DeWitt's Enterprise Zone in its Crossroads Business Park was established
in August of 2003. Additional zones have been established to include potential
industry expansion lands. Companies located within the zone can submit a
proposal to the county commission to take advantage of the tax benefits offered.
Eligibility Requirements
- The business must make a minimum qualifying investment of $500,000 over
a three year period. Qualifying investment includes the cost of land, buildings,
improvements to buildings, manufacturing machinery and equipment, and/or
computer hardware.
- The business must create at least 10 full-time, project-related jobs
over a three year period and maintain them for an additional 10 years.
- The business must provide all full-time employees with a standard medical
and dental insurance plan of which the business pays 80% of the premiums
for employee-only coverage or provide a monetarily-equivalent benefit package.
- The business must pay new employees a starting wage which is equal to
or greater than 90% of the average county or regional wage, whichever is
lower. (Check with IDED for the community's current wage requirement.)
- The business can not be a retail establishment or a business whose entrance
is limited by coverage charge or membership
- The business can not close or relocate its operation in one area of the
state and relocate substantially the same operation in the Enterprise Zone.
- The local Enterprise Zone Commission and IDED must approve the business'
application for Enterprise Zone program incentives prior to project initiation.
- Must meet wage
thresholds requirements.
Tax Incentives
- A local property tax exemption of up to 100% of the value added to the
property to a period not to exceed 10 years.
- Additional funding for training new employees. If applicable, these funds
would be in addition to those authorized under the Iowa New Jobs Training
Program.
- A refund of state sales, service, or use taxes paid to contractors or
subcontractors during construction.
- For warehouse or distribution center projects, a refund of sales and
use taxes paid on racks, shelving, and conveyor equipment.
- An investment tax credit of up to a maximum of 10% of the qualifying
investment, amortized over 5 years. This tax credit is earned when the
corresponding asset is placed in service and can be carried forward for
up to seven additional years or until depleted, whichever occurs first.
- The State's refundable research activities credit may be doubled while
the business is participating in the program for up to a maximum of 10
years.
