Located near the center of Iowa, the City of Des Moines is the political, economic, and cultural capital of the state. The city is a center of insurance, printing, finance, retail and wholesale trades as well as industry, providing a diverse economic base. With a population of 456,000, metropolitan Des Moines provides the advantages of a big city with the atmosphere of a small town.
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. Person 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.
Iowa has the lowest new employer unemployment insurance rate in the nation. The 2015 rate for all non-construction will be 1.0% on a taxable wage base of $27,300. For additional information please refer to the Des Moines Regional Research, Stats and Data Hub.
Iowa's workers' compensation costs currently are among the nation's lowest, about 30% less than the national average.
Check out the Iowa Economic Development Authority website.