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Small Biz Victories: 2022 Iowa Legislative Wrap Up

Small Biz Victories: 2022 Iowa Legislative Wrap Up

May 24, 2022 Last Edit: June 5, 2025

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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