Locating in the Midwest
Find out why Iowa and Wisconsin are great
Successful businesses start in Iowa
Low operational costs, a pro-business environment and a highly skilled labor force all make Iowa a great place to locate or grow your business.
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.
Advanced manufacturing sector employs 14% of the state’s total workforce – 36% higher than the national employment distribution for manufacturing. More than 6,000 manufacturers employ nearly 216,000 Iowans.
Business advantages in the Hawkeye State
- Single-factor, non-unitary tax based only on the percentage of total sales income with the state.
May be reduced or eliminated by state tax credit programs.
- 0% – 12% corporate income tax
- Iowa also provides a 50% federal corporate income tax deduction
- 3.3%-8.53% personal tax
- Iowa allows 100% deduction of federal personal income taxes
Refundable research activities credit
- Iowa sets itself apart as being one of the few states to offer a refundable research activities credit. Iowa companies earn refundable tax credits for research and development investments that may be paid directly in cash to the company once its tax liabilities have been met.
- 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.
- 28.9% of the population has at least a bachelor’s degree
- 92.1% of the population have completed high school
Successful businesses start in Wisconsin
A central location and skilled workforce make Wisconsin a great place to locate or expand your business.
Now experiencing an economic boom that started with technological advancements in the manufacturing sector, Wisconsin is leading the way in productivity and sustainability. With more than 460,000 manufacturing jobs and $55 billion in yearly manufacturing output, there’s clearly a healthy worldwide demand for Wisconsin products.
84% of all Wisconsin exports are manufactured goods.
Business advantages in the Badger State
- A single-sales-factor tax treatment.
- Corporations pay a flat 7.9% tax rate – and that hasn’t changed in 20 years.
- When the income tax credit is fully phased in, the effective corporate tax rate for manufacturing and agricultural activities is only 0.4%.
- Exemptions from the sales and use tax include:
- Manufacturing machinery and equipment
- Manufacturers raw materials
- Fuel and electricity used in manufacturing
- 9% corporate tax
- 4-7.65% personal tax
- 5-6.75% sales tax
- Manufacturing companies in Wisconsin receive a 7.5% tax credit in perpetuity through the MAG (Manufacturing and Agriculture Tax Credit) virtually eliminating corporate income tax for eligible manufacturing companies.
- Wisconsin law prohibits agreements that require membership in a labor organization as a condition of employment.
A simplified business climate
- The business climate is attractive to companies looking to expand, relocate or establish North American operations.
- Policies have created an environment that supports business success.
- 28% of the population has at least a bachelor’s degree
- 92.4% of the population have completed high school