A coalition pushing for big reductions in state business tax credits is unhappy with the bill Democrats have crafted on the subject. Democrats in the legislature say the new limits they propose for a series of business-related tax credits will reduce state tax credit awards by 115-million dollars over three years.
But Peter Fisher of the Iowa Policy Project says the package offers mere “baby steps” and won’t produce a fraction of that amount in savings. “I would say it’s close to doing little or nothing,” Fisher says. Fisher’s group says the glass isn’t even “half-full” when it comes to curbing the growth in business tax credits awarded by the State of Iowa.
“The business lobby has been effective in making sure their interests are made clear to legislators,” Fisher says. Fisher criticizes lawmakers for using a “closed-door process” to draft the bill, “without public testimony or expert review,” The Iowa Senate may debate the package this afternoon. Republicans say it amounts to a tax increase for some businesses that won’t be able to claim as many state tax credits in future years.