Iowa Biotechnology Business Support
Incentives for Biotechnology Investments: Iowa has the 15th largest concentration of biotechnology companies in the nation, according to the international accounting firm Ernst & Young and is a hotbed of new investments.
Corporate Income Tax is based only on Iowa sales as a percentage of total sales; less 50% of federal income tax. This means a substantial cost savings for companies with minimal sales in the State of Iowa. (NOL - Net operating losses are carried back two years and forward twenty years.)
R&D Tax Credit - Refundable: Qualifying companies are eligible for a 13% Refundable R&D tax credit (through the Iowa New Jobs & Income Program, NJIP and Enterprise Zones - EZ). Qualifying research must meet the guidelines of the federal research activities credit.
No Sales Tax on New Construction: Qualifying companies are eligible for a refund of sales tax on the construction of their new facilities (through the Iowa New Jobs & Income Program - NJIP and Enterprise Zones - EZ program).
Property Tax Exemption on new construction for as much as ten to twenty years, for qualifying projects under the New Jobs & Income Program - NJIP and Enterprise Zone - EZ program.)
Investment Tax Credit (ITC): 10% ITC to qualifying companies (through the Iowa New Jobs & Income Program - NJIP and Enterprise Zone program.)
No Sales & Use Tax on Machinery & Equipment & Computers
No Property Tax on Machinery & Equipment & Computers
Infrastructure Assistance: Iowa has several unique programs available to provide assistance in road construction and other improvements for new biotechnology facility construction.
Technology Initiative: Iowa is positioned as a value-added and knowledge-based leader in the new economy building on our strengths and strong leadership positions in Life Sciences, Information Solutions, and Advanced Manufacturing. The Governor appointed a Technology Advisor and Industry Advisory Networks in these areas, with special emphasis on the Life Sciences (biotechnology, animal health, and value-added agriculture.)
Advanced Research and Commercialization (ARC) Program: New appropriation by the legislature in 1999 ($4 million) to make strategic investments in established Iowa businesses with advanced research and commercialization projects.
Research Parks, Technology Transfer Programs and Incubators: Fully served research parks, technology transfer programs and business incubators operate at Iowa's research universities; both Iowa State University (ISU - 220 acres) and the University of Iowa (UofI - 189 acres). Activities include cross-disciplinary education and research, access to university material and human science and technology including all forms of technology transfer, access to research facilities, wet lab space, Center for Biocatalysis & Bioprocessing (Industrial biotech lab - up to 1,000 liters, Center for Advanced Drug Development, FDA registered production facility for manufacturing clinical supplies and access to one of the nation's leading human health and medicine research complex (University of Iowa Hospitals & Clinics) of College of Medicine).
Plant Science Institute (Iowa State University)
The Plant Sciences Institute is an umbrella organization over a group of centers, each focused on specific areas of the plant sciences; including eight centers; involving faculty and staff from more than a dozen departments, including the Colleges of Agriculture, Engineering, and Liberal Arts and Sciences.
- Center for Plant Genomics
- Center for Bioinformatics and Biological Statistics
- Center for Plant Transformation and Gene Expression
- Center for Plant Breeding
- Center for Designer Crops
- Center for Plant responses to Environmental Stresses
- Seed Science Center
- Center for Crops Utilization Research
National Animal Disease Center (Ames, Iowa)
National Veterinary Services Laboratory (Ames, Iowa)
Loan Programs (Community Economic Betterment Account (CEBA): The Iowa Department of Economic Development provides low-interest and forgivable loans to new and existing companies in Iowa.
From May 1986 to June 2001, a total of $104,938,096 in awards has been
made to 634 companies to retain 20,308 jobs and create 34,392 jobs. The
projects leveraged over $3 billion in business investments in Iowa.
Iowa New Jobs & Income Program, (NJIP) - Qualifying companies have invested more than $2.4 billion since the program began in 1994. Benefits under NJIP and the new Enterprise Zone program include the 13% refundable R&D tax credit, 10% Investment Tax Credit, double the job training program, refund of sales tax on construction costs, and up to as much as ten to twenty years tax exemption on new construction.
Worker Training Program: The Iowa New Jobs Training Program provides flexible funding to meet a variety of training and employee development needs of new or expanding businesses. The assistance ranges from highly specialized programs, such as bioprocessing technology, to basic skill training for new positions. The program provides funding for screening, skills assessment and testing; travel for new employees for training, anywhere in the world; on-the-job training reimbursement up to 50% of new employee's wages and fringe benefits during training; in-plant instruction by company instructors; and costs of training facilities, equipment, materials and supplies. The program is paid for by diverting a portion of the new employee's state income tax withholding. There is no additional cost to the employer or the employees.
Venture Capital: The Venture Network of Iowa (VNI) provides a monthly forum where expanding companies and entrepreneurs present their business needs to potential investors in order to obtain financial assistance, or form strategic alliances or partnerships. Presentations are carried to a statewide audience via the State owned fiber-optic communications network. VNI was named "State Model of Excellence for Venture and Seed Programs", (by the Small Business Administration.
Site Location Assistance: The Iowa Department of Economic Development (IDED) assists firms, on a CONFIDENTIAL basis, with their corporate expansion needs. Professional staff assists in all aspects of the site selection process; from the site search, to financial assistance, job training, and more.
For additional information about Iowa contact:
Iowa Biotechnology Association
Doug Getter, Executive Director
1200 Valley West Drive, Suite 206-7
West Des Moines, IA 50266
Phone: 515.327.9156
Fax: 515.327.1407
E-mail: dgetter@netins.net
Iowa Department of Economic Development
Bret Weber, Marketing Manager
200 East Grand Avenue
Des Moines, IA 509309
Phone: 515-242-4709
Fax: 515-242-4749
E-mail: bret.weber@ided.state.ia.us
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