Press release from Iowa House Republicans:
On Monday, May 17, Iowa House Republicans announced a tax cut compromise plan after extensive negotiations with the Iowa Senate and Governor’s office. The bill delivers tax relief for hardworking Iowans while ensuring the state’s fiscal health for the years to come.
Highlights of the tax plan include:
- Removal of triggers from the 2018 tax reform bill which ensures income tax cuts for all Iowans go into effect Jan. 1, 2023
- Increase eligibility for the Child Care Tax Credits from families making $45k to $90k
- Exempt COVID-19 grant money and Paycheck Protection Plan loans from state income tax
- Phase out the state inheritance tax over five years
- Require payment parity for mental health services provided via telehealth and in-person
- Increase workforce housing tax credits to $40 million for Fiscal Year 2022 and $35 million for the following years
- Phase out the mental health levy over two years, with guardrails to control for quality and equality of services as well as future costs to the state
Speaker of the Iowa House Pat Grassley praised the House’s role in ensuring the Legislature could deliver tax relief for Iowans while maintaining the responsible, conservative budgeting principles that have gotten the state to where it is today.
“Because of the disciplined budgeting practices of Iowa House Republicans over the last decade, Iowa is in a strong fiscal position to further reduce the tax burden on Iowans,” said Grassley. “Our responsible approach to the state budget is part of why Iowans elected us to a 59-seat majority, and we kept that promise as we worked on this legislation. I’m proud of the role House Republicans played in making this bill the best possible outcome for Iowans.”