Iowa Congressman Rod Blum voted for the tax package that cleared the U.S. House last week. However, Blum is hoping senators make at least two big changes in the bill. Under the House plan, the wind production tax credit would be reduced.
“Keep those incentives in the tax code because Iowa is a leader nationwide. I think a third of our electricity is generated by the wind here in Iowa, which is great,” Blum says. “I’ve talked to MidAmerican Energy and Alliant Energy and, obviously, they’re concerned.”
Blum, a Republican from Dubuque, says federal tax credits for renovating historic properties should be maintained as well.
“Here in Dubuque, Waterloo, Cedar Rapids, a lot of the warehouse districts that are being rehabilitated –these old buildings — just wouldn’t be economically feasible if it wasn’t for the historic tax credit,” Blum says, “Because we just can’t charge high enough rents in towns in Iowa to make these projects cash-flow out for the developers.”
The credit is currently worth 20 percent of the cost of fixing up a dilapidated property.
“And it pays for itself,” Blum says. “Rutgers University did a study showing that tax credit returns more money to the treasury than it costs.”
Blum says “most deductions had to go” though in order to get a bill that reduces rates and simplifies the tax-filing process.