(Griswold) Tom Moore, District #21 State Representative, says this week Republicans delivered a historic tax plan lowering taxes for every Iowan and is sustainable into the foreseeable future.
Representative Moore says the plan reduces individual income tax for all Iowans to a fair and flat rate of 3.9%. That puts Iowa at the fourth lowest income tax rate in the country.
The new tax plan exempts retirement income from taxes and includes a new income exemption for retired farmers to keep more folks in Iowa after they retire. And Moore says the new tax bill makes the corporate tax rate more competitive while reducing refundability on the State’s most expensive refundable corporate tax credits.
Moore says that the corporate tax credit will be reduced if the State hits a revenue trigger under this tax plan. In a year where corporate tax revenue exceeds $700 million, the corporate rate will be reduced the following year. This rate will continue to decrease each year revenue is over $700 million until it reaches 5.5%.
The bill reforms Iowa’s Refundable Corporate Tax Credits by cutting refundability by 5% per year for five years on all refundable corporate tax credits that don’t currently have a sunset, ultimately lowering refundability to 75%.
The Research Activities Credit, the State’s most expensive corporate tax credit, lowers to 50% refundability over five years.
