As we’ve noted, the Iowa Legislature could be a lot more sharply focused on jobs and the economy. However, some business-related bills that were passed by the Senate were being considered by the House of Representatives this week.

Senate File 506, as described in Sen. Dick Dearden’s newsletter, “will build on a federal tax credit available to small businesses with 25 or fewer employees. The federal tax credit equals 35 percent of the cost of providing health care to employees through 2013 and 50 percent starting in 2014. Our plan provides a state tax credit worth 25 percent of the federal credit. That means even the smallest businesses can get a state refund by providing health insurance to employees.”

Dearden also pointed to SF 471, which “establishes a Red Tape Commission to review state regulations that impact small businesses and to determine if the intended benefits outweigh burdens to small business success.”

SF 260 would eliminate the transfer tax imposed on insurers organized in other states that become domestic insurers in Iowa.

SF 301 would make changes to the existing “Save Our Small Businesses” loan fund. In the words of the bill, it would allow the government to “negotiate the terms on which the financial assistance is provided … terms may provide for up to six months of interest-free financing.”

We hope that these bills become law; they could help the Iowa business community create a stronger job market. Recent national reports show that American business leaders are spending plenty on equipment, but remain hesitant about adding workers. It’s crucial to build employment. Boosting productivity is useless if Americans can’t afford to buy those products.

It’s conventional wisdom that small business will play the key role in getting us back to a sustainable balance of consumption and employment. The Senate has made some efforts to give that sector a hand.