Source: https://www.legis.iowa.gov/docs/publications/AMDI/88/attachments/S3228.html
Timestamp: 2020-06-04 15:38:19
Document Index: 490925596

Matched Legal Cases: ['art 5', 'art 5', 'art. 24', 'art. 27', 'art 23', 'art 5', 'art 5']

Senate File 624 S-3228 Amend Senate File 624 as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < Section 1. Section 2.48, subsection 3, paragraph e, 4 subparagraph (1), Code 2019, is amended to read as follows: 5 (1) The agricultural assets transfer beginning farmer 6 tax credit program as provided in section 16.80 chapter 16, 7 subchapter VIII, part 5, subpart B . 8 Sec. 2. Section 16.2, subsection 1, unnumbered paragraph 1, 9 Code 2019, is amended to read as follows: 10 An Iowa finance authority board of directors is created. The 11 powers of the authority are vested in and shall be exercised 12 by the board. The authority includes nine members appointed 13 by the governor subject to confirmation by the senate. The 14 authority also includes one ex officio voting member who must 15 be designated by the agricultural development board created in 16 section 16.2C and be a member of that board. 17 Sec. 3. Section 16.2, subsections 2 and 3, Code 2019, are 18 amended to read as follows: 19 2. Members The members of the authority shall be appointed 20 by the governor shall serve for staggered terms of six years 21 beginning and ending as provided in section 69.19 . A person 22 appointed by the governor to fill a vacancy shall serve only 23 for the unexpired portion of the term. A member is eligible 24 for reappointment. The ex officio voting member designated by 25 the agricultural development board shall serve at the pleasure 26 of that board. A member of the authority may be removed from 27 office by the governor for misfeasance, malfeasance, or willful 28 neglect of duty or other just cause, after notice and hearing, 29 unless the notice and hearing is expressly waived in writing. 30 3. Five Six members of the authority constitute a quorum and 31 the affirmative vote of a majority of the appointed members is 32 necessary for any substantive action taken by the authority. 33 The majority shall not include any member who has a conflict of 34 interest and a statement by a member of a conflict of interest 35 -1- SF624.2397 (4) 88 (amending this SF 624 to CONFORM to HF 768) da/jh 1/ 16 #1.
shall be conclusive for this purpose. A vacancy in the 1 membership does not impair the right of a quorum to exercise 2 all rights and perform all duties of the authority. 3 Sec. 4. Section 16.2B, subsection 3, paragraph b, Code 2019, 4 is amended to read as follows: 5 b. Obtain agricultural assets transfer Claim beginning 6 farmer tax credits, including tax credit certificates issued 7 pursuant to subchapter VIII, part 5 , subpart B . 8 Sec. 5. Section 16.59, subsection 4, Code 2019, is amended 9 to read as follows: 10 4. For a family farm limited liability company, an aggregate 11 net worth of all members, including each member’s ownership 12 interest in the family farm limited liability company, and 13 each member’s spouse and minor children of not greater than 14 twice the low or moderate net worth. However, the aggregate 15 net worth of each member and that member’s spouse and minor 16 children shall not exceed the low or moderate net worth. 17 Sec. 6. NEW SECTION . 16.77 Definitions. 18 As used in this subpart B, unless the context otherwise 19 requires: 20 1. “Agricultural development board” means the agricultural 21 development board created in section 16.2C. 22 2. “Agricultural lease agreement” or “agreement” means an 23 agreement for the transfer of agricultural assets, that must at 24 least include a lease of agricultural land, from an eligible 25 taxpayer to a qualified beginning farmer as provided in section 26 16.79A. 27 3. “Department” means the department of revenue. 28 4. “Eligible taxpayer” means a taxpayer who may participate 29 in the beginning farmer tax credit program, including by 30 meeting all the criteria as provided in section 16.79. 31 5. “Program” means the beginning farmer tax credit program 32 created pursuant to section 16.78. 33 6. “Qualified beginning farmer” means a beginning farmer 34 as defined in section 16.58 who meets the requirements to 35 -2- SF624.2397 (4) 88 (amending this SF 624 to CONFORM to HF 768) da/jh 2/ 16
