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House Journal: Page 2161: Wednesday, May 1, 1996

Sec. 18.  This division of this Act, being deemed of immediate
importance, takes effect upon enactment and applies
retroactively to January 1, 1996, for tax years beginning on or
after that date.  
DIVISION V
LIVESTOCK PRODUCTION TAX CREDIT
Sec. 19.  NEW SECTION.  422.120  LIVESTOCK PRODUCTION TAX
CREDIT ALLOWED.
1.  a.  There is allowed a state tax credit for livestock
production operations located in the state.  The amount of the
credit equals ten cents for each corn equivalent consumed by the
livestock in the production operation as specified under this
section.  The credit shall be refunded as provided in section
422.121.
b.  The credit shall be available to an individual or corporate
taxpayer who owns livestock, if all of the following apply:
(1)  The total net worth of the taxpayer during the taxpayer's
tax year is less than one million dollars.
(2)  The taxpayer receives, or accrues in the case of an
accrual-basis taxpayer, more than one-half of the taxpayer's
gross income from farming or ranching operations during the tax
year.  Gross income from farming or ranching is the amount
reported as gross income on schedule F, or the equivalent
schedule, of the taxpayer's income tax return, the total gains
from sales of breeding livestock, and, if applicable, the
taxpayer's distributive share of income from farming or ranching
from a partnership, limited liability company, subchapter S
corporation, or an estate or trust.  To determine whether a
taxpayer receives more than one-half of gross income from
farming or ranching, the taxpayer's amount of gross income from
farming or ranching shall be divided by the taxpayer's total
gross income as defined in section 61 of the federal Internal
Revenue Code.
2.  The amount of the credit per operation is determined by
adding together for each head of livestock in the operation the
product of ten cents times the number of corn equivalents
consumed by that head of livestock.  The amount of livestock
production credit per operation per tax year shall not exceed
three thousand dollars and the amount of livestock production
credit per taxpayer per tax year shall not exceed three thousand
dollars.
The maximum amount of corn equivalents for a head of livestock
in a production operation is the following:  
a.  Hog operations:               Corn equivalents:
(1)  Farrow to finish                    13.0
(2)  Farrow to feeder pig               2.6
(3)  Finishing feeder pigs            10.4
b.  Poultry operations:
(1)  Layers                                    0.88
(2)  Turkeys                                   1.5
(3)  Broilers                                  0.15

Iowa General Assembly

Index: House Journal (76th General Assembly: Session 2)

© 1996 Cornell College and League of Women Voters of Iowa

Comments? hjourn@legis.iowa.gov.

Last update: Tue Jun 25 15:30:03 CDT 1996
URL: /DOCS/GA/76GA/Session.2/HJournal/02100/02161.html
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