Based on a strong agricultural foundation, Iowa has transformed its economy over the last 50 years. The state is now home to a wide range of industries, including advanced manufacturing, food processing and biotechnology.
Major international employers choose Iowa:
- International Paper
- General Mills
- John Deere
Advanced manufacturing sector employs 14% of the state’s total workforce – 36% higher than the national employment
distribution for manufacturing.
Business advantages in the Hawkeye state
Reduced corporate income tax
- Single-factor, non-unitary tax based only on the percentage of total sales income within the state.
- May be reduced or eliminated by state tax credit programs.
One of five states that offer 50% deductibility of federal income taxes from corporate income.
Under Iowa law, an employee may not be required to join a union or pay dues or fees to any labor union, association or organization as a condition of employment.
The cost of workers’ compensation insurance is 11% lower than the national average.
Low unemployment insurance rate
- The 2017 standard new employer rate for all nonconstruction businesses for a three-year period is 1% on a $29,300 base wage.
- In 2017, the average rate is 1.57%, with a large number of zero-rated employers.
The cost of unemployment insurance is one of the lowest in the nation.