Text: HF02477 Text: HF02479 Text: HF02400 - HF02499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
Get Version To Print
PAG LIN 1 1 DIVISION X 1 2 LIVESTOCK PRODUCTION TAX CREDIT 1 3 Section 1. NEW SECTION. 422.120 LIVESTOCK PRODUCTION TAX 1 4 CREDIT ALLOWED. 1 5 1. a. There is allowed a state tax credit for livestock 1 6 production operations located in the state. The amount of the 1 7 credit equals ten cents for each corn equivalent consumed by 1 8 the livestock in the production operation as specified under 1 9 this section. The credit shall be refunded as provided in 1 10 section 422.122. 1 11 b. The credit shall be available to an individual or 1 12 corporate taxpayer who owns livestock and who receives, or 1 13 accrues in the case of an accrual-basis taxpayer, more than 1 14 one half of the taxpayer's gross income from farming or 1 15 ranching operations during the tax year. Gross income from 1 16 farming or ranching is the amount reported as gross income on 1 17 schedule F, or the equivalent schedule, of the taxpayer's 1 18 income tax return, the total gains from sales of breeding 1 19 livestock, and, if applicable, the taxpayer's distributive 1 20 share of income from farming or ranching from a partnership, 1 21 limited liability company, subchapter S corporation, or an 1 22 estate or trust. To determine whether a taxpayer receives 1 23 more than one-half of gross income from farming or ranching, 1 24 the taxpayer's amount of gross income from farming or ranching 1 25 shall be divided by the taxpayer's total gross income as 1 26 defined in section 61 of the federal Internal Revenue Code. 1 27 2. The amount of the credit per operation is determined by 1 28 adding together for each head of livestock in the operation 1 29 the product of ten cents times the number of corn equivalents 1 30 consumed by that head of livestock. The amount of livestock 1 31 production credit per operation per tax year shall not exceed 1 32 three thousand dollars and the amount of livestock production 1 33 credit per taxpayer per tax year shall not exceed three 1 34 thousand dollars. 1 35 The maximum amount of corn equivalents for a head of 2 1 livestock in a production operation is the following: 2 2 a. Hog operations: Corn equivalents: 2 3 (1) Farrow to finish 13.0 2 4 (2) Farrow to feeder pig 2.6 2 5 (3) Finishing feeder pigs 10.4 2 6 b. Poultry operations: 2 7 (1) Layers 0.88 2 8 (2) Turkeys 1.5 2 9 (3) Broilers 0.15 2 10 c. Beef operations: 2 11 (1) Cow-calf 111.5 2 12 (2) Stocker 41.5 2 13 (3) Feedlot 75.0 2 14 (4) Dairy 350.0 2 15 d. Sheep operations: 2 16 (1) Ewe flock 20.5 2 17 (2) Feedlot 4.1 2 18 3. If the livestock operation is carried on partly within 2 19 and partly without the state, the portion of the operation 2 20 attributable to this state shall be determined pursuant to 2 21 rules adopted by the department. The department may adjust 2 22 the allocation upon request of the taxpayer in order to 2 23 reflect the actual livestock operation carried on within this 2 24 state. 2 25 4. An individual may claim the livestock production tax 2 26 credit allowed a partnership, limited liability company, 2 27 subchapter S corporation, or estate or trust electing to have 2 28 the income taxed directly to the individual. The amount 2 29 claimed by the individual shall be based upon the pro rata 2 30 share of the individual's earning of the partnership, limited 2 31 liability company, subchapter S corporation, or estate or 2 32 trust. 2 33 5. A fraudulent claim for a credit refund under this 2 34 division shall cause the forfeiture of any right or interest 2 35 to a tax credit refund in subsequent tax years under this 3 1 division. 3 2 Sec. 2. NEW SECTION. 422.121 APPROPRIATION. 3 3 There is appropriated annually from the general fund of the 3 4 state ten million dollars to refund the credits allowed under 3 5 this division. 3 6 Sec. 3. NEW SECTION. 422.122 REFUND OF LIVESTOCK 3 7 PRODUCTION CREDIT CLAIMS. 3 8 1. For the tax year the total amount of livestock 3 9 production credit refund claims that shall be paid shall not 3 10 exceed ten million dollars. If the total dollar amount of the 3 11 refund claims exceeds that amount, each claim shall be paid an 3 12 amount equal to ten million dollars divided by the total 3 13 number of claims, not to exceed the amount of the taxpayer's 3 14 claim. Remaining funds shall be prorated among those claims 3 15 not paid in full in the proportion that each such claim bears 3 16 to the total amount of such claims not paid in full. 3 17 2. In the case where refund claims are not paid in full, 3 18 the amount of the refund to which the taxpayer is entitled is 3 19 the amount computed in subsection 1, and paid to the taxpayer, 3 20 and the taxpayer is not entitled to any unpaid portion of a 3 21 claim and is not entitled to carry forward or backward to 3 22 another tax year any unpaid portion of a claim. A taxpayer 3 23 shall not use a refund as an estimated payment for the 3 24 succeeding tax year. 3 25 3. A taxpayer must file a claim for refund within ten 3 26 months from the close of the taxpayer's tax year. An 3 27 extension for filing shall not be allowed. The department 3 28 shall determine by February 28 of the calendar year following 3 29 the calendar year in which the claims were filed if the total 3 30 amount of claims for refund exceeds ten million dollars for 3 31 the tax year. If the claim is not payable on February 28 3 32 because the taxpayer is a fiscal year filer, the claim shall 3 33 be considered as a claim filed for the following tax year. 3 34 4. A claim for refund shall be made on claim forms to be 3 35 made available by the department. In order for a taxpayer to 4 1 have a valid refund claim, the taxpayer must supply legible 4 2 copies of documents the director deems necessary to verify the 4 3 amount of the refund. 4 4 Sec. 4. RETROACTIVE APPLICABILITY. Sections 1 through 3 4 5 of this Act apply retroactively to January 1, 1996, for tax 4 6 years beginning on or after that date. 4 7 EXPLANATION 4 8 This bill provides a refundable livestock production income 4 9 tax credit not to exceed $3,000 per livestock operation. The 4 10 credit is based upon the amount of corn or corn equivalents 4 11 used by hog operations, beef (including dairy) operations, 4 12 sheep operations, and poultry operations. The amount of the 4 13 credit is computed by multiplying 10 cents times the amount of 4 14 corn or corn equivalents consumed by the livestock in the 4 15 production operation. In addition, a taxpayer may only 4 16 receive for a tax year $3,000 in total credits under the bill. 4 17 The bill appropriates from the general fund of the state 4 18 $10 million to fund livestock production tax credit refunds. 4 19 The bill applies retroactively to January 1, 1996, for 4 20 income tax years beginning on or after that date. 4 21 LSB 3240HV 76 4 22 sc/cf/24
Text: HF02477 Text: HF02479 Text: HF02400 - HF02499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
© 1996 Cornell College and League of Women Voters of Iowa
Comments? webmaster@legis.iowa.gov.
Last update: Wed Mar 27 03:22:50 CST 1996
URL: /DOCS/GA/76GA/Legislation/HF/02400/HF02478/960314.html
jhf