ASSISTANCE PROGRAMS
Enterprise Zone
Clarke County is eligible to designate areas of the county as Enterprise Zones. A company that is located within an Enterprise Zone and commits to a minimum capital investment of $500,000 is eligible for the following benefits:
- Property tax exemption on value added to the property.
- A refund of state sales, service or use taxes paid to contractors or subcontractors during construction.
- An investment tax credit of up to 10% of new investment in machinery and equipment, land, buildings and improvements to existing buildings. The tax credit can be carried forward for a period of seven years.
- Through the Enterprise Zone Program, the research and development tax credit for Iowa can be doubled, allowing up to a 13% tax credit for research and development expenditures. Iowa’s standards for qualifying R&D expenditures mirror that of the Federal R&D tax credit. The tax credit is refundable to the company, if it cannot be used to reduce tax liability. The tax credit is available every year under contract, for a maximum of 10 years.
- Enterprise Zone requires an average starting base wage for new jobs created of $10.04 per hour.
Community Economic Betterment Account (CEBA)
CCDC would ask the State of Iowa for the maximum amount per job created by your company from the Community Economic Betterment Account (CEBA). This program allows the State to loan or grant, or a combination of, on a per job basis, depending on hourly wage rates and benefits. Up to $3000 per job created may be awarded through this program. The CEBA program requires a starting wage, per job created, of $11.32 per job
New Jobs Training Program (260E)
Your company will be eligible for training funds through the Iowa Industrial New Jobs Training Program, which in our area, is administered by Southwestern Community College. This program provides dollars to eligible companies for training new employees in job related skills.
New Jobs Tax Credit
You would be eligible for the New Jobs Tax Credit which provides a tax credit of $1152.00 per new employee. To receive this tax credit, you must have a current 260E contract with your local community college.
Industrial Revolving Loan Fund
Clarke County is served by the Southern Iowa Council of Governments (SICOG) which offers the Industrial Revolving Loan Fund to new and existing business in need of funding to create new job opportunities or retain existing jobs that may be in jeopardy. The amount of funding is based, in part, on the number of jobs to be created or retained as well as the financing gap. Funds are available in low interest loans, up to $125,000. Eligible uses include:
- New business start up
- Retention or expansion of local industry within the SICOG area
- Business creating or retaining jobs
- Demonstrated need for gap financing
Tax Abatement/Tax Increment Financing (TIF)
Tax Abatement or Tax Increment Financing (TIF) incentives may be available for your project in Clarke County. The current property tax rate for industry is $39.70 per $1000 of assessed property value.
- Tax Abatement is typically granted on a 5 year sliding scale of 75% for year 1, 60% for year 2, 45% for year 3, 30% for year 4 and 15% for year 5; however, the City of Osceola takes each request for tax abatement on a case by case basis.
- Tax Increment Financing (TIF) – The City of Osceola may use the property taxes resulting from the increase in taxable valuation due to construction/reconstruction of new industrial or commercial facilities to provide economic development incentives to a business or industry.
Such benefits would be contingent on negotiation and approval by the City of Osceola.
Other incentives and financial assistance may be available depending on your needs.
Clarke Electric Cooperative Revolving Loan Fund
The RLF is a local funding source with a goal of providing low interest loans to assist with local economic and community development projects. Priorities include: job creation and retention; diversification of the local economy; improving the skills of rural workforce; and upgrading the public infrastructure to improve the health, safety, and/or medical care of rural residents.
Loan amounts range from $5,000 minimum to $50,000 maximum. Interest rates will vary depending on the project's rating and risk factors, not to exceed prevailing prime rate.
Contact information: 1-800-362-2154 or wfreeman@cecnet.net
Clarke County Foundation
Clarke County Foundation was founded in February of 2006. The purpose of the Foundation is to assist small businesses and local manufactuers with expanding or starting their business through low interest forgiveable loans. For more information and applications, please contact Elizabeth Simpson at 641-342-2944.
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