Representatives of Iowa businesses and individuals who might be affected are pushing back against a G-O-P lawmaker’s plan to limit state tax credits. This past year, the State of Iowa awarded 427-MILLION dollars in tax credits. The top tax credits benefit businesses with significant research programs and investors who restore historic properties. One of the other top tax credits is the “Earned Income Tax Credit” for low-income Iowans.
That’s Mike Owen of the Iowa Policy Project.
Businesses like Monsanto say they might consider relocating their research facilities to other states if Iowa policymakers no longer allow the Research Activities Tax Credit to be “refundable.” Some businesses get a check from the State of Iowa because the size of their research operation gets a tax credit so big, it’s larger than their overall tax bill to the state of Iowa. Nicole Crain of the Iowa Association of Business and Industry says the numbers show the Research Activities Tax Credit is working.
The state awards dozens of other tax credits ranging from a credit to cover adoption expenses to the 100-dollar annual tax credit for Iowa fire fighters and advocates are urging lawmakers to continue those as well.
Governor Terry Branstad said in January the state isn’t in a financial position to cut taxes this year.
