IOWA'S
CORPORATE TAXES
We eliminate the following tax burdens
- No sales or use tax on industrial machinery/equipment/computers
- No sales tax on purchases of electricity or natural gas used directly
in the manufacturing process
- No property tax on manufacturing machinery/equipment/computers
| Personal
Property Tax - Iowa does not tax personal property |
|
0% |
| Inventory Tax - Personal property
includes corporate inventories of goods-in-process, raw materials and
salable goods. |
0% |
| Corporate
Income Tax - 50% deductibility of federal taxes from Iowa corporate
income. Iowa is one of only five states that offers this important deductible.
A single-factor, non-unitary tax-Iowa's tax is based only on the percentage
of total sales income within the state. Iowa imposes an alternative minimum
tax equal to 7.2% of Iowa tax preferences. Iowa's corporate income tax
can also be reduced or eliminated by the New Jobs Tax Credit, High Quality
Job Creation Program or Enterprise Zone Benefits |
6% on
first $25,000
8% on next $75,000
10% on next $150,000
12% on everything over $250,000.
|
| Iowa State Sales Tax - The tax is imposed
on gross receipts from sales of taxable tangible personal property and
taxable (enumerated) services. Exceptions include industrial machinery,
equipment and computers. |
6% |
More
on Iowa's tax policies
|
