Targeted Jobs Withholding Tax Credit Program

Summary

A pilot program providing a withholding tax credit equal to 3% of qualifying wages paid to employees for a ten-year period. The funds can be used for most expenses incurred by a business related to their project.

The Targeted Jobs Withholding Tax Credit is a pilot program that allows diversion of withholding funds paid by an employer to be matched by a designated pilot city to create economic incentives directed toward the growth and expansion of targeted businesses.

Withholding agreement allows up to 3% of gross wages paid by the employer to be directed to the project budget on a quarterly basis
All designated withholding funds and matching funds are to be used for a project related to the employer as defined in the withholding agreement
Must be approved by the Iowa Economic Development Authority Board prior to the execution of any withholding agreement
Withholding agreement may have a term of up to 10 years