The business climate in Ames and the state of Iowa has never been more favorable. Companies operating here benefit from a business-friendly state government, technology transfer from world-renowned research institutions, a skilled and productive workforce, and a centralized geographic location.
Attracting a suitable workforce is critically important to any business. The potential labor pool for Ames and Story County, Iowa is 563,002. Iowa State University provides students for internships and recent graduates for full-time positions. The WorkInAmes.com website supports both businesses and job seekers.
With plentiful rail, highway, airport and interstate access, companies choose to locate in Ames, Boone and Story County because of the superior geographic location.
World-Class Research Facilities
Ames is home to the renowned research institution, Iowa State University, as well as the National Centers for Animal Healthy, a Federal Department of Energy Lab and the Iowa Department of Transportation.
Ames Economic Development Commission (AEDC)
The AEDC stands ready to provide you with timely assistance in learning more about Ames, Boone and Story County as a first-class location for doing business. Whether it is site location assistance, packaging of financial incentives, or demonstrating an available workforce, you can rely on the AEDC for all their and more as you contemplate investment in new or expanding operations.
Local and State financial assistance programs are available to aid businesses with their growth and expansion, including job training, and tax credit programs. Assistance is available for any sized project and any sized community.
|Corporate Income Tax||Based only on income from sales to Iowa customers. 50% deductibility from Federal Taxes.|
|Property Tax||No tax on machinery, equipment, and computers.|
|Sales Tax||No tax on the purchase of machinery and equipment.|
|Utilities Sales Tax||No tax on utilities used during the manufacturing process.|
|Inventory Tax||No tax on inventories.|
Iowa Corporate Income Tax
A number of features of Iowa's corporate income tax offer significant advantages, including:
- 50% deductibility of federal taxes from Iowa corporate income.
- Single-factor, non-unitary tax - Iowa's tax is based only on the percentage of total sales income within the state.
- Iowa corporate income tax may be reduced or eliminated by the New Jobs Tax Credit, High Quality Job Creation Program, or Research Activities Credit benefits.
No Personal Property Tax
Personal property is not assessed for tax purposes. In Iowa, personal property includes corporate inventories of goods-in-process, raw materials, and salable goods.
No Sales and Use Tax on Industrial Machinery and Equipment Purchases
The purchase of industrial machinery, equipment, and computers used for manufacturing or used to process data by insurance companies, financial institutions, or certain commercial enterprises, is exempt from Iowa sales or use tax. In addition, there is no sales tax on materials used in the manufacturing process or for purchase of electricity or natural gas used directly in the manufacturing process.
No Property Tax on New Industrial Machinery and Equipment
Industrial machinery, equipment, and computers are exempt from property tax in Iowa.
Iowa's workers' compensation costs are among the nation's lowest. The average cost of worker's compensation insurance for manufacturers in Iowa is 28 percent lower than the national average. Iowa law provides for employer choice of doctor.
Iowa has one of the lowest new employer unemployment insurance rates in the nation. In 2021, rates vary from 0% - 9% according to Iowa Workforce Development.
Renewable Chemical Production Tax Credit
This first of its kind tax credit incentivizes the production of high-value "building block" chemicals based on weight ($0.05 per pound produced) with annual limits of $1 million for start-ups and $500,000 for established businesses.
Source: Iowa Economic Development Authority
Source: Iowa Workforce Development