Bill Text: IA HSB157 | 2013-2014 | 85th General Assembly | Introduced
Bill Title: A study bill for providing for a cow-calf credit and refund, providing for an appropriation, and including applicability provisions.
Spectrum: Unknown
Status: (N/A - Dead) 2013-03-04 - Voted - Agriculture. [HSB157 Detail]
Download: Iowa-2013-HSB157-Introduced.html
House
Study
Bill
157
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
AGRICULTURE
BILL
BY
CHAIRPERSON
GRASSLEY)
A
BILL
FOR
An
Act
providing
for
a
cow-calf
credit
and
refund,
providing
1
for
an
appropriation,
and
including
applicability
2
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
2130YC
(3)
85
da/sc
H.F.
_____
Section
1.
NEW
SECTION
.
422.120
Definitions.
1
As
used
in
this
division,
unless
the
context
otherwise
2
requires:
3
1.
“Cow-calf
operation”
means
an
animal
feeding
operation
as
4
defined
in
section
459.102
that
is
located
in
this
state
and
5
that
keeps
qualified
cattle.
6
2.
“Cow-calf
refund
claim”
means
a
cow-calf
credit
7
calculated
as
provided
in
section
422.121
and
claimed
as
a
8
refund
pursuant
to
section
422.123.
9
3.
“Credit”
means
the
cow-calf
credit
as
provided
in
section
10
422.121.
11
4.
“Qualified
cattle”
means
any
of
the
following:
12
a.
A
mature
beef
cow
bred
or
for
breeding.
13
b.
A
bred
yearling
heifer.
14
c.
A
breeding
bull.
15
Sec.
2.
NEW
SECTION
.
422.121
Cow-calf
credit
——
allowed
——
16
calculation.
17
1.
There
is
allowed
a
state
credit
for
cow-calf
operations
18
located
in
this
state.
The
credit
calculated
under
this
19
section
shall
be
filed
with
the
department
as
a
cow-calf
refund
20
claim
pursuant
to
section
422.123.
21
2.
A
taxpayer
claiming
the
cow-calf
credit
must
calculate
22
the
taxpayer’s
qualifying
taxable
income.
23
a.
The
credit
shall
be
available
to
an
individual
or
24
corporate
taxpayer
if
the
taxpayer’s
federal
taxable
income
is
25
not
more
than
one
hundred
forty-four
thousand
three
hundred
26
fifty-eight
dollars
for
the
tax
year.
In
the
case
of
married
27
taxpayers,
their
combined
federal
taxable
income
shall
be
not
28
more
than
that
same
amount
for
the
tax
year.
29
b.
For
each
subsequent
tax
year,
the
maximum
taxable
income
30
amount
specified
in
paragraph
“a”
shall
be
multiplied
by
the
31
cumulative
index
factor
for
that
tax
year.
“Cumulative
index
32
factor”
means
the
product
of
the
annual
index
factor
for
the
33
2014
calendar
year
and
all
annual
index
factors
for
subsequent
34
calendar
years.
The
cumulative
index
factor
applies
to
all
tax
35
-1-
LSB
2130YC
(3)
85
da/sc
1/
5
H.F.
_____
years
beginning
on
or
after
January
1
of
the
calendar
year
for
1
which
the
latest
annual
index
factor
has
been
determined.
2
c.
The
annual
index
factor
for
the
2014
calendar
year
is
3
one
hundred
percent.
For
each
subsequent
calendar
year,
the
4
annual
index
factor
equals
the
annual
inflation
factor
for
5
that
calendar
year
as
computed
in
section
422.4,
subsection
1,
6
paragraph
“a”
,
for
purposes
of
the
individual
income
tax.
7
3.
a.
The
amount
of
the
credit
equals
eleven
dollars
and
8
fifteen
cents
for
each
head
of
qualified
livestock
kept
as
part
9
of
the
cow-calf
operation.
