The fourth week of session was successful and productive. Many different groups came to Des Moines to visit the capitol this week. We held our first floor debate of the year on HF 2128. This bill will increase the sale of E-15 fuel in Iowa. It benefits both consumers and farmers.
I chaired the subcommittee meeting for my bill that will prevent schools from mandating the COVID-19 vaccine to students. Under HF 2040, schools will be restricted from requiring the COVID-19 vaccine to students in order to attend school. No child or parent should have to pick whether they should get the COVID shot or get an education.
Division I—Sale of Certain Qualified Stock—Net Capital Gain Exclusion
This division provides an employee-owner one lifetime election to exclude from income tax their net capital gains from the sale or exchange of capital stock (ESOPs). This exclusion is phased in over three years starting tax year 2023.
Division II—Retired Farmer Lease Income Exclusion
This division provides that a retired farmer’s income from rental of their property is exempt from tax. The farmer must be 55/farmed for at least 10 years. If the farmer choses this exemption, they are not eligible for the capital gains exclusion provided by Division III. This change begins tax year 2023.
Division III—Retired Farmer Capital Gain Exclusion
This division provides a single lifetime exclusion of capital gain on the sale of a retired farmer’s land or livestock. This change begins in tax year 2023.
Division IV—Individual Income Tax Rates—Tax Years 2023-2025
This division strikes the tax brackets and rates that would go into effect in tax year 2023 and reduces them further in tax years 2023, 2024, and 2025.
Division V—Individual Income Tax—Flat Rate
This division picks up where Division IV left off. It provides for a flat tax of 4.0 percent on all taxable income. This begins in tax year 2026.
Division VI—Retirement Income
Currently, Iowa Code provides for an income tax exclusion for the first $6,000 of retirement income. This division provides that all retirement income would be excluded from tax. The change begins in tax year 2023.
Division VII—Taxpayer Relief Fund
For each of the next six fiscal years, this division transfers from the taxpayer relief fund to the general fund of the state the following amounts:
• FY 2022-2023, $113 million
• FY 2023-2024, $159.1 million
• FY 2024-2025, $92.3 million
• FY 2025-2026, $259.4 million
• FY 2026-2027, $195.6 million
• FY 2027-2028, $9.6 million
The bill is now eligible to be debated in the House Ways and Means Committee.
These presentations highlighted the important benefits Iowa’s veterans have access to. According to the U.S. Department of Veterans Affairs, there are 206,430 veterans in Iowa.
To get to know your local county veterans’ affairs officials as they can help assist veterans with access to services. You can find them at the Iowa Department of Veterans Affairs website: https://va.iowa.gov/counties.
Also, this week I was proud to pass my Veterans Disability bill through both the subcommittee and the full Veterans Affairs committee. HF 2107 will expand the Homestead Tax Credit for disabled veterans. Our veterans have given so much for our great nation and for those that have disabilities, this bill is one way to show them they their sacrifices have not fallen on deaf ears. This bill will now move on to the Ways and Means committee for debate.
Innovation Fund Awards
“Iowa needs innovative ideas to grow our workforce and train the skilled workers who will help create a prosperous future for our industries and state,” Governor Kim Reynolds said. “These awards are quality investments in developing the deep talent pool necessary to keep our economy moving forward.”
The Future Ready Iowa Employer Innovation Fund awards grants that can be used to cover the cost of training and education supplies, as well as to provide much needed wrap-around services addressing other barriers that some Iowans face when trying to obtain skilled training. Award amounts can range from $1,000 to $50,000.
“Solving Iowa’s workforce needs over the long term is going to require a wide range of approaches and a willingness to embrace new ideas,” said Beth Townsend, Director of Iowa Workforce Development. “These grants are rewarding Iowa businesses for developing new ways to solve their own workforce issues.”
Iowa’s future growth will be built on jobs that require more than a high school diploma. Future Ready Iowa, established in 2016, created a goal that 70 percent of Iowa’s workforce have education or training beyond high school by 2025.
For more information, see the list of awards on the Future Ready Iowa website.