationally recognized research centers and legendary Midwestern work ethic give businesses with an Iowa location a huge competitive edge. Those business advantages paired with a low cost of doing business, central location, abundant raw materials and efficient transportation infrastructure continue to fuel Iowa’s economy. High growth industries in Iowa include advanced manufacturing, financial services, biosciences, renewable energy, food manufacturing and information technology. https://www.iowaeda.com/UserDocs/fdi_english.pdf

In its own words

Global Investment in Iowa: The state of Iowa is the perfect place to expand, locate or start a business. The state’s pro-business policies, nationally recognized research centers and legendary Midwestern work ethic give businesses with an Iowa location a huge competitive edge. Those business advantages paired with a low cost of doing business, central location, abundant raw materials and efficient transportation infrastructure continue to fuel Iowa’s economy. High growth industries in Iowa include advanced manufacturing, financial services, biosciences, renewable energy, food manufacturing and information technology. https://www.iowaeda.com/UserDocs/fdi_english.pdf

Investor account, as submitted

BAE Systems breaks ground on new Cedar Rapids facility November 6, 2020 BAE Systems was already positioning for potential new growth as it broke ground Thursday on a new $100 million-plus state-of-the-art aerospace and defense facility development project in Cedar Rapids. The UK-headquartered company, which acquired Collins Aerospace’s former military GPS business in January for just over $1.9 billion, unveiled a rendering and new details about its 278,000-square-foot build-to-suit factory and research and development center that will bring about 700 former Collins Aerospace workers now at locations in Coralville and Cedar Rapids under the same roof. Collins Aerospace had to divest its GPS business so parent company, United Technologies, could complete its merger with Raytheon Corp. “Our world-class military GPS business is built on the rich talent pool in Greater Cedar Rapids,” said John Watkins, vice president and general manager of Precision Strike & Sensing Solutions at BAE Systems. “This investment will provide our high-tech engineering and manufacturing experts with a world-class workspace and the tools to enhance operational excellence.” The campus, set on a 32-acre site at 7825 Sixth St. SW in Cedar Rapids, will include a large factory, several hundred offices, workstations, and flexible workspaces, as well as classified and unclassified labs. But Jason Casciotti, BAE’s navigation and sensor systems integration lead, highlighted that the building was designed for growth, with the ability to add 50,000 square feet of additional space in the future. The project will include 900 parking spots, which will also accommodate new growth. “We’re very excited about making a long-term commitment to this navigation and sensor system business in Cedar Rapids,” said Mr. Casciotti, adding that in addition to uniting employees into a single modern facility with manufacturing, engineering and office space, the location “enables us to scale up to meet customer demand.” Mr. Casciotti said BAE is already doing some targeted hiring, pushing its workforce above the 700 mark “and we will continue to rightsize the business increases.” The facility is set for completion sometime in 2022. It was designed by OPN Architects and will be developed and built by Ryan Companies US. The project was helped by the Cedar Rapids City Council and Iowa Economic Development Authority, which approved $25.8 million in tax incentives for BAE to locate in the area. “We’re excited that BAE Systems has chosen to locate its new facility in Cedar Rapids and look forward to working with them on the project,” said Mayor Brad Hart. “By committing to build their new campus here, BAE Systems is advancing Cedar Rapids as a high-tech aerospace and defense hub, providing high-quality jobs and business opportunities, and initiating one of the largest capital investment projects in city history.”

Submitted by the economic development organisation, not independently verified.

Regional partner organisations

• America’s Cultivation Corridorbhunt@cultivationcorridor.org(515) 337-2387
• Iowa City-Cedar Rapidsnancy@greateriowacity.com(319) 337-9637

Who to contact

• Mark LaurenzoManager, Business Developmentmark.laurenzo@iowaeda.com(515) 348-6191
• Allen WilliamsManager, Business Developmentallen.williams@iowaeda.com(515) 348-6194

1963 Bell Avenue, Suite 200, Des Moines, IA 50315