Advocating for you: Federal and State legislative updates

Federal Update  

Congress continues to get organized and has begun committee hearings. Currently, the focus is to pass a budget for the Federal fiscal year, which started October 1, 2024, and has been operating under a continuing resolution for the past four months. Concurrently, Congress has also begun preliminary talks about the extension of the 2017 Tax Cuts and Jobs Act, and funding for border security which may or may not be linked in a final bill. Below are more details on key topics facing the business community today. 

Small Business Taxes 

A specific provision within the 2017 Tax Cut law, the 199A Qualified Business Income Deduction is a 20% off-the-top deduction for pass-through entities (LLCs, S-Corps, etc.) If this expires, it would significantly harm small business owners. We encourage our Chamber members to consider signing our petition which calls on members of Congress to support the continuation of this key tax break.  

Sign the petition to extend the 20% Qualified Business Income Deduction.

Tariffs are Taxes 

The Trump administration put out an executive order implementing the campaign pledge of across-the-board tariffs on China, Canada and Mexico. However, the administration has made a temporary compromise with Canada and Mexico – two key trade partners – to delay implementation for a month. Canada and Mexico have preemptively announced their intention to impose retaliatory tariffs if the U.S. follows through on tariff threats. The Quad Cities Chamber’s position on tariffs is simple: Tariffs are taxes. Period. Although targeted tariffs meant to address imbalances in trade or other policy issues can be an effective bargaining chip, across-the-board tariffs – particularly on our strongest trading partners – threaten to upend the recent success of the U.S. economy and return rising costs to American businesses and consumers.  

If your business will be impacted by tariffs, we encourage you to participate in our Action Alert asking Congress and the Executive Branch to minimize the impact of tariff proposals on the American economy.

Additionally, the U.S. Chamber provides a summary outlining current executive orders that may have an impact on the business community.

Illinois Update 

The Illinois Legislature returned for business last week with very few committee meetings as bill drafting continues at the Capitol. Nearly 4,000 individual pieces of legislation have been introduced so far, with about two weeks left before bills must be filed in each chamber. 

• Of note, the Quad Cities Chamber’s sponsored legislation on enhancements to the Brownfield program, including a new Grayfield incentive for empty commercial space. This was identified as an opportunity to create parity between both states and provide additional support for reinvestment, particularly in blighted areas. 
• Senator Halpin has introduced legislation to fund the Illinois Quad Cities' proposed Innovation Campus – something the Chamber supports. This investment would support new programming on campus to fill existing needs in the Quad Cities labor market. 
• The Illinois Chamber of Commerce Employment Law Council, which the Quad Cities Chamber is a member of, sent a letter to Governor Pritzker urging a veto of HB2547 which creates new obligations for employers in warehouse/manufacturing settings.
• Join us for the Quad Cities Chamber for our annual Springfield Trip (March 5 – 6).

Iowa Update 

• The Iowa Legislature has begun holding subcommittee and committee hearings on legislation including a handful of items that the Chamber is tracking: 
• The Chamber supported legislation that would impose a moratorium on new gambling licenses. Cedar Rapids investors have once again pursued the creation of a casino in Linn County. This would negatively impact several local gaming establishments in the Quad Cities region, leading to our support of a moratorium. The moratorium passed the House and Senate subcommittee, but on February 4, Senate State Government Chair Ken Rozenboom announced that the moratorium would not be moving forward due to a lack of support within the Senate Republican Caucus. The Iowa Racing and Gaming Commission now meets on Thursday to hear the license application for the Cedar Crossing Casino proposal. 
• Governor Reynolds reintroduced legislation from last session to reduce the Unemployment Insurance Tax levied on employers. Iowa Workforce Development has noted that the Unemployment Trust Fund has a strong balance, and the Chamber will be registering in support of the legislation, which ensures money earned in the Quad Cities remains in the Quad Cities. This allows more money for local business owners to reinvest in their employees and businesses. The bill was introduced in the House last week and awaits a hearing.  
• Other items we are tracking:  
  • The “new graduate tax credit” which would give incentives to new college grads to stay in Iowa 
  • Land Redevelopment Trust legislation meant to assist communities in dealing with blighted or tax-delinquent properties 
  • A bill to increase the allocation for the Iowa Workforce Housing Tax Incentive – which is currently oversubscribed and has been used to create thousands of units across Iowa. 

Stay informed on legislation we’re watching in the Quad Cities Chamber’s Bill Tracker.

Sign up for the Quad Cities Chamber’s Action Center.