Budget Bills Begin to Move as Legislature Eyes Adjournment
The Iowa House and Senate advanced a number of budget bills through the legislative process this week as the General Assembly has taken significant steps towards moving closer to adjourning the 2021 legislative session. Committees in both chambers moved legislation that will act as vehicles for negotiations between the House and Senate as they look to craft a budget for Fiscal Year 2022.
In addition to the budget, there are still a number of significant policy items that have yet to be debated. Late nights of debate are likely to come over the course of the next few weeks. The 110th day of session is April 30, which is when per diem expenses for lawmakers end and encourages lawmakers to wrap up the session.
You can view the budget bills that moved this week below:
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ABI Infrastructure Priority Receives Unanimous Senate Support
Broadband Policy Bill Heads to Governor Reynolds
This week, the Senate unanimously approved HF 848 which sets up policy to incentivize private industry to deploy high-speed broadband infrastructure across the state. The bill now heads to the governor because the House already approved the legislation last week. You can read more about the details here.
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Upcoming Legislative Updates:
The Legislative Updates are for ABI members only. If you haven’t registered, please contact Michelle Vollstedt.
In Case You Missed It:
As always, please reach out to JD Davis or Brad Hartkopf from ABI’s public policy team if you have any questions or would like additional information about any pieces of legislation.
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Tax Legislation Passes Senate
The Legislature also moved a number of other pertinent pieces of legislation as well this week. The highlights are provided below.
SF 587 - On Tuesday, the Senate passed a significant piece of tax legislation that does a number of things, including eliminating the mental health property tax levy and shifting that funding stream to the state. It phases out and ultimately eliminates the commercial and industrial property tax backfill. The bill eliminates tax triggers that were included in the 2018 law.
ABI position: Monitoring
HF 775 - Also on Tuesday, the Senate approved bipartisan legislation that creates criminal penalties for those who trespass on private property and knowingly install or place an electronic surveillance device used to record images or data on the property. Penalties would also apply to those who commit unauthorized sampling as defined in the bill. It will have to go back to the House for final approval as there was a technical amendment adopted during the debate on this in the Senate.
ABI position: For
HF 523 - A Senate Ways & Means Subcommittee unanimously approved legislation that will allow counties to more easily create bonds for infrastructure that is aimed at mitigating flooding. The bill has already passed the House unanimously.
ABI position: For
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Iowa Supreme Court to Hear Oral Arguments in ABI v. City of Waterloo Case |
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The Iowa Supreme Court will hear oral arguments in the case that ABI brought against the City of Waterloo in district court after the city passed an ordinance that prohibits private employers from asking about the criminal background of an individual on an application or prior to an offer of employment.
The arguments are scheduled for Wednesday, April 14 at 1:30 pm. You can watch the arguments live-streamed here. We will continue to keep you updated on this case as information becomes available.
Background:
Prior Media Coverage:
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Yellen Calls for Global Minimum Tax on Corporations |
On Monday, U.S. Treasury Secretary Janet Yellen delivered a speech to the Chicago Council on Global Affairs calling for significant tax hikes on corporations as a means of paying for President Biden’s proposed $2.3 trillion dollar infrastructure proposal.
In addition to the global minimum tax, the Biden Administration is seeking to raise the corporate income tax from the current 21% to 28% and enact a 21% minimum tax on U.S. companies’ foreign income. According to the Wall Street Journal, if the U.S. raises taxes without being able to enact a global minimum tax, the nation could be put at a disadvantage as foreign-owned businesses operating outside of the U.S. could be largely more profitable than their competitors owned by U.S. companies. The discussion on this topic is just beginning as it’s likely to take most, if not all of the rest of this year, to enact legislation of this magnitude and consequence.
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NAM Releases Study to Show Effect of Repealing Tax Reform |
The National Association of Manufacturers (NAM) released a study this Thursday on the impact of repealing tax reform, which has been discussed at the federal level. According to John W. Diamond and George R. Zodrow, economists from Rice University, proposals to change the system enacted by the 2017 Tax Cuts and Jobs Act will lead to less economic activity and 1 million jobs lost in the first two years.
The changes that have been proposed include increasing the corporate tax rate from its current level of 21% to 28% and repealing the 20% deduction for certain pass-through business income immediately, rather than expiring after 2025. Another proposal would raise the top individual tax rate from 37% back to 39.6% immediately, rather than expiring after 2025.
Read a summary of the study conducted by Diamond and Zodrow here, which is provided by the National Association of Manufacturers. ABI is a member of NAM.
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April 15: Join the U.S. Chamber of Commerce and the Iowa Association of Business and Industry on Thursday, April 15th at 9:25am ET/8:25 am CT for a conversation with Congressman Randy Feenstra (IA-04).
This informal conversation will be part of the U.S. Chamber’s new “Back to Business” series that aims to break down the barriers between government and the public through intimate conversations and get back to the business of governing. Our goal is to spend time with new members of Congress who represent us and learn more about them, their lives, their careers, their passions, and what inspires them.
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June 8 - 10: Taking Care of Business Conference
The conference will take place in person in Coralville/Iowa City
Don't forget to register for ABI's 2021 Taking Care of Business Conference! If you are passionate about business in Iowa, this is an opportunity to meet other industry leaders, network, learn new ideas, and share insight on how to grow and strengthen the state's business climate. Click on this link to register.
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Help Us Put A Stop To The PRO Act |
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If enacted into law, the Pro Act would harm workers, employers, and the economy by violating worker privacy, eliminating private ballots in union elections and would strip workers of their independent contractor classification. Join us and the US Chamber of Commerce in telling the Senate to vote NO on the PRO Act. Click Here to learn more.
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April 14: Nominate for Leadership Iowa, Informational Meeting
Do you want to get involved with our state’s premier issues awareness program? Leadership Iowa board members, staff and past participants will be hosting a webinar to provide insight into the program as well as the nomination, application and selection process. The informational meeting is Wednesday, April 14 from 11 a.m.-12 p.m. through Zoom as we near the nomination deadline for the upcoming class. All are welcome!
Register for the call information here.
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STEM Teacher Externships: Connecting Classroom to Career |
By Jason Lang, Project Coordinator - Iowa Governor's STEM Advisory Council
Since 2009, over 600 Science, Technology, Engineering and Mathematics (STEM) teachers in the State of Iowa have ventured out of their classrooms and into the future careers of their students. Science teachers have worked behind the scenes to improve your visit to the zoo and county conservation centers, endured the heat and humidity of the summer to improve water quality and habitat and helped to improve sustainability efforts and product testing procedures at various manufacturers, both large and small. Teachers of mathematics have observed, measured and analyzed manufacturing techniques, assisted businesses with improving the mathematical literacy of their employees and discovered the power of analytical tools.
Read how businesses and educators can partner this summer through externships that will help inspire students for years to come.
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WATCH: Weekly Business Report
ABI's Weekly Business Report features ABI Executive Vice President Nicole Crain and Dr. Jeff Weld, Executive Director of the Iowa Governor's STEM Advisory Council. They highlight how ABI members can continue promoting business-education partnerships across the state.
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Click on the headlines to learn about the latest ABI member news
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April 22: Virtual Event: Blazing a Path to the Cloud
7:30-9 a.m.
Receive a swag box when you are one of the first 25 to register!
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