Innovation Fund Tax Credit
The Innovation Fund Tax Credit by Iowa Economic Development Authority boosts venture capital in certified funds supporting Iowa's science and tech startups in manufacturing, biosciences, and IT.
Funder: Iowa Economic Development Authority
Due Dates: September 1, 2026 (application window opens) | December 31, 2026 (application window closes)
Funding Amounts: 25% tax credit on eligible investor cash equity investments in certified Innovation Funds; annual allocation limits apply.
Summary: Incentivizes venture capital investment in certified funds supporting early-stage, high-growth Iowa businesses in advanced manufacturing, biosciences, and information technology.
Description
The Innovation Fund Tax Credit program, administered by the Iowa Economic Development Authority, encourages equity investment in certified Innovation Funds that, in turn, invest in innovative Iowa businesses with high growth potential. The program aims to stimulate venture capital activity, support early-stage companies, and foster a robust innovation ecosystem within the state. Investors receive a state income tax credit for qualifying cash equity investments made through these certified funds.
