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Bill would exempt Iowa public utilities from tax to decrease customers’ rates
by
Mary Stroka, The Center Square
 | February 22, 2021 11:00 AM
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Private corporations that provide water, sanitary sewage or storm water drainage service to the public may be exempt from state corporate income taxes.
Bills currently considered by Iowa legislators would grant the tax exemption to corporations that provide the above services by piped distribution or collection system.
Customers would be entitled to resulting cost reductions, according to
HF 607, which was introduced Feb. 18. Companion bill
SF 297 was in a Ways and Means subcommittee as of Feb. 16.
“The agreement is, if we were to exempt the corporate income tax because they are acting as a public utility, that that savings for them would not be their profit, but would actually, penny for penny, go back to the consumer, so that should lower th ....

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