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(chapter, rule, subrule, lettered paragraph, or numbered subparagraph).

441 IAC 79 (Chapter)

441 IAC 79.1(249A) (Rule)

441 IAC 79.1(1) (Subrule)

441 IAC 79.1(1)"a" (Paragraph)

441 IAC 79.1(1)"a"(1) (Subparagraph)

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date), (page number), (ARC number).

IAB Vol. XII, No. 23 (5/16/90) p. 2050, ARC 872A

Item 8 amends the date for 40 CFR Part 60 to correspond with the federal promulgation of the NSPS and EG forhospital/medical/infectious waste incinerators. No substantive changes have been made.
Table 2 outlines the status of federal incinerator and combustor standards. Only one standard, 40 CFR Part 60, Subpart Ea, had been adopted by reference in the Iowa Administrative Code. The department submitted negative declarations for the municipal waste combustors (MWC) emission guidelines because Iowa did not have any facilities that met the definition of an existing MWC. The standard for hazardous waste combustors has only been proposed at the federal level. Standards for commercial and industrial incinerators and other solid waste incinerators have not been addressed at the federal level. The other standards are included in this Notice of Intended Action.

Any person may make written suggestions or comments on the proposed amendments on or before September 25, 1998. Written comments should be directed to Scott Vander Hart, Iowa Department of Natural Resources, Air Quality Bureau, 7900 Hickman Road, Suite 1, Urbandale, Iowa 50322, fax (515)242-5094, or by electronic mail tosvander@max.state.ia.us.
A public hearing will be held on September 25, 1998, at 1 p.m. in East Conference Room, Air Quality Bureau, 7900 Hickman Road, Suite 1, Urbandale, Iowa, at which time comments may be submitted orally or in writing.
Any persons who intend to attend a public hearing and have special requirements, such as those related to hearing or mobility, should contact the Department of Natural Resources to advise the Department of any specific needs.
These amendments may impact small business.
These amendments are intended to implement Iowa Code section 455B.133.
The following amendments are proposed.
ITEM 1. Amend subrule 22.1(2), introductory paragraph, as follows:
22.1(2) Exemptions. The provisions of this rule shall not apply to the following listed equipment or control equipment unless review of the equipment or the control equipment is necessary to comply with rule 22.4(455B), prevention of significant deterioration requirements; rule 22.5(455B), special requirements for nonattainment areas; 567--subrule 23.1(2), new source performance standards (40 CFR Part 60 NSPS); 567--subrule 23.1(3), emission standards for hazardous air pollutants (40 CFR Part 61 NESHAP); or 567--subrule 23.1(4), emission standards for hazardous air pollutants for source categories (40 CFR Part 63 NESHAP); or 567--subrule 23.1(5), emission guidelines, in which case a permit must be obtained. If equipment is permitted under the provisions of rule 22.8(455B), then no other exemptions shall apply to that equipment.
ITEM 2. Amend subrule 22.101(2) as follows:
22.101(2) Title V deferred stationary sources. The requirement to obtain a Title V permit is deferred for all sources listed in 22.101(1) that are not major sources, affected sources, or solid waste incineration units required to obtain a permit pursuant to Section 129(e) of the Act, until December 9, 1999, unless by the final promulgation of a federal standard to which the source is subject under the provisions of 40 CFR Part 60 (as amended through June 12, 1997 September 15, 1997), or 40 CFR Part 63 (as amended through August 11, 1997), or 567--subrule 23.1(5), a source is required to obtain a Title V permit. Each source receiving a deferral under the provisions of this rule shall submit a Title V permit application to the department within 12 months of the date when the requirement to obtain a Title V permit is no longer deferred for that source.
ITEM 3. Amend subrule 23.1(2), introductory paragraph, as follows:
23.1(2) New source performance standards. The federal standards of performance for new stationary sources, as defined in 40 Code of Federal Regulations Part 60 as amended or corrected through June 12, 1997 September 15, 1997, and 40 CFR Part 503 as adopted on October 25, 1995, are adopted by reference, except § 60.530 through § 60.539b, and shall apply to the following affected facilities. The corresponding 40 CFR Part 60 subpart designation is in parentheses. Reference test methods (Appendix A), performance specifications (Appendix B), determination of emission rate change (Appendix C), quality assurance procedures (Appendix F) and the general provisions (Subpart A) of 40 CFR Part 60 also apply to the affected facilities.
