Matching Grants for Energy Efficiency Improvements

The City of Iowa City has a new energy efficiency incentive program designed to save your firm money while helping achieve the City’s emission reduction goals. Improving energy efficiency can be costly, which is why we are offering matching grants, up to $250,000, in three of our industrial areas to assist in the improvements. If your business is located in one of the three industrial areas shown on this map, you may be eligible: 

  • Sycamore & First Avenue
  • Heinz Road
  • Scott 6

These grants are available first come, first served, with up to $250,000 available in the following categories:

  • Advanced heating & cooling systems
  • Lighting system upgrades
  • Building automation controls
  • Solar power & water heating systems
  • Insulation, high performance glass, & cool roofs
  • Mechanical upgrades
  • Alternative refrigerant systems

Please use the following forms to start the application process:

Questions? Contact:
Wendy Ford | | 319-356-5248
Sarah Gardner | | 319-887-6162

Economic Development Loans, Forgivable Loans, and Grants

The City of Iowa City has access to a limited pool of funds to provide direct financial assistance for economic development activities and business development projects. The amount and type of funding available for any one project will depend upon the characteristics of that project and the financial need of the project. All projects requesting funding will be evaluated based upon the City of Iowa City Financial Assistance Eligibility Guidelines.

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Small Business Resource Programs (SBRP) - CDBG Funded

The City provides two opportunities that utilize federal Community Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development to assist small businesses with five or fewer owners and/or employees (a microenterprise) or for organizations that provide technical assistance, advice and business services to owners of microenterprises and/or person developing microenterprises.

MicroLoan Program for Small Business

The purpose of the MicroLoan Program is to provide low to moderate income persons with access to affordable loans to start or expand a business in Iowa City.

Council Economic Development Fund

This fund is used to provide loans, forgivable loans, and grants to business development projects and programs which diversify and increase the property tax base by encouraging the retention and expansion of existing industry and attracting industries that have growth potential and are compatible with existing industries.

Tax Increment Financing

Tax increment financing (TIF) is a mechanism used to provide financial assistance for projects within a designated urban renewal area and TIF district. Iowa City's urban renewal areas.

Click here for a map of the urban renewal areas in Iowa City. Learn more about TIF on our Resources and Documents page.

The difference between taxes derived from unimproved, underdeveloped, or underutilized property and those derived after its development, redevelopment, or expansion is the "increment" of taxes which may be pledged by the City to help finance project expenses incurred by the City or the developer in furtherance of the development.

The TIF ordinance makes available to the City incremental tax revenues for repayment of project-related expenses or the provision of a property tax rebate. The incremental tax revenues include those levied by and for other taxing jurisdictions, such as the county, school district, and community college.

TIF financing is available in the form of public infrastructure improvements or in the form of forgivable loans or property tax rebates for qualifying businesses. The amount of available tax increment financing is dependent upon the amount of new taxable property value added to a property.

Partial Industrial Property Tax Exemption

Any projects which add value to real property (building and site improvements) that are classified as either an industrial building, warehousing/distribution center, or research-service facility qualifies for the partial industrial property tax exemption. The exemption is for a period of five years where a portion of the new value in a qualifying is exempted from taxation at the following rate:
Year One 75%; Year Two 60%; Year; Three 45%; Year Four 30%; Year Five 15%

City Government