Iowa lawmakers close 2021 session
June 09, 2021
After a challenging year navigating COVID-19, Iowa’s 89th General Assembly adjourned May 19. With help from the advocacy efforts of our members and community partners, the Quad Cities Chamber saw many of the regional priorities outlined in early January realized. Highlights include the passage of comprehensive tax reform, legislation improving access to child care and $100 million dedicated to expanding broadband.
Here is a recap of the session:
COVID-19 recovery
- Paycheck Protection Program Relief is included in the larger tax reform bill. Language in SF 619 excludes Iowa COVID-19 grants from individual and corporate income taxes. Sent to Governor
- Downtown Loan Guarantee Program is a new program, included in the larger tax reform bill, that is designed to revitalize downtowns by backing the reinvestment of reopening downtown businesses. Sent to Governor
Business climate and taxation
- In the last days of session, the House and Senate passed sweeping and comprehensive tax reform. SF 619 includes removing triggers set by the 2018 tax reform bill, eliminating the inheritance tax, transitioning mental health funding to the State and providing COVID-19 relief for businesses. Additionally, this legislation increased the Brownfield-Grayfield Tax Credit Program from $10 million to $15 million. Sent to Governor
- Sections of the Governor’s housing bill (HF 582) addressing the workforce housing tax credit backlog, extending the redevelopment tax credit and raising the cap on the Housing Trust Fund were included in the larger tax omnibus bill. Sent to Governor
- HF 844 contained revisions modifying the language in the Iowa Code on Foreign Trade Zones. Signed by Governor
- HF 418 ensures Self-Supported Municipal Improvement Districts (SSMID) can continue to collect revenue from apartment buildings going forward. It eliminates the classification of multi-residential property for assessment years beginning on or after 2022. Signed by Governor
- SF 619 includes a sales tax exemption for the sale or rental of tangible personal property or services furnished to a nonprofit food bank. Sent to Governor
Economic development
- Manufacturing 4.0 was included in SF 619 to help businesses adapt to new technologies and incentivize growth by mitigating the risk of significant investments in new technology. Sent to Governor
- HF 849 would have limited future Tax Increment Finance (TIF) districts to 20 years and requires any existing TIF districts to have a sunset date. Did not pass
Transportation and infrastructure
- Governor Reynolds signed HF 848 implementing a tiered grant fund to expand broadband infrastructure throughout the state. HF 867 allocated a $100 million funding level for the next three years. Signed by Governor
- HF 523 amends the definition of essential county purpose to include activities related to flood mitigation. Signed by Governor
Education and workforce development
- At the beginning of session, there was an early push for child care reform. HF 302 addresses the child care cliff-effect by establishing an eligibility phase-out structure for child care assistance ensuring parents and guardians will not need to choose between employment and child care assistance. Sent to Governor
- SF 619 addressed several child care issues such as increasing the income threshold from $45,000 to $90,000 to qualify for the Early Childhood Development Tax Credit, providing tax incentives for businesses offering childcare and increasing available child care providers through the High Quality Jobs Program. Sent to Governor
- HF 868 allocates an additional $10 million in funds to the Future Ready Iowa “Last Dollar Scholarship" program. Signed by Governor
- HF 871 includes an additional $3 million for the Future Ready Iowa Innovation Fund. Signed by Governor
Healthcare
- HF 592 was a bill that would cap noneconomic damages in medical malpractice cases. Did not pass