Iowa House & Senate pass tax policy bill, Illinois update

The Quad Cities Chamber actively advocates for legislation that supports our Regional Advocacy Priorities. Keep up-to-date on legislation the Chamber is watching on our bill tracker page.

Iowa

• This week in Des Moines, the Iowa House and Senate passed SF 619,  a tax policy bill that leadership expects to save taxpayers $1 billion over the next eight years. Key provisions of the compromise within SF 619 include:
  • Removing triggers set by the 2018 tax reform bill, ensuring tax cuts would go into effect starting in 2023
  • Eliminating the commercial and industrial tax replacement or the “property tax backfill” over 5-8 years
  • Exempting COVID-19 related grants and PPP from state income tax
  • Expanding eligibility for Child Care Tax Credits for families making up to $90K
  • Increasing workforce housing tax credits
  • Creating payment parity for mental health services via telehealth and in-person
  • Phasing out the inheritance tax over five years
  • Funding for Manufacturing 4.0 technology investments
  • Transitioning mental health property taxes to state appropriations over two years
• With the compromise on tax policy sent to the Governor, the Legislature passed a series of budget bills Tuesday. The Legislature must pass a statewide budget before session can adjourn for the year. The 89th General Assembly is anticipated to end this week.
• Additionally, on Monday night, the Iowa Senate passed HF 302 addressing the childcare “cliff effect” by creating a childcare assistance off-ramp for working families. Thanks to advocacy efforts from members and community partners, the bill now heads to Gov. Reynolds' desk to be signed. Making childcare accessible and affordable for working families ensures a strong regional workforce. The Quad Cities Chamber will continue to advocate for legislation that provides solutions to employment barriers. 

Illinois

• On Monday, Gov. Pritzker announced the Illinois Rental Payment Program (ILRPP) will deploy multiple rounds of funding totaling $1.1 billion dollars to Illinois renters and landlords in an effort to prevent evictions.
  • ILRPP will provide direct funding up to $25,000 paid directly to landlords to cover missed rent payments as far back as June 2020 and prepay payments through August 2021, or until the $25,000 is exhausted, whichever comes first. Applications for ILRPP will be accepted Monday, May 17 through Monday, June 7. Interested residents can apply at: ILRPP.IHDA.org.
• With two scheduled weeks left of legislative session, both chambers still have hundreds of bills left to vote on. The House and Senate continue to meet this week to move bills out of committees and to the floor for final action. Focus remains on passing next year’s budget, a new map of congressional and legislative districts, and legislative measures related to energy and ethics. The Chamber team continues to monitor and advocate for legislation related to our annual policy priorities.