Legislative News
Governor Signs ABI-supported Bills
Following adjournment of the 2018 legislative session, Gov. Reynolds and her staff have been carefully reviewing and signing bills that passed during the session. This week, she signed several bills into law that included legislation ABI supported throughout the session. Legislation pertaining to water quality, opioids, WIOA and equipment rental sales obtained her signature. Keep reading for  a brief description of the bills.

Regional Meeting in Council Bluffs Next Week
Next week the ABI public policy team will present its second regional meeting, in Council Bluffs, on Tuesday, May 22 at 11:30 a.m. The meeting will be held at Iowa Western Community College and includes a meal. This is an excellent opportunity to learn the results of the legislative session and provide feedback to our staff. Introductory remarks will be made by Iowa Western President Dr. Dan Kinney and ABI President Mike Ralston. The policy staff will then provide a comprehensive breakdown of the session and preview the fall elections. To RSVP, please contact Michelle Vollstedt at mvollstedt@iowaabi.org or 515-235-0561.

IIPAC Annual Report Available
Last week, IIPAC investors received the 2017 Annual Report outlining IIPAC's successes and investments made in candidates who support business. The report is now online and available for all ABI members to view.  Click here to see the report. You can see IIPAC investments increased from 2016, but we have more work to do. The voice of Iowa businesses and the hundreds of thousands of people they employ has never been louder at the Capitol. To maintain the competitive business climate that has been developed the last few years, we need your personal commitment and investment. Please  click here to donate $118 dollars in recognition of the 118 days the Legislature met this year prior to adjournment. Keep reading.

Just Inside 3 Weeks Until Primary Day
June 5 will be a very consequential day for candidates running for office in Iowa, as voters go to the polls to determine who they want to see as the nominees of their respective parties for the general election in the fall. Voters will choose candidates in the gubernatorial race and several legislative swing districts, which will help determine the course Iowa takes for the next few years.  Some of the key primaries to watch include the Democratic gubernatorial race, which would go to a special convention if no candidate receives 35% of the vote; the Democratic 1st and 3rd Congressional races; and the Republican Secretary of Agriculture race where five candidates are seeking the nomination. Keep reading.

Register for the Post-session Legislative Call on June 4
The 2018 legislative session has adjourned, which means you will want to RSVP for our final legislative update call on Monday, June 4, at 10 a.m. The public policy team will provide ABI members with the latest information and the results of the session. This is an excellent opportunity to provide feedback and ask questions. To RSVP, please contact Michelle Vollstedt at  mvollstedt@iowaabi.org  or 515-235-0561.

Attend ABI Public Policy Workshop at Conference
ABI's annual Taking Care of Business conference is just a few weeks away, and it's an event you don't want to miss. The conference is full of fantastic speakers, incredible workshops, tours of ABI companies and other excellent opportunities. This year, the public policy team of Nicole, Jessica and Brad will lead a workshop at the conference entitled Public Policy in Today's Political Environment. The team will 
have an in-depth conversation about the results of the 2018 legislative session, provide a meticulous analysis of the Iowa and federal election races, and help decipher what all of this means for you and your company. The workshop is scheduled to take place on June 6 during the 3 p.m.-4:15 p.m. session. If you are interested in public policy and want keen insight into how that relates to today's political environment, be sure to attend this event during conference.

Federal Spotlight: NAM Board Chair Testifies Before House Committee
The National Association of Manufacturers (NAM) Board Chair, and Chairman and CEO David Farr of ABI member company Emerson, testified before the House Ways & Means Committee this week. He presented the results of a survey manufacturers from around the country, including Iowa, participated in following the Tax Cuts and Jobs Act of 2017 being signed into law.  There were some very positive signs in the survey. Keep reading to find out what they were.
Bringing Boji Back
Save the Date and Book Your Hotel Now
ABI members love the Iowa Great Lakes! That's why we're once again hosting the "Bringing Boji Back" event in Okoboji on August 1-2. This fantastic event will include a special industry tour, cocktail hour, dinner and valuable programming. Event registration will open soon.
Make your hotel reservation now. Call the Arrowwood Resort & Conference Center at 712-332-2161, and ask for the Iowa Association of Business and Industry room block. The deadline for hotel reservations is June 17. Please note: Attendees are responsible for making and paying for their own room accommodations.
From the Desk of...
Tax Reform and the Art of Entity Selection

Randy Mihm CPA, JD
Honkamp Krueger & Co., P.C.

The Tax Cuts and Jobs Act made significant, wide-sweeping changes to the tax code for corporations. C-corporations saw the previous top tax rate of 35 percent cut to a flat 21 percent. Additionally, a new Qualified Business Income (QBI) deduction for S-corporations, partnerships and sole proprietorships was adopted. This change did, however, come with some industry restrictions; some personal service businesses were excluded from the special rate in certain situations.

These changes will leave many business owners and those with pass-through income wondering where they fall in the lineup of tax rates and deductions. Some are beginning to question if a switch from S-corporation to C-corporation would be beneficial in light of these changes. While each choice of entity presents tax opportunities and challenges of its own to consider, each business's unique needs and goals should also be taken into account before making an entity switch. Entity selection is an art rather than a science; this was true before tax reform passed, and it continues after this tax reform legislation. However, in light of these recent changes, it is prudent to once again discuss and weigh this choice with the potential outcomes and results. Keep reading.
Top News
Heidi S. Nebel Selected for National Plant Variety Protection Board
Secretary of Agriculture Sonny Perdue has appointed  Heidi S. Nebel , intellectual property (IP) attorney, managing member, and chair of the Biotechnology & Chemical Practice Group at McKee, Voorhees & Sease, PLC, to serve on the Plant Variety Protection Board.  Nebel has been an IP attorney for over 25 years, obtaining patents and designing IP strategy in the areas of agricultural biotechnology, plants and animals. Read the news release.
Advance Iowa to Host Family Business Succession Webinar
Advance Iowa will host its monthly business succession webinar on May 23 at 12 p.m. This month's topic is "Keeping It In the Family -- Family Business Succession" hosted by Dick Smith and Lori Shaefer-Weaton of Agri-Industrial Plastics in Fairfield. The company was founded in 1978 and has been family owned ever since. Smith and Shaefer-Weaton will share how they made the successful transition from first to second generation, as well as the challenges and opportunities that arose.  Register for the webinar.

MidAmerican Energy Offers HVAC Rebates for Business Customers
Reduce out-of-pocket costs of installing new energy-efficient equipment and save money over the life of select items with rebates from MidAmerican Energy. Click here to review qualifications and requirements, and learn how to apply.

DMACC Seeks Input on Program for Continuous Improvement Pros
Does your organization currently employ, or would like to employ, a continuous improvement staff person? Do you want your internal staff be trained to lead and support continuous process improvement? Des Moines Area Community College wants your help in designing a certificate program that provides continuous improvement skill sets needed by business and industry.  Please take this  two- minute  survey  to help DMACC create the best possible program to adequately prepare continuous improvement professionals.
Governor's Club Sponsors