By Iowa Economic Development Authority
You may have heard the phrase “Iowa Nice” used to describe the disposition of Iowans. Not only is it true, but we take it as a compliment. Our ability to collaborate and build consensus is one of the primary reasons we’ve been able to lead the way in our key industries, including advanced manufacturing, biosciences and finance and insurance.
That said, our kindness shouldn’t be mistaken for complacency. When it comes to Iowa’s commitment to innovation and ingenuity, we’re leaving no stone unturned to keep pace in an increasingly competitive global market.
As the business landscape evolves and emerging technologies bring transformative paradigm shifts, Iowa continues to make record investments to improve growth within its key industries and support new businesses. In fact, over the last two years, a record number of businesses were established in Iowa and have taken full advantage of the state’s low operational costs, business-friendly regulatory climate, robust infrastructure and skilled workforce. With industrial construction costs sitting 18 percent below the national average, industrial rental rates at 15 percent below the national average and an abundance of cost-efficient renewable energy solutions, Iowa is a smart choice for entrepreneurs and legacy companies considering expansion.
State leadership is committed to keeping operational costs low and providing business leaders with incentives that reward innovation. A wide range of tax credits and exemptions are available in Iowa, including a sales and use tax exemption for many digital goods and services necessary for commercial enterprises – an incentive considered one of the most pro-business exemptions available in the United States.
Furthermore, Iowa’s central geographic location and access to ample transportation options allows for efficient distribution of goods and manufacturing resources around the world. And, with a top-ranked quality of life enjoyed by our educated and productive workforce, there’s never been a better time to do business in Iowa.
Iowa is on the Cutting Edge
Despite an already compelling case for Iowa as a hub for industry, we’re not content to rest on our laurels. We’re keeping an eye to the future to maintain our competitive edge and prioritize the needs of businesses looking to relocate or expand.
Enacting Transformational Tax Reform
Historic tax reform passed in 2022 offering relief to Iowans by eliminating retirement income tax and lowering the individual income tax to a flat rate of 3.9 percent. This reform also promises to cement Iowa’s corporate taxation structure as one of the most competitive in the nation when fully implemented with Iowa-based corporations paying a 5.5 percent flat rate, which ranks among the lowest in the United States.
Building Momentum in Biosciences
An abundance of raw materials, world-class research institutions and an unrelenting commitment to innovation have firmly positioned Iowa as a leader in the bioeconomy. As a known leader in the production of corn and soybeans, the principal feedstocks for the biofuels industry, Iowa ranks number one in ethanol and biodiesel production. The state’s agricultural heritage also serves as the foundation of phenomenal growth in precision and digital ag and biobased product innovations. In fact, Iowa ranked 7th nationally for growth of bioscience and ag tech related venture capital dollars and deals between 2015 and 2021.
Beyond these platforms, Iowa-based companies specializing in vaccines, diagnostics and medical innovations are thriving. The state is home to the highest concentration of employees in vaccine and immunotherapy biologics in the nation, with Iowa’s academic institutions aiding in landing and retaining top talent. Additionally, strategic partnerships with Iowa State University, University of Iowa and leading companies are helping to accelerate revolutionary medical discoveries.
Improving Certified Site Readiness
When considering expansion or relocation, business leaders don’t have the luxury of investing significant amounts of time into the site selection process. With that in mind, Iowa’s Certified Sites program takes the guesswork out of the process with multiple certified sites across the state providing development-ready locations perfectly suited to meet expansion priorities on deadline.
Since its introduction in 2012, the program has recently implemented a series of enhancements to remain best in class and to better support site selection needs, including a Gold Designation, which allows property owners to go the extra mile to further the project readiness of a site. The process has also been streamlined to ensure sites can achieve faster certification, helping to keep shovel-ready sites available in the pipeline.
Advancing Manufacturing
Despite Iowa’s reputation as an agricultural leader, advanced manufacturing is our largest industry, accounting for 18.2 percent of the state’s GDP and contributing $33 billion annually to the state’s economy. From food production to aerospace electronics, there isn’t much that Iowa can’t manufacture.
To strengthen the industry’s momentum and maintain a competitive edge, Iowa formed an industry-led Manufacturing 4.0 initiative. This strategic plan has helped businesses across the state adopt technology, increase productivity and compete for talent amid ongoing globalization in the industry. In the last year, Iowa has awarded more than $30 million in grants to manufacturers, which in turn has been invested in smart technology, data-driven operations, process automation and training to ensure our workforce remains on the leading edge of the industry.
Investing in our Workforce
Iowa understands the challenge that companies across the nation face in finding and retaining employees. A future-ready workforce is essential to remain competitive, and the state is committed to attracting, educating and retaining top talent. Through initiatives such as the Registered Apprenticeship Program, Iowa aims to provide 70 percent of Iowans with education and training beyond high school to ensure we have the skilled workers to fill high-demand jobs.
To retain this talent, Iowa has committed billions of dollars toward historic investments in our communities – $430 million for the development of new housing, $500 million to improve access to quality and affordable childcare, and nearly $1 billion will have been dedicated to statewide broadband expansion by 2028.
Looking Ahead
Iowa is focused on the future of industry, with strategic initiatives and unprecedented investment in its businesses and people to sustain long-term growth. Learn more about the benefits of doing business in Iowa at www.IowaEDA.com.
