In the Iowa Senate, we’ve approved two more bills that add to our growing list of new tools to help create local jobs.|(From Sen. Amanda Ragan)
Senate File 506 will benefit 60,000 Iowa businesses with 10 or fewer employees by providing a tax credit to help with the cost of providing health insurance. Small businesses pay 18 percent more than large businesses for the same coverage. In addition, health insurance premiums have gone up three times faster than wages in the last 10 years.
SF 506 unanimously passed the Senate and will build on a federal tax credit available to small businesses with 25 or fewer employees. The federal tax credit equals 35 percent of the cost of providing health care to employees through 2013 and 50 percent starting in 2014.
Our plan provides a state tax credit worth 25 percent of the federal credit. That means even the smallest businesses can get a state refund check by providing health care to their employees.
Senate File 471 establishes a Red Tape Commission to review state regulations that impact small businesses and to determine if the resulting burdens outweigh the intended benefits to small business success.
We continue to develop legislation to further our local renewable energy economy and other efforts that will help communities revitalize local business districts.|