Home > Reverse Investment > Investment Climate > Social Infrastructure www.legis.state.ia.us Establishment, operation and dissolution of a corporation in Iowa are stipulated in the Iowa Business Corporation Act. Further, foreign companies doing business in Iowa without obtaining business licenses are not allowed to file lawsuits with the state court or conduct other legal procedures. www.state.ia.us/tax The taxation system in Iowa provides the tax deductions and exemptions mentioned below. ●New job tax credit ●Deduction for research activities ●Investment allowance ●Machinery and equipment allowance ●Sales and use tax exemption ●Property tax incentive program The Iowa corporation income tax system has some important advantages compared to corporation income tax systems in other states. 50% deductibility of federal taxes from Iowa corporate income. Single-factor, non-unitary tax-Iowa's tax is based only on the percentage of total sales income within the state. Inventories that a company owns are not subject to taxation. In the case of a new company that expands into Iowa, over 1,368 dollars per capita can be set off against tax. Iowa corporate income tax may be reduced or eliminated by the New Job Tax Credit, High Quality Job Creation Program. Corporation Income Tax Rate. Gross income Tax rate Less than $25,000 6% More than $25,000 and less than $100,000 8% More than $100,000 and less than $250,000 10% More than $250,000 12% Manufacturing machinery, equipment, and computers are exempt from property tax. Of taxpayers residing within the state, singles whose gross income exceeds 9,000 dollars as well as married people or heads-of-household with a gross income of 13,500 dollars or more, or eligible widows and widowers are obligated to submit the Iowa tax return form and are subject to state income tax. Nonresidents who earn a net income of 1,000 dollars or more from a business establishment in the state, earn a total net income surpassing 5,000 dollars, or submit a federal tax return form are also required to submit an Iowa tax return form. When filing the state tax return form, the total amount of the federal income tax is deducted. ● Iowa 2007 Tax Rate Schedule Standard Deductions Filling status 1: $1,700 Filling status 3 or 4: $1,700 each Filling status 2, 5 or 6: $4,200 Taxable Income Over But Not over Tax Rate Of Excess Over $0 $1,343 0 + (0.36% × 0) $1,343 $2,686 $4.83 + (0.72% × 1,343) $2,686 $5,372 $14.50 + (2.43% × 2,686) $5,372 $12,087 $79.77 + (4.50% × 5,372) $12,087 $20,145 $381.95 + (6.12% × 12,087) $20,145 $26,860 $876.10 + (6.48% × 20,145) $26,860 $40,290 $1,310.23 + (6.80% × 26,860) $40,290 $60,435 $2,223.47 + (7.92% × 40,290) $60,435 over $3,818.95 + (8.98% × 60,435) ● Iowa 2008 Tax Rate Schedule Standard Deductions Filling status 1: $1,750 Filling status 3 or 4: $1,750 each Filling status 2, 5 or 6: $4,310 Taxable Income Over But Not over Tax Rate Of Excess Over $0 $1,379 0 + (0.36% × 0) $1,379 $2,758 $4.96 + (0.72% × 1,379) $2,758 $5,516 $14.89 + (2.43% × 2,758) $5,516 $12,411 $81.91 + (4.50% × 5,516) $12,411 $20,685 $392.19 + (6.12% × 12,411) $20,685 $27,580 $898.56 + (6.48% × 20,685) $27,580 $41,370 $1,345.36 + (6.80% × 27,580) $41,370 $62,055 $2,283.08 + (7.92% × 41,370) $62,055 over $3,921.33 + (8.98% × 62,055) The tax rate is 5% under ordinary situations, but the following are exempted. ● Machinery, equipment and computer used for production ● Charges for electric power and fuels used for production ● Expenses for production equipment to be newly constructed ● Equipment for pollution control www.state.ia.us/iwd ● High-quality workforce Highly educated and productive workforce ● Low rate of unemployment insurance premium Nation's lowest new employer unemployment insurance rate ● High productivity and lower wage level Low average worker's compensation costs & High manufacturing productivity ● Advanced job training Unique job training program, which provides customized training services required by a business for new employees The State of Iowa boasts a high level of education and the average score of the Scholastic Assessment Test (SAT) and American College Test (ACT) has continued to be ranked at the top for the past twenty years. There are three public universities. The University of Iowa was established in 1847 with the objective of providing training for future doctors to work in Iowa. Iowa State University was established as a land grant university in 1869. A land grant university indicates a university that has the school premise ceded from the federal government and is eligible to receive aid provided that departments including agricultural and engineering will be established, in accordance with the Morrill Act established in 1862. Making effective use of massive agricultural and human resources accumulated in Iowa over many years, both universities have established leadership positions