IEDA Funding, tax breaks spur job creation in Iowa
IOWA — The Iowa Economic Development Authority (IEDA) board recently awarded direct financial assistance and tax benefits to four companies for job creation and expansion projects. These awards will assist in the creation of 241 jobs and will result in over $254 million in new capital investment for the state. The board also approved innovation funding for six startups.
The board approved assistance for planned or proposed projects located in Atlantic, Des Moines, Boone, Council Bluffs, Urbandale, Dubuque and Coralville.
Electrical Power Products, Inc. is a manufacturing company located in Des Moines that provides complete power management systems for commercial and utility industries for power generation, transmission and distribution. The board awarded the company tax benefits through the High Quality Jobs program (HQJP) for a project that includes the construction of a new 184,000-square-foot facility. The facility will allow the company to grow and operate the integrated control enclosure portion of the business. This $14.7-million capital investment will be built by Electrical Power Products’ parent company, Electro Management Corp. The project is expected to create seven jobs at a qualifying hourly wage of $26.72.
Glycerin Group, LLC (dba KemX Global) is a startup company that is planning to set up operations in Boone. The company will produce pharmaceutical-grade glycerin and non-GMO cooking oils. KemX products will have over 5,000 uses in the food, agriculture and bio-based chemical industries and the company’s customer base will include large chemical companies in the food and agriculture industries. The board awarded KemX tax benefits from HQJP for this $27-million capital investment that is set to create 41 jobs at a qualifying wage of $21.58 per hour.
US Pipe, originally incorporated in 1899 as United States Cast Iron Pipe and Foundry Company, manufactures ductile iron pipe and related fittings, valves and gaskets for the water and wastewater industry. Through US Pipe Fabrication, US Pipe also manufactures coated, fabricated and lined pipe used in wastewater treatment facilities. US Pipe has 11 operational locations coast-to-coast as well as international manufacturing operations. The proposed project includes the rehabilitation and upgrading of a dormant facility in Council Bluffs, formerly owned by Griffin Pipe, which was purchased by US Pipe in February 2014. The company received tax benefits through the Targeted Jobs Withholding Tax Credit program for this $22.5-million capital investment that is set to create 144 jobs at a qualifying hourly wage of $17.24.
Farmers Energy Cardinal, LLC is proposing to construct and operate a 150-million-gallons-per-year, dry-mill corn ethanol plant in Cass County. The board awarded the project a sales tax refund to create 49 jobs, of which 45 are incented at a qualifying wage of $18.67. The project will result in a capital investment of $189.9 million.