Targeted Jobs Withholding Tax Credit
In late 2006, the City of Burlington was designated as one of only five pilot cities for the new Targeted Jobs Withholding Tax Credit program.
Under this program, a withholding agreement between the city and the employer allows up to 3% of the gross wages paid by the business to be directed to the city on a quarterly basis. The city must then match these funds dollar for dollar and use the funds in an urban renewal project related to the employer.
A 'targeted job' is defined as a job with a business that is or will be located in an urban renewal area and that pays a minimum wage equal to the county-wide average wage. In addition, the withholding agreement must be with:
- 1. A business that is locating to its community from another state and is creating targeted jobs within an urban renewal area; or
- 2. An existing Iowa business that is creating ten new targeted jobs or makes a qualifying investment of $500,000 within an urban renewal area.
The maximum term of a withholding agreement is ten years.
View the City of Burlington's Urban Renewal Area Map.