ITEM 4. Amend paragraph 23.1(2)"nnn" as follows:
nnn. Municipal waste combustors. Unless exempted, a municipal waste combustor with a capacity greater than 250 tons 225 megagrams per day of municipal solid waste or ref-use derived fuel for which construction, modification, or reconstruction is commenced after December 20, 1989, and on or before September 20, 1994, and modification or reconstruction is commenced after December 20, 1989, and on or before June 19, 1996. (Subpart Ea)
ITEM 5. Further amend subrule 23.1(2) by adding the following new paragraphs:
sss. Municipal waste combustors. Unless exempted, a municipal waste combustor with a capacity greater than 35 megagrams per day of municipal solid waste for which construction is completed after September 20, 1994, or for which modification or reconstruction is commenced after June 19, 1996. (Subpart Eb)
ttt. Hospital/medical/infectious waste incinerators. Unless exempted, a hospital/medical/infectious waste incinerator for which construction is commenced after June 20, 1996, or for which modification is commenced after March 16, 1998. (Subpart Ec)
ITEM 6. Amend subrule 23.1(5), introductory paragraph, as follows:
23.1(5) Emission guidelines. The emission guidelines and compliance times for existing sources, as defined in 40 Code of Federal Regulations Part 60 as amended through June 12, 1997 September 15, 1997, shall apply to the following affected facilities. The corresponding 40 CFR Part 60 subpart designation is in parentheses. The control of the designated pollutants will be in accordance with federal standards established in Sections 111 and 129 of the Act and 40 CFR Part 60, Subpart B (Adoption and Submittal of State Plans for Designated Facilities), and the applicable subpart(s) for the existing source. Reference test methods (Appendix A), performance specifications (Appendix B), determination of emission rate change (Appendix C), quality assurance procedures (Appendix F) and the general provisions (Subpart A) of 40 CFR Part 60 also apply to the affected facilities.
ITEM 7. Amend subrule 23.1(5) by adding the following new paragraph "b":
b. Emission guidelines for hospital/medical/infectious waste incinerators (Subpart Ce). This paragraph contains emission guidelines and compliance times for the control of certain designated pollutants from hospital/medical/infectious waste incinerator(s) (HMIWI) in accordance with Subparts Ce and Ec (Standards of Performance for Hospital/Medical/Infectious Waste Incinerators) of 40 CFR Part 60.
(1) Definitions. For the purpose of paragraph 23.1(5)"b," the definitions have the same meaning given to them in the Act and 40 CFR Part 60, Subparts A, B, and Ec, if not defined in this subparagraph.
"Hospital/medical/infectious waste incinerator" or"HMIWI" means any device that combusts any amount or combination of hospital or medical or infectious waste.
"Hospital waste" means discards generated at a hospital, except unused items returned to the manufacturer. The definition of hospital waste does not include human corpses, remains, and anatomical parts that are intended for interment or cremation.
"Large HMIWI" means:
1. An HMIWI whose maximum design waste burning capacity is more than 500 pounds per hour; or
2. A continuous or intermittent HMIWI whose maximum charge rate is more than 500 pounds per hour; or
3. A batch HMIWI whose maximum charge rate is more than 4,000 pounds per day.
"Medical/infectious waste" means any waste generated in the diagnosis, treatment, or immunization of human beings or animals, in research pertaining thereto, or in the production or testing of biologicals that is listed in numbered paragraphs "1" through "7" of this definition. The definition of medical/infectious waste does not include hazardous waste identified or listed under the regulations in 40 CFR Part 261; household waste, as defined in 40 CFR § 261.4(b)(1); ash from incineration of medical/infectious waste, once the incineration process has been completed; human corpses, remains, and anatomical parts that are intended for interment; and domestic sewage materials identified in 40 CFR § 261.4(a)(1).
1. Cultures and stocks of infectious agents and associated biologicals, including: cultures from medical and pathological laboratories; cultures and stocks of infectious agents from research and industrial laboratories; wastes from the production of biologicals; discarded live and attenuated vaccines; and culture dishes and devices used to transfer, inoculate, and mix cultures.
2. Human pathological waste, including tissues, organs, and body parts and body fluids that are removed during surgery or autopsy or other medical procedures, and specimens of body fluids and their containers.
3. Human blood and blood products including: liquid waste human blood, products of blood, items saturated or dripping with human blood; or items that were saturated or dripping with human blood that are now caked with dried human blood; including serum, plasma, and other blood components, and their containers, which were used or intended for use in patient care, testing and laboratory analysis or the development of pharmaceuticals. Intravenous bags are also included in this category.
