The residents of Iowa may soon see a dip in their utility bills, following President Donald Trump’s approval of the Republican tax reform bill that cut the corporate tax rate. The state’s investor-owned utilities may pass along $147 million in savings to utility users in Iowa, due to reduction in the tax rate.
According to the Des Moines Register, utilities such as MidAmerican and Alliant will save millions of dollars in savings because of the tax reform that Trump signed into law in December. These utilities are joining other businesses, such as WalMart and Boeing, in passing along savings in the tax rate, which went from 35 percent to 21 percent as of January 1.
Utility companies are determining how to pass along savings to users, while some are considering lowered rates or giving monthly bill credits.
According to MidAmerican Energy, the energy company may return between $90 million and $112 million to its customers. Interstate Power & Light may return between $18.6 million and $19.6 million. Alliant's natural gas customers may see between $500,000 and $3.7 million in savings.
Earlier this week, FedEx specifically credited the Republicans' Tax Cuts and Job Act, signed by President Trump, for its committment to providing more than $3.2 Billion in wage increases, bonuses, pension funds, and expanded capital investment in the U.S.