However, Mike Owen of Common Good Iowa questioned the timing, with the state and nation still in the throes of a COVID-19 pandemic and additional uncertainty tied to federal rescue funding to states that carries stipulations the money not be used for tax relief.
“In short, what is the rush?” he said. “We know that it’s going to cost us $330 million to $350 million in federal COVID relief and the triggers have a good chance of being reached anyway, especially with the federal boost to the Iowa economy.”
“Those triggers offer some accountability that the Legislature demanded just to pass that income tax package, and they should be honored on that basis alone,” he added. “Why are we so determined to turn away something like $350 million in federal aid on top of that just to rush new income tax law into place, perhaps prematurely?”
Previously, Republicans who hold a 32-18 Senate majority sent two separate tax policy bills to the House that included elimination of the 2018 income tax triggers, but majority House Republicans have not taken up either measure at this point in the session.
The latest Senate package proposes to increase the tax credits under the Workforce Housing Tax Credit Program and addresses the backlog of housing projects awaiting support in large cities.