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The advantages of Doing
Business in the [ Corporate Income
Taxes | Property Taxes
| Job Training | The Oskaloosa and Mahaska County are of Iowa has many assets to offer quality companies who want productive workers, a friendly business climate and a community willing to help offset startup and relocation costs. Below is a synopsis of some key factors which help make Iowa and the Oskaloosa area such a desirable and profitable site location. The Oskaloosa Area Chamber and Development Group can provide custom research services when very specific needs at identified. The City of Oskaloosa and Mahaska County are both active participants n the economic development process. Both the City Council and the County Board of Supervisors are anxious to hear proposals from new industries and are receptive to assisting firm with such things as road improvements and water and sewer improvements. Oskaloosa has a professional community developer on staff who has considerable experience in speedily obtaining development permits and grants. Companies can be assured that there will be no development impact fees associated with a new facility in the county. Corporate Income TaxesCorporate tax is imposed on the net income received or earned during the income year after adjustment by subtracting 50 percent of federal income taxes. Most importantly taxable net income is determined by single a single factor formula: State income tax is imposed only on the portion of net income reasonably attributable to the trade or business conducted within the state. Iowa taxes only that portion of total sales that were generated within the state. [Back to Top]
Property TaxesThe property tax rate in the Oskaloosa area is currently $38.22 per $1,000 assessed valuation. Oskaloosa and Mahaska County can allow a partial exemption of the actual value added by a project for a period of ten years through our industrial tax abatement program. The City of Oskaloosa also allows a partial exemption of property taxes for commercial projects. The percentage of taxes exempted each year under the commercial tax abatement program is as follows:
Finally, the City of Oskaloosa also offers partial exemption of property taxes for residential projects. The percentage of taxes exempted each year under the residential tax abatement program is as follows:
Other Tax ConsiderationsIowa does not have a franchise tax a head tax. The state sales tax is five percent, although industrial machinery, equipment and computers are exempt. Oskaloosa does have a 1-cent local option sales tax. State sales taxes on personal property has been eliminated. [Back to Top] Job TrainingIowa is a right-to-work state. Also, Iowa's New Industrial Jobs Training Program will subsidize a company directly for employee training. The state will compensate a company for 100 percent of instructor's salaries and will pay for the use of a company's facilities for training purposes. In addition, the state will reimburse a company up to 50 percent of the new employee's salaries for up to 52 weeks of training. [Back to Top] State Financial IncentivesIowa New Jobs and Income Program Iowa's New Jobs and Income Program is designed for those businesses that would create high-skill, high-wage jobs while making a significant capital investment in the state. Iowa Community Economic Betterment Account Iowa's Community and Economic Betterment Account (CEBA) is a multi-million dollar fund administered by the Iowa Department of Economic Development that is earmarked to help businesses expand in Iowa. Another state administered financial assistance program is the Economic Development Set-Aside. [Back to Top] Local IncentivesThe Oskaloosa Area Chamber and Development Group is able to provide direct cash incentives to new industries and businesses that locate in Mahaska County. The creation of quality employment opportunities for area residents is a prime consideration for awarding this funds. The OACDG's Direct Investment Fund (DIF) is used to provide matching funds for any state program that is used in a financial package, but the OACDG does not make outright grants. Mahaska County has a low-interest revolving loan fund that can assist with business expansions. Primary requirements for the loan program are to create at least one job for every $5,000 in loan proceeds and that approved loans should not exceed 20% of the total project cost. Terms of the loan are negotiable. The Oskaloosa Venture Capital Fund is another potential source of development capital. As with most venture capital funds, the Oskaloosa Venture Capital Fund is interested in equity positions in companies. The Chamber Realty Company is a separate entity associated with the Oskaloosa Area Chamber and Development Group. The Chamber Realty Company organizes limited partnerships to finance real estate development projects. The Chamber Realty Company typically requires a substantial investment by an industrial firm before it will invest in a real estate venture. The City of Oskaloosa has used tax increment funding (TIF) to assist numerous developments in Oskaloosa. TIF funds could be made available to a company when it begins a project. Oskaloosa's gas and electric utility is Mid-American Energy Company, the state's largest, investor-owned utility. Mid-American has a very experienced, professional economic development staff who will assist a company in putting together a very competitive natural gas and electric utility package. [Back to Top] SummaryOskaloosa is a thriving community with a very positive business climate. Its' highway system and proximity to Des Moines provide easy access to raw materials and major markets. The State of Iowa has created numerous incentive programs which help reduce startup costs. The single factor income tax formula and deductibility of 50 percent of federal income tax keeps corporate tax liability very low. The Oskaloosa Chamber and Development Group has the resources to offer additional incentives whether a company needs sites, financing of other forms of assistance. The affordability of labor in the area and the labor's work ethic and low turnover will also help boost company profitability. A company's workforce will benefit from and excellent school system, two four-year colleges and an abundance of cultural and recreational opportunities. A good way to learn more about the Oskaloosa area is to visit with
the leaders of some of its' local firms. Any one of the members
of the OACDG's Economic Development Committee, visitation team or
contact team can provide the kind of personal advice and encouragement
to know why Oskaloosa, Iowa, is the right place for business.
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© Oskaloosa Area Chamber & Development Group Inc. |
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