Small Biz Victories: 2022 Iowa Legislative Wrap Up

May 24, 2022

Lawmakers Approve Pro-Small Biz Legislation

Small Biz Victories: 2022 Iowa Legislative Wrap Up

Small business owners in Iowa are grateful to lawmakers in Des Moines for advancing several pro-small business bills that will keep the economy strong. Here’s a quick summary: HF 2317 – Income Tax Reform This legislation provides significant tax reductions for many small business owners and their employees. The bill reduces the current 8.53% top personal income tax rate to a single 3.9% flat rate by 2026. This bill also eliminates taxes on retirement income starting in tax year 2023 and begins to reduce the corporate tax rate from 9.8% to 5.5% as certain revenue triggers are met over time. Passed the House 61-34. Passed the Senate 32-16. Other Key Highlights:

Eliminates the capital gains tax on the sale of shares of qualified ESOP businesses.
Exempts farmer retirement income on either cash rent or capital gains tax

Governor Kim Reynolds signed bill into law on March 1, 2022

HF 2355 – Unemployment Insurance Reform This legislation reforms Iowa’s current unemployment insurance system and transforms it into a re-employment system. The bill accomplishes many things including minimizing the maximum amount of time an individual can be on unemployment from 6 months to 4 months. This provision alone will save employers $70-80 million dollars per year in unemployment taxes. Passed the House 58-37. Passed the Senate 30-14. Other Key Highlights:

Enhances suitable work requirements by accelerating the timeframe and wage at which someone must accept a job.
Defines the term “misconduct,” allowing both parties to know the rules of the game when a dispute is brought before a judge.

Governor Kim Reynolds signed bill into law on June 16, 2022

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