More money on the table

Cody Edwards Iowa Tax Law Iowa Table SALT Law Dickinson Law Firm Des Moines, IA

Posted on 02/21/2017 at 12:00 AM by Cody Edwards

Iowa’s High Quality Jobs Program (“HQJP”) is a very flexible economic assistance program that can be tailored to meet the needs of each individual business that is creating quality jobs within Iowa. To be eligible for the HQJP, the IEDA requires, among other things, the following:

  • The jobs that the business is creating must pay at least 100 percent of the “qualifying wage threshold” at the start of the project and 120 percent by the completion of the project.

  • The jobs that the business retains must pay at least 120 percent of the “qualifying wage threshold” throughout the project.

  • The business must provide a benefits package to full time employees that includes coverage of a percentage of medical premiums for medical insurance plans. 

The assistance package can include loans, forgivable loans, tax credits, exemptions and/or refunds, with the amount of the assistance being based on numerous factors, one being the amount of qualifying investment.  For example, if a business makes a qualifying investment of $500,000 and creates or retains eight jobs with wages of 120 percent of the qualifying wage threshold, the business could qualify for the following:

  • An investment tax credit up to three-percent of the qualifying investment.
  • A sale tax refund of sales tax paid by contractors as a result of the investment.
  • Refundable research activities tax credits.

As mentioned above, the HQJP is very flexible and can be tailored to meet the situations of many expanding businesses located within Iowa or those looking to relocate here.   

Similar to the Angel Investor Tax Credits, timing is critical for the HQJP. The HQJP is only available if the IEDA is contacted prior to commencing a project. Thus, if your business is planning an expansion or considering to relocating to Iowa in the future it is important to determine whether your project will qualify for economic assistance.  

The material in this blog is not intended, nor should it be construed or relied upon, as legal advice. Please consult with an attorney if specific legal information is needed.


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