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Taxes & Incentives for Quad Cities Businesses

Grow Quad Cities can help you gain a better understanding of available programs within the bi-state region. Companies choosing to locate in the Quad Cities have access to financial assistance programs through several local, regional, state and federal economic development funds. Funding available is typically based on the cost of building improvements and/or construction of a new facility and the level of high-quality job creation. We'll help you easily compare the bottom line of doing business here.

Iowa

Illinois

Iowa Incentives

High Quality Jobs Program: Economic development incentives that help businesses offset the costs of locating, expanding or modernizing operations in Iowa. Assistance may include loans, forgivable loans, tax credits, exemptions and refunds.

Revitalize Iowa's Sound Economy (RISE) Program: Road and rail infrastructure grants that support business growth through the construction and improvement of transportation infrastructure.

Iowa Jobs Training Programs (260E & 260F): Workforce training assistance for new and existing employees. Businesses can access low-cost training programs that support hiring, onboarding and employee skill development.

Iowa Tax Overview

Sales Tax
- 6% statewide sales tax
- Additional 1% local option sales tax in Clinton, Muscatine and Scott Counties
- Various exemptions may apply depending on the product or service
Corporate Income Tax
- 5.5% on taxable income up to $100,000
- 7.1% on taxable income over $100,000
- Iowa is gradually reducing its corporate income tax rate toward a flat 5.5%
Property Tax
- Rates vary by municipality and taxing district

Local Iowa Incentives

At the local level, cities and counties may offer additional incentives to encourage business growth and redevelopment. These programs can include low-interest financing, façade improvement grants and tax rebate programs tied to job creation, capital investment and real estate development. Here are just a few; connect with a team member to learn more.

Bettendorf
- Tax Increment Financing
- Downtown Façade & Interior Grant Program
Davenport
- Economic Development Loans up to $30,000 per full-time job created, with variable interest rates.
- Urban Revitalization Tax Exemption is used in targeted areas of the city by providing a tax exemption on the increase in property taxes resulting from improvements to a property.
- Tax Increment Financing for larger developments that increase the tax base and create well-paid jobs in the Quad Cities.
- Downtown Davenport also offers grants for pre-development, exterior and structural, commercial improvements and entrepreneurs.

Illinois Incentives

Advantage Illinois: Loan participation program that helps businesses access financing for projects that create or retain jobs by partnering with lenders.

EDGE Tax Credit Program: Corporate tax credits for businesses that create jobs, make capital investments and support economic growth in Illinois.

Quad Cities Enterprise Zones: State and local tax incentives available in designated areas of Rock Island and Henry Counties to encourage business investment, expansion and job creation.

QCREDA Industrial Revenue Bond Financing: Tax-exempt bond financing for manufacturers investing in land, buildings, machinery and equipment. Lower interest rates can result in significant financing savings.

Reimagining Electric Vehicles (REV) Illinois: Incentives for EV and renewable energy manufacturers, including companies producing electric vehicles, batteries, EV components and charging infrastructure.

Employer Training Investment Program: Workforce training grants that reimburse eligible manufacturers for up to 50% of employee training costs, whether provided internally or through a third-party trainer.

Illinois DOT Economic Development Program: Road infrastructure grants supporting roadway improvements tied to projects that create or retain full-time jobs.

Illinois Tax Overview

Sales Tax
- 6.25% statewide sales tax on general merchandise
- Additional local sales taxes vary by city and county
- Various exemptions may apply depending on the product or service
Corporate Income Tax
- 7% corporate income tax
- 2.5% personal property replacement tax on corporations (excluding S corporations)
- 1.5% personal property replacement tax on S corporations, trusts and partnerships
Property Tax
- Rates vary by municipality and taxing district

Local Illinois Incentives

East Moline
Moline
- Façade Improvement Program
- Tax Increment Financing Districts
- Revolving Loan Fund Program
- Tax Increment Financing Districts
- Micro-Enterprise loans
Rock Island

Federal incentives

Businesses may be eligible for a variety of federal, regional and local incentive programs that support investment, expansion and job creation. Federal opportunities include programs such as New Markets Tax Credits, Opportunity Zones and select U.S. Department of Agriculture (USDA) programs.

The Federal Historic Preservation Tax Incentives program encourages private sector investment in the rehabilitation and re-use of historic buildings.

The Quad Cities offers the advantages of a Foreign-Trade Zone.