Waukee's Business Incentive Package

The City of Waukee principally uses property tax-based financial assistance to support businesses and developers building and expanding in the community, because incentives promote investment and employment in the City of Waukee. Incentive packages are considered on a case-by-case basis and are designed to meet the needs of businesses locating or expanding in the City of Waukee based primarily upon total capital investment, number of jobs created and the salary level of the jobs created.

Tax Increment Financing

The City of Waukee uses Tax Increment Financing (TIF) by capturing a portion of the increased tax revenue created by improvements that result in new taxable property valuation. The new revenue may be redirected to reduce the cost of infrastructure improvements or as a tax rebate to a business. Industrial Property Tax Abatement Waukee has authorized the use of the State of Iowa’s industrial property tax abatement program for qualifying new and expanded building investments located anywhere in the City of Waukee.
Industrial Property Tax Abatement
Waukee has authorized the use of the State of Iowa’s industrial property tax abatement program for qualifying new and expanded building investments located anywhere in the City of Waukee.
The Industrial Property Tax Exemption (Tax Abatement) phases in the taxable valuation of a parcel and is offered on a sliding five-year scale:

Year 1 75% exemption of new valuation
Year 2
60% exemption of new valuation
Year 3
45% exemption of new valuation
Year 4
30% exemption of new valuation
Year 5
15% exemption of new valuation

 Commercial Property
This program assists qualifying businesses by reducing the property tax paid on new construction and other taxable improvements to a property. To qualify for exemption, a project must be one of the following:
  • Industrial real estate
  • Research facility
  • Warehouse distribution center
Special Projects Fund
Business expansion and relocation decisions focus on minimizing risk and maximizing success. The Special Projects Fund provides a source of funding to ensure that businesses can get the information they need to evaluate a location in Waukee. The Special Projects Fund can be tapped for a wide variety of uses including traffic studies, soil testing, environmental studies, expert consultations, etc. The City of Waukee Community and Economic Development Department will work with company leaders to determine how the Special Projects Fund can bring the most value to growing businesses.
Year 1 75% exemption of new valuation
Year 2
60% exemption of new valuation
Year 3
45% exemption of new valuation
Year 4
30% exemption of new valuation
Year 5
15% exemption of new valuation

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State of Iowa Financial Assistance 
Iowa provides valuable assistance to businesses seeking to locate or expand in the state. Waukee’s Community and Economic Development staff will work with regional and state partners to identify and apply for assistance to support businesses making investment and creating jobs in Iowa. Several of the state incentive programs require a local match and our experienced staff can assist businesses with this aspect of the application process. 
Iowa Corporate Income Tax 
Iowa’s single-factor, non-unitary tax is based only on the percentage of total sales income within the state— an Iowa manufacturer selling all its products outside Iowa would pay no Iowa corporate income tax. Iowa allows 50% deduction of federal taxes from Iowa corporate income tax, and Iowa corporate income tax may be reduced or eliminated by the New Jobs Tax Credit. 
No Sales or Use Tax on Manufacturing Machinery and Equipment 
The purchase of industrial machinery, equipment and computers assessed as real property are exempt from Iowa sales or use tax. No sales tax is due on purchases of electricity or natural gas used directly in the manufacturing process. 
No Property Tax on New Industrial Machinery and Equipment Manufacturing machinery and equipment, as well as computers used to process data by insurance companies and financial institutions, are exempt from property tax. 
No Personal Property (Inventory) Tax 
Personal property is not assessed for tax purposes. In Iowa, personal property includes corporate inventories of salable goods, raw materials and goods in process. 
Iowa High Quality Jobs Program 
The High Quality Jobs program provides qualifying businesses tax credits and direct financial assistance to offset some of the costs incurred to locate, expand or modernize an Iowa facility. To qualify for this very flexible assistance package that includes loans, forgivable loans, tax credits, exemptions and/or refunds, eligible businesses must meet certain wage threshold requirements.
New Jobs Tax Credit 
A business entering into an agreement under the Iowa New Jobs Training Program (260 E), and increasing its Iowa workforce by at least 10%, will qualify for this Iowa corporate income tax credit. This tax credit is equal to up to 6% of the state’s unemployment insurance taxable wage base. The credit may be taken only once; however, unused credits can be carried forward for up to 10 years. 
Research and Development Tax Credit 
Iowa companies can earn refundable tax credits for the company’s allotted share of qualifying research expenditures in Iowa. A company must meet the qualifications of the Federal Research Activities Credit in order to be eligible for the credit in Iowa. Supplemental Research Activities Credits are available through the High Quality Jobs programs.

State of Iowa Workforce Training Programs 
The City of Waukee works with the State of Iowa and Des Moines Area Community College (DMACC) to support the needs of businesses for a well-trained workforce. Iowa has job training programs that support businesses adding new employees in Iowa and also provide training for current employees. Iowa’s job training programs are delivered locally by staff at DMACC. 
Iowa Industrial New Jobs Training Program (260E) 
The Industrial New Jobs Training Program provides businesses that are expanding their Iowa workforce with new employee training. The program is delivered locally by staff at DMACC at no cost to businesses. In addition to increasing worker productivity and company profitability, businesses participating in the Iowa Industrial New Jobs Training Program may also be eligible for reimbursement up to 50% of the annual gross payroll costs expended for on-the-job training, as well as a corporate tax credit if Iowa employment is increased by at least 10%. 
Iowa Jobs Training Program (260F) 
The Iowa Jobs Training Program provides job training services to current employees of eligible businesses that are located in Iowa. Eligible businesses can work with their local Iowa community college, which will assess training needs, determine fund availability and provide training. For participating businesses, the advantages include valuable employee training at a reduced cost, or at no cost.