Iowa Business Incentives for Growth (BIG) Program
Iowa Economic Development Authority (IEDA)
Varies — tax credit + refund
Iowa's new expansion credit for manufacturers and tech firms
Effective January 1, 2026, Iowa replaced its longtime High Quality Jobs Program with the Business Incentives for Growth (BIG) program. BIG helps qualifying businesses in advanced manufacturing, bioscience, insurance/finance, and technology offset the costs of locating, expanding, or modernizing a facility in Iowa. The program offers a performance-based investment tax credit (refundable if it exceeds Iowa income taxes), a refund of sales tax paid on construction materials, and a local property tax exemption. First awards were approved in February 2026 — the program is fully active.
- Funding type
- Tax Credit
- Level
- State
- Amount
- Performance-based investment tax credit (rate varies by project, refundable excess), plus refund of Iowa sales tax paid on qualifying construction materials, plus optional local property tax exemption if approved by city/county. Annual program cap: $50 million in total BIG awards statewide.
- Realistic amount
- IEDA does not publish a fixed credit rate — awards are performance-based and negotiated. First 16 projects (Feb–May 2026…
- Deadline
- Rolling — applications accepted monthly. Pre-applications due by the 15th of each month; IEDA Board reviews at the third Friday monthly meeting.
- Status
- active
- States
- IA
- Payment model
- milestone
Who qualifies
- Business must operate in one of four eligible sectors: advanced manufacturing, bioscience, insurance and finance, or technology
- Must be locating, expanding, or modernizing a facility in Iowa
- New jobs must pay wages at or above 100% of the local laborshed wage (new jobs) or 120% (retained jobs)
- All full-time employees must receive a competitive benefits package
- Project must involve qualifying capital investments (building construction/remodeling, long-term leases of 10+ years, or depreciable assets)
- Project must not have begun before IEDA Board approval
- Business must not be in retail, service, warehouse/distribution, data center, or other excluded sectors
- No documented legal or regulatory violations
Hard requirements
- Must be incorporated
- Location restriction: Iowa — facility and jobs must be in Iowa
- Requires creating at least 1 new job
What it covers
Eligible expenses
- Building construction or major remodeling of Iowa facilities
- Long-term leases (minimum 10-year term) for Iowa facilities
- Depreciable assets placed in service at the Iowa facility
- Construction materials (separately eligible for Iowa sales tax refund)
Ineligible expenses
- Inventory
- Working capital
- Pre-approval project costs (project must not begin before IEDA Board approval)
- Projects in excluded sectors (retail, warehouse/distribution, most services, data centers)
How to apply
-
1
Submit pre-application by the 15th of the month
Complete the BIG pre-application at opportunityiowa.gov. Describe the project scope, anticipated jobs, wages, and capital investment. IEDA staff will contact you to determine full application eligibility.
-
2
Complete full application and IEDA staff review
Work with IEDA staff to complete the full BIG application. IEDA evaluates the project's economic impact, job quality, wage levels relative to local laborshed, and alignment with Iowa's strategic industry priorities.
-
3
IEDA Board approval at monthly meeting
The full application is presented to the IEDA Board at the third Friday monthly meeting for approval. Board awards are public record. Projects awarded BIG incentives are announced by IEDA.
-
4
Execute incentive agreement and begin project
After Board approval, execute an incentive agreement with IEDA. The project can then proceed. Credit is performance-based and earned when qualifying assets are placed in service — spread over five years.
-
5
Claim investment tax credit on Iowa returns
As qualifying assets are placed in service, claim the investment tax credit on Iowa income tax returns. Excess credit beyond Iowa tax liability is refunded. Sales tax paid on construction materials is separately refunded.
BIG replaced HQJ on January 1, 2026. Do not apply under the old High Quality Jobs program name. The $50M annual cap means early applicants in a calendar year have the best chance of securing awards before cap is reached.
Deadline & timing
BIG operates on a monthly review cycle. Companies submit a pre-application by the 15th; full applications are reviewed at the IEDA Board meeting on the third Friday of the month. Projects must not have begun before IEDA approval. Annual statewide cap: $50 million in credits.
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Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.