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GOVERNOR SIGNS REHAB CREDIT GIVEAWAY
May 22, 2007
Governer Culver yesterday signed SF 566, the bill to increase the cap on Iowa's rehabilityation credits. For some time the credit applications have exceeded the cap, which goes to $10 million (from 6.4 million) immediately and eventually to $20 million annually.
The bill also contains a lucrative giveaway for people who already have applied for credits but haven't yet used them. The credits can be claimed in cash even if they exceed your Iowa liability; formerly the credits had to be "discounted" to claim a cash refund. The bill eliminates the discount. This means that people who already had committed to do work under the old rules get a windfall -- one that the Des Moines Register calls "adjustments in how the credits are administered so they can be used more quickly."
The Moral? You pay taxes so the state can pay rehabbers a bonus.
Links:
Text of HF 566
Tax Update 2007 Tax Legislation Page
Prior coverage of HF 566.
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