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Published by the Iowa Economic Development Authority, this brochure analyzes the business advantages of expanding or relocating your business in Iowa. If you're thinking about a business expansion or relocation and the Midwest states are part of your search area, then this is the information you'll want to get your site location search started.
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Iowa’s business climate has never been more favorable. Iowa has the lowest cost of doing
business in the nation, is perfectly positioned with its central location and has a diversified and
robust economy. Companies operating in Iowa benefit from a business-friendly state government,
business-minded tax incentives and a skilled and productive workforce within a right-to-work state.
Read more about the many business advantages companies enjoy in Iowa.
Companies doing business in Iowa enjoy one of the nation’s most business-friendly economic climates.
The proof is in the numbers.
• Iowa consistently has the lowest cost of doing business in the United States. (America’s Top States for Business, CNBC, 2011)
• Iowa’saverageindustrialelectricitycostperkWhis21percentbelowtheU.S.average.
(U.S. Energy Information Administration, 2011)
• Iowa’saverageleaseratesforindustrialspaceare13percentbelowtheU.S.average.(NAI Global, 2011)
• Iowa’sconstructioncostsforindustrialspaceare14percentbelowtheU.S.average.(RSMeans, 2010)
• Iowa’sworkers’compensationcostsareamongthenation’slowest.Theaveragecostofworkers’compensation
insuranceformanufacturersinIowais16percentlowerthanthenationalaverage.Iowalawprovidesfor
employer choice of doctor. (Actuarial and Technical Solutions, 2009)
• Iowa’sninelargestcommunitiesrankedasBestPlacesforBusiness. (Forbes Magazine, 2011)
Iowa’s central geographic location and abundance of transportation options make the state a quick and easy place
for businesses to distribute product.
• Threeinterstatehighways—I-35,I-80andI-29—passthroughIowaofferingcoast-to-coast,border-to-border
access in the U.S. transportation grid. The state‘s network of highways, intercontinental and short-line railroad
and barge routes combine to provide efficient and cost-effective transportation choices.
• Iowahasnearly4,000milesofrailfreighttrackoperatedby19railroadcompanies—fouraremajor,national
carriers. (Iowa Department of Transportation, 2008)
• Morethan175millionpoundsofcargoaretransportedthroughIowa’sairports.(Iowa Department of Transportation, 2011)
• Thereare60bargeterminalsthatshipandreceivetonnageinIowa—55ontheMississippiRiverandfiveonthe
Missouri River. (Iowa Department of Transportation, 2010)
Iowa has a diversified economic environment. Key industries in the state include: advanced manufacturing; renewable
energy and biorenewable chemicals; food processing; and insurance and financial services.
advanced manufacturing
• Iowa ranks second in the Midwest in terms of
value-added per manufacturing worker.
(U.S. Census Bureau, 2010)
• Iowa is ranked sixth nationally in terms of the
importance of manufacturing to the state’s
economy. (Bureau of Economic Analysis, 2011)
• Approximately4,100manufacturersemploy
about201,000Iowansandgeneratemorethan
$9.9billioninpayroll.
• Iowaexported$13.3billionworthofmanufac-
tured and value-added goods.
(Global Trade Information Service, 2011)
• Iowa’s manufactured exports have grown by
morethan37percentoverthelastfiveyears.
(Global Trade Information Service, 2011)
renewable energy and biorenewable chemicals
• Iowa is one of only a few states in the nation to
manufacture all of the main components of a
wind turbine — turbines, blades and towers.
• Iowa ranks second in the nation in wind
generation output. (AWEA, 2012)
• Hometomajormanufacturersand80industry
suppliers, Iowa is the leader for workers
employed in manufacturing for the wind industry
and second for construction and operations
and management. (Environmental Law & Policy Center, 2010 and
U.S. Wind Industry Annual Market Report - AWEA, 2010)
• Iowaleadsthenationinethanolproduction–40
ethanol refineries have a combined annual
capacityofalmost3.7billiongallons.
(Renewable Fuels Association, 2012)
• With11biodieselplantsinoperation,Iowa’s
biodieselproductionincreasedfrom50,000
gallonsin1999to304milliongallonsin2012.
(Iowa Renewable Fuels Association, 2012)
• Iowa is leading the way in developing and
expanding the market for value-added
biomass-based fuels and chemicals with a
concentration of raw materials and abundant
agricultural resources. According to the USDA,
fuelscreatedfrombiomasswillincreaseto10
percentby2020andto20percentby2030.
food processing
• Iowaishometo27ofthelargest100food
manufacturers/processors. (Food Processing Magazine, 2010)
• Iowa is home to the world’s largest cereal mill
(Quaker Oats) and caramel color plant
(Sethness) and is home to North America’s
largest spice plant (Tone’s).
