City of Waukee

Waukee Economic Development

The City of Waukee is committed to expanding its commercial and professional business opportunities.  If you are interested in what Waukee can provide to you as a business owner or entreprenuer, please take an in-depth look at the content below or contact us at (515) 987-4522 for information specific to your interests.

For information on current properties available for development please visit our Location One website page by clicking here. 

Waukee Tax Incentives

Iowa Corporate Income Tax

Iowa's single-factor, nonunitary 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 percent deductibility 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 and equipment and computers assessed as real property is 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.

New Jobs and Income Programs

The Iowa New Jobs and Income Program provides a package of tax credits and exemptions to businesses making a capital investment of at least $10.38 million and creating 50 or more jobs meeting wage and benefit targets.

Local Tax Abatement

Iowa law allows cities and counties to abate local property taxes for value added to industrial real estate. The maximum amount of actual value added at a new or expanded facility which is eligible to be exempt from taxation is:

  • Year One: 75 percent
  • Year Two: 60 percent
  • Year Three: 45 percent
  • Year Four: 30 percent
  • Year Five: 15 percent

Tax Increment Financing

City councils or county boards of supervisors may use the property taxes resulting from the increase in taxable valuation caused by the construction of new industrial or commercial facilities to provide economic development incentives to a business or industry. Tax Increment Financing may be used to offset the cost of public improvements and utilities that will serve the new private development, to finance direct grants or loans to a company, or to provide the local match for federal or state economic development assistance programs.

Pollution Control or Recycling Property Tax Exemption

Pollution control and recycling equipment may be eligible for a property tax exemption. Improvements to real property that are primarily used to control pollution of air or water, or primarily used for recycling, may qualify. An application must be filed for exemption.

Unemployment Insurance

Iowa has the lowest new employer unemployment insurance rate in the nation. The rate for all nonconstruction business is one percent for a three-year period until an experience rating is established. Iowa offers a zero rate for good experience; approximately 45 percent of Iowa employers are at a zero rate.

New Jobs Tax Credit

A business entering into an agreement under the Iowa New Jobs Training Program and increasing its Iowa workforce by at least 10 percent will qualify for this Iowa corporate income tax credit. This tax credit is equal to up to six percent of the state's unemployment insurance taxable wage base. The maximum credit for 2004 is $1,182 per new position created and for 2005 will be $1,224. The credit may be taken only once; however, unused credits can be carried forward for up to 10 years.

Research and Development Tax Credit

A credit for increasing research activities is 6.5 percent of 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 on the Iowa return.

Assistive Device Tax Credit

Iowa small businesses can reduce their taxes by buying or renting products or equipment, or by making physical changes to the workplace to help employees with disabilities get or keep a job.

The Iowa Department of Economic Development offers a variety of publications that provide additional detail on Iowa's tax incentives and exemptions.

Financial Assistance Programs

Economic Development Partners

Waukee is one of the fastest growing cities in the State of Iowa. The City has assembled a team of economic development partners that further enhance Waukee as a place to live and conduct business. Visit our partners’ sites and learn more.