Feenstra

At the end of 2025, pro-growth, pro-worker, pro-family tax policies authorized by the Tax Cuts and Jobs Act (TCJA) are set to expire. These provisions include the nearly doubled standard deduction for Iowa families, tax cuts for small businesses, investment incentives for our farmers, manufacturers, and job creators, and other tax items.

To ensure that we keep our tax code competitive and grow our economy, House Ways and Means Chairman Jason Smith (R-MO) announced the creation of 10 “tax teams” tasked with compiling the best ideas and proposals to not only improve the strong policies from the TCJA, but also pinpoint areas of the tax code that need attention and can be enhanced. As a member of the Ways and Means Committee, I was selected to serve on the Global Competitiveness Tax Team, the Supply Chains Tax Team, and the Rural America Tax Team — all of which impact our families, farmers, businesses, and economy in rural Iowa.

As part of our work, the Rural America Tax Team — of which I serve as a Vice Chair — recently held a full-day tour in Iowa and Nebraska on Thursday August 15th to talk to farmers, business owners, and other stakeholders. Our travels took us to Omaha, Council Bluffs, and Atlantic to have face-to-face discussions with people, organizations, and local businesses that benefited from the TCJA and hear their suggestions about how we can further improve our tax code.

On our first stop, we met with employees and officials at Ag Processing Inc. — an agriculture cooperative — in Omaha.

In Iowa alone, we are home to 60 farmer-owned cooperatives that support our producers and play an integral role in our agricultural economy. The 20 percent qualified business income dedication created as part of the TCJA helped strengthen cooperatives — and all our small businesses up and down Main Street — and allowed them to better serve their customers. However, this 20 percent deduction expires at the end of 2025, which would significantly increase the tax burden on our local cooperatives and small businesses.

That’s why I helped introduce legislation so that our small businesses and cooperatives can benefit — uninterrupted — from the 20 percent qualified business income deduction well beyond the current 2025 expiration. This tax cut allows business owners to invest in their employees and cooperatives to support production agriculture in Iowa. There’s no question it should be extended.

While in Omaha, we also visited CLAAS — an agriculture equipment and machinery manufacturer. During our roundtable discussion, CLAAS employees and representatives underscored the importance of immediate R&D expensing for manufacturers and businesses. This provision – which first originated in 1954 but lapsed at the conclusion of 2022 – allows business, industry, and agriculture to immediately deduct costly yet vital R&D investments that spur innovation, lower input costs, and accelerate productivity.

Making 100 percent R&D expensing permanent would also help us compete with China, which provides its manufacturers and businesses with a 175 percent R&D expensing deduction. For the sake of our economic growth and competitive edge, any rewrite of the tax code must include the permanent use of immediate R&D expensing for American manufacturers and businesses.

Our third stop took us to Graceview Courtyard — a senior living facility — in Council Bluffs. During our visit, we had a great conversation about the Low Income Housing Tax Credit (LIHTC) and its many success stories. At a time when our families and communities face high interest rates, it’s vital that we take action to build more affordable housing not only in rural Iowa, but also nationwide.

Senior living facilities like Graceview have taken advantage of the LIHTC to help more seniors find a safe and affordable place to call home. I have also worked with my colleagues to extend and strengthen the LIHTC so that we can increase housing inventory, bring rents down, and support our families.

Finally, we wrapped up our day at Elite Octane — an ethanol plant — in Atlantic. Homegrown American ethanol lowers prices at the pump, supports our farmers, helps stabilize corn prices, and strengthens American energy security. In addition to permanently making year-round E-15 available at gas stations nationwide, we also need to work through the tax code to incentivize domestic energy production and end our reliance on foreign oil and gas. Representing the top biofuel-producing district in the country, I will always advocate for policies that support American energy production and keep our biofuels industry strong.

With the expiration of the TCJA right around the corner, Republicans will continue our work to extend the best provisions of this historic legislation, improve existing policies, and even include new ideas that spur innovation and economic growth. As a member of the House Ways and Means Committee, I remain committed to building a strong, competitive, and resilient tax code that benefits our families, farmers, and businesses in rural Iowa.

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Randy Feenstra, a Republican from Hull, represents Iowa’s Fourth District in the U.S. House.