4. Sharps that have been used in animal or human patient care or treatment or in medical, research, or industrial laboratories, including hypodermic needles, syringes (with or without the attached needle), pasteur pipettes, scalpel blades, blood vials, needles with attached tubing, and culture dishes (regardless of presence of infectious agents). Also included are other types of broken or unbroken glassware that were in contact with infectious agents, such as used slides and cover slips.
5. Animal waste including contaminated animal carcasses, body parts, and bedding of animals that were known to have been exposed to infectious agents during research (including research in veterinary hospitals), production of biologicals or testing of pharmaceuticals.
6. Isolation wastes including biological waste and discarded materials contaminated with blood, excretions, exudates, or secretions from humans who are isolated to protect others from certain highly communicable diseases, or from isolated animals known to be infected with highly communicable diseases.
7. Unused sharps including the following unused, discarded sharps: hypodermic needles, suture needles, syringes, and scalpel blades.
"Medium HMIWI" means:
1. An HMIWI whose maximum design waste burning capacity is more than 200 pounds per hour but less than or equal to 500 pounds per hour; or
2. A continuous or intermittent HMIWI whose maximum charge rate is more than 200 pounds per hour but less than or equal to 500 pounds per hour; or
3. A batch HMIWI whose maximum charge rate is more than 1,600 pounds per day but less than or equal to 4,000 pounds per day.
"Remote HMIWI" means a small HMIWI meeting the following conditions:
1. Located 50 miles from the boundary of the nearest standard metropolitan statistical area.
2. Burns less than 2,000 lb/week of hospital waste and medical/infectious waste.
"Small HMIWI" means:
1. An HMIWI whose maximum design waste burning capacity is less than or equal to 200 pounds per hour; or
2. A continuous or intermittent HMIWI whose maximum charge rate is less than or equal to 200 pounds per hour; or
3. A batch HMIWI whose maximum charge rate is less than or equal to 1,600 pounds per day.
"Standard metropolitan statistical area" or "SMSA" means any areas listed in OMB Bulletin No. 93-17 entitled "Revised Statistical Definitions for Metropolitan Areas" dated June 30, 1993. The following SMSAs are in Iowa or within 50 miles of Iowa border: Cedar Rapids (Linn County, IA), Davenport-Moline-Rock Island (Henry County, IL; Rock Island County, IL; Scott County, IA), Des Moines (Dallas County, Polk County, Warren County), Dubuque (Dubuque County), Iowa City (Johnson County), La Crosse (Houston County, MN; La Crosse County, WI), Omaha-Council Bluffs (Cass County, NE; Douglas County, NE; Pottawattamie County, IA; Sarpy County, NE; Washington County, NE), Rochester (Olmsted County, MN), St. Joseph (Andrew County, MO; Buchanan County, MO), Sioux City (Dakota County, NE; Woodbury County, IA), Sioux Falls (Lincoln County, SD; Minnehaha County, SD), andWaterloo-Cedar Falls (Black Hawk County).
(2) Designated facilities.
1. Except as provided in numbered paragraphs "2" through "8" of this subparagraph, the designated facility to which the guidelines apply is each individual HMIWI for which construction was commenced on or before June 20, 1996.
2. A combustor is not subject to this paragraph during periods when only pathological waste, low-level radioactive waste, or chemotherapeutic waste, or any combination thereof, (defined in 40 CFR § 60.51c) is burned, provided the owner or operator of the combustor does the following: notifies the director of an exemption claim, and keeps records on a calendar-quarter basis of the periods of time when only pathological waste, low-level radioactive waste, or chemotherapeutic waste, or any combination thereof, is burned.
3. Any co-fired combustor (defined in 40 CFR § 60.51c) is not subject to this paragraph if the owner or operator of the co-fired combustor: notifies the director of an exemption claim; provides an estimate of the relative weight of hospital waste, medical/infectious waste, other fuels, and other wastes to be combusted; and keeps records on a calendar-quarter basis of the weight of hospital waste and medical/infectious waste combusted, and the weight of all other fuels and wastes combusted at the co-fired combustor.
4. Any combustor required to have a permit under Section 3005 of the Solid Waste Disposal Act is not subject to paragraph 23.1(5)"b."
5. Any combustor which meets the applicability requirements under Subpart Cb, Ea, or Eb of 40 CFR Part 60 is not subject to paragraph 23.1(5)"b."
