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 |