(Des Moines) Iowa House District 21 Representative Tom Moore said Iowa House Republicans are proposing the tax policy bill following extensive negotiations with the Iowa Senate and Governor’s office.
Moore said they’ve proposed a plan that is fiscally sound, eases the tax burden on Iowans, and includes priorities of the House, Senate and Governor.
The Tax Changes in this Bill Include, among others…
- Removal of triggers from the 2018 tax reform bill which ensures income tax cuts go into effect Jan. 1, 2023
- Phaseout the inheritance tax over 10 years
- Return the Taxpayer Relief Fund ($450 million currently) to Iowans in the form of a credit on 2021 tax returns
- Increase eligibility for the Child Care Tax Credits from families making $45k to $90k
- Increase the percentage and raise the cap for the School Tuition Organization tax credit
- Exempt COVID-19 grant money and Paycheck Protection Plan loans from state income tax
- Require payment parity for mental health services provided via telehealth and in-person
- Increase workforce housing tax credits to $30 million
- Increase Brownfield/Grayfield program to $15 million
- Angel Investor Tax Credit HSB 193and Rural Econ Development HF 112
- Increase Volunteer Firefighter, EMS and Peace Officer Tax Credit to $250
- Exempt food banks from Iowa Sales tax
Moore said this is by no means a done deal and serious differences with the Governor and Senate exist. Therefore major negotiations are taking place amongst leadership and a responsible, budget friendly, achievable plan is yet to be agreed upon.
