Category: Local
Following the premiere of the film “13 Hours: The Secret Soldiers of Benghazi,” Megyn Kelly spoke to family members of two of the four Americans who died in the 2012 terror attack in Benghazi, Libya.
Internal Revenue Code…
Unfortunately at the Federal level it seems to have become the norm for numerous tax incentives to expire at the end of the year and then be resurrected (retroactively) at the last minute. It is something that tax preparers and tax payers have been forced to endure. Maybe taxpayers and businesses would actually be able to plan ahead to take better advantage of those incentives.
This could finally be the year that things change. Although 2015 was no different than most years in that the tax extender bill was passed with only a few days left on the calendar—it did come with some permanency.
The bill that was finally signed by the President made the research and development credits and the enhanced section 179 deductions permanent for businesses. Additionally, the enhanced child tax credit, American Opportunity tax credit, teacher supply deduction, and some charitable giving incentives were also made permanent for individuals.
The legislation did not make bonus depreciation permanent however—gradually reducing it and eventually phasing it out completely by 2020. The bill also only extended film and television incentives and tuition deduction through 2016.
Now Iowa will have to decide which provisions of the federal bill to couple with and which ones to disallow. The Governor’s plan is to not couple at all in tax year 2015. That means that taxpayers would not be able to take advantage of any of those tax extenders that Congress just passed on their Iowa return. This is very problematic.
The Governor then recommends permanently coupling with the Internal Revenue Code in tax year 2016 and moving forward with the exception of Section 179 expensing or bonus depreciation. The Governor’s plan would permanently not couple with those provisions. Section 179 expensing is an accelerated depreciation mechanism for business purposes and bonus depreciation is something similar to that except for larger expenses. This is quite different than what we have done since I have chaired the Ways and Means Committee I have a different plan.
I believe that Iowa should couple with the Internal Revenue Code in 2015 with the exception of bonus depreciation. While this will reduce the projected ending balance for fiscal year 2016 it gives some consistency for taxpayers and tax filers. Whatever Iowa decides to couple or not couple will be for the legislature to decide—but accountants, lawyers, and businesses want to know as soon as possible. The first tax returns will be due on March 1st, 2016. Prompt action is of the necessity!!
News from the Hill…
The second half of the 86th General Assembly has now begun. We have two new members in the Iowa House; one is replacing Representative Chuck Soderberg who resigned to take another job. The other one is due to the untimely death of Representative Jack Drake. Both are/were good friends and will miss Jack immensely. I will miss serving with Chuck, but with his new job our paths have crossed three times this past week.
Governor’s State of the State…
Governor Branstad gave the State of the State speech to a joint session of the 86th General Assembly on January 12. It was a historical moment as the first time in history a Governor at the podium was flanked by a female Lt. Governor, female President of the Senate and a female Speaker of the Iowa House. While it is not the first time for the Lt. Governor and President of the Senate to be a woman, it is the first time for a female Speaker of the Iowa House.
Chief Justice State of the Judiciary…
On the morning of January 13 Chief Justice Cady gave the State of the Judiciary to the Joint Session of the General Assembly. Chief Justice spent several minutes talking on ways to improve the ways to make sure justice is being served.
“America will never be destroyed from the outside. If we falter and lose our freedoms, it will be because we destroyed ourselves.” – Abraham Lincoln
For more information on these and other bills: www.legis.iowa.gov
Until next time,
Tom Sands
This weekend’s Legislative Forum:
Saturday, January 16, 2016
Burlington Public Library
9:15-10:30am
Is it true that sticks and stones can break your bones, but words can never hurt you? Yes, but only if you choose to not let words hurt you. Comedian Tom Shillue, host of Red Eye on Fox News Channel, explains how growing up in a politically incorrect, rough-and-tumble America was the only thing that could have prepared him for the real world, and still is the only thing that can prepare teenagers and college students alike.
Click here: 63% of Americans can’t deal with a $500 emergency
Do you understand what the Electoral College is? Or how it works? Or why America uses it to elect its presidents instead of just using a straight popular vote? Author, lawyer and Electoral College expert Tara Ross does, and she explains that to understand the Electoral College is to understand American democracy.