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A wide range of tax and financial incentive programs can be explored for existing and new businesses considering the county for investment. The programs are designed to provide new, existing and entrepreneurial companies with assistance to grow and create new opportunities for our county and the state. You can be assured the Development Corporation of Fort Dodge and Webster County will develop an aggressive package of tax and financial incentives to respond to your growth needs.
Iowa Business and Tax Advantages
- Iowa is a Right to Work State.
- No corporate income tax on profits from sales outside of Iowa.
- Fifty percent deductibility of Federal Taxes from Iowa Corporate Income Tax.
- New jobs tax credit.
- No property tax on manufacturing machinery, equipment and computers used in processing.
- No sales or use tax on manufacturing machinery, equipment and computers used in processing.
- No sales tax on purchases of electricity or natural gas.
- No personal property (inventory) tax.
- Research and Development Tax Credit.
Financial Assistance Programs
To learn about local and state financial assistance programs available to businesses locating or expanding in our county, click on a category.
Webster County and Local Community Tax and Financial Incentive Programs
Tax Abatement
The State of Iowa Code, in Chapter 427B, allows a city council or a county Board of Supervisors to provide tax abatement, by Ordinance, for industrial projects resulting in added property value. In Webster County, the cities and the County Board of Supervisors are aggressive in applying this statute to quality economic development projects. In these areas, the property taxes on the added value are abated on the following schedule:
- For the first year, seventy - five percent abated.
- For the second year, sixty percent abated.
- Fort the third year, forty-five percent abated.
- For the fourth year, thirty percent abated.
- For the fifth year, fifteen percent abated.
Additionally, under Chapter 404 of the Iowa Code, cities or counties may designate urban revitalization areas that meet specified criteria within their respective jurisdictions. If an area is determined eligible as an urban revitalization area and is designated as an urban revitalization area, the city or county can provide tax abatement for ten years on a sliding scale to projects that add taxable property value. The property taxes in these areas are abated on the following schedule:
- For the first year, eighty percent abated
- For the second year, seventy percent abated
- For the third year, sixty percent abated
- For the fourth year, fifty percent abated
- For the fifth year, forty percent abated
- For the sixth year, forty percent abated
- For the seventh year, thirty percent abated
- For the eighth year, thirty percent abated
- For the ninth year, twenty percent abated
- For the tenth year, twenty percent abated
In Webster County, the City of Fort Dodge has multiple urban revitalization areas designated that could provide the 10 year tax abatement to qualified projects. Below is a map of the designated urban revitalization areas within the City of Fort Dodge and a description of the qualifications for eligible projects to receive these benefits.
Urban Revitalization Area
Enterprise Zones
Webster County is fortunate to include an Enterprise Zone that is located in the City of Fort Dodge. This tool allows businesses locating or expanding in the City of Fort Dodge Enterprise Zone to attain substantial tax benefits as described below:
- A substantial increase of the funding for training new employees. If applicable, these funds would be in addition to those authorized under the Iowa New Jobs Training Program.
- A refund of state sales, service, or use taxes paid to contractors or subcontractors during construction.
- An investment tax credit of up to a maximum of 10% of the new investment in machinery and equipment, land, buildings, and improvements to existing buildings. This Iowa tax credit may be carried forward for up to seven years or until depleted.
- An additional research and development tax credit of up to 6.5% in addition to the existing Iowa research and development tax credit of 6.5%, which may be refundable. This Iowa tax credit is based on increasing research activities within the state and is available while the business is participating in the program for up to 10 years.
To receive these benefits:
- The business must make a minimum capital investment of $500,000.
- The business must create at least 10 full-time, project-related jobs and maintain them for at least 10 years.
- The business provides all full-time employees with the option of choosing a standard medical and dental insurance plan of which the business pays 80% of the premiums or a monetarily equivalent benefit.
- The business must pay an average wage that meets or exceeds 90% of the average county or regional wage, whichever is lower.
- The business can not be a retail establishment or a business whose entrance is limited by cover charge or membership.
- The business can not close or reduce its operation in one area of the state and relocate substantially the same operation in the Enterprise Zone.
- The local Enterprise Zone Commission and the Iowa Department of Economic Development must approve the business' proposed project prior to project initiation.
