Iowa General Assembly Banner


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: P MARGINS F

a.$T3@Hog operations:$T15@Corn equivalents: ~~

(1)$T3@Farrow to finish$T18@13.0 ~~

(2)$T3@Farrow to feeder pig$T18@ 2.6 ~~

(3)$T3@Finishing feeder pigs$T18@10.4 ~~

b.$T3@Poultry operations: ~~

(1)$T3@Layers$T18@0.88 ~~

(2)$T3@Turkeys$T18@ 1.5 ~~

(3)$T3@Broilers$T18@0.15 ~~

c.$T3@Beef operations: ~~

(1)$T3@Cow-calf$T17@ 111.5 ~~

(2)$T3@Stocker$T18@41.5 ~~

(3)$T3@Feedlot$T18@75.0 ~~

(4)$T3@Dairy$T17@ 350.0 ~~

d.$T3@Sheep operations: ~~

(1)$T3@Ewe flock$T18@20.5 ~~

(2)$T3@Feedlot$T18@ 4.1 ~~ P MARGINS L

3. If the livestock operation is carried on partly within and partly without the state, the portion of the operation attributable to this state shall be determined pursuant to rules adopted by the department. The department may adjust the allocation upon request of the taxpayer in order to reflect the actual livestock operation carried on within this state.

4. An individual may claim the livestock production tax credit allowed a partnership, limited liability company, subchapter S corporation, or estate or trust electing to have the income taxed directly to the individual. The amount claimed by the individual shall be based upon the pro rata share of the individual's earning of the partnership, limited liability company, subchapter S corporation, or estate or trust.

5. A fraudulent claim for a credit refund under this division shall cause the forfeiture of any right or interest to a tax credit refund in subsequent tax years under this division.

Section History: Recent form

96 Acts, ch 1197, §19

Internal References

Referred to in § 422.122

Footnotes

Applicable to tax years beginning on or after January 1, 1996; 96 Acts, ch 1197, § 23 ~IFor the tax year beginning on or after January 1, 1996, appropriation is available only to satisfy claims for cow-calf production; 96 Acts, ch 1197, § 22


Return To Home Iowa General Assembly

index Search: Iowa Code 1997

© 1997 Cornell College and League of Women Voters of Iowa


Comments? webmaster@legis.iowa.gov.

Last update: Mon Jan 27 16:05:08 CST 1997
URL: /DOCS/IACODE/1997/422/120.html
jhf