DeWitt project to convert insurance building into housing receives state tax credit

DEWITT, Iowa (KWQC) – On Tuesday, the Iowa Economic Development Association announced that 49 different housing projects across the state will receive credit of the Housing Tax Credit Program for the workforce.

“It includes a tax credit that can help the developer offset their state income tax and it also provides a rebate for sales and used taxes that are paid on an assigned housing project that typically goes be a sales tax used on building materials, “said Nichole Hansen, leader of the community investment team at IEDA.

One of this year’s recipients was for a project at Dewitt, which involves converting a closed insurance building into 53 rental units of studios, one bedroom and two bedrooms. The nearly 100-year-old Iowa Mutual Insurance building is slated to become the Iowa Mutual Lofts in fall 2022.

John Maxwell owns the post office within walking distance of future lofts and is excited about what the new accommodations are bringing to the area. Maxwell said.

“It’s great for so many things, it’s great for schools, it’s great for the economic development of communities, it really has a big impact,” said Maxwell, “Isn’t it wonderful to take a building like the building behind us and be able to recycle it if you want or upgrade it to bring residents to the area, which means jobs for the area, which means people have jobs in the area, it’s just a win-win all around.

Hansen said conversion projects like DeWitt’s were a priority among those chosen this year. She also said that part of the money set aside was also intended for projects for smaller and more rural areas. Specifically, for the 88 smaller counties in Iowa.

“What we do know is that it is often more expensive to develop more housing in more rural areas because of the labor costs, because of the procurement costs, because of the associated costs. moving materials from point A to point B, ”said Hansen,“ It’s hard to develop vibrant communities across the state if there are no affordable units, housing for the workforce. work that people can live in.

“We just see this as another way we are working to invest and strengthen the Iowa economy,” Hansen said.

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