Webster County Enterprise Zone
Tax Increment Financing
Chapter 403 of the Iowa Code allows municipalities to create specific urban renewal areas. Within the urban renewal areas, municipalities can create special taxing districts called TIF districts. A TIF district allows a municipality to leverage additional property taxes generated from the expansion or location of a business into up front cash incentives to assist the business undertaking the project. This type of incentive is invaluable to new or expanding businesses in defraying up front capital costs.
In Webster County, the City of Fort Dodge has created two TIF districts, the Downtown TIF district and the Industrial Parks TIF district. Qualifying businesses locating or expanding in these areas would be eligible to receive TIF benefits.
Below is a map identifying the boundaries of the Fort Dodge TIF districts.
MIDAS Council of Governments EDA Revolving Loan Fund
The MIDAS Council of Governments, which includes Webster County in its service territory, manages a small business revolving fund. This fund is intended to provide low interest loans as gap financing to qualifying businesses within Webster, Calhoun, Hamilton, Humboldt, Pocahontas, and Wright counties. The minimum loan amount is $5,000 per project and the maximum loan amount is $70,000. Eligible activities to be financed by the program are primarily the purchase or renovation of fixed assets. However, in certain instances, working capital may also be eligible. To view the entire parameters of this program and to attain an application, visit the MIDAS Council of Governments EDA Revolving Loan Fund web site.
Webster County Improvement Corporation (WCIC) Revolving Loan Fund
The WCIC administers a revolving fund exclusively for businesses locating or expanding in Webster County. This fund typically provides low-interest loans to businesses for fixed assets, working capital, renovation or acquisition of equipment, and relocation costs associated with moving equipment into a new business location in Webster County. The fund can also, in certain circumstances, provide other types of assistance, including loan guarantees, equity positions, or participating loans. The maximum award under this fund is $100,000. For the entire loan procedures for this program, please open the file below. If you would like to apply for this program, please go to the “Contact Us” section of this web site and contact WCD’s Executive Director.
Download WCIC Loan Process Document
The Development Corporation of Greater Fort Dodge Revolving Loan Fund
The Development Corporation of Greater Fort Dodge is a private, non-profit that was organized to strengthen the economic vitality of the downtown area of the City of Fort Dodge. This organization offers low-interest loan funds to assist businesses locating or expanding in Downtown Fort Dodge. The two types of loans offered by this organization are General Business Loans and Façade Renovation Loans. Typically, General Business Loans made in amounts up to $35,000 or 15% of available funds at the time of the loan, whichever is less. Façade Renovation Loans are made up 50% of the project costs up to $15,000. If you would like to apply for this program, please go to the “Contact Us” section of this web site and contact WCD’s Executive Director. The file below contains the entire loan policies and procedures for this program.
Download the Development Corporation of Greater Fort Dodge Loan Process Document
State of Iowa Financial Assistance Programs
Community Economic Betterment Account (CEBA)
The CEBA program provides financial assistance to companies that create new employment opportunities and/or retain existing jobs, and make new capital investment in Iowa. The amount of funding is based, in part, on the number of jobs to be created/retained. Funds are provided in the form of loans and forgivable loans.
Economic Development Set-Aside Program (EDSA)
The EDSA program provides financial assistance to companies that create new employment opportunities and/or retain existing jobs, and make new capital investment in Iowa. The amount of funding is based, in part, on the number of jobs to be created/retained. Funds are provided in the form of loans and forgivable loans. At least 51 percent of the created/retained employment opportunities must be made available to individuals presently earning wages defined as low-and-moderate income.
Value-Added Products and Processes Financial Assistance Program (VAAPFAP)
The Value-Added Agricultural Products and Processes Financial Assistance Program seeks to increase the innovative utilization of Iowa's agricultural commodities. It accomplishes this by investing in the development of new agri-products and new processing technologies. Financial assistance is provided in the form of loans and forgivable loans.
New Jobs and Income Program (NJIP)
The Iowa New Jobs and Income Program provides a package of tax credits and exemptions to businesses making a capital investment of at least $11,835,000 and creating 50 or more jobs meeting wage and benefit targets. Qualifying businesses participating in NJIP receive substantial benefits.
