(Radio Iowa) - Iowans for Tax Relief president Chris Hagenow is optimistic Iowa lawmakers will be open to making changes in a state tax break for big corporations.
It's called the "research activities" tax credit -- it's refundable -- and the state is required to cut the corporation a check for any amount above what the company owes in taxes. Hagenow says the latest data from the state of Iowa shows John Deere received over 19 million dollars in tax credits for research activities last year -- the most of any corporation -- and he says Iowans may find that worrisome given recent layoffs at Deere facilities in Iowa, as well as the company's plan to build a plant in Mexico.
In tax year 2023, about 350 corporations filed for the state research activities tax credit -- with claims totalling 77 million dollars. Backers of the credit say it keeps companies in Iowa that are doing high value research -- with highly paid staff.