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New Jobs Tax Credit

New Jobs Tax Credit - Two Men Meeting in a High Tech Workspace

Assisting Businesses and Expanding Employment Opportunities

This one-time, corporate income tax credit is available to participants in the New Jobs Training (260E) Program. Iowa offers this credit as an incentive for businesses that provide additional training to employees and expand their workforce.

  • Maximum tax credit in 2020 is $1,896 per new employee
  • Maximum tax credit in 2021 is $1,944 per new employee
  • Maximum tax credit in 2022 is $2,088 per new employee
  • Maximum tax credit in 2023 is $2,166 per new employee
  • Tax credit amount depends upon wages paid and the year in which the tax credit is first claimed
  • Unused tax credits may be carried forward for up to 10 years

Iowa Department of Revenue

Who Qualifies

  • Must be entered in a New Jobs Training (260E) agreement
  • Must commit to expand their Iowa employment base by 10% or more

How Do I Apply?

Tax credit may be claimed on Form IA 133 found on the Iowa Department of Revenue website.

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