During the 2013 session, we took big strides to expand Iowa’s middle class through job creation and economic growth initiatives, including the largest tax cut in state history. Fixing our state’s property tax system will save Iowans $4.4 billion over 10 years by giving every class of property a permanent tax cut—commercial, industrial and agricultural properties, as well as homes, apartment buildings and nursing facilities.
A big piece of this effort is the new Business Property Tax Credit, which reduces commercial property taxes—helping small businesses the most—without shifting the burden to residential property owners or sacrificing local schools and services (SF 295). Local Chambers of Commerce applaud this overhaul, saying it makes “Iowa’s property tax system more equitable for small companies and attractive to businesses looking to locate here.” This and other tax changes we approved this year are big wins for Iowa businesses, according to the Des Moines Business Record.
Other much-praised boosts to local business and job creation include:
•Enhancing economic development by allowing local governments to establish reinvestment districts (HF 641). Projects that reap the benefits will be approved based on a common standard, as well as their economic impact on the community, region and state.
•Increasing incentives for businesses to locate and expand in Iowa. Financial incentives were increased to $16.9 million (HF 604), and the state’s Economic Development Tax Credit was increased by $50 million (HF 620). These funds will help with relocation and expansion projects that encourage local investment, job creation, employee training and higher wages.
•Encouraging rehabilitation of historic commercial properties and business districts by expanding eligibility for Iowa’s Historic Tax Credits to assist small and large projects (SF 436).
•Helping promising startups get off the ground by providing an Innovation Tax Credit for investment in early-stage, innovative companies (HF 615).
The steady, sustainable growth in our state’s economy is evidence that Iowa’s approach is working.