Helland’s Highlights

Allowable Growth for Fiscal Year 2011 was debated at the State House on Thursday, setting the growth rate at 2 percent.  I am concerned that the House is debating this bill when we don’t even know how this current year’s budget is going to be balanced.  At a time when many Iowans are struggling, the last thing they need is an increase in property taxes and this bill has the potential to increase the property taxes on Iowans.

The newly elected Republican legislators introduced the Generating Recovery and Opportunity for Working Iowans (GROW) plan.  This plan uses a variety of methods including tax credits, tax deductions and constitutional protections to reinvigorate Iowa’s slumping economy and create long term, measurable growth.  

Last week this legislature also saw the first assault by big labor on Iowa’s economy with the prevailing wage bill.  One component of the GROW plan is constitutional protection of Iowa’s Right-to-Work law.  During these hard times for Iowans, it is more important than ever to constitutionally protect this issue.  The passage of this bill would make future attempts to gut this bill far more difficult.

A second component of the GROW plan is implementation of a telecommuting tax credit. This would create a pilot program to provide employers with a tax credit of up to $10,000 to cover start-up costs associated with creating a teleworker program.  It will also allow additional credits up to $600 per new teleworker.  This measure will stimulate the economy as it helps employ Iowans in small communities where it may be difficult for large companies to locate.

The GROW plan also bolsters the research activities credit.  In the governor’s proposed budget, $13 million is cut from this program.  Local companies have utilized this tax credit to successfully create hundreds of jobs in Iowa.  The legislature needs to prioritize spending and invest programs that have already demonstrated that they are successful.  We need to make decisions: funding a tax credit that is a proven job creator, not purchasing 600 new vehicles for the state fleet.

As always, I ask for your input on issues and concerns facing you, your family, and your business.  You can reach me by email at erik.helland@legis.state.ia.us.

Sincerely,

Erik Helland