EA Public Policy Update: Important information for businesses on Senate's proposed tax reform

The Economic Alliance is focused on public policy advocacy that supports the organization's other core functions: Business Support, Community Development and Economic Development.

State Policy Update - Tax Reform

On Wednesday, Senate Republicans in the Iowa legislature introduced their version of tax reform. You may recall that Governor Reynolds' tax reform legislation was introduced last week ( HSB671). There are some significant differences in the two different pieces of legislation. Most notably, the Senate version includes corporate tax reform, where the House and governor’s version currently calls only for a task force to study the corporate tax structure to make recommendations at a later date.

The Senate bill ( SF2383) has already seen movement by a party line vote in the Senate Ways & Means Committee, making it now eligible to see floor debate. That can happen as early as next week. We also anticipate seeing a fiscal note provided by the non-partisan Legislative Services Agency (LSA) before any floor action in the Senate.

We are pleased to see corporate tax reform included in the Senate’s bill, as this is reform the Economic Alliance has advocated for many years. Iowa remains 40th for business climate in the Tax Foundation’s 2018 State Business Tax Climate Index. Complexity is a driving factor in Iowa’s poor ranking and makes us less competitive when working to recruit and retain businesses in Iowa.

Proposed changes to the current tax code include:

Drops Iowa’s top corporate rate of 12% (the highest in the country) to 7.0%.
Eliminates federal deductibility under both the Iowa individual and corporate tax.
Eliminates Alternative Minimum Tax for both individuals and corporations.
Automatically couples state code to new federal tax code changes.

Of concern in the Senate’s bill are the proposed changes to many of the state’s economic development tax credits programs, including the phasing out of some of the programs most used in our region. These incentive tools, and others, allow Iowa to be competitive in landing projects, expanding current Iowa businesses and providing quality jobs and wages.

With our partners across the state, the Economic Alliance will strongly advocate to maintain these tools and achieve meaningful tax reform for all sizes and types of businesses.

Click here for more business highlights, including tax credit information, in the Senate’s tax proposal.

Upcoming Public Policy Advocacy Events

Mid-Session Policy on the Rocks

Friday, March 2 - next week!

4:30 p.m. - 5:30 p.m.

Grin 'N Goose

227 Second Ave SE

Join Economic Alliance members to advocate for important issues during the 2018 legislative session. Policy on the Rocks is a casual event that gives state lawmakers and members the opportunity to network and discuss issues in a relaxed environment.

Policy on the Rocks is an event exclusively for Economic Alliance members.

Thank you to our Policy on the Rocks Presenting Sponsor, American Profol.

Corridor Day at the Capitol

Tuesday, March 20

8:00 a.m. - 5:00 p.m.

Iowa State Capitol Building

1007 E. Grand Ave, Des Moines

The Economic Alliance joins forces with the Iowa City Area Chamber of Commerce for Corridor Day at the Capitol. Our members are invited to join us for an opportunity to advocate for Cedar Rapids Iowa City Corridor public policy priorities.

In addition to delivering kolaches (a much anticipated Corridor Day tradition), our members will have the opportunity to attend and observe meetings with legislators on this day.

Thank you to Kolache Sponsor, NextEra Energy - Duane Arnold.

We collaborate with the business community and other stakeholders and partners to develop a local, state and federal policy agenda, to create a consistent voice for the region.

Questions about public policy? Feel free to contact Public Policy Strategist, Barbra Solberg at [email protected] .

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