The City of Ankeny offers grants, loans, tax abatement and tax increment financing for economic development projects that provide new jobs and commercial tax base to the community.
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.
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. Eligible uses, as determined by the County Assessor, are industrial manufacturing, distribution center, research – service facility, public warehouse, and cattle facility. 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 can be 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 consider approving tax abatement and tax increment financing rebates up to the equivalent of a 100 percent abatement of property taxes for five years.
50/50 Loan Program
The City of Ankeny's 50/50 loan program is designed to promote employment and capital investment in Ankeny's targeted industries. Loans will generally be made up to $100,000 and are structured as 50% repayable, 50% forgivable with five year repayment terms and five year job creation and maintenance targets. Contact economic development staff for more information on qualifying loans and the application process.