6. Any pyrolysis unit (defined in 40 CFR § 60.51c) is not subject to paragraph 23.1(5)"b."
7. Cement kilns firing hospital, medical or infectious waste, or any combination thereof, are not subject to paragraph 23.1(5)"b."
8. Physical or operational changes made to an existing HMIWI unit solely for the purpose of complying with paragraph 23.1(5)"b" are not considered a modification and do not result in an existing HMIWI becoming subject to the provisions of 40 CFR Part 60, Subpart Ec.
9. Designated facilities subject to paragraph 23.1(5)"b" must apply for an operating permit as required by 567--subrule 22.101(1) no later than September 15, 2000.
(3) Emission limits.
1. An HMIWI must not exceed the emission limits for each pollutant listed in Table 1, except as provided for in numbered paragraph "2" of subparagraph 23.1(5)"b"(3).
2. A remote HMIWI must not exceed the emission limits for each pollutant listed in Table 2. The 2,000 lb/week limitation does not apply during performance tests.
3. On or after the date on which the initial performance test is completed or is required to be completed under 40 CFR Section 60.8, whichever comes first, no owner or operator of an affected facility shall cause any gases to be discharged into the atmosphere from the stack of the affected facility that exhibit greater than 10 percent opacity (6-minute block average).

(4) Operator training and qualification requirements. Designated facilities shall meet the requirements for operator training and qualification listed in 40 CFR § 60.53c within one year from EPA's approval of the state's 111(d) plan for HMIWI.
(5) Waste management requirements. Designated facilities shall meet the requirements for a waste management plan listed in 40 CFR § 60.55c within 34 months from EPA's approval of the state's 111(d) plan for HMIWI.
(6) Inspection requirements. Each remote HMIWI subject to the emission limits under numbered paragraph "2" of subparagraph 23.1(5)"b"(3) must conduct an initial equipment inspection within one year from EPA's approval of the state's 111(d) plan for HMIWI, and equipment inspections annually, no more than 12 months after the previous inspection. The facility must complete all necessary repairs within ten operating days following an inspection. If the repairs cannot be accomplished within this period, then the owner or operator must obtain written approval from the department requesting an extension. All inspections shall include the following:
1. Inspect all burners, pilot assemblies, and pilot sensing devices for proper operation, and clean pilot flame sensor as necessary;
2. Ensure proper adjustment of primary and secondary chamber combustion air, and adjust as necessary;
3. Inspect hinges and door latches, and lubricate as necessary;
4. Inspect dampers, fans, and blowers for proper operation;
5. Inspect HMIWI door and door gaskets for proper sealing;
6. Inspect motors for proper operation;
7. Inspect primary chamber refractory lining, and clean and repair or replace lining as necessary;
8. Inspect incinerator shell for corrosion and hot spots;
9. Inspect secondary/tertiary chamber and stack, and clean as necessary;
10. Inspect mechanical loader, including limit switches, for proper operation if applicable;
11. Visually inspect waste bed (grates), and repair or seal as appropriate;
12. For the burn cycle that follows the inspection, document that the incinerator is operating properly, and make any necessary adjustments;
13. Inspect air pollution control device(s) for proper operation if applicable;
14. Inspect waste heat boiler systems to ensure proper operation if applicable;
15. Inspect bypass stack components;
16. Ensure proper calibration of thermocouples, sorbent feed systems and any other monitoring equipment; and
17. Generally observe whether the equipment is maintained in good operating condition.
(7) Compliance, performance testing, and monitoring requirements. Except as provided in subparagraphs 23.1(5)"b"(8) and (9), designated facilities shall meet the requirements for compliance and performance testing listed in 40 CFR § 60.56c (excluding the fugitive emissions testing requirements under 40 CFR § 60.56c(b)(12) and (c)(3)) and the requirements for monitoring listed in 40 CFR § 60.57c.
(8) Compliance and performance testing for remoteHMIWI. Remote HMIWI shall meet the following compliance and performance testing requirements:
1. Conduct the performance testing requirements in 40 CFR § 60.56c(a), (b)(1) through (b)(9), (b)(11) (Hg only), and (c)(1). The 2,000 lb/week limitation under numbered paragraph "2" of subparagraph 23.1(5)"b"(3) does not apply during performance tests.
2. Establish maximum charge rate and minimum secondary chamber temperature as site-specific operating parameters during the initial performance test to determine compliance with applicable emission limits.
