Some states offer tax incentives for hiring employees (not for outsourcing workers). You should be able to do an internet search for tax incentives in Iowa to find them. In my state, tax incentives are listed on the Department of Commerce and the Tax Commission web sites. The amount of the incentive varies by type, as does the number of years one can apply for a credit.

Under the Hiring Incentives to Restore Employment (HIRE) Act, enacted March 18, 2010, two new tax benefits are available to employers who hire certain previously unemployed workers (“qualified employees”). The first, referred to as the payroll tax exemption, provides employers with an exemption from the employer’s 6.2 percent share of social security tax on wages paid to qualifying employees, effective for wages paid from March 19, 2010 through December 31, 2010. In addition, for each qualified employee retained for at least 52 consecutive weeks, businesses will also be eligible for a general business tax credit, referred to as the new hire retention credit, of 6.2 percent of wages paid to the qualified employee over the 52 week period, up to a maximum credit of $1,000. he White House is considering a new proposal, Small Business Jobs and Wages Tax Cut, which would provide a tax credit to eligible employers on a quarterly basis to encourage hiring. You can learn more about this proposal on Whitehouse.gov: http://www.whitehouse.gov/the-press-office/president-obama-propose-new-s.... That said, keep in mind that there is a distinction between an 'employee' and contractor or self-employed freelancer. The above credits apply only to employees. There are many legal and tax ramifications for posing contractors as employees. I would suggest that you read Independent Contractors vs. Employees to understand the legal requirements of hiring one versus the other: http://www.sba.gov/content/independent-contractors-vs-employees