Local Incentives & Redevelopment Assistance
State-administered and local programs that can be layered with historic tax credits
Local & State Redevelopment
4. Local Incentives & Redevelopment Assistance
Local incentives vary by city and county. Below are the most common state-administered and local programs that can be layered with historic tax credits.
Main Street Iowa Challenge Grant
- Type: Matching grant for bricks-and-mortar downtown projects.
- Administered by: IEDA / Main Street Iowa.
- Award: Up to $100,000, minimum $25,000, with at least a 1:1 cash match.
- Eligible projects: Building rehabilitation, façade improvements, new construction, or reuse in a designated Main Street district.
- Main Street organizations may nominate one project per round.
- IEDA Downtown Funding Opportunities
Certified Local Government (CLG) Grants
- For: Cities and counties with NPS-certified local historic preservation commissions.
- Uses: Surveys, National Register nominations, public education, planning, pre-development for rehabilitation.
- Contact: Allison Archambo, CLG Coordinator — 515-348-6287.
- Grant Funding Resources
Other IEDA / State Redevelopment Tools
| Program | Description |
|---|---|
| Community Catalyst Building Remediation | Grants up to $100,000 for rehab or deconstruction of buildings to stimulate economic growth. |
| Downtown Revitalization Fund (CDBG) | Grants for downtown façade improvements. |
| Redevelopment Tax Credits (Brownfields/Grayfields) | Tax credits for redeveloping abandoned/underutilized industrial, commercial, or public buildings. |
| Workforce Housing Tax Credits | Incentives for building or rehabilitating housing, including downtown upper-story units. |
| Nuisance Property & Abandoned Building Remediation Loan | 0–2% loans for demolition, remediation, and reuse of residential, commercial, or industrial structures. |
| Derelict Building Program (DNR) | Assistance for communities of 5,000 or fewer to address neglected vacant structures. |
Additional Local Incentives
Many cities and counties offer their own tools, such as:
- Local façade grants and historic preservation funds.
- Tax Increment Financing (TIF).
- Property tax abatements (e.g., Urban Revitalization Property Tax Exemption, 427B Industrial Exemption).
- Opportunity Zones, Iowa Great Places, and Community Attraction and Tourism (CAT) Grants.
Example: In Burlington, the Heritage Trust Historic Preservation Grant offers up to $5,000 in matching funds for exterior preservation of properties 50+ years old. Check with your local city hall, economic development office, or historic preservation commission for similar programs.
Disclaimer: Tax codes, grant guidelines, and deadlines change frequently. Before making financial or project decisions, confirm current rules, application windows, and eligibility directly with IEDA, the State Historical Society of Iowa / SHPO, the IRS, and your local city or county economic development office.