3. Following the date on which the initial performance test is completed or is required to be completed under 40 CFR § 60.8, whichever date comes first, remote HMIWI must not operate above the maximum charge rate or below the minimum secondary chamber temperature measured as three-hour rolling averages (calculated each hour as the average of the previous three operating hours) at all times except during periods of startup, shutdown and malfunction. Operating parameter limits do not apply during performance tests. Operation above the maximum charge rate or below the minimum secondary chamber temperature shall constitute a violation of the established operating parameter(s).
4. Except as provided in numbered paragraph "5" of subparagraph 23.1(5)"b"(8), operation of the remoteHMIWI above the maximum charge rate and below the minimum secondary chamber temperature (each measured on a three-hour rolling average) simultaneously shall constitute a violation of the PM, CO, and dioxin/furan emission limits.
5. The owner or operator of the remote HMIWI may conduct a repeat performance test within 30 days of violation of applicable operating parameter(s) to demonstrate that the designated facility is not in violation of the applicable emission limit(s). Repeat performance tests conducted pursuant to this paragraph must be conducted using the identical operating parameters that indicated a violation under numbered paragraph "4" of subparagraph 23.1(5)"b"(8).
(9) Monitoring requirements for remote HMIWI. Remote HMIWI must meet the following monitoring requirements:
1. Install, calibrate (to manufacturers' specifications), maintain, and operate a device for measuring and recording the temperature of the secondary chamber on a continuous basis, the output of which shall be recorded, at a minimum, once every minute throughout operation.
2. Install, calibrate (to manufacturers' specifications), maintain, and operate a device which automatically measures and records the date, time, and weight of each charge fed into the HMIWI.
3. The owner or operator of a designated facility shall obtain monitoring data at all times during HMIWI operation except during periods of monitoring equipment malfunction, calibration, or repair. At a minimum, valid monitoring data shall be obtained for 75 percent of the operating hours per day and for 90 percent of the operating hours per calendar quarter that the designated facility is combusting hospital, medical or infectious waste, or a combination thereof.
(10) Reporting and record-keeping requirements. Designated facilities shall meet the reporting and record-keeping requirements listed in 40 CFR § 60.58c(b), (c), (d), (e), and (f), excluding 40 CFR § 60.58c(b)(2)(ii) (fugitive emissions) and (b)(7) (siting), except for remote HMIWI.
(11) Reporting and record-keeping requirements for remote HMIWI. Remote HMIWI must meet the following reporting and record-keeping requirements:
1. Maintain records of the annual equipment inspections, any required maintenance, and any repairs not completed within ten days of an inspection; and
2. Submit an annual report containing information recorded under numbered paragraph "1" of subparagraph 23.1(5)"b"(11) no later than 60 days following the year in which data were collected. Subsequent reports shall be sent no later than 12 calendar months following the previous report (once the unit is subject to permitting requirements under Title V of the Act, the owner or operator must submit these reports semiannually). The report shall be signed by the facility's manager.
(12) Compliance times for designated facilities planning to retrofit. Designated facilities planning to retrofit existing HMIWI shall comply with the emission limits specified in subparagraph 23.1(5)"b"(3) within three years from EPA's approval of the state's 111(d) plan for HMIWI, but not later than September 16, 2002. To ensure compliance, these facilities must also comply with the following increments of progress:
1. Submit construction permit application to the department, as required by rule 567--22.1(455B), to outline the addition of control equipment and the modification of existing processes within one year from EPA's approval of the state's 111(d) plan for HMIWI;
2. Award contracts for control systems or process modifications, or orders for purchase of components within 18 months from EPA's approval of the state's 111(d) plan for HMIWI;
3. Initiate on-site construction or installation of the air pollution control device(s) or process changes within two years from EPA's approval of the state's 111(d) plan forHMIWI;
4. Complete on-site construction or installation of air pollution control device(s) or process changes within 33 months from EPA's approval of the state's 111(d) plan for HMIWI; and
5. Complete initial compliance test(s) on the air pollution control equipment within 34 months from EPA's approval of the state's 111(d) plan for HMIWI.
(13) Compliance times for designated facilities planning to shut down. Designated facilities planning to shut down an existing HMIWI shall shut down within one year from EPA's approval of the state's 111(d) plan for HMIWI. Designated facilities may request an extension from the department to operate the HMIWI for up to two additional years. The request for extension must be submitted to the department within nine months from EPA's approval of the state's 111(d) plan for HMIWI and include the following:
1. Documentation to support the need for the requested extension;
2. An evaluation of the option to transport the waste off site to a commercial medical waste treatment and disposal facility on a temporary or permanent basis; and
3. A plan that documents measurable and enforceable incremental steps of progress to be taken toward compliance with paragraph 23.1(5)"b," including final compliance date which can be no later than September 16, 2001.
