Iowa Economy & Cost of Living

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Iowa is located in the heart of an eight-state market of nearly 912,000 businesses and 35.3 million people with a total of $902 billion in personal income. Goods produced in Iowa have a value added by manufacture of about $27 billion a year. Iowa had a Gross State Product of more than $84.6 billion in 1998, and a per capita income of $25,615 in 1999.

Affordable quality housing is available throughout the state. Des Moines, consistently ranked among the top 10 metropolitan areas with the most affordable housing in the nation, was first in this category during the first quarter of 2001. Ninety percent of city residents with a median family income of $60,000 could afford afford the median home (both new and previously owned) price of $107,000.

The largest source of personal income for Iowans is manufacturing, followed by services, retail/wholesale trade and government. Agriculture remains the leading industry in the state, which still has more than 97,000 farms. One Iowa farm family grows enough food and fiber to feed 279 people, one-fourth of whom live overseas. In the United States, Iowa consistently ranks first in production of corn, pork and soybeans, and is a leader in oat and beef production and dairy products.

The state's leading manufacturing industry is food processing. Other key industries and businesses are machinery, electric equipment, chemical products, primary metals, printing and publishing and insurance.

Small business is crucial to Iowa's strong economic climate and growth. Of the state's 68,000 businesses, almost 98 percent are small businesses. The Iowa Department of Economic Development's (IDED) Small Business Resource Office works with Iowa entrepreneurs in identifying and matching sources of capital and technical assistance through venture investment, networking opportunities, and state financial assistance resources.

IDED provides low-interest and forgivable loans to new and existing companies in Iowa. The New Jobs & Income and Enterprise Zone programs include a 13 percent refundable R&D tax credit, 10 percent Investment Tax Credit, double the job training program, refund of sales tax on construction costs, and up to 20 years tax exemption on new construction. The Entrepreneurial Ventures Assistance (EVA) program provides financial and technical assistance to early-stage technology companies. These businesses must be located in an industrial sector of Iowa offering the greatest start-up and growth potential for the state. Eligible ventures include biotechnology, medical and surgical instruments.

The Economic Development Set-Aside Program provides financial assistance to companies that create new employment opportunities and/or retain existing jobs, and make new capital investment in communities with less than 50,000 population. Targeted Small Business Financial Assistance Program assists in the creation and expansion of Iowa small businesses that are at least 51 percent owned, operated and managed by women, minorities or persons with a disability. Additional information about biotechnology incentives and support can be accessed through the following:

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Photo Credit: Iowa Division of Tourism.