By CBJ News Staff
The aerospace/defense company BAE Systems landed $7.5 million in state tax credits Friday from the Iowa Economic Development Authority (IEDA) Board, while several existing Corridor businesses landed incentives that will help keep the economy growing through the COVID-19 recession.
BAE is in the process of acquiring the military Global Positioning System business of Collins Aerospace in Cedar Rapids, and plans to build a new 200,000-square-foot classified defense facility in Cedar Rapids for manufacturing and R&D. The project is a partnership with Ryan Companies, which will develop and own the building. It was awarded $5.7 million in investment tax credits, $135,000 in Research Activities Tax Credits and $1.6 million in sales tax rebates related to building construction. In return, the company pledges to maintain 550 jobs that pay at least $22.27 per hour, most of which already exist in the area at Collins Aerospace.
The city of Cedar Rapids sponsored the incentive application and is negotiating final terms of a $14.5-million property tax incentive deal, while also planning to apply for a state transportation grant to improve access to the site. Cedar Rapids officials peg the project’s value at $139 million.
JRS Pharma was awarded $844,000 in tax credits for an expansion of its Cedar Rapids plant that produces excipients, which are inactive pharmaceutical ingredients. The city of Cedar Rapids has approved $462,000 in tax abatements for the project, which is expected to add 18 jobs.
Coralville-based Higher Learning Technologies was awarded a $400,000 Innovation Acceleration Expansion fund loan for product refinement for its test prep, continuing education and lifelong learning apps.
Stratafolio, based in Cedar Rapids, was awarded a $100,000 Demonstration Fund loan for its cloud-based real estate analytics and management platform. The funds will be used for product refinement, market entry and key personnel.
To see a full list of Friday’s IEDA incentive awards, click here. CBJ