ITEM 8. Amend subrule 25.1(10), paragraph "a," as follows:
a. An affected source is subject to a new source performance standard promulgated in 40 CFR Part 60 as amended through June 12, 1997 September 15, 1997.
ARC 8270A

Amend subrule 42.2(6), introductory paragraph, as follows:
42.2(6) Research activities credit. Effective for tax years beginning on or after January 1, 1985, taxpayers are allowed a credit equal to 6½ percent of the state's apportioned share of qualified expenditures for increasing research activities. For purposes of this credit, "qualifying expenditures" means the qualifying expenditures as defined for the federal credit for increasing research activities computed under Section 30 of the Internal Revenue Code as amended to and including January 1, 1985. For tax years beginning on or after January 1, 1987, "qualifying expenditures" means the qualifying expenditures as defined for the federal credit for increasing research activities computed under Section 41 of the Internal Revenue Code. The state's apportioned share of qualifying expenditures for increasing research activities will be the qualified research expenditures in Iowa to the total qualified research expenditures. Effective for tax years beginning on or after January 1, 1991, the state research activities credit will be computed on the basis of the qualifying expenditures for increasing research activities as allowable under Section 41 of the Internal Revenue Code in effect on January 1, 1995 1998. The state's apportioned share of the qualifying expenditures for increasing research activities is a percent equal to the ratio of qualified research expenditures in Iowa to the total qualified research expenditures. The Iowa research activities credit is made permanent for tax years beginning on or after January 1, 1991, even though there may no longer be a research activities credit for federal income tax purposes.
Amend subrule 42.2(8) as follows:
42.2(8) Tuition and textbooks credit for dependents in grades kindergarten through 12 in Iowa. For tax years beginning on or after January 1, 1987, but prior to January 1, 1996, individuals who elect the optional standard deduction may claim a tax credit of 5 percent of the qualifying expenditures. For tax years beginning on or after January 1, 1996, all taxpayers, including individuals that have net incomes of $45,000 or more, may claim a tuition and textbook credit of 10 percent of qualifying expenditures. For tax years beginning on or after January 1, 1998, all taxpayers may claim a tuition and textbook credit of 25 percent of up to $1,000 of qualifying expenditures for each dependent attending grades kindergarten through 12 in Iowa. Qualifying expenditures include amounts paid for tuition and textbooks described in paragraphs "a" and "b" of 701--subrule 41.5(5) as well as amounts paid for extracurricular activities described in paragraph "c" of 701--subrule 41.5(5). For purposes of this subrule, the qualifying expenditures for tax years beginning in 1996 and 1997 are the same as would have been eligible for the deduction allowed under 701--subrule 41.5(5) if the qualifying expenditures had been paid in a tax year when the deduction was applicable. All the qualifications, definitions, and criteria in 701--subrule 41.5(5) are equally applicable to the credit for amounts paid for tuition and textbooks for dependents attending grades kindergarten through 12 in Iowa. In the case of married taxpayers who are filing separate returns or separately on the combined return, the spouses can allocate the credit for tuition and textbooks between them in the same ratio as described in paragraph "g" of 701--subrule 41.5(5).
Amend the implementation clause as follows:
This rule is intended to implement Iowa Code section sections 422.10, as amended by 1996 Iowa Acts, Senate File 2467, and Iowa Code sections 422.11A, 422.12, and 422.12B as amended by 1998 Iowa Acts, House File 2513 and Senate File 2357.
ITEM 9. Amend rule 701--43.3(422) as follows:
Adopt the following new subrule:
43.3(14) Refunds--statute of limitations for taxpayers who paid state income tax on returns for tax years where federal income tax was refunded due to a provision of the Taxpayer Relief Act of 1997. Notwithstanding the three-year statute of limitations in Iowa Code section 422.73, claims for refund filed with the department on or before June 30, 1999, will be considered timely if the taxpayer's federal income tax was refunded due to a provision in the Taxpayer Relief Act of 1997 which affected the federal adjusted gross income of an individual or an estate or a trust. This particular provision may affect Iowa returns for a tax year beginning on or after January 1, 1977, to the extent the federal adjusted gross incomes on federal returns for the tax year were affected by the Taxpayer Relief Act of 1997.
Amend the implementation clause as follows:
This rule is intended to implement Iowa Code sections 421.17, 422.2, 422.16, and 422.73 as amended by 1994 1998 Iowa Acts, House File 2124 Senate File 2357.
