TAX ADVANTAGES

There are various opportunities for financial assistance in Cerro Gordo County. Listed below are detailed information on both the local and state level.

Mason City Enterprise Zones  
Mason City currently has five enterprise zone districts. A qualifying business locating or expanding in an Enterprise Zone may receive tax benefits including up to a 10% investment tax credit, a rebate of the 5% sales tax paid on construction costs, a property tax abatement of 100% for 5 years, workforce training tax credits and research and development tax credit of up to 6.5%.

TIF (Tax Increment Financing)
Up front money for project. City councils or county board of supervisors may use the property taxes resulting from the increase in taxable valuation caused by construction of new industrial or commercial facilities to provide economic development incentives to a business or industry. The city/county takes out a loan on behalf of the company for a specific portion of the project. The company pays the full tax assessment. The base assessment is preserved but taxes over and above base assessment are diverted back to county or city to pay back the loan for infrastructure improvements costs which would otherwise be incurred by the Company. More…

http://www.iowalifechanging.com/business/tif.html
http://www.co.cerro-gordo.ia.us/Auditor/Aud_Tif_Districts_Mason_City.cfm

Iowa Values Fund
The “Grow Iowa Values Fund” is Iowa’s powerhouse funding program designed to fund just about anything in business expansion and attraction. To qualify the Company must meet wage and benefit thresholds equal to 130% of the county average.

CEBA(Community Economic Betterment Account)
EDSA (Economic Development Set-Aside)
VAAPFAP (Iowa Value-Added Agricultural Products & Processes Financial Assistance Program)
These programs provide direct financial assistance to companies that create new employment opportunities and/or retain existing jobs and make new capital investment in Iowa. Specifically designed for businesses making equipment and technology upgrades as well as employee training investment to maintain their competitive edge. The VAAPFAP is centered on existing or new companies that utilize the state’s agricultural commodities to create new, innovative products or to produce renewable fuels. 

RISE (Revitalization of Iowa’s Sound Economy) 
Provides grant money for roadway and transportation infrastructure.

R&D Credits(research & Development)
A credit for increasing research activities is 6.5% of the company’s allotted share of qualifying research expenditures in Iowa. The credit doubles in Enterprise Zones.

Tax comparison Iowa/Minnesota                   
Corporate income tax, personal income tax, research and development credits, inventory tax and sales tax are important components in site selection.

INVESTING IN MASON CITY BUSINESS

REVOLVING LOAN FUND
Locally Mason City is fortunate to have a well capitalized loan fund Used to promote an increase in economic activity and growth, primarily through the location of new industry or the expansion of existing Mason City businesses. The primary goal of the fund is to help create quality jobs or the retention of existing ones. The purpose of the fund is not to compete with other available sources of financing, but rather provide the money necessary to leverage those resources, whether public or private. For more information contact the Mason City EDC.

STATE INVESTMENT OPPORTUNITIES
Progressive in its approach to venture capital, Iowa has various programs available. Investors share a vision of increasing wealth and improving the Iowa economy as well.