Economic Development

Taxes

Tax	Iowa	Nebraska	South Dakota
Corp. Income Tax Rates	First $25,000 - 6% Over $25,000 - 8%	First $50,000 - 5.58% Over $50,000 - 7.81%	None
Federal Income Taxes Deductible on State Forms	Yes, 50%	No	N/A
Apportionment Formula Used to Determine % Total Business Income Attributed to the Taxing State	Sales 100% (on profits from sales in state only)	Sales 100% (on profits from sales in state only)	N/A
Tax Incentive for Job Creation	Yes	Yes	N/A
R&D Tax Credits	Yes	No	N/A
Investment Tax Credits	Yes	Yes	N/A
Sales/Use Tax on Industrial Machinery & Equipment	No	No	4% rate
Inventory Tax on Goods in Transit	No	No	No
Tax on Manufacturers' Inventories	No	No	No

Personal Incoome Tax
IOWA TAX RATE 2006	NEBRASKA TAX RATE 2006	SOUTH DAKOTA TAX RATE
.36% > 0	2.56% > 0	None
.72% > $1300	3.57% > $2,400
2.43% > $2600	5.12% > $17,500
4.5% > $5200	6.84% on all over $27,000
6.12% > $11,700
6.48% > $19,500
6.8% > $26,000
7.92% > $39,000
8.98% on all over $58,500
Note: Federal Income Tax is deductible