Helping Iowa Businesses Expand, Modernize and Compete
The Business Incentives for Growth (BIG) program helps qualifying businesses offset some of the costs of locating, expanding or modernizing a facility in Iowa. Offered by the Iowa Economic Development Authority (IEDA), BIG supports growth in key industries: advanced manufacturing, bioscience, insurance and finance, and technology.
Types of support:
- Investment tax credit — performance-based, earned when qualifying assets are placed in service, and spread over five years. If the credit exceeds Iowa income taxes owed, the difference is refunded.
- Refund of sales tax paid on construction materials.
- Local property tax exemption, if approved by the city or county.
All awards are tied to a contract with IEDA that outlines required investments, job creation/retention and other commitments. An annual report is required while the contract is active; once all terms are met, the contract is closed.
Eligibility
Businesses may qualify if they are primarily engaged in one of the eligible industries — advanced manufacturing, bioscience, insurance and finance, or technology — and apply and receive approval before starting their project (before construction, purchase or lease of a building, purchase/installation of equipment or other project expenses).
Projects must involve a capital investment such as building construction/remodeling, long-term lease costs (minimum 10 years) or depreciable assets.
To be considered, projects should demonstrate clear economic impact in Iowa, such as:
- Working with a high or growing number of in-state suppliers
- Diversifying Iowa’s economy
- Operating in an industry with few in-state competitors
- Creating new jobs or raising wages/skills for existing workers
- Increasing productivity and competitiveness through smart technologies (i.e., automation, robotics, Internet of Things (IoT), additive manufacturing, augmented reality and cybersecurity — often called Manufacturing 4.0)
- Contributing to the state’s gross domestic product
- Adding product lines or services, entering new markets or customer segments, or scaling production and operational capacity
Not eligible: Routine projects such as deferred maintenance, repairs or basic equipment replacement. Incentives are intended to support initiatives that drive measurable business growth, innovation or expansion beyond normal operational upkeep.
In addition, businesses must:
- Meet wage thresholds (new jobs: at least 100% of the local laborshed wage; retained jobs: at least 120%). View current wage requirements.
- Provide a competitive benefits package to all full-time employees
Who’s Not Eligible?
- Retail, service providers, warehouse/distribution centers or data centers
- Projects that have already begun
- Businesses with a documented pattern of legal or regulatory violations (i.e., environmental, antitrust, worker safety or trade rules)
Application Process
- Submit a pre-application — a confidential check of eligibility and estimated incentives.
- Complete the application (if invited). Applications are due by the 15th of the month and must be signed by month’s end for review at the next month’s IEDA Board meeting.
- IEDA Board review. The board meets monthly on the third Friday. Awards and application details are public, though payroll and financial records remain confidential under Iowa law.
- Submit through the online portal. Both pre-applications and applications are managed online.