Republicans in the legislature want state tax law to mimic a federal tax break for depreciation of equipment in small businesses. Senator Randy Feenstra, a Republican from Hull, says the thousands of Iowa small business owners, including farmers, could claim as much as $95 million if this federal tax break were made available at the state level and he’s blasting Democrats for failing to endorse it.
“This is shameful,” Feenstra says. “In a time they need it most, more than any time, they don’t want to give these deductions and tax credits to our job creators.”
Republican Governor Terry Branstad did not include this tax break in the financial plan he submitted to legislators in January. Branstad told reporters the state couldn’t afford it. House Speaker Linda Upmeyer of Clear Lake says she and other Republicans in the legislature believe they can make room for this tax cut in their budget plan.
“That’s why we’re working on it,” Upmeyer says. “We’re showing him a path.”
The tax break Republicans propose would apply to the income tax returns Iowa small business owners are filing right now, for tax year 2015. Iowa small businesses didn’t get this tax break in 2014 either. The legislature did not adopt the “bonus depreciation” congress granted small businesses on assets acquired during 2014.