As the Iowa Legislature works on a tax reform package for the upcoming fiscal year, many tax credits may be on the chopping block.

One in particular has drawn concern from police chiefs, fire chiefs, and ambulance directors in rural communities as it has been used as a recruitment tool. A $100 credit for volunteer emergency responders would be eliminated in a bill passed by the Iowa Senate in late February. State Senator Ken Rozenboom counters the concerns of leaders of those organizations, as he believes a larger tax cut outweighs the loss of that credit and others.

“What has to be recognized, though, in the big picture, is that this is a tax reform and tax reduction bill, so that if you–not just to use them as an example, but if you are getting a $100 tax credit now, but you get a $1000 tax reduction — which is better? I would rather have the $1000 reduction than $100 tax credit,” Rozenboom says. “I think that’s the crux of the issue–it’s not quite that simple, things are never that simple, but yeah, that’s the heart of the issue.”

When asked about the impact on recruitment for rural departments, Rozenboom said there were many factors to consider, and he welcomes discussion with local officials.

Iowa Senate Republicans passed a bill offering $1 billion annually in overall tax cuts that includes the personal income and corporate rates. The Iowa House is working on a plan that cuts $1.7 billion over the next five years and includes triggers to prevent cuts from enacting if revenue falls short of set benchmarks.

Hear more from Rozenboom about tax reform on today’s Let’s Talk Pella.