Iowa Senate Committee Okays Small Biz Tax Break

DES MOINES, Iowa (AP) — A Senate panel approved a bill that would give a new income tax break to small businesses if they cover part of their employees’ health insurance.

 

The measure passed a Senate Ways and Means subcommittee Tuesday with bipartisan support and now moves to the full committee. It’s an incentive for small businesses to provide health insurance coverage for their employees.

Under the Affordable Care Act, a small business that employs 25 or fewer people and chooses to cover 50 percent of their employees’ health insurance costs gets a federal income tax break.

If the bill passes, these businesses would get an additional state income tax break, worth a quarter of their federal savings.

Democratic Sen. Matt McCoy, of Des Moines, estimates more than 73,000 businesses could benefit.

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