The City of Ankeny offers grants, tax abatement and tax increment financing for economic development projects that provide new jobs and commercial tax base to the community. The City also manages a substantial Revolving Loan Fund to finance building or production expansion projects.
Targeted Industry Incentive Grant
Businesses creating employment in Ankeny's targeted industries are eligible for the the Targeted Industry Incentive Grant. The grant will award between $750 and $1,500 per new job created based on a combination of the wage level and the business' capital investment in Ankeny.
Industrial Property Tax Exemption
The Industrial Property Tax Exemption incentive provides a phasing-in of the increase in taxable property valuation as a result of a business' investment in Ankeny. Tax exemption is provided according to the following scale:
- Year 1- 75% exemption of additional taxable value
- Year 2- 60% exemption of additional taxable value
- Year 3- 45% exemption of additional taxable value
- Year 4- 30% exemption of additional taxable value
- Year 5- 15% exemption of additional taxable value
A business builds a building on a parcel of land. The land was originally valued at $100,000. The new building is valued at $2.5 million. Therefore, the property has a total valuation of $2.6 million.
With tax exemption, in the first year, the business pays taxes on only 25% of the new valuation, or $625,000. This amount is added to the original valuation of the land which results in taxation on a value of $725,000 rather than $2.6 million dollars. The formula is the same in subsequent years, applying the sliding-scale percentages.
Tax Increment Financing
Tax Increment Financing is provided in addition to tax abatement and is determined according to the level of investment, the number of jobs and the wage levels of the jobs.
In general, the City Council will approve tax abatement and tax increment financing awards up to the equivalent of a 100 percent abatement of property taxes for five years.
Revolving Loan Fund
The City of Ankeny's Revolving Loan Fund (RLF) is designed to promote employment and capital investment in Ankeny's targeted industries. Loans will generally be made up to $100,000. More information on qualifying loans and the application process is available in the Revolving Loan Fund Application.
Local Business Investment Policy
The City of Ankeny supports the continued growth and success of the companies that are invested in the community. The Local Business Investment Policy provides up to a ten-year package of industrial property tax exemption, property tax rebates, grants and loans to companies in the targeted industries of Advanced Manufacturing, Bioscience, Logistics and Business Services/Information Technology that are making new investments in facilities and expanding employment.
Special Projects Fund
Business expansion and relocation decisions focus on minimizing risk and maximizing success. The Special Projects Fund provides a source of funding to ensure that businesses can get the information they need to evaluate a location in Ankeny. The Special Projects Fund can be tapped for a wide variety of uses including traffic studies, soil testing, environmental studies, expert consultations, etc. Economic Development Department staff will work with company leaders to determine how the Special Projects Fund can bring the most value to growing businesses.