Economic Development Set Aside (EDSA)

The Economic Development Set Aside (EDSA) program provides financial assistance to businesses and industries requiring assistance to create or retain job opportunities in Iowa. EDSA develops viable communities that provide economic opportunities for people, especially those with low- and moderate incomes.

Priority is given to projects that create manufacturing jobs, add value to Iowa resources and/or increase exports. Preference is given to businesses that create or retain the greatest number of jobs with the least amount of program dollars. Projects must demonstrate a need for assistance. The only three valid criteria to determine need are: a financing gap, insufficient return on investment or locational disadvantage.

  • Assistance provided as direct loans or forgivable loans
  • Maximum award is $1 million
  • All federal Community Development Block Grant (CDBG) requirements apply
  • Projects must incorporate and support Iowa’s state sustainable principles
  • Projects must be “necessary and appropriate” and only the minimum amount of EDSA funds necessary to meet this definition
  • Restructuring of existing loans and projects involving a single retail establishment are low priorities


  • Counties and cities under 50,000, except those designated as HUD entitlement areas, are eligible to apply on behalf of a business within their jurisdiction
  • At least 51% of jobs created/retained must be filled by low- and moderate income individuals (per the U.S. Department of Housing and Urban Development definition)
  • Jobs created/retained must pay at least 80% of the area laborshed wage
  • Companies funded must offer health and dental coverage

How to Apply

  • Applications are accepted and reviewed on a continuous basis
  • Review the application instructions and apply for funding at

Category: State Incentives

The High Quality Jobs (HQJ) program provides qualifying businesses assistance to off-set some of the costs incurred to locate, expand or modernize an Iowa facility. This flexible program includes loans, forgivable loans, tax credits, exemptions and/or refunds. The Iowa Economic Development Authority (IEDA) offers this...
Learn More
Description: Computers and industrial machinery and equipment acquired after 12/31/93 are exempt from tax. Eligibility: Special valuation applies to all computers but only to machinery and equipment classified as industrial real estate. Form: No form is needed.
Learn More
Description: Exemption for certain property other than land and buildings that is purchased by a data center business. This includes computers and equipment that are necessary for the maintenance and operation of a data center business. Eligibility: The data center business must meet the requirements contained...
Learn More
Description: Value-added exemption to encourage industrial and commercial development. Subject to approval by city councils and county boards of supervisors. Eligibility: Partial exemption for five years. The percent varies each year. Cattle facilities must be owner-operated. Filing Requirements: Application must be filed with assessor by February...
Learn More
Description: Value added exemption to encourage local business development. Subject to approval by city council or county board of supervisors. Eligibility: Available to community development organizations, not-for-profit cooperative associations and for-profit entities. Terminates when building is leased or sold. Filing Requirements: Application must be filed with...
Learn More
Exemption for certain property that is purchased by a Web search portal business. This includes cooling systems, cooling towers, and other temperature control infrastructure; all power infrastructure for transformation, distribution or management of electricity used for the maintenance and operation of the Web search portal,...
Learn More
Overview This one-time, corporate income tax credit is available to participants in the New Jobs Training (260E) Program. Iowa offers this credit as an incentive for businesses that provide additional training to employees and expand their workforce. Maximum tax credit in 2020...
Learn More
Iowa offers the first in the nation Renewable Chemicals Production Tax Credit. The program incentivizes the production of 30 high-value chemicals derived from biomass feedstocks. According to the U.S. Department of Agriculture, the credit represents the “strongest” incentive package for the bio-based chemical industry...
Learn More
Iowa sets itself apart as being one of the few 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...
Learn More
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...
Learn More
Add to Report View Custom Report