ABI's Legislative Agenda for 2025

The November Election is over and now the focus has turned towards the 2025 legislative session. The 91st Iowa General Assembly was set to kickoff on Monday, January 13. The 110-day session is tentatively set to conclude on May 2, which is when legislators’ per diem expenses expire.

The results of the election were strong for ABI as 70 out of 74 (more than 94%) IIPAC endorsed Friend of Iowa Business candidates won their races for the State House. This means a pro-business Legislature is in charge for the next two years. ABI is in a good position to advance our priorities.

Taxes

Perhaps no other state in the country has transformed its tax climate in a more competitive direction than Iowa has since 2018. An individual flat income tax of 3.8% is in effect beginning this year, the corporate income tax is 7.1% and will hit a flat 5.5% in a few years, the inheritance tax has been phased out, retirement income is exempt from tax and the first round of property tax reform took place in 2023.

Governor Kim Reynolds and legislative leaders have their sights set on additional property tax reform in 2025, which lines up with ABI’s top priority. Though progress has been made, Iowa is still uncompetitive in this space as the nonpartisan Tax Foundation ranks Iowa 32nd in the country in their 2025 State Tax Competitiveness Index. ABI’s position is to ensure that if relief is provided, it should be incurred by all classes of payers.

Another key issue under tax is unemployment insurance premium reform. Iowa’s unemployment insurance trust fund is in a sound position because of actions taken by Governor Reynolds during the height of the COVID-19 pandemic and policymakers’ decision to reform the system to emphasize re-employment during the 2022 legislative session. Now, the amount of premiums being paid by employers into the trust fund is significantly greater than the amount of claims being paid out. You can expect ABI to be supporting legislation that will right-size the amount of money in the trust fund.

Workforce

Policymakers have sought to break down barriers to entering the workforce by enacting policies that will make childcare more affordable and available, expand the number of housing units across the state and fund programs that will allow Iowans to upskill. Over the last number of sessions, ABI supported many of those bills and appropriations then and you can expect us to be at the table again in 2025 when additional potential solutions are discussed.

ABI will also be advancing drug and alcohol testing legislation that seeks to address some imbalances in the Iowa Code and ensure employers can continue to maintain safe workplaces.

Regulatory Reform

ABI is always looking to cut red tape for our member companies so they can operate more efficiently and effectively. We’ll be supporting legislative efforts that facilitate this. In fact, regulatory reform is something we’re focused on year-round, not just during the legislative session, as we work with department agencies to ensure rules they promulgate do not exceed the statute’s authority from which they are derived.

One thing you can do to help move our agenda forward is to attend Business Day in Des Moines on March 12. Our Legislative Briefing and Reception was a success. The March event is the next opportunity to continue to foster and build a relationship with other business leaders and connect with Iowa's legislative leaders. ABI