participate in a beginning farmer tax credit program as 1 provided in section 16.79. 2 7. “Tax credit” means the beginning farmer tax credit 3 allowed under section 16.82. 4 Sec. 7. NEW SECTION . 16.78 Beginning farmer tax credit 5 program —— establishment and administration. 6 1. A beginning farmer tax credit program is established 7 under the control of the authority. 8 2. The authority and the department shall cooperate in 9 administering the program. The department shall have all 10 rulemaking powers necessary to administer its responsibilities 11 under this subpart as it does under chapter 422. 12 3. To every extent practicable, the authority shall 13 administer the program in a manner that encourages 14 participation by eligible taxpayers and qualifying beginning 15 farmers for the primary purposes of providing beginning farmers 16 access to farmland and enhancing the stability of the beginning 17 farmer’s farming business. 18 4. The authority and the department shall each adopt 19 rules in accordance with chapter 17A as necessary for the 20 administration of their respective responsibilities under this 21 subpart. The eligibility requirements for taxpayers and the 22 qualifications for beginning farmers as provided in the rules 23 shall not be more stringent than provided in this subpart. 24 5. The authority shall provide for the preparation or 25 revision and publication or distribution of forms necessary to 26 administer their responsibilities under this subpart. 27 Sec. 8. NEW SECTION . 16.79 Beginning farmer tax credit 28 program —— eligibility criteria. 29 1. A taxpayer is eligible to participate in the beginning 30 farmer tax credit program if the taxpayer meets all of the 31 following requirements: 32 a. The taxpayer is a person who may acquire or otherwise 33 obtain or lease agricultural land in this state pursuant to 34 chapter 9H or 9I. However, the taxpayer must not be a person 35 -3- SF624.2397 (4) 88 (amending this SF 624 to CONFORM to HF 768) da/jh 3/ 16
who may acquire or otherwise obtain or lease agricultural 1 land exclusively because of an exception provided in one of 2 those chapters or in a provision of another chapter of this 3 Code including but not limited to chapter 10, 10D, or 501, or 4 section 15E.207. 5 b. The taxpayer has entered into an agricultural lease 6 agreement with a qualified beginning farmer to lease 7 agricultural land as provided in section 16.79A. 8 c. The taxpayer has not been at fault for terminating a 9 prior agreement under the program or another agreement in which 10 the taxpayer was allowed to claim a tax credit under section 11 175.37 as it existed prior to January 1, 2015, or section 16.80 12 as it existed prior to January 1, 2018. 13 d. If the agreement includes the lease of a confinement 14 feeding operation structure as defined in section 459.102, the 15 taxpayer is not a party to a pending administrative or judicial 16 action, including a contested case proceeding under chapter 17 17A, relating to an alleged violation involving an animal 18 feeding operation as regulated by the department of natural 19 resources, regardless of whether the pending action is brought 20 by the department or the attorney general. 21 e. The taxpayer is not classified as a habitual violator for 22 a violation of state law involving an animal feeding operation 23 as regulated by the department of natural resources under 24 chapter 459. 25 f. The taxpayer is not a partner of a partnership, 26 shareholder of a family farm corporation, or member of a 27 family farm limited liability company that is the lessee of 28 an agricultural asset that is part of an agricultural lease 29 agreement. 30 2. A beginning farmer is a qualified beginning farmer 31 eligible to participate in the program by meeting all of the 32 following criteria: 33 a. Is a resident of the state. If the beginning farmer is a 34 partnership, all partners must be residents of the state. If a 35 -4- SF624.2397 (4) 88 (amending this SF 624 to CONFORM to HF 768) da/jh 4/ 16
beginning farmer is a family farm corporation, all shareholders 1 must be residents of the state. If the beginning farmer is 2 a family farm limited liability company, all members must be 3 residents of the state. 4 b. Has sufficient education, training, or experience in 5 farming. If the beginning farmer is a partnership, at least 6 one partner who is not a minor must have sufficient education, 7 training, or experience in farming. If the beginning farmer is 8 a family farm corporation, at least one shareholder who is not 9 a minor must have sufficient education, training, or experience 10 in farming. If the beginning farmer is a family farm limited 11 liability company, at least one member who is not a minor must 12 have sufficient education, training, or experience in farming. 13 c. Has access to adequate working capital and production 14 items. 