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House File 598 - IntroducedA Bill ForAn Act 1relating to the production, processing, distribution,
2and marketing of agricultural products, including by
3providing tax credits and making appropriations.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2IOWA-GROWN FOOD TAX CREDIT
3 Section 1. NEW SECTION. 137F.21 Iowa-grown food tax credit.
41. As used in this section:
5a. “Food” means raw, cooked, or a processed edible substance
6intended in whole or in part for human consumption, that
7is grown or processed in this state. “Food” may include
8non-nutritional ingredients incapable of being grown or
9processed in this state.
10b. “Food establishment” means a grocery store, restaurant,
11or other entity that sells food to the public and is licensed
12in this state.
13c. “Nonprofit organization” means public or nonpublic
14schools, hospitals, religious institutions, dependent care
15facilities, child care facilities, and any other nonprofit
16organization in this state.
17d. “Wholesaler” means a wholesale food business licensed in
18this state.
192. a. An Iowa-grown food tax credit may be claimed by a
20food establishment to reduce the taxes imposed under chapter
21422, subchapters II and III, that is equal to one percent of
22the sales price of food sold by the food establishment in this
23state.
24b. An Iowa-grown food tax credit may be claimed by a
25wholesaler to reduce the taxes imposed under chapter 422,
26subchapters II and III, that is equal to one percent of the
27sales price of food sold by the wholesaler to a nonprofit
28organization in this state.
29 Sec. 2. NEW SECTION. 422.12P Iowa-grown food tax credit.
30The taxes imposed under this subchapter, less the credits
31allowed under section 422.12, shall be reduced by an Iowa-grown
32food tax credit authorized pursuant to section 137F.21.
33 Sec. 3. Section 422.33, Code 2023, is amended by adding the
34following new subsection:
35 NEW SUBSECTION. 33. The taxes imposed under this subchapter
-1-1shall be reduced by an Iowa-grown food tax credit under section
2137F.21.
3DIVISION II
4SPECIALTY CROPS — APPROPRIATIONS
5 Sec. 4. SPECIALTY CROPS — FISCAL YEAR 2023-2024.
61. Notwithstanding section 8.57G, subsection 2, there is
7appropriated from the Iowa coronavirus fiscal recovery fund
8to the economic development authority for the fiscal year
9beginning July 1, 2023, and ending June 30, 2024, the following
10amount, or so much thereof as is necessary, to be used for the
11purposes designated:
12For awarding grants to support persons engaged in
13community-based initiatives to expand the capacity of
14operations engaged in processing, distributing, and marketing
15specialty crops:
.................................................. $1610,000,000
172. The economic development authority shall provide a
18preference to applicants who are beginning farmers or ranchers
19or socially disadvantaged farmers or ranchers as defined in 7
20U.S.C. §2279.
213. The economic development authority shall provide a
22preference to applicants who have been awarded matching moneys
23from entities other than state agencies receiving funding under
24the American Rescue Plan Act of 2021, Pub.L. No.117-2.
254. In establishing criteria to award grants and in selecting
26applicants to receive grants under this section, the economic
27development authority shall cooperate with the department of
28agriculture and land stewardship.
295. a. As used in this section, “specialty crop” means a
30plant or part of a plant having commercial value and intended
31to be marketed or used for human consumption.
32b. “Specialty crop” does not include corn, grain sorghum,
33oats, soybeans, or wheat.
34 Sec. 5. SPECIALTY CROPS — FISCAL YEAR 2024-2025.
351. Notwithstanding section 8.57G, subsection 2, there is
-2-1appropriated from the Iowa coronavirus fiscal recovery fund
2to the economic development authority for the fiscal year
3beginning July 1, 2024, and ending June 30, 2025, the following
4amount, or so much thereof as is necessary, to be used for the
5purposes designated:
6For awarding grants to support persons engaged in
7community-based initiatives to expand the capacity of
8operations engaged in processing, distributing, and marketing
9specialty crops:
.................................................. $1010,000,000
112. The economic development authority shall provide a
12preference to applicants who are beginning farmers or ranchers
13or socially disadvantaged farmers or ranchers as defined in 7
14U.S.C. §2279.
