Targeted Jobs Withholding Tax Credit

The Targeted Jobs Withholding Tax Credit is a pilot program that allows diversion of withholding funds paid by an employer to be matched by a designated pilot city to create economic incentives directed toward the growth and expansion of targeted businesses locally. Match is required for every withholding dollar received. This match can be provided by a private donor, the pilot city, the employer, or a combination of all three; and can be in cash or in-kind contributions.

• Withholding agreement allows up to 3% of gross wages paid by the employer to be directed to the project budget on a quarterly basis
• All designated withholding funds and matching funds are to be used for a project related to the employer as defined in the withholding agreement
• Must be approved by the Iowa Economic Development Authority Board prior to the execution of any withholding agreement
• Withholding agreement may have a term of up to 10 years

Eligibility

• Must be located in Burlington, Council Bluffs, Fort Madison, Keokuk or Sioux City
• Must be relocating to Iowa from another state and creating jobs at or above the hourly wage threshold for the city, OR
• Be an existing Iowa business creating or retaining 10 new jobs at or above the hourly wage threshold for the city, OR
• Be an existing Iowa business making a qualifying investment of $500,000 within a pilot city
• Effective July 1, 2019, FY 2020 hourly wage thresholds are:
  • Burlington: $21.15
  • Council Bluffs: $21.30
  • Fort Madison: $22.05
  • Keokuk: $22.05
  • Sioux City: $20.55

How to Apply

• Interested businesses and cities must jointly complete the application