Federal tax coupling could save business owners thousands in taxes.
The Biggest Win for Iowa’s Small Business this Legislative Session
2016
saw a big victory for small business in Iowa—the Legislature made the state’s
Section 179 exemption level temporarily conform to the federal level, which is
known as “coupling.”
“This
will allow farmers and business owners to write off up to $500,000 of certain
purchases,” said NFIB Iowa State Director Kristin Failor.
However,
the measure only applies to 2015 tax returns, meaning small business will have
to fight the same fight over again next year.
“We
will be pushing to make the federal coupling a permanent situation as opposed
to having to argue for it every year in the budget,” said Failor. “Having this
be a tentative situation creates a level of uncertainty for small businesses
and especially those who are considering large purchases in the next year.”
Business
owners looking to make major upgrades to equipment may not receive the same tax
breaks they do currently, making it difficult for them to make improvements.
“This
type of unpredictability is frustrating for small business owners who are
already trying to balance out the changes in healthcare and labor laws,” said
Failor.
