Republicans in the Iowa House of Representatives have begun to unveil the major components of this year’s tax cut plan. Though the tax cuts are not as broad based as those approved in previous years, Republicans have targeted tax reductions in a manner to maintain a climate in Iowa that is attractive for business and families.

One area Republicans have decided to target is providing tax credits for rehabilitating historical buildings. This tax credit is an effort to aid in the renovation of "Main Street" Iowa, and is expected to benefit communities across the state. To qualify for the tax credit, a building scheduled for renovation must be: listed on the national register of historic places; designated as having historic significance to a district listed in the national register of historic places; designated as having a local landmark by a city or county or county ordinance; or a barn constructed one hundred years prior to certification.

This tax credit is equal to 25% of the rehabilitation costs. For commercial property, costs must equal at least 50% of the assessed value prior to rehabilitation (excluding land). For residential property or barns, rehabilitation costs must equal at least 25% or $25,000, whichever is less, of the fair market value prior to rehabilitation. Approval from the certified local government historical preservation commission and the Department of Economic Development is required.

A second component is designed to increase pension exemptions for Iowa’s seniors. Under the Republican proposal, pension exemptions would be raised from $5,000 to $6,000 for persons filing individual tax returns and from $10,000 to $12,000 for persons filing joint tax returns. Governor Vilsack vetoed this measure last year.

Republicans have also proposed creating an alternative method for calculating tax credits for business research and development. This alternative calculating method will provide Iowa business with the opportunity to maximize their investment in new products and technologies, in turn, creating a business climate open to expansion and recruitment of new industry in the state.

Other tax credit proposals offered by Republicans include: the "Sales Tax Freedom Weekend", previously approved by the Iowa House; doubling the "cow-calf" tax credit"; and providing tax credits to those small businesses that offer assistance to the disabled so that they may enter the workforce.

Throughout the 2000 General Assembly, Republicans have sought to promote efforts that enhance economic, educational and recreational opportunities for Iowa’s families. Several major "quality of life" initiatives have advanced through the legislative process this week. The most visible is Vision Iowa.