15 d. Will materially and substantially participate in 16 farming. If the beginning farmer is a partnership, family farm 17 corporation, or family farm limited liability company, at least 18 one of the partners, shareholders, or members who is not a 19 minor must materially and substantially participate in farming. 20 e. Does not own more than a ten percent ownership interest 21 in an agricultural asset included in the agreement. 22 Sec. 9. NEW SECTION . 16.79A Agricultural lease agreement. 23 1. A beginning farmer tax credit is allowed only for 24 agricultural assets that are subject to an agricultural lease 25 agreement entered into by an eligible taxpayer and a qualifying 26 beginning farmer participating in the beginning farmer tax 27 credit program established pursuant to section 16.78. 28 2. The agreement must include the lease of agricultural 29 land located in this state, including any improvements, and may 30 provide for the rental of agricultural equipment as defined in 31 section 322F.1. 32 3. a. The agreement must include provisions which describe 33 the consideration paid for the agreement in a manner that 34 allows the authority to calculate the value of the lease in 35 -5- SF624.2397 (4) 88 (amending this SF 624 to CONFORM to HF 768) da/jh 5/ 16
order to determine the tax credit amount as provided in section 1 16.82. 2 b. The agreement must be in writing. 3 c. The agreement must be for at least two years, but not 4 more than five years. The agreement may be renewed by the 5 eligible taxpayer and qualified beginning farmer for a term of 6 at least two years, but not more than five years. 7 d. The agreement shall not include a lease or rental of 8 equipment intended as a security. 9 e. The agreement cannot be assigned and the agricultural 10 land subject to the agreement shall not be subleased. 11 f. (1) The agricultural assets shall not be leased or 12 rented at a rate that is substantially higher than the market 13 rate for similar agricultural assets leased or rented within 14 the same community. 15 (2) As used in subparagraph (1), when referring to an 16 agricultural asset that is cropland, “substantially higher” 17 means not more than thirty percent above the average cash rent 18 paid for cropland rented in the same county according to the 19 most recent cash rent survey for cropland published by a unit 20 of Iowa state university of science and technology recognized 21 by the authority. 22 4. a. The agreement may be amended after the authority 23 approves an application and makes a tax credit award without 24 changing the eligibility status of the taxpayer, except as 25 provided in paragraph “b” . 26 b. The underlying lease for agricultural land may only be 27 amended without submitting a new application if any of the 28 following apply: 29 (1) The terms of the amended lease are more favorable to the 30 qualified beginning farmer, including but not limited to the 31 rent payment being reduced. 32 (2) A party has changed their name. 33 (3) The owner of an agricultural asset is changed to the 34 owner’s estate or trust upon the eligible taxpayer’s death. 35 -6- SF624.2397 (4) 88 (amending this SF 624 to CONFORM to HF 768) da/jh 6/ 16
c. If an amendment to an agreement changes the total amount 1 that will be paid to the eligible taxpayer under the agreement, 2 the eligible taxpayer shall notify the authority in a manner 3 and form prescribed by the authority within thirty days of the 4 date the amendment is executed by the parties. 5 (1) If the amendment will reduce the total amount paid to 6 the eligible taxpayer under the agreement, the authority shall 7 recalculate and reduce the eligible taxpayer’s tax credit award 8 under section 16.82A. 9 (2) If the amendment will increase the total amount paid to 10 the eligible taxpayer under the agreement, the tax credit award 11 shall not be increased unless the eligible taxpayer submits an 12 amended application to the authority in the manner and form 13 prescribed by the authority and that meets the requirements of 14 section 16.81. If the amended application is approved under 15 section 16.81, the authority may increase the amount of the tax 16 credit award. The increased amount of the tax credit award 17 shall be subject to the aggregate award limitation in section 18 16.82A for the calendar year in which the increased award is 19 made. 20 (3) This paragraph “c” does not apply to an amendment to an 21 agreement that requires a new application under paragraph “b” in 22 order to be valid. 23 5. An eligible taxpayer or qualified beginning farmer may 24 terminate an agreement as provided in the agreement or by 25 law. The eligible taxpayer must notify the authority of the 26 termination within thirty days of the date of termination in 27 the manner and form prescribed by the authority. 28 Sec. 10. NEW SECTION . 16.81 Beginning farmer tax credit 29 —— application. 30 1. The deadline for submitting an application to the 31 authority to claim a beginning farmer tax credit is August 1 of 32 each year. The application shall be for a period that is not 33 longer than the term of the lease. 34 2. a. The authority shall impose, assess, and collect 35 -7- SF624.2397 (4) 88 (amending this SF 624 to CONFORM to HF 768) da/jh 7/ 16
