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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
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