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Iowa Enterprise Zone Program
Winnebago County
2003
Enterprise Zones were established in 1997 to promote economic development efforts by offering tax benefits for construction, housing and new jobs. Winnebago County is now included in the Iowa counties eligible to establish Enterprise Zones and offer the following benefits.
BENEFITS AVAILABLE FOR HOUSING, DEVELOPERS,
NEW AND EXPANDING BUSINESSES
(Full details on program available at the LMCDC office or at City Hall)
Housing:
Requirements: Construct or rehabilitate minimum of 4 single family or 3-unit multi-family building that meet HUD standards and local building codes.
• Refund of all State sales and use taxes paid during construction (does not include Local Option)
• Investment tax credit of up to 10% of the new investment directly related to the construction or rehabilitation of the housing – on first $140,000 of value.
New and Expanding Businesses:
Requirements: Create 10 or more full-time jobs and maintain for 10 years; minimum investment of $500,000; provide medical/dental insurance; average starting wage equal to or greater than 90% of average county wage which is $8.67 hour.
• City or county can offer property tax exemption or TIF up to 10 years
• Additional 1.5 % job training funding for new employees
• Refund on sales, service and use taxes paid to contractors or subcontractors
• Additional research and development (R&D) credit up to 6.5%
• Investment tax credit of up to 10% of new investment in machinery, equipment, land, buildings and improvements to existing buildings.
Below is an example of benefit to new or expanding business

New capital investment = $8.8 million
       (land, $435,000; building, $6,200,000; Machinery/equipment, $2,175,000)
135 new jobs with average starting wage of $12.50
• Local property tax exemption-optional (100% per year for 5 years or split between TIF/Tax Abatement)
• Additional funds for training new employees................................................................................... $289,068
• Refund of state sales, service or use taxes on construction......................................................... $155,000
• Investment tax credit (10%)...................................................................................................................$880,000
• Research and development tax credit (6.5%).................................................................................... $84,500
      Total Value -- plus property tax exemption or TIF...................................................................... $1,408,568

Development Business (Available for Developer):
Requirements: Developer agrees to construct, expand or rehabilitate a building space to be used for manufacturing, processing, cold storage, distribution or office facilities; Must make a minimum capital investment of $500,000; Prior to applying for benefits, they must enter into a lease agreement for a minimum of 5 years with eligible business (must employ/add 10 or more employees, meet wage levels, employee benefits, etc.)
• Developer eligible for property tax exemption
• Refund of state sales, service and use taxes paid to contractors and subcontractors
• Investment tax credit of up to 10% of purchase price of land and cost of improvements to real property
For further information, contact the LMCDC office at 641-592-5253 or e-mail at lmcdc@wctatel.net


 
Lake Mills Chamber Development Corporation
203 North First Avenue West
Post Office Box 182
Lake Mills, Iowa 50450