Iowa Legislature Reaches First Major Deadline, Tax Reform Update, Other Bills We're Tracking and More

Iowa Legislature Reaches First Major Deadline

Iowa House Passes Bipartisan Tax Bill

Two key developments tied to ABI’s public policy priorities emerged under the golden dome this week. Senate lawmakers passed the comprehensive re-employment and tort reform package out of the Senate Commerce Committee this week, and the full Iowa House chamber debated and passed its tax reform bill, HF 2317, with bipartisan support. There were seven amendments proposed, but none were adopted.

Earlier in the week, ABI Vice President of Public Policy JD Davis urged lawmakers during a public hearing to add corporate income tax cuts to this tax proposal. The current bill that passed the Iowa House on a 61-37 vote does not include corporate tax at this time and ABI remains undecided. ABI continues to have conversations with both chambers and the Governor’s office to ensure a comprehensive tax reform package is beneficial for the diversity of ABI members and their filing status.

Several other key bills related to ABI’s policy priorities also advanced this week as today marks a key deadline for the Iowa Legislature. Known as the first “funnel,” this is the final date for most bills and joint resolutions to be approved by the Iowa Senate and House Committees. This is a requirement in order for these bills to remain eligible for consideration until the legislature meets its next deadline.

Appropriations and Ways and Means bills are exempted from this funnel deadline.

For additional details and the most updated discussions at the Capitol, be sure to join our legislative update this morning at 8am. If you haven’t registered and would like to participate, please email Brad Hartkopf. The call is for ABI members only.

Update on Efforts to Reform and Reduce Taxes

On Wednesday, the Iowa House passed HF 2317, its version of broad-based tax reduction. The bill reduces personal income taxes to a flat 4% over time, eliminates the tax on retirement income, eliminates the capital gains tax on ESOP shares and eliminates the tax on cash rent income for retired farmers. The bill is similar to the Governor’s proposal, but does not include a reduction of corporate taxes to a flat 5.5% over time.

A fiscal note showing the impact and cash flows of the Senate Plan, SF 2206, was also released on Wednesday. The Senate plan includes the provisions of the House plan but also reduces corporate taxes to 7.8% while eliminating or reducing some business tax credits. These include the Research and Activities Credit, the Computer and Computer Peripherals Credit and the credit given to sub-chapter S corporations for income from sales outside of Iowa.

ABI public policy staff is providing member input and is guided by our tax policy statements, which states ABI is open to the consideration of tax credit reform as long as it is accompanied by overwhelming tax relief.

We remain supportive of the process and are working to see that the public policy meets our goals. For any additional information please reach out to JD Davis.

Other Key Bills ABI is Tracking

Below is a list of bills ABI’s public policy team has been tracking that are of interest to members:

Workforce Related Legislation

SF 2275/HF 2279 - Workforce/Tort Reform
ABI Position: For
Status: Alive
SSB 3123/HSB 682 - Governor’s Second Workforce Bill
ABI Position: For
Status: Alive
SF 339 - E-Verify Bill
ABI Position: Against
Status: Alive
SF 2129/HF 2165 - Last Dollar Scholarship Expansion
ABI Position: For
Status: Alive

Keep reading for the full list of additional key bills and brief summaries of each.

Sen. Chuck Grassley to Host Town Halls

Photo: Twitter @ChuckGrassley

Sen. Chuck Grassley has several town hall meetings in western Iowa during the week of Feb. 21, 2022. These town halls are open to the public and are part of the senator’s annual 99-county meetings in the state. His meetings will be in Sac County, Greene County, Audubon County and Monroe County.

You can learn more about the times and locations here.

Senate Unveils Budget Proposal for FY23

On Tuesday, Senate Republicans released their budget proposal for the upcoming fiscal year. They unveiled a budget of just more than $8.2 billion, which would be an increase of 3.5% ($283 million) over the current fiscal year. The budget would also provide for a $159 million increase in K-12 funding and $71 million in mental health care funding. Read more from The Courier.

House Unveils Budget Proposal for FY23

This week, House Republicans also unveiled their budget proposal for FY23. House Republicans have proposed a budget of just more than $8.2 billion as well. Their budget includes $2.1 billion for Health and Human Services and $4.1 billion for school funding and other standing appropriations. This would be an additional $159 million increase for schools, like the Senate plan. The $159 million increase is linked to HF2316, which passed both chambers and was signed by Gov. Kim Reynolds on Thursday.

Two Weeks Left to Register for Day on Hill

The annual Day on the Hill is on Wednesday, March 8. The event, which begins with a legislative update by ABI’s public policy team and includes remarks from State Sen. Dan Dawson (R-Council Bluffs), is a key opportunity for you to hear legislative updates and connect with your elected officials.

The event started almost 15 years ago when ABI members were working to defend Iowa’s Right-to-Work law and employer direction of care in workers’ compensation. For the last several years, ABI members have had the opportunity to have a proactive agenda and talk to legislators about the importance of advancing key legislation.

Click on the graphic below to register for the event!

Federal Spotlight: Iowa Sen. Joni Ernst Leads American Small Business Competition Act

Iowa Senator Joni Ernst announced her new efforts this week to help agriculture and manufacturing businesses. Under the American Small Business Competition Act, small businesses involved in manufacturing, agriculture and technologies named on the National Security Council’s Critical and Emerging Technologies list would be able to access doubled loan amounts under the 7(a) and 504 loan programs administered by the Small Business Administration (SBA).

The small businesses would have to be based in the United States and report foreign beneficial ownership to the SBA in the process of applying for a loan.

ABI President Mike Ralston said ABI supports the American Small Business Competition Act because “ABI members know that manufacturing, agriculture, and critical technologies are core components to our national competitiveness.”

“These industries are essential to Iowa and our nation and to creating sustainable economic value in the 21st century,” Ralston added.

You can find the full text of the legislation here.

Watch: Weekly Business Report with Brett Burkhart, Conference Committee Chair

Brett Burkhart, a Customer Success Lead at ABI member company MakuSafe, serves as the chair of the Conference Committee. Brett shares his insight about why the Taking Care of Business Conference is valuable to attend.

Foundation: Nominations for Leadership Iowa 2022-23 are due

by April 1

Nominations for Leadership Iowa 2022-23 are due by April 1 this year! Consider those leaders in your life who would benefit from the Leadership Iowa experience and be sure to nominate them today. Self-nominations are also encouraged.

Leadership Iowa looks for the best mix of qualified candidates for selection from diverse occupations, backgrounds, and industries – and most importantly, from all corners of the state.

Nominate yourself or others by April 1 here.

From the Desk of Pat Pithan

Pat Pithan

Director, Sales and Business Consulting

MMIT Business Solutions Group

What's the Point of Managed Print Services?

When it comes to business solutions, there are a lot of questions you can ask. Perhaps the most important is also the simplest: "What's the point?" Today, we'll ask that very question about one big business solution: managed print services.

The Point of Managed Print Services

When you hear the term "managed print services", you may think it refers to some sort of outsourcing situation where a faceless third-party company rules your print environment.

That could not be further from the truth.

In fact, the real "point" of managed print services is to make your print environment better, stronger, and more efficient in whatever way works best for you and your organization. While some tasks and concerns may be outsourced like the ones you don't want or have the resources to deal with, the rest stays within your control.

Keep reading for a few examples of managed print services in action.