Bill Text: IA HF624 | 2015-2016 | 86th General Assembly | Enrolled

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Bill Title: A bill for an act increasing the number of years that a taxpayer may claim a custom farming contract tax credit under a contract executed by the holder of agricultural land and a qualified beginning farmer, and including effective date and retroactive applicability provisions. Effective 6-18-15.

Sponsorship: Committee Bill

Status: (Passed) 2015-06-18 - Signed by Governor. H.J. 1187. [HF624 Detail]

Download: Iowa-2015-HF624-Enrolled.html

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House File 624 - Enrolled




                              HOUSE FILE       
                              BY  COMMITTEE ON WAYS AND
                                  MEANS

                              (SUCCESSOR TO HF 522)
                              (SUCCESSOR TO HSB 137)
 \5
                                   A BILL FOR
 \1
                                         House File 624

                             AN ACT
 INCREASING THE NUMBER OF YEARS THAT A TAXPAYER MAY CLAIM A
    CUSTOM FARMING CONTRACT TAX CREDIT UNDER A CONTRACT EXECUTED
    BY THE HOLDER OF AGRICULTURAL LAND AND A QUALIFIED BEGINNING
    FARMER, AND INCLUDING EFFECTIVE DATE AND RETROACTIVE
    APPLICABILITY PROVISIONS.

 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    Section 1.  Section 16.81, subsection 5, Code 2015, is
 amended to read as follows:
    5.  The custom farming contract must provide that the
 taxpayer pay the qualified beginning farmer on a cash basis.
 The contract must be in writing for a term of not more than
 twelve twenty=four months. The total cash payment for each tax
 year that the tax credit is claimed must equal at least one
 thousand dollars.
    Sec. 2.  Section 16.81, subsection 10, Code 2015, is amended
 to read as follows:
    10.  a.  A taxpayer shall not claim a custom farming contract
 tax credit unless a tax credit certificate issued by the
  authority under this section is included with the taxpayer's
 tax return for the each tax year for which the tax credit is
 claimed.
    b.  A taxpayer may submit a single application to the
 authority for the authority's review and approval of the
 issuance of a tax credit certificate for either one or two tax
 years as covered in the custom farming contract. The authority
 must review and approve an the application for a and each
  tax credit certificate as provided by rules adopted by the
 authority. The application must include a copy of the custom
 farming contract.  Either or both parties as required by the
 authority shall notify the authority of any amendment to the
 contract or other material changes affecting the application
 or contract.  The authority may require that the parties to
 the contract provide additional information as determined
 relevant by the authority. The information may include but
 is not limited to a list of all custom work completed and a
 verification of all payments made to the beginning farmer for
 each tax year that the tax credit may be claimed.
    c.  The authority may approve an application and issue a
 tax credit certificate to a taxpayer who has previously been
 allowed a tax credit under this section another application.
 The authority may require that the parties to the contract
 provide additional information as determined relevant by the
 authority. The authority shall review an application for a tax
 credit certificate which includes the renewal of a contract to
 determine that the parties to the renewed contract meet the
 same qualifications as required for an original application.
    d.  The authority shall not approve an application or issue
 a tax credit certificate to a taxpayer for an amount in excess
 of fifty thousand dollars. In addition, the authority shall
 not approve an application or issue a tax credit certificate to
 a taxpayer if any of the following applies:
    a.  (1)  The taxpayer is at fault for terminating another
 custom farming contract, as determined by the authority.
    b.  (2)  The taxpayer is party to a pending administrative or
 judicial action, or classified as a habitual violator in the
 same manner as provided in section 16.80.
    c.  (3)  The contract amount is substantially higher or lower
 than the market rate for a similar custom farming contract, as
 determined by the authority.
    Sec. 3.  EFFECTIVE UPON ENACTMENT.  This Act, being deemed of
 immediate importance, takes effect upon enactment.
    Sec. 4.  RETROACTIVE APPLICABILITY.  This Act applies
 retroactively to January 1, 2015, for tax years beginning on
 or after that date.


                                                             
                               KRAIG PAULSEN
                               Speaker of the House


                                                             
                               PAM JOCHUM
                               President of the Senate
    I hereby certify that this bill originated in the House and
 is known as House File 624, Eighty=sixth General Assembly.


                                                             
                               CARMINE BOAL
                               Chief Clerk of the House
 Approved                , 2015


                                                             
                               TERRY E. BRANSTAD
                               Governor

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