16 Oct 2014 — 04:30 PM
JOB CREATION PROGRAM CONTINUES TO BENEFIT SIOUX CITY
Des Moines, Iowa – This week a Texas based company announced its plan to locate in Sioux City. The announcement follows approval of $1.9 million in state incentives from the Targeted Jobs Withholding Tax Credits. Originally set to expire in 2013, the program was extended for an additional five years after State Representative Chris Hall negotiated a bipartisan compromise.
“The Targeted Jobs program helps communities like Sioux City be more competitive with neighboring states,” said Hall. “It’s essential that Sioux City remains competitive with South Dakota and Nebraska so we don’t see our employers and workers locating across the river.”
TrinityRail Maintenance Services received approval of $1.9 million in tax incentives for a new rail car maintenance and repair facility from the Iowa Economic Development Authority to help finance the proposed $29.5 million investment.
In Sioux City, over 1,600 jobs exist because of the Targeted Jobs Withholding Tax Credit. It has also leveraged over $115 million in new private investment, including the advanced manufacturing and health care industries.
“This program is bringing new high wage employers into the community and keeps Sioux City on a level the playing field in the tri-state area, “ said Hall. “This project alone will create another 250 good jobs.”
Under the targeted jobs program, a withholding agreement between the city and the employer allows 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 the funds can be used for most expenses incurred by a business related to their project.
The Targeted Jobs Withholding Tax Credit was signed into law on May 16, 2013.