House File 148

                                       HOUSE FILE       
                                       BY  JOCHUM, KUHN, FALLON,
                                           SHOULTZ, OSTERHAUS, HOGG,
                                           SWAIM, FREVERT, WHITAKER,
                                           BUKTA, D. TAYLOR, GASKILL,
                                           and D. OLSON


    Passed House, Date                Passed Senate,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to a tax credit for pollution=control and
  2    recycling property connected to property used for the care and
  3    feeding of livestock, and providing for the Act's
  4    applicability.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  6 TLSB 1490HH 80
  7 da/sh/8

PAG LIN

  1  1    Section 1.  Section 427.1, subsection 19, unnumbered
  1  2 paragraphs 8 and 9, Code 2003, are amended to read as follows:
  1  3    For the purposes of this subsection:
  1  4    a.  "pollution=control property" "Pollution=control
  1  5 property" means personal property or improvements to real
  1  6 property, or any portion thereof, used primarily to control or
  1  7 abate pollution of any air or water of this state or used
  1  8 primarily to enhance the quality of any air or water of this
  1  9 state and "recycling property" means personal property or
  1 10 improvements to real property or any portion of the property,
  1 11 used primarily in the manufacturing process and resulting
  1 12 directly in the conversion of waste plastic, wastepaper
  1 13 products, or waste paperboard, into new raw materials or
  1 14 products composed primarily of recycled material.  In the
  1 15 event such property shall also serve other purposes or uses of
  1 16 productive benefit to the owner of the property, only such
  1 17 portion of the assessed valuation thereof as may reasonably be
  1 18 calculated to be necessary for and devoted to the control or
  1 19 abatement of pollution, to the enhancement of the quality of
  1 20 the air or water of this state, or for recycling shall be
  1 21 exempt from taxation under this subsection.
  1 22    "Pollution=control property" or "recycling property" does
  1 23 not include property used for purposes related to the care and
  1 24 feeding of livestock as defined in section 169C.1, except for
  1 25 property which is eligible for a family farm tax credit as
  1 26 provided in chapter 425A.  The exemption calculated for
  1 27 pollution=control property or recycling property used for the
  1 28 purpose of care and feeding of livestock and which is eligible
  1 29 for a family farm tax credit is limited to the first one
  1 30 hundred thousand dollars of the property's assessed value.
  1 31    b.  For the purposes of this subsection "pollution"
  1 32 "Pollution" means air pollution as defined in section 455B.131
  1 33 or water pollution as defined in section 455B.171.
  1 34    c.  "Water of the state" means the water of the state as
  1 35 defined in section 455B.171.
  2  1    d.  "Enhance the quality" means to diminish the level of
  2  2 pollutants below the air or water quality standards
  2  3 established by the environmental protection commission of the
  2  4 department of natural resources.
  2  5    Sec. 2.  APPLICABILITY.  This Act is applicable for tax
  2  6 years beginning on and after January 1, 2004.
  2  7                           EXPLANATION
  2  8    This bill amends Code section 427.1, which provides a
  2  9 number of exemptions from property taxation.  The section
  2 10 includes an exemption for certain types of pollution=control
  2 11 and recycling property as certified by the department of
  2 12 natural resources.  The bill limits this tax exemption for
  2 13 such property that is related to the care and feeding of
  2 14 livestock by requiring that the property used for the care and
  2 15 feeding of livestock must be eligible for a family farm tax
  2 16 credit under Code chapter 425A.  The bill also provides that
  2 17 the tax credit still available is limited to the first
  2 18 $100,000 of the property's assessed value.  The bill is
  2 19 applicable for tax years beginning on and after January 1,
  2 20 2004.
  2 21 LSB 1490HH 80
  2 22 da/sh/8