153. The economic development authority shall provide a
16preference to applicants who have been awarded matching moneys
17from entities other than state agencies receiving funding under
18the American Rescue Plan Act of 2021, Pub.L. No.117-2.
194. In establishing criteria to award grants and in selecting
20applicants to receive grants under this section, the economic
21development authority shall cooperate with the department of
22agriculture and land stewardship.
235. a. As used in this section, “specialty crop” means a
24plant or part of a plant having commercial value and intended
25to be marketed or used for human consumption.
26b. “Specialty crop” does not include corn, grain sorghum,
27oats, soybeans, or wheat.
28EXPLANATION
29The inclusion of this explanation does not constitute agreement with
30the explanation’s substance by the members of the general assembly.
31DIVISION I — IOWA-GROWN FOOD TAX CREDIT. This bill creates
32an Iowa-grown food tax credit that may be claimed by a food
33establishment (e.g., a grocery store) equal to 1 percent of the
34sales price of food sold. The tax credit may also be claimed
35by a wholesaler equal to 1 percent of the sales price sold to a
-3-1nonprofit corporation.
2DIVISION II — SPECIALTY CROPS — APPROPRIATIONS. The bill
3appropriates moneys from the Iowa coronavirus fiscal recovery
4fund to the economic development authority (authority) for
5fiscal years 2023-2024 and 2024-2025 for purposes of supporting
6persons engaged in community-based initiatives to expand the
7capacity of operations engaged in processing, distributing, and
8marketing a specialty crop. A specialty crop includes a plant
9or part of a plant having commercial value which is intended
10for human use but does not include corn, grain sorghum, oats,
11soybeans, or wheat. In awarding moneys to an applicant, the
12authority must provide a preference to a beginning farmer or
13rancher or socially disadvantaged farmer or rancher. The
14authority must also provide a preference to an applicant who
15has been awarded matching moneys from an entity other than
16a state agency receiving funding under the federal American
17Rescue Plan Act. In establishing criteria to award grants
18and in selecting applicants to receive grants, the authority
19must cooperate with the department of agriculture and land
20stewardship.
-4-da/ns
2and marketing of agricultural products, including by
3providing tax credits and making appropriations.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2IOWA-GROWN FOOD TAX CREDIT
3 Section 1. NEW SECTION. 137F.21 Iowa-grown food tax credit.
41. As used in this section:
5a. “Food” means raw, cooked, or a processed edible substance
6intended in whole or in part for human consumption, that
7is grown or processed in this state. “Food” may include
8non-nutritional ingredients incapable of being grown or
9processed in this state.
10b. “Food establishment” means a grocery store, restaurant,
11or other entity that sells food to the public and is licensed
12in this state.
13c. “Nonprofit organization” means public or nonpublic
14schools, hospitals, religious institutions, dependent care
15facilities, child care facilities, and any other nonprofit
16organization in this state.
17d. “Wholesaler” means a wholesale food business licensed in
18this state.
192. a. An Iowa-grown food tax credit may be claimed by a
20food establishment to reduce the taxes imposed under chapter
21422, subchapters II and III, that is equal to one percent of
22the sales price of food sold by the food establishment in this
23state.
24b. An Iowa-grown food tax credit may be claimed by a
25wholesaler to reduce the taxes imposed under chapter 422,
26subchapters II and III, that is equal to one percent of the
27sales price of food sold by the wholesaler to a nonprofit
28organization in this state.
29 Sec. 2. NEW SECTION. 422.12P Iowa-grown food tax credit.
30The taxes imposed under this subchapter, less the credits
31allowed under section 422.12, shall be reduced by an Iowa-grown
32food tax credit authorized pursuant to section 137F.21.
33 Sec. 3. Section 422.33, Code 2023, is amended by adding the
34following new subsection:
35 NEW SUBSECTION. 33. The taxes imposed under this subchapter
-1-1shall be reduced by an Iowa-grown food tax credit under section
2137F.21.