application fees on an interim basis until December 31, 2021. 1 The amount of an application fee shall not be more than the 2 following: 3 (1) For an application that includes an agreement for the 4 lease of one hundred acres or less of agricultural land, a fee 5 of three hundred dollars. 6 (2) For an application that includes an agreement for the 7 lease of more than one hundred acres, but not more than two 8 hundred fifty acres of agricultural land, a fee of four hundred 9 dollars. 10 (3) For an application that includes an agreement for the 11 lease of more than two hundred fifty acres of agricultural 12 land, a fee of five hundred dollars. 13 (4) For an amendment to an agreement that is part of an 14 application that has been previously approved, a fee of one 15 hundred dollars. 16 b. Any amount of fees collected by the authority under this 17 subsection shall be considered repayment receipts as defined 18 in section 8.2. 19 c. This subsection is repealed on January 1, 2022. 20 3. a. The authority shall impose, assess, and collect 21 application fees and shall adopt rules as necessary to 22 administer this subsection, including by providing for the rate 23 of those fees. 24 b. The authority may establish different rates based on 25 separate categories of applications or agricultural lease 26 agreements as determined relevant by the authority. 27 c. The authority shall calculate the rates of the 28 application fees to be effective for each successive 29 twelve-month period. The total amount of application fees 30 collected by the authority for that period shall not be more 31 than the authority’s estimate of the total amount of revenues 32 necessary to administer the provisions of this subpart based 33 on the expected revenue to be collected from the application 34 fees and the expected costs to be incurred by the authority 35 -8- SF624.2397 (4) 88 (amending this SF 624 to CONFORM to HF 768) da/jh 8/ 16
in administering the provisions of this subpart during that 1 period. The authority may adjust the rates throughout that 2 period as the authority determines necessary to comply with 3 this paragraph. 4 d. The amount of application fees collected by the authority 5 under this subsection shall be considered repayment receipts as 6 defined in section 8.2. 7 e. (1) The rules described in this subsection shall first 8 take effect immediately after the repeal of subsection 2. 9 (2) This paragraph “e” is repealed immediately after the 10 rules described in this subsection take effect. 11 4. An eligible taxpayer shall not participate in the 12 beginning farmer tax credit program for more than ten years, 13 and shall not receive more than ten tax credit certificates 14 under the program. 15 5. The agricultural development board shall review and 16 recommend approval of an application for a tax credit as 17 provided by rules adopted by the authority. The application 18 must include a copy of the agricultural lease agreement. The 19 authority may require that the parties to an agreement provide 20 additional information as determined relevant by the authority. 21 6. The authority shall approve all beginning farmer tax 22 credit applications that meet the requirements of this subpart 23 and make tax credit awards on a first-come, first-served basis, 24 subject to the limitations in section 16.82A. 25 7. After the authority has approved an application and made 26 a tax credit award, all of the following apply: 27 a. The authority shall issue beginning farmer tax credit 28 certificates to an eligible taxpayer on an annual basis as 29 provided in section 16.82A. 30 b. An eligible taxpayer may claim the tax credit each tax 31 year as provided in section 16.82. 32 8. Any financial, contractual, or legal authorization 33 records provided to the authority shall be kept confidential 34 and are not subject to chapter 22. 35 -9- SF624.2397 (4) 88 (amending this SF 624 to CONFORM to HF 768) da/jh 9/ 16
