Redevelopment Tax Credits
Brownfield and Grayfield Sites
Redeveloping Abandoned or Underutilized Industrial Spaces, Commercial Properties or Public Buildings
Developers in Iowa can receive tax credits for redeveloping properties known as brownfield and grayfield sites. Additional tax credits are available for projects that meet or exceed sustainable design standards as defined by state law.
Brownfield sites are abandoned, idled or underutilized industrial or commercial properties where real or perceived environmental contamination prevents productive expansion or redevelopment. Examples of brownfield sites include former gas stations, dry cleaners and other commercial operations that may have utilized products or materials potentially hazardous to the environment.
Grayfield sites are abandoned public buildings, industrial or commercial properties that are vacant, blighted, obsolete or otherwise underutilized. A grayfield has been developed and has infrastructure in place, but the property's current use is outdated or prevents a better or more efficient use of the property.
This tax credit program is offered as a way to promote the economic health of communities by reducing environmental potential hazards, cleaning up eyesores, creating new jobs and boosting tax revenue.
- Tax credits of up to 24% for qualifying costs of a brownfield project and 30% if the project meets green building requirements
- Tax credits of up to 12% of qualifying costs of a grayfield project and 15% if the project meets green building requirements
- Program capped at $15 million per fiscal year with a maximum award per project of $1.5 million
- Applicant may be an individual, limited liability company, S corporation, non-profit, estate or trust
- Projects must meet the rules listed in the Iowa Redevelopment Tax Credit Program Rules Chapter 261.65.11 (15)
How Do I Apply?
- Applications accepted annually during the months of July and August with a September 1 deadline
- Visit govconnect.iowa.gov to apply
You must be logged in at GovConnect.Iowa.gov in order to view the application. Once logged in, click on “Apply for a Tax Credit” under “Tax Credits”, then click on “Redevelopment Tax Credit Application” under “Iowa Economic Development Authority Tax Credit Applications”.