Legislature proposes bill to couple with federal taxes, codify consumables
March 10, 2016
Two of ABI’s legislative priorities passed the Ways and Means committees in both chambers Thursday morning. Both bills, SF 2303 and HSB 642, couple the state tax code with federal tax changes and codify the definition of replacement parts and consumables supplies for Iowa manufacturers. Gov. Terry Branstad has also expressed support for the proposal.
There is a good possibility the Iowa Senate could debate the legislation on Monday and the House could take it up Tuesday, which is also Iowa Business Day on the Hill. If you haven’t yet, register now to join us at the Capitol next week in support of this and other important issues.
The proposed legislation, which was made public Wednesday, would:
- Fully couple federal income tax changes to the state tax code for the 2015 tax year, which replaces HF2092, a bill passed by the Iowa House earlier this year.
- Adopt the consumable supplies language in HF 2443, which ABI has fought for each of the past three years. HF 2443 was passed by the Iowa House in 2014.
- Rescind the consumable supplies tax rule clarification approved by the Department of Revenue.
Leaders from both parties issued statements Thursday expressing optimism. Click here to read full statements from Senate Majority Leader Mike Gronstal (D-Council Bluffs) and Speaker of the House Linda Upmeyer (R-Clear Lake).
Read more: Legislative leaders, governor tout tentative deal (Radio Iowa)