Farmers and small businesses owners across the state are left in limbo as state lawmakers have yet to make a decision on a portion of the tax code.

District 10 State Senator Jake Chapman says the federal government recently approved a permanent extension of section 179, which allows businesses to deduct the full purchase price of qualifying equipment or software purchased during the tax year.  It’s an incentive created to encourage businesses to buy equipment an invest in themselves.

Iowa mirrors their tax code off the federal code and state lawmakers have yet to take action on the issue in Iowa.

“We are literally forcing our small businesses and farmers to gamble with whether or not they should be making capital expenditures and whether or not they’re going to get that deduction on last year’s taxes.  So it’s a big deal.  It’s to the tune of $100 million that may be taken from our farmers and small businesses.  And certainly it perpetuates the lack of trust of government officials and the uncertainty of whether or not they should be making capital expenditures.”

Chapman says he looks forward to continuing to push for a permanent resolution for Iowans.