Gov. Reynolds signs bill designed to cut taxes

Iowa News

DES MOINES, Iowa (KCAU) – On Wednesday, Iowa Governor Kim Reynolds signed laws regarding mental health, taxes, and child care.

According to a press release from the governor’s office, Gov. Reynolds signed SF 619 into law which will cut taxes, reduce the number of tax brackets, eliminates federal deductibility, phases out mental health levy over 2 years, phases out state inheritance tax over 4 years, expands eligibility for the Beginning Farmers Tax Credit, and gives Food Bank sales a tax exemption.

The new bill was designed to cut Iowan’s taxes by $1 billion over the next eight years.

“In Iowa, we are cutting taxes and helping Iowans keep more of their hard-earned money. Not only does this legislation reduce income and property taxes, it completely phases out the state’s inheritance tax. With this legislation, we also provide steady and reliable funding for our state’s mental health system while making significant investments in housing, workforce, and child care,” said Gov. Reynolds.

The signed bill will also invest in mental health, child care, and housing. It will create mental health funding through Iowa’s General Fund, allocates new money as revenue increases, increases eligibility for Child Care Tax Credits, increases workforce housing tax credits, and develops a manufacturing 4.0 strategic roadmap for the future of manufacturing in Iowa.

“Today’s legislation ushers in a new era of growth and opportunity in Iowa, but we are not done yet. Next year, I’ll be proposing additional income tax cuts as we continue to make Iowa the most attractive place in America to open a business, raise a family, and start a career,” said Gov. Reynolds.

Majority Leader Whitver, Senator Dawson, Senator Costello, Senator Edler, Rep. Hite, Rep. Fry, Rep. Lundgren, and Rep. Meyer joined the governor.

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