March 28, 2013
(Des Moines) Beginning on January 14th, the 2013 session of the Iowa Senate has focused on expanding Iowa’s middle class. That focus is pushing a diverse and comprehensive set of legislation to keep and create good jobs in Iowa through the Iowa Senate.
“It makes sense to invest in long-range economic development,” said Senator Bill Dotzler of Waterloo, the chair of the Senate Economic Development Appropriations Subcommittee. “These steps will help ensure future growth across Iowa.”
“Iowa’s on track to have the most comprehensive pro-growth approach for a state our size,” said Steve Sodders, chair of the Senate Economic Growth Committee. “It includes smart, targeted investments in traditional economic development efforts, support for the community revitalization of our many Main Streets, and an ambitious education component to tackle Iowa’s workforce shortage head on.”
The legislation includes creating an employee health insurance tax credit for small businesses; expanding historic tax credits and Main Street revitalization; creating an “Iowa First” policy to direct more state purchases to Iowa businesses; boosting efforts to reduce Iowa’s shortage of skilled workers, cutting commercial property taxes, and increasing investment in targeted economic development incentives and tax credits.
“When it comes to job creation, the Senate has been busy,” said Dotzler. “We’ve listened to people from our districts and their top priority is job creation and business expansion. We’ve responded, and we will work to bring the Iowa House and Governor Branstad along.”
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2013 Senate Job Creation Measures
Tax credit to help small businesses afford employee health insurance: Senate File 412 helps more than 73,000 Iowa small businesses pay their fastest growing expense, employee health insurance. The legislation creates a state tax credit worth 25 percent of the federal credit. The federal credit is equal to 35 percent of the cost of employee health benefits in 2013, and increases to 50 percent in 2014.
Revitalize Iowa’s small towns and inner cities through historic tax credits: Senate Study Bill 1240 increases state historic tax credits used to create local jobs, expand housing and enhance property values by restoring historic buildings. Over time, the credits are increased by a third and reach $60 million a year in 2016.
Put Iowa Businesses First: Senate File 170 levels the playing field for Iowa business fighting for state projects. If an Iowa-based business is narrowly underbid on a state contract by an out-of-state company, the Iowa business can match that bid.
Cut Commercial Property Taxes for Main Street and small businesses: Senate File 295 cuts commercial property taxes for Iowa Main Street and small businesses. 9 out of 10 Iowa businesses do better under the Senate’s plan than Governor Branstad’s plan.
Grow our economy by providing incentives to targeted jobs: Senate File 205 provides tax credits to encourage the growth and expansion of targeted businesses.
Skilled Worker Training: Senate File 291 provides $25 million in new funding to community colleges to address the worker skills gap Iowa has compared to other states.
Tax Cut for Working Families: Senate File 422, the increase in the Iowa Earned Income Tax Credit, will provide a nearly $50 million boost to local communities since almost every dollar of this tax cut will be spent locally.
Provisions included in Senate File 430, the Economic Development Budget
Using financial incentives to create high quality jobs: This legislation funds loans and forgivable loans to help Iowa business expand and to attract businesses to Iowa.
Significantly increased funding for the Main Street Program: An increase to $3 million for these grants that help improve the infrastructure of historic commercial districts.
Connecting unemployed Iowans to businesses looking to hire: In 2011, Governor Branstad closed many Workforce Development offices, mostly in rural areas. This legislation would reopen offices in Ames, Atlantic, Denison, Newton and Clinton.
Expand efforts by Iowa’s universities to serve as engines for growth: Our universities work with businesses on technology commercialization, marketing, entrepreneurship, and business growth. We maintain our current commitments and also fund new programs at the Universities which stimulate the Iowa economy and emphasize support for Iowa-based companies.