The Iowa Fiscal Partnership is a joint initiative of two nonpartisan organizations, the Iowa Policy Project and the Child and Family Policy Center, providing reliable information and analysis on Iowa budget and tax issues.
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No income taxes, big checks from the state
More companies are benefiting from a lucrative tax subsidy that permits large, profitable corporations to get checks from the state without paying any Iowa income tax. The latest annual report from the Department of Revenue on the use of the Research Activities Credit (RAC) shows that 248 companies claimed $50.1 million from the program in 2015. The number of companies claiming the credit in each of the last two years is 55 percent higher than in 2010, the first year of full-year annual reports on use of the credit. Most of the credit claims — $42.1 million, or 84 percent — were paid out as checks, not as tax reductions, and 88 percent of the claims were by very large, profitable companies.
Iowa’s low business taxes Iowa taxes that fall on businesses are lower than the national average — with the corporate income tax rate lower than all but 14 states. Not that you hear that very often in political debate. Read this report
SNAP Almost 200,000 households in Iowa benefit from Food Assistance. Read this report
A joint effort of THE IOWA POLICY PROJECT and CHILD & FAMILY POLICY CENTER
Iowa Policy Project | 20 E. Market Street, Iowa City, IA 52245 | E-mail: ipp(at)Lcom.net | Phone: 319-338-0773 | Fax: 319-354-4130
Child & Family Policy Center | 505 5th Ave., Suite 404, Des Moines, IA 50309 | E-mail: info(at)cfpciowa.org | Phone: 515-280-9027 | Fax: 515-244-8997