Business Climate Comparison

	Iowa	Illinois	Minnesota	Missouri	Nebraska	Wisconsin
Right to Work Status	Yes	No	No	No	Yes	No
State Apportionment of Corporate Income	Sales Only. Based only on the percentage of total sales income within Iowa.	Sales Only	Sales Only	3 Factor	Sales Only	Sales Only
Corporate Income Tax Rate	6.0% - 12% *Corporate income tax is based only on income from sale to Iowa customers and allows for 50% deductibility of Federal income taxes.	9.5%	9.8%	6.25%	5.58% - 7.81%	7.9%
Sales/Use Exemptions on Production Machinery or Reduced Tax	Yes	Yes	No. 6.5% rate and any applicable local tax. A refund is allowed for capital equipment.	Yes	No, 5%	Yes
Exemption on Business Inventories	Exempt	Exempt	Exempt	Exempt	Exempt	Exempt
Sales/Use Exemptions on Pollution Control Equipment	Yes	Yes	No. 6.5% rate and any applicable local tax. Exempt for purchases by steel reprocessing firms.	Yes	No, 5%	Yes
Does State Allow for an Investment Tax Credit	Yes, 10% rate; qualifying property includes manufacturing equipment, pollution control, buildings & fixtures, and land and improvements to land	Yes, Qualifying property includes manufacturing and pollution control equipment, buildings and fixtures, tangible property used by a retailer, manufacturer, or a miner of coal.	No	Yes, rates and property included are the same as federal.	No	No
Does State Allow Employment-Based Credit Unrelated to Enterprise Zone Credit	Yes, one-time credit of 6% of unemployment wage base if there is training agreement with a community college.	Yes	Yes, the law provides for an exclusion of income earned in a Job Opportunity Building Zone. A qualified business is allowed a credit again the taxes improsed under chapter 290.	No	NR	No
Does State Allow an R&D Credit Unrelated to EZ Credit	Iowa offers a refundable credit of 6.5% of qualified expenditures. For companies using the EZ or High Quality Jobs Program, there is a supplemental credit of 10% for companies with revenues of less than $20 million and 3% for companies over $20 million.	6.5% tax credit for qualified expenditures	10% refundable tax credit for the first $2 million in qualified expenditures, 2.5% for all expenditures over $2 million	No	Nebraska offers a refundable tax credit for qualified expenditures. Credit is up to 15% of the federal credit.	Yes, 5% of expenses incurred in Wisconsin that qualify under federal rules; 5% of capital expenditures incurred in Wisconsin for new or expanded research facilities.
New Employer Unemployment Insurance	1.0%	3.95%	2.23%	3.51%	1.39%	Industry Average