Danisco, Bazooka Farmstar among companies to receive state tax credits

Iowa Economic Development Authority approved $685,785 in tax credits for Danisco in Cedar Rapids and $390,000 in tax credits for Bazooka Farmstar in Washington during its monthly board meeting Friday.

Danisco, a subsidiary of New York-based International Flavors and Fragrances, received the tax benefit as part of its $48.7 million expansion project that is expected to create eight jobs.

The company, which manufactures enzymes for animal nutrition, biofuels, food and household products, is expanding its facility by more than 20,000 square feet, according to an IEDA document.

The project is expected to create eight jobs and be complete by January 2023.

The tax credit is contingent on the city of Cedar Rapids giving “suitable or satisfactory” tax increment financing, or TIF, funding, according to the IEDA board.

Bazooka Farmstar, a manufacturer of equipment for handling manure or oil and gas, will use its $390,000 tax credit for a 37,500-square-foot expansion of its Washington facility.

The additional space will house a new wash bay and paint booth.

The $6 million project, which also has received local support from the city of Washington, is expected to create 30 jobs and be complete by November 2021.

Bazooka Farmstar has 127 employees.

Mid-Am Building Supply, a building material distributor, received a $220,500 tax credit to build a new 120,000-square-foot facility in Mount Pleasant. That project is expected to create eight jobs.

Other IEDA grants, loans

IEDA also approved grants for three Iowa City and one Coralville company through its Small Business Innovation Research and Small Business Technology Transfer Outreach Program.

Firefly Photonics, LIRECAP and pxAlpha in Iowa City received $50,000. Viewpoint Molecular Targeting received $25,000.

The program is designed to “increase the rate of successful grant applications” for Iowa companies applying for federal SBIR or SBTT grants, according to an IEDA document.

IEDA also issued loans to seven start-up companies in Iowa, two of which are in Eastern Iowa.

Washington-based Continuum Ag, an agricultural consulting and software company, received a $100,000 loan.

Iowa City-based Iowa Simulation Solutions, which creates tools to train orthopedic surgeons, received a $25,000 loan.

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