The 2011 session of the Iowa Legislature appears to be headed for overtime, and we still haven’t seen the resolution of several bills that are of great interest to the business community.

Late last week, as the lawmakers eased into a long Easter weekend, the picture got a little gloomier. Republicans and Democrats alike were stunned to see Gov. Terry Branstad veto a measure that would have allowed business owners to accelerate depreciation on purchases of new equipment, a move that was described by its backers as creating more than $100 million in tax breaks for small business owners and farmers.

Branstad used his line-item veto power to eliminate the provision when he signed Senate File 209, a bill funding several state departments and community colleges. He said it didn’t fit his plan to “approach tax policy in a comprehensive and holistic manner.”

Iowans for Tax Relief President Ed Failor Jr. issued a statement including this: “First, the governor is discouraging Iowa job creators from further investing in their business. The item-veto of the bonus depreciation provision is unfair – Iowa’s small businesses should be encouraged to increase business investment, not be penalized by the governor. … Taking away this tax relief provision could end up slowing Iowa job creation.”

Even more important, the question of what to do about commercial property taxes had yet to be resolved. House of Representatives Speaker Kraig Paulsen told reporters that he was “optimistic about property tax reform happening” before the session ends. “It has gotten more and more attention as we near the end,” he said.

However, he also had expected the governor to sign all of SF 209 into law.

Branstad has his own take on commercial property taxes, too.

It would be a shame to see these issues fall victim to the governor’s determination to set the state’s course all by himself.