Sec. 11. NEW SECTION . 16.82 Beginning farmer tax credit 1 —— allowance. 2 1. A beginning farmer tax credit is authorized under the 3 beginning farmer tax credit program as provided in section 4 16.78. The beginning farmer tax credit is allowed against 5 the taxes imposed in chapter 422, division II, as provided in 6 section 422.11E, and in chapter 422, division III, as provided 7 in section 422.33, subsection 21, to facilitate the transfer of 8 agricultural assets from an eligible taxpayer to a qualifying 9 beginning farmer participating in the program. 10 2. An individual may claim a beginning farmer tax credit 11 under this section of a partnership, limited liability company, 12 S corporation, estate, or trust electing to have income 13 taxed directly to the individual. The amount claimed by the 14 individual shall be based upon the pro rata share of the 15 individual’s earnings from the partnership, limited liability 16 company, S corporation, estate, or trust. 17 3. Subject to the limitations described in subsections 5, 18 6, and 7, the authority shall determine the amount of the tax 19 credit under an agreement using the following methods: 20 a. In the case of an agreement on a fixed basis, in which 21 an eligible taxpayer receives a fixed cash rent payment, the 22 amount of the tax credit equals five percent of the amount of 23 the fixed cash rent payment for each year. 24 b. In the case of an agreement on a commodity share basis, 25 in which an eligible taxpayer receives as a rent payment a 26 percentage of the commodity produced, the amount of the tax 27 credit shall equal fifteen percent of the gross amount that 28 the eligible taxpayer would receive as a rent payment from 29 the sale of the eligible taxpayer’s share of the crop in each 30 harvest year. The amount of the tax credit shall be based on 31 an equation established by rule adopted by the authority which 32 shall use data compiled by the United States department of 33 agriculture, which shall include all of the following factors: 34 (1) The past ten-year average per bushel yield for the 35 -10- SF624.2397 (4) 88 (amending this SF 624 to CONFORM to HF 768) da/jh 10/ 16
same type of grain as produced under the agreement in the same 1 county where the leased agricultural land is located excluding 2 the years of highest and lowest per bushel yields. 3 (2) The per bushel state price established for the same 4 type of grain harvested as described in subparagraph (1). 5 Price information shall be averaged from the past five years 6 excluding the years of the highest and lowest per bushel state 7 price. 8 c. In the case of an agreement made on a flexible basis in 9 which an eligible taxpayer receives a rent payment consisting 10 of a fixed cash payment and an amount subject to adjustment 11 according to a risk-sharing arrangement, or receives a rent 12 payment consisting of an amount subject to adjustment according 13 to a risk-sharing arrangement, the amount of the tax credit 14 equals the sum of the following amounts: 15 (1) To the extent that a portion of the amount of the 16 rent payment is calculated on a fixed basis as described in 17 paragraph “a” , that portion of the tax credit equals five 18 percent of the fixed cash payment in the same manner as 19 provided in paragraph “a” . 20 (2) To the extent that a portion of the amount of the rent 21 payment is calculated on a commodity share basis as described 22 in paragraph “b” , that portion of the tax credit equals fifteen 23 percent of the amount that the eligible taxpayer would receive 24 from the sale of the eligible taxpayer’s share of the commodity 25 in the same manner as provided in paragraph “b” . 26 (3) (a) To the extent that the amount of the rent payment 27 may be adjusted after taking into account all risk-sharing 28 factors provided in the agreement, that portion of the tax 29 credit equals fifteen percent of the highest adjusted amount 30 that the eligible taxpayer could receive in excess of the 31 amounts calculated in subparagraphs (1) and (2) based on an 32 equation adopted by rule by the authority. 33 (b) As used in subparagraph division (a), “risk-sharing 34 factor” means an occurrence or lack of occurrence that may 35 -11- SF624.2397 (4) 88 (amending this SF 624 to CONFORM to HF 768) da/jh 11/ 16
