July 9, 2021
Register NOW for Public Policy Committee Meetings
The development of ABI’s public policy positions for 2022 will officially kick off on August 9th. This is when the first of five committees will meet during August to develop recommendations on the association’s legislative policies and priorities in the coming year. Any individual of an ABI member company is welcome to attend the meetings and provide input. Attendees will enjoy lunch, hear from a guest speaker pertinent to the specific committee and then go line by line through the policies. ABI’s policies are stronger with more member participation, so if you haven’t registered yet, please do so below.
Final Opportunity to Attend a Regional Meeting
Final Meeting Will Be Held in Ottumwa
ABI’s public policy team will travel to Ottumwa next week for the last of five regional meetings held in 2021. The meeting will be held on Thursday, July 15th and will take place at Indian Hills Community College. Attendees at the regional meeting will learn about the results of the 2021 legislative session for the business community and will also have an opportunity to ask questions and provide input on what ABI should work on in 2022.

You won’t want to miss out so be sure to register today.
Iowa Sees Extraordinary Growth in Fiscal Year 2021
This Leads to Significant Budget Surplus
Iowa’s treasury took in more than $8.1 billion for FY21, which translates into a double-digit growth for state collections over FY20. Though the books won’t officially close on FY21 until September 30th due to accruals and other adjustments, officials with the nonpartisan Legislative Services Agency are expecting a budget surplus of several hundred million dollars. Thanks to Governor Kim Reynolds’s leadership in keeping a vast majority of businesses open the entire time during the pandemic, Iowa has not seen a significant drop in revenues like many other states have. With a substantial budget surplus at hand, the governor indicated she will propose more personal income tax cuts during next year’s legislative session. 

You can read about Iowa’s budget from The Gazette.
Back to the Hearing Room
ABI Takes Second Pass at Department of Revenue Proposed Rule Expanding Tax Liability under “Consumable Foods” Statute
ABI public policy staff, on behalf of affected member taxpayers, continues to object to the Department of Revenue’s proposed interpretation of the term “marketable food products for human consumption.” The Department has already held one hearing and another hearing took place before the Legislature’s Administrative Rules Review Committee. At the request of the Governor’s office, that process began again, and on Thursday, July 8, 2021, the Department held a second hearing. The Legislature’s Administrative Rules Review Committee will hold a second hearing next Tuesday, July 13, 2021.

Thursday’s testimony by ABI public policy staff reiterated ABI's position that the proposed Department rule expands tax liability for affected taxpayers beyond the scope of the Iowa Code as it was first adopted in 1985. At the hearing, ABI public policy staff also communicated that meetings have been held with the Department and with the Governor’s office. The parties will now develop language that reflects the taxpayers’ interpretation of the Iowa Code based on common practice and past experience with the law. This language will then be brought to the legislature for consideration and adoption. 
Federal Spotlight
Massive Corporate Tax Increases on Horizon in Congress
ABI’s federal partners at the U.S. Chamber of Commerce submitted the following call to action to push back on an effort to raise corporate taxes to pay for an array of new federal spending programs. Specifically, ABI members are being asked to contact Senators Charles Grassley and Joni Ernst and Congresswoman Cindy Axne. With narrow majorities in the U.S. House and Senate, each vote is critical. This is not a fire drill - this is critical action that needs to be taken. 

A description of the tax issue from the Chamber and how to take action follows: 

The Issue

Congress is currently considering a massive tax increase on business to pay for several major new federal spending programs. Under the proposal, the corporate tax rate would increase to 28 percent from its current 21 percent, increasing taxes by one-third on businesses that are still working to recover from the recession brought on by the COVID-19 pandemic. 

Why It Matters to You

Many assume that only big businesses will pay this higher rate. That couldn’t be farther from the truth. In fact, if your business is organized as a C-Corp, you would see your tax bills increase significantly. 18,498 of our state’s businesses are affected and we need your help to fight this corporate tax increase in Washington, DC. These higher taxes would eliminate jobs, in some cases, close stores, and/or cut back on investments in our community.
 
Moreover, when state and local taxes are included, the total corporate tax rate for Iowa would come to 35.1 percent if the federal rate were increased to 28 percent, according to data from the U.S. Chamber of Commerce. Our businesses are just now returning to normalcy, and a sudden and substantially steep increase in the corporate rate is one sure way to stop the recovery’s momentum dead in its tracks.
 
Higher rates on businesses in our state would suppress wage growth and job creation at a time when one of the few things we can all agree on is the need to create more higher-paying jobs here at home. 

Action You Can Take

Let’s keep the corporate tax rates where they are, so our businesses can continue to prosper and create the growth and jobs our state needs to keep this recovery going. We urge you to join our efforts by asking Congresswoman Axne and Senators Grassley and Ernst to oppose raising the taxes on your business.

You can send them an email by clicking the following link: https://action.uschamber.com/yyA28nS
ABI UPDATE
WATCH: ABI Weekly Business Report
Danielle West, director of marketing and public relations for LifeServe Blood Center joins ABI Executive Vice President Nicole Crain to share how businesses can help in the effort to boost the blood supply.
ABI Foundation Update
Students across Iowa will be hands-on to gain confidence about their strengths, skills and futures during the ABI Foundation’s statewide leadership programs! Spread the word for your community to be represented.
 
  • Iowa high school students (grades 9-12) are invited to Business Horizons! Join us July 18-22 at Central College in Pella by applying now at www.BusinessHorizonsIowa.com.
  • College students and interns in Iowa (undergraduate sophomores-seniors) are invited to Leadership Iowa University! Join us Aug. 8-12 in the greater Des Moines area by applying now at www.LeadershipIowaUniversity.com.
 
Applications close July 12. Participants’ meals, lodging, activities and materials are included with registration.
Questions? contact foundation@iowaabi.org.
FROM THE DESK OF...
4 Lessons from the COVID-19 Pandemic to Help Prepare Your Business for the Next Crisis
By Chad Solberg - Vice President and Business Banking Manager, Bankers Trust

It’s hard to believe it’s been over a year since we experienced what felt like an overnight shift in the way we work, do business, shop and live. The early stages of the COVID-19 pandemic was unlike anything businesses have ever had to face, and it required them to make critical changes and decisions to keep their businesses alive.

While some businesses overcame challenges posed by the pandemic – some even shined – others struggled on. While it’s true certain industries were hit harder by restrictions than others, I’ve witnessed some commonalities among the businesses that were most successful during the pandemic.


MEMBER NEWS
Click on the headlines to learn about the latest ABI member news
Please submit member news to: communications@iowaabi.org
IWF Accepting Letters of Interest for Building Community Child Care Solutions Fund
The Iowa Women’s Foundation is currently accepting Letters of Interest for the Building Community Child Care Solutions Fund. The fund is designated to improving the lives of Iowa’s women and girls through efforts directly related to crating solutions to the child care crisis.

CLICK HERE for more information and submission instructions. 
TOP SUPPORTERS - GOVERNOR
TOP SUPPORTERS - CHAIRPERSON
Alliant Energy
Anthologic
CIPCO
Collins Aerospace (& UTC Aerospace Systems)
HNI Corporation
Hy-Vee
Wells Fargo