ABI priorities sent to Governor
March 17, 2016
The Legislature on Tuesday passed legislation that addresses two of ABI’s top priorities - consumable supplies and coupling. House File 2433 has been sent to Gov. Terry Branstad where it awaits his signature.
ABI members have advocated since 2013 to codify definitions for supplies used in the manufacturing process. For many years the Department of Revenue has arbitrarily defined what is considered a replacement part (non-taxable) and what is a supply (taxable) for manufacturers.
The Iowa House in 2013 and 2014 passed a proposed clarification with bipartisan support, but the Senate majority refused to take up the bill.
HF 2433 also couples state tax law with federal tax law for the 2015 tax year. The bill passed the Iowa House by a vote of 79-18 and the Senate 50-0. Click here to read the notice ABI sent to members following passage. Click here to see which House members supported the legislation. Click here to encourage Gov. Branstad to sign this legislation into law. Staff contact: Nicole Crain.