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Iowa House approves bill allowing 2010 expenses on 2011 returns; Senate future in doubt

June 09, 2011

The Iowa House of Representatives approved a proposal (HF 697) to allow Iowans to take advantage of 2010 tax breaks that weren't enacted until Apriil 2011 without amending returns. The proposal would give taxpayers the option of claiming their additional Sec. 179 expenses, educator expenses and higher-education deductions for 2010 on their 2011 Iowa returns. Otherwise the taxpayers could only claim the deductions by filing amended 2010 returns.

The proposal was passed as part of a broader budget bill, which puts its future in doubt. The Washington Examiner reports:

Democrats warned that Republicans were wasting their time on the House measure, saying the proposal will have no future in the Democratic Senate.
"This bill is dead as soon as it hits the Senate," said Rep. Bruce Hunter, D-Des Moines.

No progress has been made in bargaining between the House and Senate over a new state budget, though the fiscal year ends on June 30.

Tags: HF 697.Iowa tax law.SF 512.