Several states offer some form of research and development tax credit, but very few have fully refundable research credits. However, Iowa’s Research Activities Credit program has spurred economic activity, helped to attract high-salaried and advanced degree careers, while offering a strategic incentive to local businesses to continuously innovate.
Fortune 500 avionics company Rockwell Collins, based in Cedar Rapids, Iowa, is one company that has made use of Iowa’s Research Activities Credit. For the last several years, Rockwell Collins has focused on emerging technologies like infrared sensors that provide a clearer picture to the pilot during nighttime flights or bad weather conditions. President and CEO Kelly Ortberg said the program is valuable for helping the company compete globally.
“We operate in a fiercely competitive industry where research and development is critical,” said Ortberg. “We’ve found the R&D tax credit program that Iowa offers provides the right financial incentive to help us alleviate some of the risks.”
Rockwell Collins’ systems are installed in the cockpit of nearly every commercial airliner worldwide, including the next generation of Boeing and Airbus jets. Seventy percent of U.S. and allied military communications are transmitted over their devices.
“We’ve found the R&D tax credit program that Iowa offers provides the right financial incentive to help us alleviate some [INDUSTRY] risks.”
“We sell into and service airlines throughout the world with nearly 40 percent of our revenues coming from outside the United States,” said Ortberg. “However, we’re founded and headquartered in Iowa, and our Midwest location has never hindered our international business or recruitment efforts. It’s a great place to live and raise your family—once we recruit people to Iowa, they rarely take transfer opportunities to the coasts.”
About one half of Rockwell Collins’ 20,000 employees, including 4,000 engineers, work at the company’s headquarters and four regional manufacturing facilities across Eastern Iowa. Much of the company’s high-tech research occurs in the state.
The proximity of leading aeronautics, electrical and industrial engineering programs at Iowa State University and the University of Iowa has been instrumental to the company’s success. Some of that research includes collaboration with faculty and students at the University of Iowa, where Rockwell Collins avionics equipment is tested on two cold-war era, Czech-built fighter planes.
“Iowa State University and the University of Iowa have incredibly strong engineering programs, and they’re both at record enrollment,” said Ortberg. “This provides our company with a steady stream of talent who tend to stay with us for most of their careers.”
Like Rockwell Collins, Iowa companies earn refundable tax credits for research and development investments that may be paid directly in cash to the company once its tax liabilities have been met. This is a critical difference and a huge benefit for Iowa companies, because each research or development decision depends on a delicate balance between the inherent financial risk and the return of profitability. The weight of that risk is mitigated with the refundable aspect of the state’s Research Activities Credit.
Innovative programs like these are one reason Iowa offered the nation’s second lowest cost of doing business in 2016, according to CNBC. For more information on Iowa’s Research Activities Credit, visit iowaeconomicdevelopment.com.
0
1:00 - 5:00 pm
Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process
Executives expressed frustration with their current strategic planning process. Issues include:
Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns. They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning. Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process. This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented. If you are ready for a Strategic Planning tune-up, select this workshop in your registration form. The additional fee of $695 will be added to your total.
2:00 - 5:00 pm
Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations.
Limited space available.
10:30 - 5:00 pm
General’s Retreat at Hermitage Golf Course
Sponsored by UBS
General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.
The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.
