After last week’s unanimous passage in the Senate of Senate File 126, which conforms Iowa’s tax law to federal
tax law, the House debated the bill on Tuesday. The bill unanimously passed the
House and now will be sent to Gov. Terry Branstad for his signature.
The bill will align state tax law with changes made at the
federal level in December. It’s the first bill to pass the Iowa Senate and
House this year and it will ultimately save Iowa taxpayers an estimated $98.98
million this year.
The bill would extend a tax break to Iowa business owners,
allowing them to claim the first half a million dollars’ worth of new equipment
purchases as a tax deduction for the business. It also allows Iowa teachers to
claim a tax credit for up to $250 for the supplies, equipment and materials
used in their classroom. That’s a positive for Representative Dave Jacoby,
Democrat from Coralville, but he has some concerns about the bill.
The bill applies to tax year 2014, so that means it affects
the tax returns Iowans are filing now.
Governor Branstad is
expected to sign the bill into law.
