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Iowa House, Senate tax debate heats up
With just weeks to go in the legislative session, the Iowa House and Senate are advancing competing tax relief proposals, a difference that could complicate plans for adjournment this year.

SF576, which passed the Senate 46-0, phases in the elimination of the inheritance tax. The state’s nonpartisan Legislative Services Agency predicts the repeal would reduce revenue by nearly $18 million in FY2022. The legislation would apply to deaths occurring on or after Jan. 1, 2021.
 
The bill also would remove “triggers” put in place in order for broad state income tax cuts passed in 2018 to go into effect. Those triggers ensure the state’s tax collections rise enough to offset tax cuts.
 
If the triggers are removed, the LSA predicts the tax cuts would reduce income tax liability by roughly $297 million in FY2023.
 
The House also has a bill eliminating the inheritance tax, HF841. It’s unclear at this point what a final tax package will look like before lawmakers adjourn for the year in the coming weeks. House Speaker Pat Grassley has made public statements that the House will take a cautious approach to removing the triggers.

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Bill banning credit unions from buying banks eligible for Senate debate
Legislation that prohibits a credit union from purchasing an Iowa-chartered bank passed out of the Senate Commerce Committee last week and is now eligible for debate by the full Senate. CBI urges members to contact their Senator and urge them to support SF 530 when it comes up for debate.

​The need for this legislation was brought about when Green State Credit Union purchased First American Bank in Fort Dodge in 2019 and completed the transaction without receiving the required approval from the Iowa Division of Banking (IDOB). CBI’s Board affirmed its support for this legislation at its January Board meeting, and CBI testified in favor of the legislation in a Senate subcommittee meeting on the bill. While prohibiting the purchase of a bank by a credit union, SF 530 would still allow for the sale or transfer of participations or real property assets.

by LS2group   |   View the Iowa Legislative Bill Tracker
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Essential workers, disabled Iowans will receive vaccine access soon
Iowa will likely allow essential workers and people with disabilities to receive a COVID vaccine in March, now that the state is seeing a steady supply of vaccines from the federal government, Gov. Kim Reynolds said last Thursday.
 
“We’re finally able to generally answer the question that so many Iowans are asking, and that’s ‘when is it my turn,’” Reynolds said.
 
So far, the state has seen almost 620,000 vaccinations. Of those over the age of 65, an estimated 53 percent have received at least the first dose of the two-dose course of the COVID vaccine.
 
The next group to become eligible for the vaccine will be those considered essential workers and people with disabilities who live at home. Those groups are expected to receive vaccines in early March, with 70 percent receiving the vaccine by early April. At that time, vaccine availability could be expanded to additional groups, Reynolds said. 

by LS2group   |   View the Iowa Legislative Bill Tracker
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​​Tax credit to spur investment in Hoover Presidential Library and Museum
Iowa’s only presidential library and museum in West Branch would see a boost in its fundraising efforts under a bill moving through the Legislature.
 
Allan Hoover III, great grandson of President Herbert Hoover, was at the Capitol this week to speak with lawmakers about his family’s Iowa roots and urge passage of legislation that would create a special tax credit to benefit the library and museum. It’s been nearly 30 years since the library’s last renovation.
 
Herbert Hoover was the only U.S. President from Iowa, serving as the nation’s 31st president between 1929 and 1933.
 
A $20 million renovation has been planned with a completion date in 2024 to coincide with what would be President Hoover’s 150th birthday. The National Archives requires having 90 percent of the project’s cost in hand before construction can begin.
 
Contributors to his presidential library’s renovation would see a tax credit of up to 25 percent, for a total of up to $5 million. Individuals could claim up to $250,000 in credits. 

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More health care providers could provide vaccines
State lawmakers are positioning the state for a ramped up vaccination effort, advancing bills that would allow dentists and other medical providers to administer COVID vaccines. The state has been off to a slow start, ranking as one of the lowest among states for the number of those vaccinated. The House Human Resources Committee approved a slate of bills Thursday meant to accelerate Iowa’s vaccination efforts. HSB71, which would allow dentists to administer COVID and influenza vaccines, was approved by the committee on a 19-1 vote.
 
The committee also moved forward a bill that would make it easier for health care workers with credentials in another state to practice in Iowa. The state’s medical regulatory boards have been pushing for greater flexibility to address a shortage of health care workers.
 
Gov. Kim Reynolds has acknowledged the delays in getting vaccines to those who need them. The state is working to launch a vaccine hotline and call center to match Iowans with available vaccines and providers. As of Thursday morning, the state’s website tracking vaccinations showed just under 100,000 Iowans had received both doses of a COVID vaccine.

OMAHA, Neb. (Jan. 21, 2021) – For the third time in the past four months, the Creighton University Rural Mainstreet Index (RMI) climbed above growth neutral. According to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy, the index increased to its second highest level since January 2020.

Overall: The overall index for January rose to 52.0 from December’s 51.6. The index ranges between 0 and 100 with a reading of 50.0 representing growth neutral.

“Recent sharp improvements in agriculture commodity prices, federal farm support payments, and Federal Reserve’s record low short-term interest rates have underpinned the Rural Mainstreet Economy in a solid and positive growth range. However, the rural economy remains well below pre-pandemic levels,” said Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business.

OMAHA, Neb. (Dec. 17, 2020) – For the second time in the past three months, the Creighton University Rural Mainstreet Index (RMI) climbed above growth neutral. According to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy, the index increased to its second highest level in the past 10 months.

Overall: The overall index for December rose to 51.6 from November’s 46.8, but was down from October’s 53.2. The index ranges between 0 and 100 with a reading of 50.0 representing growth neutral.

“Recent improvements in agriculture commodity prices, federal farm support payments, and the Federal Reserve’s record low interest rates have underpinned the Rural Mainstreet Economy,” said Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business.
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