affect the commodity’s production or profitability as provided 1 in the agreement, and which may include but is not limited to 2 production costs, per acre crop yield, gross revenue, or market 3 price. 4 (c) The authority shall adopt rules establishing criteria 5 for commonly used risk-sharing factors and adjustment limits. 6 4. The authority shall provide the department with data, in 7 the format prescribed by the department, of eligible taxpayers 8 and persons who have been decertified due to lease termination 9 or other cause of ineligibility by January 31 of each year. 10 The data shall include the amount of the tax credit issued 11 for the most recent year and all expected future tax credits 12 under an agreement for each eligible taxpayer and the type of 13 agreement. 14 5. The amount of tax credits that may be awarded to an 15 eligible taxpayer for any one year under all agreements shall 16 not exceed fifty thousand dollars. 17 6. The amount of the tax credit shall be reduced by the 18 percent ownership interest of the qualifying beginning farmer 19 in the agricultural asset. 20 7. A tax credit in excess of the eligible taxpayer’s 21 tax liability for the tax year is not refundable but may be 22 credited to the tax liability for the following ten tax years 23 or until depleted, whichever is earlier. A tax credit shall 24 not be carried back to a tax year prior to the tax year in which 25 the eligible taxpayer redeems the tax credit. 26 8. a. To claim a tax credit under this section, an eligible 27 taxpayer shall include one or more tax credit certificates with 28 the eligible taxpayer’s tax return pursuant to rules adopted 29 by the department. 30 b. A tax credit shall not be transferable to any other 31 person other than the eligible taxpayer’s estate or trust upon 32 the eligible taxpayer’s death pursuant to rules adopted by the 33 department. 34 9. If an agreement is terminated by the eligible taxpayer, 35 -12- SF624.2397 (4) 88 (amending this SF 624 to CONFORM to HF 768) da/jh 12/ 16
all of the following shall apply: 1 a. Any tax credit properly claimed by the eligible taxpayer 2 prior to the date of termination or for the year during which 3 the termination occurred shall be allowed except as provided 4 in paragraph “b” , but no additional tax credits may be issued 5 or claimed under the program for that agreement. The eligible 6 taxpayer may apply for and be awarded another beginning farmer 7 tax credit under a new agreement for the same agricultural 8 assets as provided in this section. 9 b. If the authority determines that the eligible taxpayer is 10 at fault for the termination, any beginning farmer tax credit 11 that is claimed by the eligible taxpayer for the year during 12 which the termination occurred shall be disallowed and the 13 amount shall be considered a tax payment due. If an eligible 14 taxpayer does not notify the authority of the termination 15 within thirty days of the date of the termination in the manner 16 and form prescribed by the authority, the eligible taxpayer 17 shall be conclusively deemed at fault for the termination. 18 Sec. 12. NEW SECTION . 16.82A Beginning farmer tax credit 19 awards —— amount and availability. 20 1. a. Upon approval of an application as provided in 21 section 16.81, the authority shall make a tax credit award 22 to the eligible taxpayer. The tax credit award shall equal 23 the sum of the tax credits calculated by the authority under 24 section 16.82 for all eligible years under the approved 25 agreement. 26 b. The authority shall notify the eligible taxpayer of 27 the tax credit award under the program. The notification 28 shall include the total tax credit award, the amount of the 29 tax credit award that will be issued by way of a tax credit 30 certificate in each future year under the approved agreement, 31 and a statement that the eligible taxpayer has no right to 32 receive tax credit certificates and claim tax credits under the 33 program if all requirements of the agreement and the program 34 are not satisfied. 35 -13- SF624.2397 (4) 88 (amending this SF 624 to CONFORM to HF 768) da/jh 13/ 16
c. If after making a tax credit award the eligible taxpayer 1 or qualified beginning farmer no longer meets the requirements 2 of the agreement or the program, the authority may revoke a tax 3 credit award and may rescind a tax credit certificate. 4 2. The amount of beginning farmer tax credits that may be 5 awarded by the authority in any one calendar year under the 6 beginning farmer tax credit program shall not in the aggregate 7 exceed a limit of twelve million dollars. Tax credits shall 8 be awarded by the authority not later than December 15 of each 9 calendar year after the agricultural development board reviews 10 applications as provided in section 16.81 and the authority 11 determines tax credit amounts for the approved applications as 12 provided in section 16.82, aggregated for purposes of meeting 13 the annual program award limits. 