in the fields of biotechnology research, biology research and medicines research. ● University of Iowa[UI], Iowa City, 52242 　 www.uiowa.edu ● Iowa State University[ISU], Ames, 50011 　 www.iastate.edu ● University of Northern Iowa[UNI], Cedar Falls, 50614 　 www.uni.edu In addition to the above mentioned universities, there exist thirty-five private colleges and twenty-eight community colleges. Fifteen vocational training schools in Iowa turn out 25,000 graduates annually, who find employment in the advanced manufacturing industries, bioscience and information solution-related industries. As for prices of commodities, Iowa is the 16th lowest throughout the country. In addition, medical care costs and various service fees are also at the lowest level nationwide. With regard to the crime rate, Iowa is deemed to be the eighth safest state in the U.S. Chinese restaurants and Japanese foodstuff shops can be found in the state capital, Des Moines, as well as other big cities. As for concerts, the Des Moines Symphony Orchestra holds regular concerts varying by season. www.dmsymphony.org/ Golf courses are situated in over 350 locations in the state. Of these, 11 golf courses are located in and around Des Moines City. In Iowa, anyone can find a hospital within 24 miles. Please access www.metroarts.org/agencies.html for art-related information. www.traveliowa.com Hotel Fort Des Moines 515-243-1161 or 800-532-1466 Embassy Suites on the River 515-244-1700 or 800-EMBASSY Holiday Inn Downtown 515-283-0151 or 800-465-4329 Des Moines Marriot Downtown Hotel 515-245-5500 or 800-228-9290 Sheraton West Des Moines 515-223-0894 John V. Atanasoff Developer of the world's first digital computer (1939) Norman Borlaug Agricultural scientist awarded Nobel Peace Prize (1970) William E. Deming Professor who advocated industrial theory that brought victory to Japanese industries [Deming Prize] Simon Estes Baritone singer of the Metropolitan Opera, New York Herbert Hoover The 31st President (1929-1933) Glenn Miller Band leader (1904-1944) well known for "Little Brown Jug" , "In the Mood" and "A String of Pearls" Ronald W. Reagan The 40th President Donna Reed Actress [appeared in films including "From Here to Eternity"] Jane Smiley Writer awarded Pulitzer Prize ["A Thousand Acres"] James A. Van Allen Discoverer of Van Allen Radiation Belt surrounding the earth Henry Wallace Vice president in the Roosevelt era John Wayne Actor [won Academy Award for Best Actor for "True Grit"] Andy Williams Singer famous for TV show, "Andy Williams Show" , etc. Meredith Willson Composer ["The Music Man," "Unsinkable Molly Brown" , etc.] Grant Wood Artist painter [Renowned for "American Gothic" , etc.] www.traveliowa.com Covered Bridges of Madison County Since the State of Iowa is located between the Mississippi and Missouri Rivers, there are numerous rivers and thus a considerable number of covered bridges were constructed between 1855 and 1885. Madison County boasts having constructed sixteen covered bridges, which is the largest number in the state. Of the twelve remaining covered bridges in the state, a half of them, or six bridges are located in Madison County. The Covered Bridge Festival is held in October each year, where antique crafts, commodities and other articles are displayed. Thanks to Robert James Waller's best-selling novel, "The Bridges of Madison County" and its film adaptation, Winterset in Madison County is known across the U.S. Field of Dreams Dyersville, home to the baseball diamond that appeared in the Oscar-winning film "Field of Dreams," (original story, "Shoeless Joe" by W. P. Kinsella and winner of the Houghton Mifflin Literary Prize, starring Kevin Costner) is located about 300km east of the state capital, Des Moines, along Route 20. Iowa State Fair The Iowa State Fair is the oldest fair displaying agricultural products in the U.S. Since 1854 when it was held in Fairfield, it had moved to various places in Iowa. Starting in 1897, however, it has come to be held in the state capital of Des Moines the fourth week of August every year. Presently, a 400-acre space used exclusively for the State Fair is secured in Des Moines. This State Fair became the theme of a novel as well as three films, all of which were entitled "State Fair." Amana Colonies The Amana Colonies are frontier settlements established by German immigrants in 1854. They are situated within a thirty-minute drive from the eastern city of Cedar Rapids, and have a little more than a hundred shops including a cheese shop that passes on traditional techniques. There are other attractions, such as the following: ● Herbert Hoover Presidential Library & Museum www.nps.gov/heho www.hoover.archives.com ● Loess Hills, Moorhead www.loesshillsttours.com ● Adventureland Park, Altoona www.adventurelandpark.com ● De Soto National Wildlife Refuge, Missouri Valley http://midwest.fws.gov/desoto