10
b.
In
calculating
the
cow-calf
credit
as
provided
in
11
paragraph
“a”
,
only
those
qualified
cattle
that
are
kept
at
the
12
cow-calf
operation
on
July
1
through
December
31
of
the
tax
13
year
are
counted.
14
4.
If
the
cow-calf
operation
is
carried
on
partly
within
and
15
partly
outside
the
state,
the
portion
of
the
cow-calf
operation
16
attributable
to
this
state
shall
be
determined
pursuant
to
17
rules
adopted
by
the
department.
The
department
may
adjust
the
18
allocation
upon
request
of
the
taxpayer
in
order
to
reflect
the
19
actual
cow-calf
operation
carried
on
within
this
state.
20
5.
A
person
who
fraudulently
claims
a
cow-calf
credit
under
21
this
section
shall
forfeit
any
right
to
be
paid
for
a
refund
22
claim
or
interest
on
a
refund
claim
as
provided
in
section
23
422.123
in
subsequent
tax
years.
24
Sec.
3.
NEW
SECTION
.
422.122
Appropriation
——
limitation.
25
There
is
appropriated
annually
from
the
general
fund
of
the
26
state
four
million
dollars
to
refund
cow-calf
credits
allowed
27
under
section
422.123.
28
Sec.
4.
NEW
SECTION
.
422.123
Refund
of
eligible
cow-calf
29
credit
claims.
30
1.
A
taxpayer
may
file
a
cow-calf
credit
refund
claim
as
31
calculated
pursuant
to
section
422.121.
32
2.
Each
tax
year
the
total
amount
paid
to
taxpayers
filing
33
eligible
cow-calf
credit
refund
claims
as
calculated
pursuant
34
to
section
422.121
shall
not
exceed
the
amount
appropriated
by
35
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5
H.F.
_____
the
general
assembly
pursuant
to
section
422.122.
1
a.
If
the
total
dollar
amount
of
refund
claims
exceeds
that
2
appropriated
amount,
each
refund
claim
shall
be
paid
an
amount
3
equal
to
the
appropriated
amount
divided
by
the
total
number
of
4
refund
claims.
However,
a
taxpayer
shall
not
be
paid
an
amount
5
that
exceeds
the
taxpayer’s
refund
claim.
Remaining
moneys
6
shall
be
prorated
among
those
refund
claims
not
paid
in
full
in
7
the
proportion
that
each
such
claim
bears
to
the
total
amount
8
of
such
refund
claims
not
paid
in
full.
9
b.
In
the
case
where
a
taxpayer’s
refund
claim
is
not
paid
10
in
full,
the
amount
of
the
refund
claim
to
which
the
taxpayer
11
is
entitled
to
be
paid
is
the
amount
computed
in
paragraph
12
“a”
,
and
paid
to
the
taxpayer.
The
taxpayer
is
not
entitled
13
to
be
paid
for
any
unpaid
portion
of
a
refund
claim
and
is
not
14
entitled
to
carry
forward
or
backward
to
another
tax
year
any
15
unpaid
portion
of
a
refund
claim.
16
c.
A
taxpayer
shall
not
use
a
paid
refund
claim
as
an
17
estimated
payment
for
the
succeeding
tax
year.
18
3.
A
taxpayer
must
file
a
cow-calf
credit
refund
claim
19
within
ten
months
from
the
last
day
of
the
taxpayer’s
tax
year.
20
An
extension
for
filing
shall
not
be
allowed.
21
a.
The
department
shall
determine
by
February
28
of
the
22
calendar
year
following
the
calendar
year
in
which
the
refund
23
claims
were
filed
if
the
total
amount
of
refund
claims
exceeds
24
the
amount
appropriated
pursuant
to
section
422.122.
25
b.
If
a
refund
claim
is
not
payable
on
February
28
because
26
the
taxpayer
is
a
fiscal
year
filer,
the
claim
shall
be
27
considered
as
a
claim
filed
for
the
following
tax
year.