ITEM 10. Amend rule 701--43.8(422) as follows:
Amend the introductory paragraph as follows:
701--43.8(422) Livestock production credit refunds for corporate taxpayers and individual taxpayers. For tax years beginning on or after January 1, 1996, corporate and individual taxpayers who own certain livestock, have livestock production operations in Iowa in the tax year, and who meet certain qualifications are eligible for a livestock production credit refund. The amount of a livestock production credit refund is determined by adding together for each head of livestock in the taxpayer's operation the product of 10 cents for each corn equivalent deemed to have been consumed by that animal in the taxpayer's operation in the tax year. However, for tax years beginning in the 1996 and the 1997 calendar year and for tax years beginning on or after January 1, 1997, years, only qualified taxpayers that have cow-calf livestock production operations described in paragraph "i" of subrule 43.8(2) will be eligible for the livestock production credit refunds and for tax years beginning on or after January 1, 1998, only qualified taxpayers that have cow-calf livestock operations described in paragraph "o" of subrule 43.8(2) will be eligible for the livestock production refunds, notwithstanding the other types of livestock operations mentioned in this rule. Note that the livestock production credit refund is also available to taxpayers who meet the qualifications described in subrule 43.8(1) and operate certain types of poultry operations in this state and own the poultry in the operations. The amounts of the livestock production credit refunds for these taxpayers are determined on the basis of 10 cents for each corn equivalent deemed to have been consumed by the chickens or the turkeys in the taxpayers' poultry operations in the tax year. However, the amount of livestock production credit refund may not exceed $3,000 per livestock or poultry operation for a tax year. In addition, the amount of livestock production credit refund per taxpayer for a tax year may not exceed $3,000. Therefore, if a particular taxpayer is involved in a cow-calf beef operation, a sheep-ewe flock operation, and a farrow-to-finish hog operation, the maximum livestock production credit refund for this taxpayer may not exceed $3,000.
Amend subrule 43.8(2), paragraph "i," as follows:
i. For purposes of this rule and only for tax years beginning in the 1996 and 1997 calendar years, "cow-calf beef operations" means those beef cattle production operations whereby the majority of the cattle in the operations were born and raised in the operations and many of the cattle in the operations were sold at a prime market weight of 700 pounds or more.
The livestock production credit refunds for cow-calf operations include the number of cattle raised in the operation, which are sold in the tax year at the stocker weight under the criteria described in paragraph "j" of this subrule and which are sold in the tax year at the feedlot weight under the criteria described in paragraph "k" of this subrule. However, those cattle in the operation that were sold at the feedlot weight in the tax year qualify for a combined stocker and feedlot production credit refund of $11.65 per head of cattle sold, to the extent the cattle sold had been in the operation at least 300 days after the cattle were weaned. Cattle in the operation that were sold at a weight below 700 pounds may not be counted for purposes of computing the livestock production credit refund for the operation. However, unbred replacement heifers in inventory on December 31 of the tax year would qualify for a production credit refund of $4.15 per head if these cattle had been born, raised and weaned in the operation and had been in the herd for at least two months after weaning on December 31.
Finally, the livestock production credit refunds for cow-calf operations include refund amounts determined on the number of bred cows, bred yearling heifers, and breeding bulls in inventory on December 31 of the tax year times the corn equivalent factor of 111.5 or $11.15. However, any bred cows, bred yearling heifers, and breeding bulls in inventory on December 31 which were not in the operation on July 1 of that calendar year may not be considered for purposes of computation of the livestock production credit refund.
Amend subrule 43.8(2) by adopting the following new paragraph:
o. For the purposes of this rule and for tax years beginning on or after January 1, 1998, "cow-calf beef operations" means those livestock cattle production operations that include mature beef cows bred or for breeding, bred yearling heifers, and breeding bulls. The livestock production credit refunds for cow-calf beef operations are determined only on the number of mature beef cows bred or for breeding, bred yearling heifers, and breeding bulls in inventory of the operations on December 31 of the tax year times the corn equivalent factor of 111.5 or $11.15. However, only those mature beef cows bred or for breeding, bred yearling heifers, and breeding bulls in inventory on December 31 which were also in inventory on July 1 of the same calendar year may be considered for purposes of computing the livestock production refunds.
