Text: HSB00185 Text: HSB00187 Text: HSB00100 - HSB00199 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. NEW SECTION. 422.11F VALUE-ADDED AGRICULTURE
1 2 INVESTMENT TAX CREDIT.
1 3 1. The taxes imposed under this division, less the credits
1 4 allowed under sections 422.12 and 422.12B, shall be reduced by
1 5 a value-added agriculture investment tax credit. To be
1 6 eligible, the taxpayer must be a qualified agricultural
1 7 producer and must make a capital investment during the tax
1 8 year in a qualified value-added agricultural business. The
1 9 amount of the tax credit equals twenty percent, not to exceed
1 10 two thousand dollars, of all capital investments made by the
1 11 taxpayer in all qualified value-added agricultural businesses
1 12 during the tax year. Any tax credit in excess of the tax
1 13 liability may be carried backward for up to five tax years or
1 14 carried forward for up to three tax years.
1 15 2. An individual may claim a value-added agricultural
1 16 investment tax credit allowed a partnership, limited liability
1 17 company, S corporation, or estate or trust electing to have
1 18 the income taxed directly to the individual. The amount
1 19 claimed by the individual shall be based upon the pro rata
1 20 share of the individual's earnings of a partnership, limited
1 21 liability company, S corporation, or estate or trust.
1 22 3. a. The taxpayer shall submit to the department of
1 23 agriculture and land stewardship an application for the tax
1 24 credit authorized by this section on a form provided by the
1 25 department of agriculture and land stewardship.
1 26 After verifying the eligibility for the tax credit, the
1 27 department of agriculture and land stewardship shall issue a
1 28 tax credit certificate to be attached to the person's tax
1 29 return. The tax credit certificate shall contain the
1 30 taxpayer's name, address, tax identification number, the
1 31 amount of credit, other information required by the department
1 32 of revenue and finance, and a place for the name and tax
1 33 identification number of any transferee and the amount of the
1 34 tax credit being transferred.
1 35 b. A person receiving a tax credit under this section may
2 1 transfer all or a portion of the unused tax credit to any
2 2 other person. However, the tax credit shall only be
2 3 transferred once. The transferee may use the amount of the
2 4 tax credit transferred against the taxes imposed under this
2 5 division or division III for any tax year the original
2 6 transferor could have claimed the credit. Any consideration
2 7 received for the transfer of the tax credit shall not be
2 8 included as income under this division or division III. Any
2 9 consideration paid for the transfer of the tax credit shall
2 10 not be deducted from income under this division or division
2 11 III.
2 12 4. For purposes of this section:
2 13 a. "Qualified agricultural producer" means a qualified
2 14 farmer or family farm entity that produces an agricultural
2 15 commodity or product used as a raw material in a qualified
2 16 value-added business. "Qualified agricultural producer"
2 17 includes, but is not limited to, farm operators and landlords
2 18 with a share lease or custom operation.
2 19 b. "Qualified farmer" and "family farm entity" mean the
2 20 same as defined in section 10.1.
2 21 c. "Qualified value-added business" means a business that
2 22 uses agricultural commodities or products produced in Iowa and
2 23 is approved as a viable value-added agribusiness venture by
2 24 the department of agriculture and land stewardship.
2 25 Sec. 2. Section 422.33, Code 2001, is amended by adding
2 26 the following new subsection:
2 27 NEW SUBSECTION. 11. a. The taxes imposed under this
2 28 division shall be reduced by a value-added agriculture
2 29 investment tax credit. To be eligible, the taxpayer must be a
2 30 qualified agricultural producer and must make a capital
2 31 investment during the tax year in a qualified value-added
2 32 agricultural business. The amount of the tax credit equals
2 33 twenty percent, not to exceed two thousand dollars, of all
2 34 capital investments made by the taxpayer in all qualified
2 35 value-added agricultural businesses during the tax year. Any
3 1 tax credit in excess of the tax liability may be carried
3 2 backward for up to five tax years or carried forward for up to
3 3 three tax years.
3 4 b. (1) The taxpayer shall submit to the department of
3 5 agriculture and land stewardship an application for the tax
3 6 credit authorized by this subsection on a form provided by the
3 7 department of agriculture and land stewardship.
3 8 After verifying the eligibility for the tax credit, the
3 9 department of agriculture and land stewardship shall issue a
3 10 tax credit certificate to be attached to the person's tax
3 11 return. The tax credit certificate shall contain the
3 12 taxpayer's name, address, tax identification number, the
3 13 amount of credit, other information required by the department
3 14 of revenue and finance, and a place for the name and tax
3 15 identification number of any transferee and the amount of the
3 16 tax credit being transferred.
3 17 (2) A person receiving a tax credit under this subsection
3 18 may transfer all or a portion of the unused tax credit to any
3 19 other person. However, the tax credit shall only be
3 20 transferred once. The transferee may use the amount of the
3 21 tax credit transferred against the taxes imposed under
3 22 division II or this division for any tax year the original
3 23 transferor could have claimed the credit. Any consideration
3 24 received for the transfer of the tax credit shall not be
3 25 included as income under division II or this division. Any
3 26 consideration paid for the transfer of the tax credit shall
3 27 not be deducted from income under division II or this
3 28 division.
3 29 c. For purposes of this subsection:
3 30 (1) "Qualified agricultural producer" means a qualified
3 31 farmer or family farm entity that produces the agricultural
3 32 commodity or product used as a raw material in a qualified
3 33 value-added business. "Qualified agricultural producer"
3 34 includes, but is not limited to, farm operators and landlords
3 35 with a share lease or custom operation.
4 1 (2) "Qualified farmer" and "family farm entity" mean the
4 2 same as defined in section 10.1.
4 3 (3) "Qualified value-added business" means a business that
4 4 uses agricultural commodities or products produced in Iowa and
4 5 is approved as a viable value-added agribusiness venture by
4 6 the department of agriculture and land stewardship.
4 7 Sec. 3. EFFECTIVE AND RETROACTIVE APPLICABILITY DATES.
4 8 This Act, being deemed of immediate importance, takes effect
4 9 upon enactment and applies retroactively to January 1, 2001,
4 10 for tax years beginning on or after that date.
4 11 EXPLANATION
4 12 This bill provides an individual and corporate income tax
4 13 credit for capital investments in viable value-added
4 14 agribusinesses. The amount of the tax credit equals 20
4 15 percent, not to exceed $2,000, of all capital investments made
4 16 during the tax year. Any excess tax credit may be carried
4 17 back five tax years or carried forward three tax years. A
4 18 taxpayer who receives the tax credit may transfer it to
4 19 another taxpayer to use. Tax credits are to be approved by
4 20 the department of agriculture and land stewardship.
4 21 The bill takes effect upon enactment and applies
4 22 retroactively to tax years beginning on or after January 1,
4 23 2001.
4 24 LSB 1469HC 79
4 25 mg/gg/8
Text: HSB00185 Text: HSB00187 Text: HSB00100 - HSB00199 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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