Targeted Jobs Withholding Tax Credit

The Targeted Jobs Withholding Tax Credit sits under the Iowa Economic Development Authority and operates as a pilot for a small set of Iowa cities. It is a project-development tool rather than a direct grant, and it uses employee withholding to help finance jobs and investment in communities that the state has chosen for the program. The credit allows employers in Burlington, Council Bluffs, Fort Madison, Keokuk, or Sioux City to redirect up to 3% of gross employee wages each quarter into a project budget, with matching funds from the city. Agreements can run for up to 10 years. Eligible companies must either relocate to Iowa with net new jobs, be existing Iowa businesses creating or retaining at least 10 jobs, or make a qualifying investment of at least $500,000 within one of the pilot cities. Wage thresholds vary by county and are updated for FY2026. The route is best for employers with a local expansion plan and a municipality willing to participate, since the city match is part of the structure. Applicants need to show job creation, investment, and site fit in one of the five cities, because the program is geographically tight and does not work as a broad statewide incentive. The quarterly cadence rewards projects that can move from agreement to payroll quickly and stay disciplined over time.

Each grant below is a distinct funding opportunity with its own eligibility, scope, and deliverables.