Legislators consider tax credit caps
March 23, 2017
Rep. Pat Grassley (R-New Hartford) introduced legislation last week that would limit the amount of tax credits available to individuals and corporations. Grassley, who serves as chair of the House Appropriations Committee, chaired a subcommittee on the bill, HSB 187, on Monday.
Rep. Grassley began the meeting by asking opponents to consider solutions instead of protecting individual credits. Representatives from state agencies explained that the proposal could cause administrative and legal challenges, such as updating tax forms and rescinding contracts already awarded to businesses.
A brief summary of the bill is available here. Another subcommittee meeting is expected before the bill is brought before the full Appropriations Committee. ABI will continue to oppose this legislation and work with members of the subcommittee for solutions and encourage comprehensive tax reform.
Typically, legislation dealing with tax credits and tax policy goes through the House Ways & Means Committee, so it’s unusual to see this bill in the House Appropriations Committee. However, given lower-than-expected state revenue estimates, Rep. Grassley is looking for opportunities to better understand revenues available to the state.
Staff contact: Nicole Crain, ncrain@iowaabi.org
Read more:
State tax credit backers unite against plan to cap credits (Radio Iowa)
Advocates defend Iowa tax credits (Quad-City Times)