House File 862HOUSE FILE BY WHITAKER Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act providing an income tax credit for authorizing public 2 access for recreational purposes to the owner's land and 3 including an applicability date provision. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2234YH 82 6 mg/je/5 PAG LIN 1 1 Section 1. NEW SECTION. 422.11T OUTDOOR ACCESS TAX 1 2 CREDIT. 1 3 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 an outdoor access tax credit authorized pursuant to section 1 6 461C.9. 1 7 Sec. 2. Section 422.33, Code 2007, is amended by adding 1 8 the following new subsection: 1 9 NEW SUBSECTION. 24. The taxes imposed under this division 1 10 shall be reduced by an outdoor access tax credit authorized 1 11 pursuant to section 461C.9. 1 12 Sec. 3. NEW SECTION. 461C.9 OUTDOOR ACCESS TAX CREDIT. 1 13 1. A holder of land who possesses the land in fee interest 1 14 may claim a tax credit against the tax liability under chapter 1 15 422, division II or III, upon entering into a written 1 16 agreement with the department of natural resources making 1 17 public access available to the holder's land for recreational 1 18 purposes. However, the agreement shall prohibit access to 1 19 vehicles and horses. The amount of the tax credit equals two 1 20 dollars per acre for each year, not to exceed twenty years, 1 21 that public access under the written agreement is available on 1 22 that acre. If the written agreement is for the life of the 1 23 holder, the time period shall be computed actuarially but not 1 24 to exceed twenty years. If the written agreement provides for 1 25 a time period that is not for a specified number of years or 1 26 not for the life of the holder, the number of years shall be 1 27 estimated at the time of the written agreement but not to 1 28 exceed twenty years. 1 29 The tax credit shall only be claimed for the tax year 1 30 during which the written agreement is executed. The maximum 1 31 amount of tax credit that may be claimed per acre under this 1 32 section shall not exceed forty dollars per acre. The total 1 33 amount of tax credit that a holder of land may claim for a tax 1 34 year shall not exceed one thousand dollars. 1 35 2. a. Upon entering into a written agreement pursuant to 2 1 this section, the department of natural resources shall issue 2 2 an outdoor access tax credit certificate to be attached to the 2 3 person's tax return. The tax credit certificate shall contain 2 4 the taxpayer's name, address, tax identification number, the 2 5 date of public access, the amount of credit, and other 2 6 information required by the department of revenue. 2 7 b. The department of natural resources, in entering into 2 8 the written agreements, shall attempt to make available to 2 9 public access an equal number of acres in each county. 2 10 c. The total amount of tax credit certificates that may be 2 11 issued in a fiscal year shall not exceed five million dollars. 2 12 The department shall issue the certificates on the basis of 2 13 the date of the written agreement with the earliest agreements 2 14 receiving the full amount of tax credits to the extent 2 15 possible. 2 16 3. Any credit in excess of the taxpayer's tax liability 2 17 shall be refunded. In lieu of claiming a refund, the taxpayer 2 18 may elect to have the overpayment shown on the taxpayer's 2 19 final, completed return credited to the tax liability for the 2 20 following tax year. 2 21 4. An individual may claim the tax credit allowed a 2 22 partnership, limited liability company, S corporation, estate, 2 23 or trust electing to have the income taxed directly to the 2 24 individual. The amount claimed by the individual shall be 2 25 based upon the pro rata share of the individual's earnings of 2 26 a partnership, limited liability company, S corporation, 2 27 estate, or trust. 2 28 Sec. 4. APPLICABILITY DATE. This Act applies to written 2 29 agreements providing for public access entered into on or 2 30 after the effective date of this Act during tax years ending 2 31 after the effective date of this Act. 2 32 EXPLANATION 2 33 This bill provides an individual income tax credit or 2 34 corporate income tax credit for an owner of land that enters 2 35 into a written agreement with the department of natural 3 1 resources to allow public access to the land for recreational 3 2 purposes. Recreational purposes include such activities as 3 3 hunting, fishing, swimming, boating, camping, picnicking, 3 4 hiking, and other summer and winter sports. However, vehicles 3 5 and horses are prohibited. 3 6 The amount of the tax credit is based upon the acreage and 3 7 length of time such acreage is available to the public. The 3 8 amount equals $2 per acre multiplied by the number of years 3 9 the acre is available, not to exceed 20 years. The tax credit 3 10 is only claimed for the tax year during which the agreement is 3 11 entered into with the maximum amount of credit per acre of 3 12 $40. The owner of the land may not receive more than $1,000 3 13 in tax credit for a tax year. The tax credit is refundable. 3 14 The bill limits to $5 million the amount of annual tax 3 15 credits that the department of natural resources may approve. 3 16 The bill applies to agreements entered into on or after the 3 17 effective date of the bill and applies to tax years ending 3 18 after the effective date of the bill. 3 19 LSB 2234YH 82 3 20 mg:rj/je/5.1