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.

Other Tax Incentives:
Iowa Corporate Income Tax
No Sales or Use Tax on Manufacturing Machinery and Equipment
No Property Tax on New Industrial Machinery and Equipment
No Personal Property (Inventory) Tax
New Jobs and Income Programs
Local Tax Abatement
Tax Increment Financing
Pollution Control or Recycling Property Tax Exemption
Unemployment Insurance
New Jobs Tax Credit
Research and Development Tax Credit
Assistive Device Tax Credit