Tax cuts should focus first on helping Iowa families, farmers and small businesses. We kept that focus with the first bill to pass the House and Senate and be signed into law by the Governor this session.
Senate File 106 will help grow our economy by updating Iowa’s tax code in light of the recent changes at the federal level.
The new law prevents a cut in the family friendly Iowa Earned Income Tax Credit through 2017. It also makes permanent the child and dependent care tax credits, as well as the student loan interest deduction. A deduction of up to $250 in out-of-pocket expenses by Iowa teachers is extended for an additional two years.
Another provision provides a nearly $20 million boost to the Iowa economy. It allows small businesses and farmers to immediately write off up to $500,000 in new equipment rather than spreading that deduction over several years through depreciation.