IA-Legislative Alert – Section 179 – Iowa Members Help Needed
Last December the U.S. Congress passed a robust Section 179 expensing provision that enhanced the expensing limits to $500,000 and is now a permanent part of the tax code.
However, the full stimulus effect of the enhanced Section 179 expensing provision may not be felt Iowa due in part to the Iowa Senate failing to couple Iowa tax code with the federal tax provisions for tax year 2015.
Iowa typically attempts to match the state deductions with that of the federal tax code when it comes to Section 179. However, when developing the budget for 2016, the Governor and Iowa Senate leadership failed to anticipate the enhanced Section 179 expensing provision.
The Iowa Senate is now claiming that Section 179 will cost the state an additional $62 million dollars in revenue in an already tight budget situation.
As of February 18, the Iowa House has passed , which would couple Section 179 with the Iowa tax code for 2015.
Republicans have been pushing for coupling to provide that tax relief. Democrats have been hesitant to embrace coupling, Senate Majority Leader Mike Gronstal, the Statehouse’s top Democrat, said Monday he is willing to support coupling if legislators can make the revenue balance.
“I’ve made a good-faith offer to the Republicans that we felt provides some countervailing revenue measures. So, we’re open to considering it,” Gronstal said. “I would rather do the coupling than some of the other things that are on the table.”
We encourage all of our Iowa members, their employees, and customers, to contact Iowa Senate Majority Leader Mike Gronstal to encourage his support of the legislation and ask that Iowa Senate Democrats pass House File 2092.
Senator Gronstal can be reached at 515.281.4610 or mike.gronstal@legis.iowa.gov.
Please take a moment today to contact Senator Gronstal.
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State Senator Gronstal Democrat Legislative Email:
Senate Office: (515) 281-4610 Home Phone: (712) 328-2808
Home Address: 220 Bennett Ave, Council Bluffs, IA 51503 |