Iowa Legislature completes first funnel

The Iowa Legislature completed its first funnel last Friday, Feb. 16. This means that any bills not passed by a committee or assigned to specific committees are dead for the rest of this legislative session. While the surviving bills are not across the finish line, they have completed the first key step in becoming law. Here are the bills the Chamber is tracking, and where they stand: 

Major Economic Growth and Attraction Program (MEGA): SF 574

• One of our top priorities for the past two years, the MEGA Program would create a new incentive for large projects with statewide impact (specifically more than 250 acres of land and $1 billion in investment). The bill authorizes up to two projects to receive the incentive. We are highly optimistic that this will get done before the end of the year with the Leadership and Ways and Means chairs now fully on board. This bill remains alive in the House after passing the full Senate last year.

Income Tax: HSB 543/SSB 3038 (Governor’s Bill) & SSB 3141 (Zero Income Tax)

• Governor Reynolds has proposed lowering the individual income tax rate to a flat tax of 3.65% by 2025 and to 3.5% by 2026. This would replace the existing tax cuts passed in 2022. The Chamber supports this bill and appreciates the Governor’s commitment to lowering the tax burden on Iowans.
• The Iowa Senate has revealed its own tax proposal, which, unlike the Governor’s proposal, would provide a pathway over a period of years to reduce the individual income tax rate to zero and lower the minimum corporate tax rate to 4.9%. The Chamber is proud to support responsible tax relief efforts and SSB 3141 fits the description. Regardless of which tax proposal passes the legislature this year, the Chamber is excited to see Iowa become a more taxpayer-friendly state. 
• Both of these proposals remain alive and up for debate.

Interstate Passenger Rail Compact: HF 591 & SF 2204

• It’s no secret that the Quad Cities has been vocally supportive of gaining access to passenger rail over the years. HF 591 is a bill that encourages just that. Should the law pass, Iowa will join Illinois, Indiana, Kansas, Michigan, Minnesota, Missouri, North Dakota and Wisconsin in efforts to link Midwestern cities together through passenger rail. The compact has passed the House and awaits a vote on the Senate floor.

Work-Based Learning: HF 2516 & SF 2260

• The Chamber is also looking at legislation aimed at improving work-based learning offerings. Creating a new Workforce Opportunity Fund housed within the Department of Workforce Development would enhance training and infrastructure related to the state’s workforce programs. Both the House and Senate versions remain live bills.

Other Live Bills:

To see all Iowa bills the Chamber is keeping an eye on, check out our Bill Tracker.

• SF 2260, Work-based learning – MONITOR
• HF 2246, Land Redevelopment Trusts – MONITOR
• HF 2305, Child Care Center Requirements, flex care for children up to five years old – SUPPORT
• HF 2420, Workforce Housing Incentive Increase – SUPPORT
• HF2450, Economic Development/Energy Shortages – MONITOR
• HF 2516, Work-based learning – NEUTRAL
• HF 2536, Duties of the Iowa Finance Authority – MONITOR
• HSB 715, IEDA Certified Site Program Appropriation – MONITOR
• SF 108, E-Verify – OPPOSE
• SF 182, Land Redevelopment Trusts – MONITOR
• SF 550, Sales and Use Tax changes – MONITOR
• SF 2133, Infrastructure Revolving Fund – SUPPORT
• SF 2156, Levee/Drainage – MONITOR
• SF 2188, Community College Reporting – MONITOR
• SF 2204, Foreign Ownership of Ag Land – MONITOR
• SF 2257, Child Tax Credit – MONITOR
• SF 2260, Work-based Learning – MONITOR
• SF 2289, Economic Development/Energy Shortages – MONITOR

Dead Bills:

• HF 498, Daylight Savings Time – OPPOSE
• HF 2106, Regulatory Relief – MONITOR
• HF 2338, CCA for children of child care personnel – MONITOR
• HF2388, Building exteriors
• HSB 105, E-Verify – OPPOSE