ICA is committed to improving Iowa's general business climate through tax code improvements, sensible regulatory structures, impact to business cost drivers and myriad infrastructure investments to ensure a policy environment that spurs business growth. We recognize the positive changes to the tax code in 2018 and 2021. Our members continue to reap the benefits as full implementation takes place. Nonetheless, Iowa has the second highest corporate income tax rate in the country. ICA recognizes the impact that this status may have on the state's competitiveness for potential economic development projects and seeks ongoing reform.


ICA maintains that Iowa's property tax code remains overly complex and burdensome. Iowa's poor ranking (40th ) for business climate in the Tax Foundation's 2021 State Business Tax Climate Index is no longer accurate measure, as the income tax reforms of 2018 are not reflected in the study and have yet to achieve full implementation. That said, Iowa's adjusted top corporate rate of 9.8 percent is lower than only four other states. This high advertised rate excludes Iowa from even competing for prospective economic investments. We will advocate for any potential tax reform to address this rate where a lowering to 8 percent can have a dramatic impact to the attracting of outside investment.

Sound Budgeting

The fiscal health of state and local governments proves to be a determining factor in attracting and retaining businesses. ICA Accordingly, a concerted effort to regularly modernize and reform budget practices must be made. This includes strategically reviewing expenditures with a focus on major cost drivers. ICA supports efforts to reduce revenue demand from local and state governments through public pension reforms and other measures that could positively impact local government budgets without tax increases.


Cybersecurity is an increasing concern for our members who experience attacks from both physical and digital threats. As our economy continues to move in a digital direction, we must balance the free flow of commerce and information and safeguarding our businesses and consumers from cybersecurity risks. ICA supports the state considering additional resources for small businesses to protect against these threats.

Healthcare and Mental Health

The Alliance supported the move for mental health funding to be managed at the state level as the change positively impacts property taxes at the local level and provided additional funds that can provide additional mental health resources. Adequate funding to address mental health for both children and adults is an increasingly important issue to our members and their communities.