14 3. a. The authority shall issue tax credit certificates 15 on an annual basis to eligible taxpayers who have received a 16 tax credit award. The tax credit certificate shall contain the 17 information required by the department. 18 b. The aggregate amount of tax credit certificates issued to 19 an eligible taxpayer shall not exceed the eligible taxpayer’s 20 tax credit award. 21 c. A tax credit certificate, unless rescinded by the 22 authority, shall be accepted by the department as payment for 23 taxes pursuant to chapter 422, divisions II and III, subject 24 to any conditions or restrictions placed by the authority upon 25 the face of the tax credit certificate and subject to the 26 limitations of the program. 27 Sec. 13. NEW SECTION . 422.11E Beginning farmer tax credit 28 program. 29 The taxes imposed under this division, less the credits 30 allowed under section 422.12, shall be reduced by a beginning 31 farmer tax credit as allowed under chapter 16, subchapter VIII, 32 part 5, subpart B. 33 Sec. 14. Section 422.33, subsection 21, Code 2019, is 34 amended to read as follows: 35 -14- SF624.2397 (4) 88 (amending this SF 624 to CONFORM to HF 768) da/jh 14/ 16
21. The taxes imposed under this division shall be reduced 1 by an agricultural assets transfer a beginning farmer tax 2 credit as allowed under section 16.80 chapter 16, subchapter 3 VIII, part 5, subpart B . 4 Sec. 15. REPEAL. Sections 16.80 and 422.11M, Code 2019, 5 are repealed. 6 Sec. 16. APPLICABILITY OF PRIOR TAX CREDITS —— APPROVED 7 APPLICATIONS AND CERTIFICATES. 8 1. Notwithstanding any provision of this Act to the 9 contrary, any agricultural asset transfer tax credit 10 application approved prior to the effective date of this Act 11 under section 16.80 as that section existed on or before 12 December 31, 2018, for a year prior to 2019 but for which tax 13 credit certificates could have been issued for a tax year 14 beginning on or after January 1, 2019, shall be governed by 15 section 16.80, Code 2019, and shall be eligible to receive 16 tax credit certificates for tax years beginning on or after 17 January 1, 2019, for the remainder of the agricultural lease 18 term as provided by section 16.80, Code 2019. Tax credit 19 certificates approved and issued pursuant to this subsection 20 are not considered an award subject to the maximum tax credit 21 award limitation in section 16.82A, as enacted in this Act. 22 2. a. Any application which was submitted prior to the 23 effective date of this Act for the agricultural assets transfer 24 tax credit pursuant to section 16.80 as that section existed 25 on December 31, 2018, for the tax year beginning January 1, 26 2019, shall be governed by section 16.80, Code 2019, except as 27 provided in paragraph “b”. 28 b. Any amount of tax credit certificate approved and issued 29 pursuant to this subsection shall not be subject to the maximum 30 tax credit issuance limitation in section 16.80, subsection 31 10, Code 2019, but shall instead be counted in the same manner 32 as an award for purposes of the twelve million dollar calendar 33 year award limitation in section 16.82A, subsection 2, as 34 enacted in this Act, and shall reduce, dollar-for-dollar, that 35 -15- SF624.2397 (4) 88 (amending this SF 624 to CONFORM to HF 768) da/jh 15/ 16
maximum calendar year award limitation for the calendar year 1 during which the tax credit certificate is issued. 2 Sec. 17. APPLICABILITY OF PRIOR TAX CREDITS —— CONTINUANCE 3 OF CARRYOVER PROVISIONS. For any tax year commencing in 4 calendar years 2014 through 2018, a tax credit that could 5 have been first issued, awarded, or allowed and claimed under 6 sections 16.75 through 16.82 as those sections existed on 7 December 31, 2017, or under section 16.80 as that section 8 existed on December 31, 2018, may be credited to the tax 9 liability of that taxpayer for ten tax years following the tax 10 year for which the eligible taxpayer could have first claimed 11 the tax credit, or until depleted, whichever is earlier. 12 Sec. 18. EFFECTIVE DATE. This Act, being deemed of 13 immediate importance, takes effect upon enactment. 14 Sec. 19. RETROACTIVE APPLICABILITY. This Act applies 15 retroactively to January 1, 2019, for tax years beginning on or 16 after that date. > 17 2. Title page, by striking lines 1 through 3 and inserting 18 < An Act relating to agricultural development, by providing 19 for the Iowa finance authority, a beginning farmer tax credit 20 program, fees, and including effective date and retroactive 21 applicability provisions. > 22 ______________________________ RANDY FEENSTRA -16- SF624.2397 (4) 88 (amending this SF 624 to CONFORM to HF 768) da/jh 16/ 16 #2.