Key lawmaker suggests a cap on state tax credits
DES MOINES — A key legislator is making a proposal that could dramatically change the system that currently awards state tax credits to businesses and individuals. State Representative Pat Grassley is chairman of the House Appropriations Committee. He’s suggesting a limit or “cap” on the amount of state tax credits awarded each year. Last year, the state awarded 427 million in tax credits. Grassley’s bill would limit that to 400 million next year. Grassley’s bill would also end to the practice of having the state issue refunds when the value of the tax credit exceeds the tax liability. The three major state tax credits are for low-income Iowans, for businesses that do research and for historic preservation projects.