Thomas votes to support $60M tax cut in Iowa

State Representative Roger Thomas of Elkader has voted in favor of a $60 million tax cut.
 
The bill, Senate File 106, "couples" the Iowa tax code with the federal tax code.  It also allows Iowa businesses to expense the first $500,000 of new equipment costs and assures the state Research Activities Credit functions the same as the federal credit.  It also continues the $250 deduction for teachers for classroom expenses; tuition and fee deduction for higher education; child and dependent care credit; and the Earned Income Tax Credit.
 
"With over 200,000 already participating every year, extending the Earned Income Tax Credit will assist families already holding down two or more jobs to make ends meet, build a stronger middle class, and boost economic activity in local communities," said Thomas.
 
The bill is now on the way to the Governor's desk.  In addition to saving Iowans money, it will make it easier for Iowans to file their state income tax returns because the state returns will match federal tax changes.  The bill saves taxpayers $25 million in the current fiscal year and $35 million next year.