DES MOINES, Iowa (AP) — The Iowa Senate voted 50-0 Monday to approve Senate File 449, a bill that would provide a tax break for small businesses that help employees pay for health insurance.
Under the Patient Protection and Affordable Care Act (PPACA), a small business that employs up to 24 people and chooses to cover 50 percent of their employees’ health insurance costs can qualify for a federal income tax break.
If S.F. 449 is implemented as written, the same businesses would get an additional state income tax break, worth a quarter of the federal savings.
The legislation will move to the House. A spokesman for Gov. Terry Branstad said he would have to review the legislation before taking a position.
The Senate previously was considering similar versions of the bill with the bill numbers S.F. 412 and LSB 1223SZ.
Allison Bell contributed information to this article.