Chamber follows policy updates: Federal recap; the latest from the Illinois & Iowa legislatures
The Quad Cities Chamber continues to actively monitor and advocate for policies that support regional economic growth. Our Bill Tracker provides a full view of the legislation we're following. Below is a summary of recent activity in Washington, D.C., Illinois and Iowa—including updates on tax reform, housing, transit and economic development. To stay involved, sign up for our Advocacy Action Center.
Washington, D.C.
While the Quad Cities Chamber visited Washington from April 8–11, Congress advanced legislation laying the groundwork to extend the 2017 Tax Cuts and Jobs Act. Our federal tax reform priorities include:
Small Business Taxes
- Qualified Business Income (QBI) Deduction (Section 199A): Sign the petition to urge Congress to extend the 20% deduction for pass-through entities to avoid a tax hike on small businesses.
Economic Growth
- R&D Expensing: We support restoring full first-year deductibility for research and development expenses, reversing the current five-year amortization.
- Bonus Depreciation: This accelerated depreciation tool is vital for manufacturers and encourages reinvestment in physical assets.
- Community Reinvestment: We support tax incentives for converting underused office space into housing to address shortages and revitalize downtown economies across the Quad Cities.
Tariffs
- As a region that ranks 57th in the country for exports, trade is a vital resource for our current and future economic growth. The Chamber remains vocal on the impact of tariffs to our region, while recognizing the value that new, fairer trade deals can bring. We hope to see more certainty out of Washington on these issues over the coming months.
State of Illinois
With the legislature reconvening in May, we expect a busy final month. Key issues include transit funding, housing incentives and regulatory reforms.
Transit
- State discussions now include both Chicago and downstate transit funding. We’re advocating for continued support for regional transit investments.
Middle-Income Housing
- The Chamber introduced SB1926 and SB1927 with Senator Halpin to increase housing funding, targeting the Illinois Quad Cities. The bills have been extended to May 9 and may be included in an omnibus package.
Employer Regulations
- Workplace Temperature Regulations: We opposed this bill proposing strict temperature standards, which has since died in committee but may reappear later in session.
- Workplace Transparency: We oppose legislation limiting confidentiality in employment agreements related to alleged unlawful practices.
- Tipped Wage: A bill revisiting this issue appears unlikely to pass, but remains on our radar.
State of Iowa
Governor Kim Reynolds recently announced she is not seeking another term as Governor, opening the door for multiple candidates to seek higher office, potentially leading to a cascade of open seats and primaries between now and 2026.
As Iowa heads toward its May 2 adjournment, lawmakers are focused on tax and budget legislation, with a few policy items still in play.
Economic Development
- IEDA is restructuring incentive programs to make wage requirements more flexible. We support reforms to enhance the workforce housing tax credit and the R&D credit. A vote is expected soon in the House Ways and Means Committee.
- A related technical bill includes changes to the historic tax credit. A deal has been reached to restore refundability but eliminate transferability. We’re gathering feedback on this impact.
Property Tax Reform
The Chamber is monitoring efforts to balance property tax relief with stable local government funding. Key for the Chamber is the impact on new growth, and the potential impact on new and current projects in TIF districts.
- Initial proposals included:
- Phasing out rollbacks over 5 years
- A 2% revenue cap (excluding new growth)
- A $25,000 homestead exemption
- Lowering the uniform levy to $2.97
- Revised proposal highlights:
- Increase the homestead exemption to $50,000
- Eliminate rollbacks (except agriculture) by FY27
- Add CPI adjustments to the 2% revenue cap
- Provide a minimum budget guarantee for small communities
Unemployment Insurance Taxes
- Making Iowa’s unemployment insurance tax system more competitive with neighboring states and the rest of the country remains a priority for the Quad Cities Chamber. The bill remains alive as it impacts tax policy.