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Iowa Senate approves health care incentive

DES MOINES, Iowa (AP) -- The Iowa Senate has approved legislation offering a tax break to small businesses if they cover part of employees' health insurance.

The Democratic-majority Senate unanimously approved the plan Monday.

Under the Affordable Care Act, a small business that employs up to 24 people and chooses to cover 50 percent of their employees' health insurance costs gets a federal income tax break. If the bill passes, these businesses would get an additional state income tax break, worth a quarter of their federal savings.

The legislation will move to the House. A spokesman for Gov. Terry Branstad said he would have to review the legislation before taking a position.