Research Activities Credit

Iowa sets itself apart, being one of only a few states in the United States to offer a refundable research activities credit. Iowa companies earn refundable tax credits for research and development investments that may be paid directly in cash to the company once its tax liabilities have been met. This is a critical difference and a huge benefit in Iowa because each research or development decision depends on a delicate balance between the inherent financial risk and the return of profitability. The weight of that risk is mitigated with the refundable aspect of the state’s Research Activities Credit.

Specifically, the qualified research expenditures include:

  • Wages paid to an employee for performing or supporting a research activity conducted at an Iowa facility or for an employee in Iowa who directly supervises or directly supports research activities
  • Supplies including tangible property other than land, improvements to land and depreciable property
  • 65% of expenses related to contract research

For more information regarding this incentive, contact Greater Dubuque Development at 563-557-9049 or by email.