Earlier this year, the Iowa House of Representatives and Iowa Senate passed a tax relief bill that Governor Branstad signed into law in June. The legislation aims to do three things; lower the burden of commercial property taxes on business owners, increase Iowans' earned income tax credit and slow the rate of increase on residential and agricultural property tax.
The tax credit results from Iowa's relatively stable economic standing this year and the government spending less than in other years. State Senator Mark Chelgren of Iowa District 41 said he supported the legislation in order to put that surplus of money back into the pockets of Iowa's business owners and workers.
"It's recognizing whose money it is and we recognize that it's the money of the people who ware paying the taxes," Chelgren said. "We want to try to minimize that burden. And so for me, when it comes down to Iowans in general being more prosperous, that means they're investing in their community, they're enjoying their lives more and it means more people are going to want to be here and stay here."
Owners of commercial and industrial property in Iowa should have received a letter from their county assessor saying they qualify for the credit and how to apply. Chelgren said the way the bill was passed, the credit will be spread over the next few years, with up to $600 being credited the first year.
"And so what it's going to do is it's going to help keep the money in the pockets of people who are trying to create jobs," he said. "That's our goal with it is we want to make sure that we have successful businesses out there that can add to the overall net worth of the state, can create jobs for our young people and for everyone, because we want to make sure that anyone desiring an opportunity for a job and an opportunity for a better life can find it here in Iowa."
The deadline to file a claim with the county assessor is January 15 and the credit will appear on bills due September 30, 2014 and March 31, 2015.
Owners of residential and agricultural property are not eligible for the tax credit.