ITEM 11. Amend rule 701--46.1(422) as follows:
Amend subrule 46.1(2), introductory paragraph, as follows:
46.1(2) Withholding on pensions, annuities and other nonwage payments to Iowa residents. Effective for nonwage payments made to individuals on or after January 1, 1992, state income tax is required to be withheld from payments of pensions, annuities, supplemental unemployment benefits and sick pay benefits and other nonwage income payments made to Iowa residents in those circumstances mentioned in the following paragraphs. This subrule is to cover those nonwage payments described in Sections 3402(o), 3402(p), 3402(s), 3405(a), 3405(b), and 3405(c) of the Internal Revenue Code. However, no state income tax withholding is required from nonwage payments to residents to the extent those payments are not subject to state income tax. See paragraph "h" for threshold amounts for withholding from payments of pensions, annuities, individual retirement accounts, deferred compensation plans, and other retirement incomes which are made on or after January 1, 1999, and paragraph "g" for threshold amounts for withholding from payments of pensions, annuities, individual retirement accounts, deferred compensation plans, and other retirement incomes which are made on or after January 1, 1996. Generally, no state income tax is required to be withheld from nonwage payments to residents in circumstances where the payment amounts are less than $200 or the taxable portions of the payments are less than $200 in situations where the payers know the taxable amounts. In instances where a payment amount or taxable amount is $200 or more but the payment amount or the taxable amount for the year is less than $2,400, no state income tax is required to be withheld. In the case of some nonwage payments to residents, such as payments of pensions and annuities, no state income tax is required to be withheld if no federal income tax is being withheld from the payments of the pensions and annuities. The rate of withholding on the nonwage payments described in this subrule is 5 percent of the payment amounts or 5 percent of the taxable amounts unless specified otherwise.
Amend subrule 46.1(2), paragraph "g," introductory paragraph, as follows:
g. Withholding from distributions made on or after January 1, 1996, but prior to January 1, 1999, from pensions, annuities, individual retirement accounts, deferred compensation plans and other retirement plans. Effective for distributions from pension plans, annuities, individual retirement accounts, deferred compensation and other retirement plans, state income tax is generally required to be withheld from the distributions, unless one of the exceptions for withholding in this paragraph applies. For purposes of this paragraph, the term "pensions and other retirement plans" includes all distributions of retirement benefits covered by the partial exemption described in rule 701--40.47(422).
Amend subrule 46.1(2) by adopting the following new paragraph:
h. Withholding from distributions made on or after January 1, 1999, from pensions, annuities, individual retirement accounts, deferred compensation plans, and other retirement plans. Effective for distributions made on or after January 1, 1999, from pension plans, annuities, individual retirement accounts, deferred compensation plans, and other retirement plans, state income tax is generally required to be withheld from the distributions when federal income tax is being withheld from the distributions, unless one of the exceptions for withholding in this paragraph applies. For purposes of this paragraph, the term "pension and other retirement plan" includes all distributions of retirement benefits covered by the partial exemption described in rule 701--40.47(422).
State income tax is not required to be withheld from a distribution from a pension or other retirement plan if the distribution is an income which is not subject to Iowa income tax, such as a distribution of railroad retirement benefits. State income tax is also not required to be withheld from a distribution from a pension plan or other retirement plan if the amount of the distribution is $417 or less or if the taxable amount is $417 or less and the person receiving the distribution is eligible for partial exemption of retirement benefits described in rule 701--40.47(422), if the state taxable amount can be determined by the payer of the distribution. There is also no requirement for withholding state income tax from a distribution from a pension or other retirement plan if the distribution is $834 or less or the state taxable amount is $834 or less and the person receiving the distribution is eligible for the partial exemption of retirement benefits described in rule 701--40.47(422) and that person has indicated an intention to file a joint state individual income tax return for the year in which the distribution is made. Finally, there is no requirement for withholding from a lump-sum payment from a qualified retirement plan if the lump-sum payment is $5,000 or less, the recipient of the distribution is eligible for the partial exemption of distributions from pensions and other retirement plans, and the lump-sum payment is the only distribution from the retirement plan in the year.
Amend the implementation clause as follows:
This rule is intended to implement Iowa Code sections 96.3, 99B.21, 99D.16, 99E.19, and 99F.18 and Iowa Code sections 422.7, 422.15, and 422.16 as amended by 1996 1998 Iowa Acts, House File 2229 2513.
ARC 8263A

These are minimum rates only. The one year and less are four-tenths of a percent below average rates. Public body treasurers and their depositories may negotiate a higher rate according to money market rates and conditions.
Inquiries may be sent to Michael L. Fitzgerald, Treasurer of State, State Capitol, Des Moines, Iowa 50319.

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