Hawkeye Reporter

The National Federation of Independent Business (NFIB), a prominent advocate for small businesses in the United States, has released its legislative priorities for Iowa in 2025. The organization aims to address key issues affecting small business owners in the state.

Matt Everson, NFIB Iowa State Director, highlighted the challenges faced by local entrepreneurs: “Iowa’s small business owners are grappling with workforce shortages, burdensome regulations, and rising costs. If lawmakers want Iowa to continue to grow and thrive, they must prioritize small business legislation during the 2025 legislative session.”

The NFIB's agenda includes several major initiatives:

Property Tax Reform is a top priority. The organization notes that property taxes in Iowa have surged by more than 150% over the past two decades, rendering them uncompetitive. The NFIB calls on state legislators to explore measures such as capping city and county spending, limiting property tax exemptions, and ensuring fairness for all taxpayers.

Another focus is Unemployment Insurance Tax Cuts. In 2025, Iowa employers will be taxed on the first $39,500 of each employee’s wages—one of the highest rates in the Midwest. The NFIB advocates for simplifying tax brackets and reducing the wage base threshold to maintain competitiveness with neighboring states. This change is expected to provide significant relief for small businesses while keeping the Unemployment Trust Fund stable.

Energy Regulation Reform is also on the agenda. Despite increasing profits for energy companies in recent years, energy costs for small businesses and their employees have risen significantly. The NFIB urges legislators to seek solutions that protect these stakeholders from escalating expenses by modernizing energy regulation and consumption practices.