• The food industry is a major component of
Iowa’s overall economy contributing over six
billiontothestate’sGrossDomesticProduct
(GDP),representingapproximately24percentof
Iowa’smanufacturingGDPandemployingmore
than51,000Iowans. (U.S. Bureau of Economic Analysis, 2010
and Iowa Workforce Development, 2012)
• Iowa creates a natural home to global food
processing and ingredient companies as the
number one producer in corn, soybeans, eggs
and pork.
insurance and financial services
• Iowa’s insurance industry output as a percent of
gross domestic product ranks third among the
50states.
(U.S. Bureau of Economic Analysis, 2009)
• In recent years, Iowa has lowered its insurance
premium tax by half to just one percent — one
of the lowest rates in the nation.
• Iowa has seen a solid financial services industry
expansion.Thereare39,600insuranceindustry
professionals currently employed in Iowa.
(Iowa Workforce Development, 2012)
“Diamond V ® has earned a global reputation of trust and reliability within the animal feed industry. One of the newest additions to
the industrial corridor of Cedar Rapids, Iowa, is our $25 million state-of-the-art manufacturing facility which will enhance our
ability to better service customers and keep pace with the growing demand both in the U.S. and around the world.
Why Iowa? We’ve been able to capitalize on Iowa’s superior business climate, central geographic location and excellent
transportation infrastructure. Since 1943, we’re proud to call Iowa home.”
JohnBloomhall
President&CEO,DiamondV®
corporate income tax
Iowa’s corporate income tax policies offer significant advantages for business:
• Single-factor,non-unitarytax—Iowa’staxisbasedonlyonthepercentageoftotalsalesincomewithinthestate.
• 50percentdeductibilityoffederaltaxesfromIowacorporateincome.
• Iowacorporateincometaxmaybereducedoreliminatedbystatetaxcreditprograms.
property and sales or use taxes
• Nopersonalpropertytaxforcorporateinventoriesofgoods-in-process,rawmaterialsorsalablegoods.
• Nopropertytaxonindustrialmachinery,equipmentorcomputers.
• Nosalesorusetaxonpurchasesofindustrialmachinery,equipmentandcomputersusedformanufacturingor
to process data by insurance companies, financial institutions or certain commercial enterprises.
• Nosalestaxonmaterialsusedinthemanufacturingprocessorpurchasesofelectricityornaturalgasused
directly in the manufacturing process.
refundable research and development tax credit
Iowa is one of only a few states in the nation to consistently offer a refundable research activities credit—even while
federal research credits have fluctuated with intermittent expiration dates and reinstatement periods. Iowa’s
refundablecreditforincreasingresearchactivitiesisupto6.5percentofthecompany’squalifyingresearch
expendituresinIowa.CompaniesapprovedforexpansioninanEnterpriseZoneorundertheHighQualityJobs
program may be eligible for a supplemental tax credit for qualifying research and development activities.
workforce
The success of a company depends heavily on the strength of its workforce. Iowa has all of the key elements to
provide a smart, productive workforce necessary to foster business growth. The combination of Midwest work ethic
and a leading education system results in one of the most productive workforces anywhere.
• Iowans consistently rank number one in the United States for SAT college entrance exam scores.
• Iowa is a right-to-work state.
• Iowanstendtostayinonejobanaverage12+years.(Iowa Workforce Development, 2010)
• Iowahasthe9thhighestnumberofbachelor’sdegreesinnaturalscienceandengineeringconferredper1,000
individuals18-24yearsold.(National Science Foundation, Science and Engineering Indicators, 2012)
• Iowa has the seventh highest percentage of population that are high school graduates or higher.
(U.S. Census, 2010)
TheIowaEconomicDevelopmentAuthority(IEDA)workswithbusinessesandcommunitiestobolsterIowa’s
economyandpositionthestateforgrowth.IEDAcanassistyourcompanybyprovidingthefollowingtypesof
assistance:
• Directfinancialassistance,taxcreditsandjobtrainingfunds.
• ConfidentiallocationreviewsandsitelocationassistancetobusinessesconsideringIowa.
• TechnicalassistanceforIowabusinessesconsideringexpansion,newcompaniestoIowaandforeign
direct investment.
• Freesearchabledatabaseofinformationonexistingbuildings,availablesitesandIowacommunities.
• RegulatoryprocessassistanceprovidedtoIowacompanies.
• TrainingandsupportavailabletoallcompaniesexpandinginIowa.Iowaworksinpartnershipwithpublic/private
service providers and other state agencies to actively promote new employee training, incumbent worker
preparation, lifelong learning and development and expansion of the state’s labor pool.
contact us
Pleasevisitiowaeconomicdevelopment.com for more information on how Iowa can assist you, to learn more about
Iowa’s business climate, assistance and expansion programs, available buildings, sites and more. Contact us any-
timeat1.800.245.4692or+1.515.725.3100(international).Allinquiriesarehandledconfidentially.
follow us
IOWA ECONOMIC DEVELOPMENT AUTHORITY200EastGrandAvenueDesMoines,IA50309USA
International:+1.515.725.3100 Domestic:1.800.245.4692
iowaeconomicdevelopment.com
JG06132012
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