Des Moines, Iowa — Iowa State Senator Randy Feenstra of Hull is among the statehouse Republicans who are railing at Democrats, but not Republican Governor Terry Branstad, over a tax issue. Republicans in the legislature want state tax law to mimic a federal tax break for depreciation of equipment in small businesses.
Feenstra says the thousands of Iowa small business owners, including farmers, could claim as much as 95 million dollars if this federal tax break were made available at the state level and he’s blasting Democrats for failing to endorse it.
Republican Governor Terry Branstad did not include this tax break in the financial plan he submitted to legislators in January. Branstad told reporters the state couldn’t afford it. House Speaker Linda Upmeyer of Clear Lake says she and other Republicans in the legislature believe they can make room for this tax cut in their budget plan.
The tax break Feenstra and his fellow Republicans propose would apply to the income tax returns Iowa small business owners are filing right now, for tax year 2015. Iowa small businesses didn’t get this tax break in 2014 either. The legislature did not adopt the “bonus depreciation” congress granted small businesses on assets acquired during 2014.