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New legislation effective July 1, 2006 (H.F. 2731) created a withholding credit for targeted jobs as part of an urban renewal initiative in Iowa. Border cities that are designated as a pilot project city (applications are due by October 1, 2006) can partner with qualifying businesses to fund projects in their urban renewal areas. Qualifying businesses will be allowed to retain up to 3% of withholding from gross wages paid to employees in the targeted jobs. The city must spend an amount …