Incentives & Financing Tools
Iowa Workforce Housing Tax Credit Program
This program provides tax benefits to developers to provide housing in Iowa communities, focusing especially on those projects using abandoned, empty or dilapidated properties.
- Total program benefits limited to $1 million per project
- Tax incentives include a refund of sales, service or use taxes paid during construction
- Developers may receive a state investment tax credit of up to 10% of the investment directly related to the construction or rehabilitation of the housing. Developers qualifying under the Small Cities set aside may receive an investment tax credit of up to 20% of the investment directly related to the construction or rehabilitation of the housing. The state investment tax credit is fully transferable.
- Federal, state or local grants, tax credits, forgivable loans or other assistance not requiring repayment cannot be included for the purposes of calculating new investment
- Tax credit is based on the new investment used for the first $150,000 of value for each home or unit
- Tax credit is earned when the home or unit is certified for occupancy and can be carried forward for up to five additional years or until depleted, whichever occurs first
Tax Increment Financing
Tax Increment Financing (TIF) allows local governments to invest in infrastructure and other improvements and pay for them by capturing the increase in property taxes generated by the development.
TIF is a tool to implement an economic development plan.
Target TIF towards:
– Industrial development
– Development of low income housing
– Growth of tourism/convention center
– Smart Growth
– Encouraging retail
Local Property Tax Abatement
Tax Abatements:
Single Family and Duplexes: All qualified real estate assessed as residential property is eligible to receive a one hundred percent (100%) exemption from taxation on the first seventy-five thousand dollars ($75,000) of actual value added by the improvements. The exemption is for a period of three (3) years. Improvements must increase the assessed value by a minimum of 10%.
Multi-family housing: All qualified real estate assessed as residential property is eligible to receive a one hundred percent (100%) exemption from taxation on actual value added by the improvements. The exemption is for a period of ten (10) years. Improvements must increase the assessed value by a minimum of 10%.