Governor Branstad has vetoed the increase in the Iowa earned income tax credit enacted in the closing hours of Iowa's recently-ended legislative session. SF 533 would have increased the credit to 10% of the federal credit, from the current 7%. The refundable credit would have cost $28.5 million, according to the Governor. No other tax provisions were vetoed. From the veto message:
It is my desire to approach tax policy in a comprehensive and holistic manner. As such, I urge members of the House and Senate to continue to work with my office on an overall tax reduction package that both fits within our sound budgeting principles while reducing those taxes that are impeding our state's ability to compete for new business and jobs.
Comprehensive and holistic? I got your comprehensive and holistic right here.
The items included in the Tax Update Blog are informational only and are not meant as tax advice. Consult with your tax advisor to determine how any item applies to your situation.
Joe Kristan writes the Tax Update items, and any opinions expressed or implied are not necessarily shared by anyone else at Roth & Company, P.C. Address questions or comments on Tax Updates to