Iowa Industrial New Jobs Training Program (260E)
The Iowa Industrial New Jobs Training Program provides customized classroom instruction, on-the-job training and other training activities for employees in newly created jobs. An employer may be reimbursed up to 50 percent of new employees' wages for on-the-job training. All training is customized to the company's special needs. Community colleges finance the program by the sale of tax-exempt bonds, which are repaid by the diversion of a portion of the new employee’s withholding tax. As a result company profits are not used to repay the bonds.
Rail Economic Development Program
The Iowa Department of Transportation provides funds for construction or rehabilitation of rail spurs to serve new or existing industries. The rail project must be a key to the creation or retention of jobs.
Revitalize Iowa's Sound Economy (RISE)
This program is administered by the Iowa Department of Transportation for expenditures on city, county and state highways to help attract new development or to support growth with existing developments. Projects are evaluated on economic potential and impact. Funding may be used in conjunction with other sources of federal, state, local and private financing for the purpose of improving area highways and specific access to roads.
Public Facilities Set-Aside Program (PFSA)
The program, administered by the Iowa Department of Economic Development, provides financial assistance to cities and counties to provide infrastructure improvements for businesses which require such improvements in order to create new job opportunities. The form of assistance is limited to grants to cities under 50,000 population and counties for the provision of or improvements to sanitary sewer systems, water systems, streets and roads, storm sewers, rail lines and airports. Assistance is limited to two-thirds of the total cost of the improvements needed. The emphasis of this program is to increase the productive capacity of the state. Priority will be given to projects that will create manufacturing jobs, add value to Iowa resources and/or export out-of-state.
For more information on State of Iowa financial assistance programs, visit the Iowa Department of Economic Development web site.
Utility Partner Financial Assistance Programs
Webster County Development works closely with its utility partners to encourage and facilitate business growth and expansion.
MidAmerican Energy provides economic development technical support and assistance to our organization and the business considering expansion in the County. In addition, MidAmerican Energy Company's EnergyAdvantage® programs, designed to encourage the use of high-efficiency space and water heating equipment, central air conditioning, lighting and other measures in commercial and industrial buildings, provide incentives are available to Iowa customers who install qualifying equipment and purchase the energy for which the incentive is paid from MidAmerican Energy.
Corn Belt Power Cooperative is a generation and transmission (G&T) electric cooperative owned by its member systems. Corn Belt provides power to its member distribution electric cooperatives that serve Webster County including Humboldt County REC, Midland Power Cooperative, Prairie Energy Cooperative and Calhoun County REC. In addition to competitively priced energy provided through the cooperative, reliable service is a high priority for Corn Belt Power Cooperative. A diligent maintenance program and unparalleled service have consistently produced reliability figures of 99.99%. Corn Belt provides an array of technical and financial assistance programs to facilitate growth in the communities it serves.
Corn Belt Power web site
State of Iowa Entrepreneurial/Small Business Development Financial Assistance Programs
Entrepreneurial Ventures Assistance (EVA)
The Entrepreneurial Ventures Assistance (EVA) program provides financial and technical assistance to early-stage technology companies. An eligible business must be located in Iowa and in an industry sector offering the greatest start-up and growth potential for the state, including but not limited to: biotechnology, recyclable materials, software development and computer related products, advanced materials, advanced manufacturing, and medical and surgical instruments. To qualify, applicants must have completed or must be participating in entrepreneurial training from a John Pappajohn Entrepreneurial Center, or have comparable training and/or experience. Businesses engaged in retail sales, the provision of health care or professional services, and distributors of products or services are not eligible for EVA funds. Financial assistance of up to $250,000 may be awarded for the purchase of machinery and equipment, and other business acceleration expenses.
Targeted Small Business Financial Assistance Program (TSBFAP)
The TSB Financial Assistance Program is designed to assist in the creation and expansion of Iowa small businesses that have an annual gross sales under $3 million and are at least 51 percent owned, operated and managed by women, minorities or persons with a disability; or have an annualized family income that does not exceed current income guidelines for the program. Assistance is up to $50,000 in the form of a loan and/or grant.
Entrepreneurs With Disabilities (EWD)
The EWDI program helps qualified individuals with disabilities establish, acquire, maintain or expand a small business by providing technical and financial assistance. To be eligible for the program, applicants must be active clients of the Iowa Department of Education Division of Vocational Rehabilitation Services or the Iowa Department for the Blind.
For more information on State of Iowa Entrepreneurial/Small Business Development Programs, visit the Iowa Department of Economic Development web site.
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