Posts Tagged ‘Iowa Small Businesses’
Author: deanfiihr Published: March 22nd, 2011
While the Republican led House continues to debate everything but creating jobs, Democrats are looking out for Iowa’s small business owners. The Senate passed SF506 that helps Iowa small businesses get additional help for providing adequate health care coverage for their employees. Read the Des Moines Register article below:
Iowa small businesses could get cash back for health care coverage, bill says
4:35 PM, Mar 21, 2011 | by Jennifer Jacobs | Des Moines Register
Iowa-based small businesses could get a tax credit from the state to help defray the cost of providing health care insurance, under a bill the Iowa Senate approved today.
“Even the smallest businesses, the ones that don’t have big profits or a large tax liability, can get a state refund check by providing health care to their employees,” said Sen. Tom Rielly, D-Oskaloosa.
The Senate approved Senate File 506 with a 48-0 vote.
The proposal would build on the federal tax credit available through the federal health care reform law, the Patient Protection and Affordable Care Act.
The federal tax credit is available now for businesses with 25 or fewer employees. Until 2013, the tax credit is 35 percent; it jumps to 50 percent in 2014.
The state’s proposal would benefit about 60,000 Iowa businesses with 10 or fewer employees, Rielly said.
The refundable state tax credit would be equal to 25 percent of the credit an employer earns under the federal tax credit, the bill says.
A company that spends $50,000 a year to provide health care benefits will get a $17,500 federal tax credit. The state credit would save the business another $4,375 for a total of $21,875, Rielly said.
The Iowa credit would be available for the 2011 tax year, applying retroactively to Jan. 1, 2011, the bill says.
The loss in state revenue would be $6.8 million in budget year 2012, and $8 million the following year, according to the nonpartisan Legislative Services Agency.
Democratic senators said this bill is part of their multi-part plan to create jobs in Iowa.
Small businesses pay 18 percent more on average than large businesses for the same coverage, Rielly said. Premiums have gone up three times faster than wages in the last 10 years, he said.
Tags: Des Moines Register, House Democrats, Iowa Small Businesses, Senate Democats, small businesses
Category Featured, Jobs & Economy, Recent News |
Author: deanfiihr Published: February 28th, 2011
Iowa small business owner Mike Draper cuts through the clutter on whether Republican corporate tax breaks will actually help Iowa small businesses create new jobs.
From Mr. Draper’s comments:
But for argument sake, let’s say the governor wanted to cut state income-tax rates as well to help small businesses add jobs. Say he even reduced my state taxes by 20 percent and I was expected to hire new staff with that savings. On a salary of $40,000 per year, that 20 percent reduction moves my taxes by 1 percent, or 400 annual dollars.
So, indeed, I could hire a new employee with my savings; it would just take 100 years (and by 2111, would $40,000 per year even be enough for them to afford the newest hover-board that all the other guys at the store will have?).
However, if that tax savings were coupled with public pre-K being eliminated for my son, a $400 annual savings may be slightly offset by the additional $8,000 annually I’d have to spend on day care.
Read his full comments from the Des Moines Register go here.
Tags: Iowa Corporate Tax Cut, Iowa income tax, Iowa Small Businesses, tax cuts, Terry Branstad
Category 2011 Session Information, Featured, Jobs & Economy, Recent News |
Author: rachellethomas Published: October 14th, 2010
Iowa’s Small Business Loan Program, which started August 1st, has already shown it’s paying dividends to Iowa’s small businesses.
The program is an effort to create good paying jobs and help Iowa’s small business owners through a $5 million loan program. The Iowa Small Business Loan Program will provide loans up to $50,000 to small businesses with under 35 employees, with an interest rate of 3.9%.
As of October 1st, the following results can be shown:
- 46 loans are in the process with the Small Business Development Centers.
- 11 applications have been received by the Iowa Foundation for Microenterprise and Community Vitality (IFMCV), of which, eight have been recommended to the Department of Economic Development (DED) for approval and three have been recommended for denial.
- The eight approved businesses have been awarded $375,000 in capital, which has leveraged $325,000 in additional co-financed capital.
- Of the eight businesses, two have been start-ups and six are existing businesses.
- 32 full-time and 16 part-time jobs have been created or retained.
The program is still taking applications. To apply businesses must also have a business plan and receive assistance from an Iowa Small Business Development Center, the John Pappajohn Centers for Entrepreneurship, or the Iowans for Social and Economic Development.
Interested businesses should contact their local Small Business Development Center (www.iowasbdc.org) to confirm eligibility and application process.
Tags: Economic Development, Iowa Economy, Iowa Small Business Loan Program, Iowa Small Businesses, Save Our Small Business Fund, small businesses
Category Featured, Jobs & Economy, Recent News |
Author: deanfiihr Published: March 19th, 2010
The Iowa House approved tax credit reform legislation (SF 2380) today that will expand support for small businesses and bring accountability and common sense to Iowa’s tax credit spending.
“We are shifting dollars away from large Wall Street companies and moving some of those dollars to support struggling Main Street businesses whose success will benefit more Iowans,” said State Representative Paul Shomshor of Council Bluffs, who chairs the House Ways & Means Committee. “In these tough times, we must give continue to support small businesses.”
The reforms include the suspension of the film tax credit program for two years; lowering the cap from $185 million to $120 million on business tax credits; cutting the Iowa Fund of Funds contingent tax credits from $100 million to $60 million; an overall cut of 10 percent for many other tax credit programs and an on-going oversight process which will regularly evaluate all tax credits for results. Credits which do not produce results will be fixed or eliminated. In addition, the Supplemental Research Activities Tax Credit will be cut in half for large corporations and increased to help small businesses.
Tags: Iowa Small Businesses, Shomshor, Tax Credit Accountability, Tax Credits
Category Budget, Jobs & Economy |
Author: deanfiihr Published: October 13th, 2009
A new report from a CNN Money ranked three Iowa cities — Ames, Des Moines, and Dubuque — among the best cities in the nation to launch a small businesses. Des Moines was ranked 8th best among mid-size cities. Dubuque (8th) and Ames (18th) both got high marks in the small city category. Ames and Iowa City were also mentioned as top cities with a highly educated workforce.
The ranking used a variety of factors including educated workforce, crime, and business costs. (more…)
Tags: Ames, des moines, Dubuque, Iowa Small Businesses
Category Education, Jobs & Economy |
