The Office of Economic Development can help connect your business or development with financial assistance in the form of grants, loans, revolving loans, site development, loan guarantees, loan pooling, or equity financing.
Find details about each type of assistance available in Des Moines below. For more information or assistance, contact us.
For information on state training programs, eligibility requirements and application procedures, contact the Iowa Economic Development Authority at (515) 348-6200 or Des Moines Area Community College at (515) 964-6200.
Available Financial Assistance:
Areas of the city considered to be “slum and blighted” may be designated as an urban renewal area to encourage new development or redevelopment.
In these areas, the city can help you in several ways:
- Acquiring land. The city may be able to provide competitively priced sites for new development and business expansion in these areas
- Determining development requirements
- Coordinating infrastructure needs for the area to ensure current and future needs are met
Tax Increment Financing (TIF)
If your business or development is in an urban renewal area, it may qualify for Tax Increment Financing. This flexible tool is used to encourage increased investment in these Tax Increment Districts. It freezes the value of the property for taxing purposes. As construction begins and the property value grows, generating an increase in taxes, the extra tax money is pumped back into that area for further development.
Job and Customized Skill Training
You can get help with training and expanding your company’s workforce. The Iowa Industrial New Jobs Training (260E) program offers tax credits for job and customized skill training. The High Quality Jobs program offers financial assistance to offset some of the costs of locating, expanding or modernizing your facility.
The City of Des Moines tax abatement program encourages new construction and rehabilitation of existing structures through property tax incentives. Tax abatements provide a temporary reduction in property taxes over a specified period of time on the portion of the assessed value added by new construction or improvements to an existing structure.
- Commercial and industrial: Certain areas in Des Moines are designated to receive tax abatement. Contact the Permit and Development Center to see if your property is in an eligible area. All buildings must meet construction and sustainability design standards.
- Industrial property exemption: If your business is classified as industrial and you’re undertaking new construction or rehabilitating an existing building, you may qualify for the state industrial tax abatement under chapter 427B. The abatement is allowed for the value added to the property for a five-year period:
Tax Year Amount Abated Year 1 75% Year 2 60% Year 3 45% Year 4 30% Year 5 15%
Pre-approval is necessary before construction begins. Applications must be filed with the Polk County assessor by Feb. 1 following the improvement.
Your business or development could qualify for a tax credit on income taxes if you take specific actions considered beneficial for economic development in Des Moines, such as redeveloping sites that are abandoned, vacant or underutilized. Tax credits reduce your tax obligation, so they may be more desirable than a tax exemption or abatement.