3DIVISION II
4SPECIALTY CROPS — APPROPRIATIONS
5 Sec. 4. SPECIALTY CROPS — FISCAL YEAR 2023-2024.
61. Notwithstanding section 8.57G, subsection 2, there is
7appropriated from the Iowa coronavirus fiscal recovery fund
8to the economic development authority for the fiscal year
9beginning July 1, 2023, and ending June 30, 2024, the following
10amount, or so much thereof as is necessary, to be used for the
11purposes designated:
12For awarding grants to support persons engaged in
13community-based initiatives to expand the capacity of
14operations engaged in processing, distributing, and marketing
15specialty crops:
.................................................. $1610,000,000
172. The economic development authority shall provide a
18preference to applicants who are beginning farmers or ranchers
19or socially disadvantaged farmers or ranchers as defined in 7
20U.S.C. §2279.
213. The economic development authority shall provide a
22preference to applicants who have been awarded matching moneys
23from entities other than state agencies receiving funding under
24the American Rescue Plan Act of 2021, Pub.L. No.117-2.
254. In establishing criteria to award grants and in selecting
26applicants to receive grants under this section, the economic
27development authority shall cooperate with the department of
28agriculture and land stewardship.
295. a. As used in this section, “specialty crop” means a
30plant or part of a plant having commercial value and intended
31to be marketed or used for human consumption.
32b. “Specialty crop” does not include corn, grain sorghum,
33oats, soybeans, or wheat.
34 Sec. 5. SPECIALTY CROPS — FISCAL YEAR 2024-2025.
351. Notwithstanding section 8.57G, subsection 2, there is
-2-1appropriated from the Iowa coronavirus fiscal recovery fund
2to the economic development authority for the fiscal year
3beginning July 1, 2024, and ending June 30, 2025, the following
4amount, or so much thereof as is necessary, to be used for the
5purposes designated:
6For awarding grants to support persons engaged in
7community-based initiatives to expand the capacity of
8operations engaged in processing, distributing, and marketing
9specialty crops:
.................................................. $1010,000,000
112. The economic development authority shall provide a
12preference to applicants who are beginning farmers or ranchers
13or socially disadvantaged farmers or ranchers as defined in 7
14U.S.C. §2279.
153. The economic development authority shall provide a
16preference to applicants who have been awarded matching moneys
17from entities other than state agencies receiving funding under
18the American Rescue Plan Act of 2021, Pub.L. No.117-2.
194. In establishing criteria to award grants and in selecting
20applicants to receive grants under this section, the economic
21development authority shall cooperate with the department of
22agriculture and land stewardship.
235. a. As used in this section, “specialty crop” means a
24plant or part of a plant having commercial value and intended
25to be marketed or used for human consumption.
26b. “Specialty crop” does not include corn, grain sorghum,
27oats, soybeans, or wheat.
28EXPLANATION
29The inclusion of this explanation does not constitute agreement with
30the explanation’s substance by the members of the general assembly.
31DIVISION I — IOWA-GROWN FOOD TAX CREDIT. This bill creates
32an Iowa-grown food tax credit that may be claimed by a food
33establishment (e.g., a grocery store) equal to 1 percent of the
34sales price of food sold. The tax credit may also be claimed
35by a wholesaler equal to 1 percent of the sales price sold to a
-3-1nonprofit corporation.
2DIVISION II — SPECIALTY CROPS — APPROPRIATIONS. The bill
3appropriates moneys from the Iowa coronavirus fiscal recovery
4fund to the economic development authority (authority) for
5fiscal years 2023-2024 and 2024-2025 for purposes of supporting
6persons engaged in community-based initiatives to expand the
7capacity of operations engaged in processing, distributing, and
8marketing a specialty crop. A specialty crop includes a plant
9or part of a plant having commercial value which is intended
10for human use but does not include corn, grain sorghum, oats,
11soybeans, or wheat. In awarding moneys to an applicant, the
12authority must provide a preference to a beginning farmer or
13rancher or socially disadvantaged farmer or rancher. The
14authority must also provide a preference to an applicant who
15has been awarded matching moneys from an entity other than
16a state agency receiving funding under the federal American
17Rescue Plan Act. In establishing criteria to award grants
18and in selecting applicants to receive grants, the authority
19must cooperate with the department of agriculture and land
20stewardship.
-4-da/ns