IA- Section 179 income tax coupling saga continues in Des Moines
Source: Sioux City Journal –
March 6, 2016 – by Sen. Bill Anderson, R-Pierson
The income tax coupling saga continues in Des Moines. Early in the session Iowa House Republicans passed legislation which updates Iowa law to conform to federal Internal Revenue Code tax provisions – in particular, Section 179. The legislation could save Iowa taxpayers more than $90 million when they file their 2015 taxes. Essentially, Section 179 can be utilized to allow a business to depreciate the full purchase price of qualifying equipment and/or software purchased during the tax year. This means if you buy a piece of qualifying equipment, you can deduct or expense the full purchase price from your income. It's an incentive created by the government to encourage businesses to buy equipment and invest in themselves.
Over the past few weeks I have heard from tax professionals, farmers and small business owners from across my district about Section 179 expensing. They have stressed their desire to see the Senate follow the Iowa House’s lead and pass a bill to couple.
Iowans deserve answers. We need certainty in our tax code – now. I want to state again, I completely support our small business owners and farmers. The House bill is a common sense bill I support. I remain optimistic that the Senate will act resolving our differences on this issue. Coupling with Section 179 will keep Iowa’s economy strong.