House File 18 - Introduced



                                       HOUSE FILE       
                                       BY  KUHN and FREVERT


    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 1377HH 81
  7 da/sh/8

PAG LIN



  1  1    Section 1.  Section 427.1, subsection 19, unnumbered
  1  2 paragraphs 8 and 9, Code 2005, are amended to read as follows:
  1  3    For the purposes of this subsection, "pollution=control
  1  4 property":
  1  5    a.  "Pollution=control property" means personal property or
  1  6 improvements to real property, or any portion thereof, used
  1  7 primarily to control or abate pollution of any air or water of
  1  8 this state or used primarily to enhance the quality of any air
  1  9 or water of this state and "recycling property" means personal
  1 10 property or improvements to real property or any portion of
  1 11 the property, used primarily in the manufacturing process and
  1 12 resulting directly in the conversion of waste plastic,
  1 13 wastepaper products, waste paperboard, or waste wood products
  1 14 into new raw materials or products composed primarily of
  1 15 recycled material.  In the event such property shall also
  1 16 serve other purposes or uses of productive benefit to the
  1 17 owner of the property, only such portion of the assessed
  1 18 valuation thereof as may reasonably be calculated to be
  1 19 necessary for and devoted to the control or abatement of
  1 20 pollution, to the enhancement of the quality of the air or
  1 21 water of this state, or for recycling shall be exempt from
  1 22 taxation under this subsection.
  1 23    "Pollution=control property" or "recycling property" does
  1 24 not include property used for purposes related to the care and
  1 25 feeding of livestock as defined in section 169C.1, except for
  1 26 property which is eligible for a family farm tax credit as
  1 27 provided in chapter 425A.  The exemption calculated for
  1 28 pollution=control property or recycling property used for the
  1 29 purpose of care and feeding of livestock and which is eligible
  1 30 for a family farm tax credit is limited to the first one
  1 31 hundred thousand dollars of the property's assessed value.
  1 32    b.  For the purposes of this subsection, "pollution"
  1 33 "Pollution" means air pollution as defined in section 455B.131
  1 34 or water pollution as defined in section 455B.171.
  1 35    c.  "Water of the state" means the water of the state as
  2  1 defined in section 455B.171.
  2  2    d.  "Enhance the quality" means to diminish the level of
  2  3 pollutants below the air or water quality standards
  2  4 established by the environmental protection commission of the
  2  5 department of natural resources.
  2  6    Sec. 2.  APPLICABILITY.  This Act is applicable for tax
  2  7 years beginning on and after January 1, 2006.
  2  8                           EXPLANATION
  2  9    This bill amends Code section 427.1, which provides a
  2 10 number of exemptions from property taxation.  The section
  2 11 includes an exemption for certain types of pollution=control
  2 12 and recycling property as certified by the department of
  2 13 natural resources.  The bill limits this tax exemption for
  2 14 such property that is related to the care and feeding of
  2 15 livestock by requiring that the property used for the care and
  2 16 feeding of livestock must be eligible for a family farm tax
  2 17 credit under Code chapter 425A.  The bill also provides that
  2 18 the tax credit still available is limited to the first
  2 19 $100,000 of the property's assessed value.
  2 20    The bill is applicable for tax years beginning on and after
  2 21 January 1, 2006.
  2 22 LSB 1377HH 81
  2 23 da/sh/8