Text: HSB00651 Text: HSB00653 Text: HSB00600 - HSB00699 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. NEW SECTION. 422.11 LIVESTOCK PRODUCTION TAX
1 2 CREDIT.
1 3 1. a. The taxes imposed under this division, less the
1 4 credits allowed under this division, shall be reduced by a
1 5 state tax credit for livestock production operations located
1 6 in the state. The amount of the credit equals ten cents for
1 7 each bushel of corn or corn equivalents consumed by the
1 8 livestock in the production operation as specified under this
1 9 section.
1 10 b. Corn equivalents are as follows:
1 11 (1) Each bushel of corn equals one corn equivalent.
1 12 (2) Each ton of silage equals nine corn equivalents.
1 13 (3) Each ton of hay equals thirty corn equivalents.
1 14 (4) Each acre of pasture equals fifteen corn equivalents.
1 15 2. The amount of the credit per operation is determined by
1 16 adding together for each head of livestock in the operation
1 17 the product of ten cents times the number of corn equivalents
1 18 consumed by that head of livestock. The amount of credit per
1 19 operation shall not exceed five thousand dollars.
1 20 The maximum amount of corn equivalents for a head of
1 21 livestock in a production operation is the following:
1 22 a. Hog operations: Corn equivalents:
1 23 (1) Farrow to finish 13.0
1 24 (2) Farrow to feeder pig 2.6
1 25 (3) Finishing feeder pigs 10.4
1 26 b. Poultry operations:
1 27 (1) Layers 0.88
1 28 (2) Turkeys 1.5
1 29 (3) Broilers 0.15
1 30 c. Beef operations:
1 31 (1) Cow-calf 101.5
1 32 (2) Stocker 41.5
1 33 (3) Feedlot 75.0
1 34 (4) Dairy 350.0
1 35 3. If the livestock operation is carried on partly within
2 1 and partly without the state, the portion of the operation
2 2 attributable to this state shall be determined pursuant to
2 3 rules adopted by the department. The department may adjust
2 4 the allocation upon request of the taxpayer in order to
2 5 reflect the actual livestock operation carried on within this
2 6 state.
2 7 4. An individual may claim the livestock production tax
2 8 credit allowed a partnership, subchapter S corporation, or
2 9 estate or trust electing to have the income taxed directly to
2 10 the individual. The amount claimed by the individual shall be
2 11 based upon the pro rata share of the individual's earning of
2 12 the partnership, subchapter S corporation, or estate or trust.
2 13 Any credit in excess of the tax liability shall be refunded.
2 14 5. The amount of the livestock production credit per
2 15 taxpayer per tax year shall not exceed five thousand dollars.
2 16 Sec. 2. Section 422.33, Code Supplement 1995, is amended
2 17 by adding the following new subsection:
2 18 NEW SUBSECTION. 9. a. The taxes imposed under this
2 19 division shall be reduced by a state tax credit for livestock
2 20 production operations located in the state. The amount of the
2 21 credit equals ten cents for each bushel of corn or corn
2 22 equivalents consumed by the livestock in the production
2 23 operation as specified under this section.
2 24 b. Corn equivalents are as follows:
2 25 (1) Each bushel of corn equals one corn equivalent.
2 26 (2) Each ton of silage equals nine corn equivalents.
2 27 (3) Each ton of hay equals thirty corn equivalents.
2 28 (4) Each acre of pasture equals fifteen corn equivalents.
2 29 c. The amount of the credit per operation is determined by
2 30 adding together for each head of livestock in the operation
2 31 the product of ten cents times the number of corn equivalents
2 32 consumed by that head of livestock. The amount of credit per
2 33 operation shall not exceed five thousand dollars.
2 34 The maximum amount of corn equivalents for a head of
2 35 livestock in a production operation is the following:
3 1 (1) Hog operations: Corn equivalents:
3 2 (a) Farrow to finish 13.0
3 3 (b) Farrow to feeder pig 2.6
3 4 (c) Finishing feeder pigs 10.4
3 5 (2) Poultry operations:
3 6 (a) Layers 0.88
3 7 (b) Turkeys 1.5
3 8 (c) Broilers 0.15
3 9 (3) Beef operations:
3 10 (a) Cow-calf 101.5
3 11 (b) Stocker 41.5
3 12 (c) Feedlot 75.0
3 13 (d) Dairy 350.0
3 14 d. If the livestock operation is carried on partly within
3 15 and partly without the state, the portion of the operation
3 16 attributable to this state shall be determined pursuant to
3 17 rules adopted by the department. The department may adjust
3 18 the computation upon request of the taxpayer in order to
3 19 reflect the actual livestock operation carried on within this
3 20 state.
3 21 e. Any credit in excess of the tax liability shall be
3 22 refunded.
3 23 f. The amount of the livestock production credit per
3 24 taxpayer per tax year shall not exceed five thousand dollars.
3 25 Sec. 3. Chapters 425A and 426, Code 1995, are repealed.
3 26 Sec. 4. APPLICABILITY. Section 3 of this Act, being
3 27 deemed of immediate importance, takes effect upon enactment
3 28 for family farm tax credit claims and agricultural land tax
3 29 credit claims for property taxes due and payable in fiscal
3 30 years beginning on or after July 1, 1996.
3 31 Sec. 5. RETROACTIVE APPLICABILITY. Sections 1 and 2 of
3 32 this Act apply retroactively to January 1, 1996, for tax years
3 33 beginning on or after that date.
3 34 EXPLANATION
3 35 This bill provides a livestock production tax credit not to
4 1 exceed $5,000 per livestock operation. The credit is based
4 2 upon the amount of corn or corn equivalents used by hog
4 3 operations, beef (including dairy) operations, and poultry
4 4 operations. The amount of the credit is computed by
4 5 multiplying 10 cents times the amount of corn or corn
4 6 equivalents consumed by the livestock in the production
4 7 operation. In addition, a taxpayer may only receive for a tax
4 8 year $5,000 in total credits under the bill.
4 9 The bill also repeals the agricultural land tax credit and
4 10 the family farm tax credit applicable to property taxes due
4 11 and payable in fiscal years beginning on or after July 1,
4 12 1996.
4 13 The sections of the bill relating to the livestock
4 14 production tax credit apply retroactively to January 1, 1996,
4 15 for income tax years beginning on or after that date.
4 16 LSB 3240IC 76
4 17 sc/cf/24
Text: HSB00651 Text: HSB00653 Text: HSB00600 - HSB00699 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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