A report from NFIB's Iowa State Director Matt Everson
All of these measures were signed into law by Gov. Kim Reynolds
SF 2417, the tax relief bill, is a momentous step in moving Iowa’s tax climate from one of the least competitive in the nation to potentially one of the most competitive. Below are a few of the highlights for Small Business:
- Lowers individual income tax rates.
- Phases in Section 199A (the new, federal Qualified Business Income deduction) from 25% in TY 2019 to 75% in 2022.
- Fully couples in 2020 with section 179, which is $1 million/$2.5 million and annually indexed. This includes the repeal of like-kind exchange (1031) for all but real property.
- Lowers corporate rate beginning in TY 2021.
- You can read the fiscal impact here.
Future Ready Iowa: Signed into law by the Governor
HF 2458, Future Ready Iowa legislation, championed by Governor Reynolds, will transform how Iowa trains and educates the workforce in Iowa. It creates a registered apprenticeship program, a volunteer mentoring program, a pilot program for at-risk youth, an employer innovation fund, a last dollar scholarship program and a skilled workforce grant program. This legislation is just one piece to the puzzle in helping improve Iowa’s skilled workforce shortage.
Dram Shop Reform:
SF 2169, Dram Shop Reform, is legislation that will reduce the legal and financial liabilities of bars and restaurants that serve alcohol in their places of business. This legislation will lower the caps an establishment can be held accountable and puts a higher standard for personal responsibility for overconsumption of alcohol. These new measures will lower liability and insurance costs for these types of businesses.
Lease Purchase Agreement Reform:
HF 2253, Lease Purchase Reform is legislation that will tighten open bidding laws in Iowa to ensure a fair and open process for contractors and protect the taxpayer by having a competitive process for building and construction projects.
Private Employer Alcohol Testing Reform:
HF 2383, Private Employer Alcohol Testing Reform, is legislation that conforms Iowa’s testing for alcohol to the federal motor safety carrier guidelines. Iowa currently has .04 standard, and federal guidelines for transportation is .02. The bill conforms to federal standards.
Card Swipe Fraud Reform
HF 2199, The Card Swipe Fraud legislation, strengthens penalties for individuals who use and now possess credit card skimming technologies. Iowa was the most lenient states for credit card skimming fraud and has seen an uptick in fraud over the past several years. This legislation makes Iowa one of the toughest states dealing with credit skimming fraud, keeping small businesses and their customers safe from these expensive types of crimes.