First Bill Approved by Iowa Legislature is a Tax Measure

A bill on its way to the governor will align state tax law with changes made at the federal level in December.

It’s the first bill to pass the Iowa Senate and House this year and Representative Chris Hagenow, a Republican from Windsor Heights, says it will ultimately save Iowa taxpayers an estimated 100-million dollars this year.

The bill would extend a tax break to Iowa business owners, allowing them to claim the first half of a million dollars worth of new equipment purchases as a tax deduction for the busienss. It also allows Iowa teachers to claim a tax credit for up to 250-dollars for the supplies, equipment and materials used in their classroom. That’s a positive for Representative Dave Jacoby, Democrat from Coralville, but he has some concerns about the bill, namely where the money will not be going.

The bill applies to tax year 2014, so Hagenow says that means it affects the tax returns Iowans are filing now.  The bill cleared the Iowa House yesterday (Tuesday) by a unanimous vote. It passed the Iowa Senate last week on a 49-to-nothing vote. It now goes to Governor Branstad, who is expected to sign the bill into law.