DES MOINES – A group of Iowa senators have introduced a bill that would eliminate a tired tax structure for corporations doing business in Iowa.
Currently, the corporate income tax is imposed in a progressive manner using four income brackets with inreasing rates: on the first $25,000 of income, the rate is 6 percent; on income between $25,000 and $100,000, the rate is 8 percent; on income between $100,000 and $250,000, the rate is 10 percent; on income of $250,000 or more, the rate is 12 percent.
The bill eliminates this tiered bracket and rate structure and imposes the tax at the rate of 6 percent on the corporation’s taxable income. The bill applies retroactively to tax years beginning on or after January 1, 2013.
The bill was introduced by Brad Zaun, from Urbandale.