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 one of the lowest, new employer, unemployment insurance rates in the nation. The reate for all non-construction businesses is 1% for a 3-year period.


Workers' Compensation Cost

Iowa's workers' compensation costs are the 12th lowest in the nation. The average cost of workers' compensation insurance for manufacturers in Iowa is 30% lower than the national average.


Regulatory Assistance

The Regulatory Assistance Program enhances the range of services available to Iowa companies by advising and assisting companies in the preparation and submission of permit application with the Iowa Department of Natural Resources (DNR) and other Iowa regulatory agencies. The mission of the Regulatory Assistance Program is to facilitate communication between the business and regulators and to expedite the permitting process.


State Incentive Programs

DIRECT BUSINESS ASSISTANCE
Grow Iowa Values Financial Assistance Program (GIVFAP) - Provides financial assistance to companies that create new quality employment opportunities and/or retain existing jobs, and make new capital investment in Iowa. 

Economic Development Set-Aside (EDSA) - EDSA provides assistance to businesses that plan to make a capital investment and create and/or retain quality employment opportunities for low- and moderate-income individuals.

• Assistance may be provided to encourage business start-ups, the expansion or retention of existing businesses, or the recruitment of out-of-state businesses into Iowa. EDSA funds business projects located in Iowa cities of less than 50,000 population.
• Assistance is provided in the form of loans and/or forgivable loans. The maximum award is $1 million per project.
• Applications are filed by cities or counties on behalf of eligible businesses, which need to meet certain regional/county wage standards.

Demonstration Fund - Provides pre-seed capital awards of up to $150,000 to encourage prototype and concept development activities by small and medium-sized Iowa companies in advanced manufacturing, biosciences, and information technology industries.  The fund is designed to encourage commercialization of innovation to foster competitive, profitable companies that create high paying jobs and wealth in Iowa.

Value-Added Agriculture Component (VAP) - The VAP is designed to speed the rate of every ag-based innovation in food and fiber products, and to encourage organization of new ventures to produce those innovations

• Innovative Agricultural Products and Processes - provides financial assistance for projecs that use Iowa agricultural commodities to produce higher-value products that are not commonly produced in Iowa
• Innovative and New Renewable Fuels - provides financial assistance for development of renewable fuel production facilities such as biodiesel or ethanol facilities that yield co-products used for livestock feed. 
• Agricultural Biotechnology Industry, Biomass and Alternative Energy Production - provides financial assistance to agricultural businesses that utililize scientifically enhanced plants or animals that can be raised by producers; to agricultural biomass businesses that utilize commodity crops, by-products, or feedstock in the production of chemicals, protein products, or other similar products; to businesses involved in production of alternate energy.
• Organic Products and Emergy Markets - provides financial assistance to businesses that add value through further processing of organic products and through emerging markets.
• Project Development and Project Creation Assistance - available for projects that may be ineligible under the regular program because of their 'precommercial' status.

Please contact The Alliance to determine eligibility or to obtain information specific to your needs.

INFRASTRUCTURE ASSISTANCE
Public Facilities Set-Aside Program (PFSA) - The PFSA program provides financial assistance to cities with less than 50,000 in population and to counties for public infrastructure improvements that enable businesses to create new job opportunities.

• Projects that will create manufacturing jobs, add value to Iowa resources and/or increase out-of-state exports will be given priority.
• Eligible projects include adding or improving sanitary sewer systems, water systems, streets, roads, and storms sewers.

Revitalize Iowa's Sound Economy (RISE) - This program is administered by the Iowa Department of Transportation (DOT) and provides funding for expenditures on city and county highways to help attract new development or to support growth with existing developments.

• Projects are evaluated on economic potential and impact. RISE funding may be used in conjunction with other sources of federal, state, local and private financing to improve area highways and specific access to roads.
• Assistance is provided in the form of grants and/or loans.

The program can provide assistance as either loans or grants, but grant funding is limited to 50% of the total funds available. In the current round of funding, approximately $1 million will be available for assistance. Industries, railroads, local governments or local economic development agencies may apply for financial assistance for projects such as:

• building rail spurs to a new or expanding development;
• building or rebuilding sidings to accomodate growth;
• purchasing or rehabilitating existing rail infrastructure;
• rehabilitating existing rail lines to increase capacity; or
• other rail related developments.