LOCAL & REGIONAL
Tax Increment Financing (TIF)
Under the
Tax Increment Financing (TIF)
program, businesses are given the incentive to
construct new industrial or commercial
facilities by receiving direct benefit from the
property tax increase caused by the added value
of those new facilities.
How It Works
1. Business constructs new industrial or
commercial facility
2. New facility increases property tax assessed
on the business
3. City councils or county board of supervisors
may use the additional property tax to:
o Finance direct grants or loans to the business.
o Offset the costs of public improvements or
provision of utilities to serve the new private
development.
o Provide the local match for federal or state
economic development assistance programs.
Revolving Loan Fund (RLF)
The
Region XII Development Corporation
Revolving Loan Fund is used to encourage the
development of new businesses and expansion of
existing businesses in Carroll County.
Manufacturing, service and retail businesses
that plan to locate or expand in Carroll County
are eligible to apply for a low-interest loan.
Projects involving retention of jobs are also
eligible for assistance. The maximum term is ten
years, with a portfolio average of five years.
The minimum size of a RLF loan is $5,000. The
maximum award is $250,000.
Additional Tax Options & Exemptions
Local Property Tax Abatement &
Exemption — Iowa law allows cities and
counties to abate local property taxes for
improving industrial real estate. The most
common amount of actual value added at a new or
expanded facility, which is eligible to exempt
from taxation, is as follows:
Year One: 75% — Year Two: 60% — Year Three:
45% — Year Four: 30% — Year Five: 15%
Other types and terms of local property tax
incentives are available. City councils or
county boards of supervisors may use the
property taxes resulting from the increase in
taxable valuation caused by the construction of
new industrial or commercial facilities to
provide economic development incentives to a
business or industry.
Tax Increment Financing
may be used to offset the cost of public
improvements and utilities that will serve the
new private development, to finance direct
grants or loans to a company, or to provide the
local match for federal or state economic
development assistance programs.
Pollution Control or Recycling
Property Tax Exemption — Improvements
to real property that are primarily used to
control pollution of air or water, or primarily
used for recycling, may qualify for a property
tax exemption.
For more
information about Financial Assistance programs
that may be useful for your project, contact:
Jim Gossett, CEcD
Carroll Area Development Corporation
cadc@carrolliowa.com
www.carrollareadev.com
712.792.4383
