Gov. Kim Reynolds signed the tax reform bill, Senate File 2417, into law Wednesday at tablet manufacturer MobileDemand in Hiawatha. Senate File 2417 represents historic tax reform for Iowa families, farmers and small business owners.
“141 days ago, I promised Iowans in my Condition of the State address to find a way to pass tax reform this session so people could keep more of their hard-earned dollars,” Gov. Reynolds said. “Today - thanks to strong leadership and unified teamwork - that promise became a reality.”
The governor went on to say the new tax plan will unleash opportunity across the state and help families struggling to make ends meet.
“I signed this bill for every Iowan who works hard to earn a paycheck and deserves to keep more of it,” she continued. “It’s one of the reasons why I feel so strongly that government must never forget that it’s the people’s money they’re spending.”
For decades, Iowans suffered under a complex tax code that placed unfair burdens on middle-class families. Senate File 2417 brings immediate and significant relief and is simple, transparent and fair for Main Street Iowa. Most importantly, the new tax plan is fiscally responsible and sustainable for the state’s budget, ensuring Iowa can still fund key priorities like education, healthcare and public safety.
Next year, virtually every Iowan will see their taxes go down. Before Wednesday’s bill signing, Iowa’s tax code was inhibiting innovation and costing families too much. If lawmakers didn’t act during the 2018 legislative session, Iowans would have seen their taxes go up because of federal tax reform. Senate File 2417 eliminates provisions like federal deductibility and modernizes Iowa’s tax code.
The tax reform bill passed the Iowa Senate on May 5, 28-20 and the Iowa House on May 5, 54-32.