House File 2191 - Introduced HOUSE FILE 2191 BY MASCHER A BILL FOR An Act providing an individual income tax credit for the 1 installation of certain farm machinery safety equipment, 2 providing for the Act’s future repeal, and including 3 retroactive applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5767HH (4) 83 tw/sc

H.F. 2191 Section 1. Section 262.78, Code 2009, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 6. The center shall evaluate farm safety 3 technology such as roll-over protective structures, grain bin 4 fall protection, lighting and marking for equipment operating 5 on roadways, power take-off guarding, and safe combine header 6 release mechanisms. The purchase and installation of an item 7 of safety technology approved by the center shall be eligible 8 for the farm machinery safety equipment tax credit as provided 9 in section 422.11Y. 10 Sec. 2. NEW SECTION . 422.11Y Farm machinery safety 11 equipment tax credit. 12 1. a. The taxes imposed under this division, less the 13 credits allowed under section 422.12, shall be reduced by a 14 farm machinery safety equipment tax credit. 15 b. The credit shall be in an amount equal to twenty 16 percent of the cost incurred by a taxpayer for the purchase 17 and installation of certain qualified farm machinery safety 18 equipment. For purposes of this section, “qualified farm 19 machinery safety equipment” means an item of farm machinery 20 safety equipment approved by the center for agricultural health 21 and safety established in section 262.78. 22 c. The tax credit shall be available to taxpayers meeting 23 the following conditions: 24 (1) The taxpayer is a farmer. 25 (2) The taxpayer employs ten or fewer employees. 26 d. An individual may claim a tax credit under this 27 subsection of a partnership, limited liability company, 28 S corporation, estate, or trust electing to have income 29 taxed directly to the individual. The amount claimed by the 30 individual shall be based upon the pro rata share of the 31 individual’s earnings from the partnership, limited liability 32 company, S corporation, estate, or trust. 33 e. Any tax credit in excess of the taxpayer’s tax liability 34 for the tax year is not refundable, but the taxpayer may 35 -1- LSB 5767HH (4) 83 tw/sc 1/ 4

H.F. 2191 elect to have the excess credited to the tax liability for 1 the following five tax years or until depleted, whichever is 2 earlier. 3 2. a. To claim a tax credit under this section, the 4 taxpayer shall apply to the department of agriculture and land 5 stewardship for a tax credit certificate. After verifying the 6 eligibility of a taxpayer for a tax credit pursuant to this 7 section, the department of agriculture and land stewardship 8 shall issue a tax credit certificate to be attached to the 9 taxpayer’s tax return. 10 b. The tax credit certificates shall be issued in the 11 following order: 12 (1) First to taxpayers participating in the center for 13 agricultural health and safety’s certified safe farm program 14 according to the date of application. 15 (2) Then to all other taxpayers according to the date of the 16 application. 17 c. The tax credit certificate shall contain the taxpayer’s 18 name, address, tax identification number, the amount of 19 the credit, the certificate expiration date, and any other 20 information required by the department. 21 d. To claim a tax credit under this section, a taxpayer must 22 attach one or more tax credit certificates to the taxpayer’s 23 tax return. The tax credit certificate or certificates 24 attached to the taxpayer’s tax return shall be issued in the 25 taxpayer’s name, and the expiration date on the certificate 26 shall be a date that falls on or after the last day of the 27 taxable year for which the taxpayer is claiming the tax credit. 28 e. The tax credit certificate, unless otherwise void, 29 shall be accepted by the department as payment toward the 30 tax liability of the taxpayer, subject to any conditions or 31 restrictions placed by the department upon the face of the 32 tax credit certificate and subject to the limitations of this 33 section. 34 f. Tax credit certificates issued under this section are not 35 -2- LSB 5767HH (4) 83 tw/sc 2/ 4

H.F. 2191 transferable to any person or entity. 1 3. The maximum amount of tax credits that may be awarded to 2 a taxpayer shall not exceed two thousand five hundred dollars 3 in a tax year. 4 4. The maximum amount of tax credits that may be issued 5 under this section in any fiscal year shall not exceed five 6 hundred thousand dollars. 7 5. The department of agriculture and land stewardship shall 8 not issue a tax credit pursuant to this section after June 30, 9 2015. 10 6. This section is repealed on July 1, 2020. 11 Sec. 3. RETROACTIVE APPLICABILITY. This Act applies 12 retroactively to January 1, 2010, for tax years beginning on 13 or after that date. 14 EXPLANATION 15 This bill provides for a credit against the individual 16 income tax for a portion of the cost incurred by a taxpayer for 17 the purchase and installation of certain farm machinery safety 18 equipment. 19 The amount of the tax credit is equal to 20 percent of the 20 cost incurred for the purchase and installation of an item 21 of safety equipment that has been approved by the center for 22 agricultural health and safety. To be eligible for a tax 23 credit, a taxpayer must be a farmer employing ten or fewer 24 employees. 25 The department of agriculture and land stewardship is 26 directed to issue tax credit certificates to applicants for 27 the tax credits. The certificates are to be issued first to 28 taxpayers participating in the center for agricultural health 29 and safety’s certified safe farm program and then to all other 30 taxpayers in order of the date of application. 31 A taxpayer may not be awarded more than $2,500 of credits in 32 any one tax year, and the maximum amount of tax credits that 33 may be issued in one fiscal year is $500,000. 34 The department of agriculture and land stewardship must 35 -3- LSB 5767HH (4) 83 tw/sc 3/ 4

H.F. 2191 cease to issue the tax credit certificates on June 30, 2015. 1 The tax credit is repealed on July 1, 2020. 2 -4- LSB 5767HH (4) 83 tw/sc 4/ 4