28
4.
A
refund
claim
shall
be
made
on
forms
made
available
29
by
the
department
and
filed
in
a
manner
and
according
to
30
procedures
required
by
the
department.
In
order
for
a
taxpayer
31
to
have
a
valid
refund
claim,
the
taxpayer
must
supply
legible
32
copies
of
documents
as
determined
necessary
by
the
department
33
to
verify
the
refund
claim’s
accuracy.
34
Sec.
5.
APPLICABILITY.
This
Act
applies
to
tax
years
35
-3-
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2130YC
(3)
85
da/sc
3/
5
H.F.
_____
beginning
on
or
after
January
1,
2014.
1
EXPLANATION
2
BACKGROUND.
In
1996,
the
general
assembly
enacted
SF
3
2449
(1996
Iowa
Acts,
chapter
1197)
which
in
part
provided
4
a
livestock
production
tax
credit
not
to
exceed
$3,000
per
5
operation
in
total
for
a
tax
year.
The
tax
credit
was
made
6
available
to
an
individual
or
corporate
taxpayer
and
was
7
computed
by
multiplying
10
cents
times
the
amount
of
corn
or
8
corn
equivalents
consumed
by
the
livestock
in
the
production
9
operation.
For
example
the
corn
equivalency
for
cow-calf
10
operations
(mature
beef
cattle
bred
or
for
breeding,
bred
11
yearling
heifers,
and
breeding
bulls)
equaled
111.5
(10
cents
12
x
111.5
=
$11.15).
The
Act
also
included
a
standing
limited
13
annual
appropriation
of
$2
million
to
support
the
tax
credit.
14
The
tax
credit
was
not
used
to
directly
reduce
the
taxpayer’s
15
income
tax
liability
but
instead
was
used
to
calculate
the
16
amount
of
a
refund
paid
to
the
taxpayer
who
filed
a
refund
17
claim
with
the
department
of
revenue.
The
Act
also
included
18
procedures
for
use
by
the
department
to
prorate
refund
claim
19
amounts
in
case
the
annual
appropriation
was
not
sufficient
20
to
satisfy
all
claims.
In
addition,
the
Act
provided
that
21
it
would
be
used
only
to
support
cow-calf
operations
for
the
22
current
tax
year.
In
1997,
the
general
assembly
enacted
HF
23
726
(1997
Iowa
Acts,
chapter
206),
which
provided
that
the
24
tax
credit
would
only
apply
to
such
operations.
In
addition
25
the
Act
replaced
a
maximum
threshold
net
worth
requirement
26
for
tax
filers
with
a
federally
taxable
income
threshold
27
equaling
$99,600
for
tax
year
beginning
January
1,
1997,
and
28
automatically
adjusted
each
year
for
inflation.
In
2009,
the
29
general
assembly
enacted
SF
478
repealing
the
tax
credit
(2009
30
Iowa
Acts,
chapter
179).
31
BILL
——
RESTORATION
OF
THE
COW-CALF
CREDIT.
This
bill
32
specifically
provides
for
a
cow-calf
operations
credit
based
33
on
the
provisions
in
the
1996
legislation
establishing
the
34
livestock
production
tax
credit.
The
income
threshold
for
35
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5
H.F.
_____
qualifying
taxpayers
is
increased
to
not
more
than
$144,358,
1
as
adjusted
each
year
for
inflation.
The
standing
limited
2
appropriation
is
increased
to
$4
million.
However,
the
same
3
method
is
used
for
calculating
the
payment
of
eligible
refund
4
claims
when
the
total
amount
of
such
claims
exceeds
the
5
appropriated
amount.
The
new
cow-calf
credit
applies
to
tax
6
years
beginning
on
or
after
January
1,
2014.
7
-5-
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2130YC
(3)
85
da/sc
5/
5