House
File
2006
-
Introduced
HOUSE
FILE
2006
BY
HESS
A
BILL
FOR
An
Act
extending
the
period
of
existence
of
the
beginning
1
farmer
tax
credit
program.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
5548YH
(2)
85
da/sc
H.F.
2006
Section
1.
2013
Iowa
Acts,
chapter
125,
section
28,
1
subsection
1,
is
amended
to
read
as
follows:
2
1.
Except
as
provided
in
subsection
2,
this
division
of
this
3
Act
takes
effect
December
31,
2017
2023
.
4
EXPLANATION
5
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
6
the
explanation’s
substance
by
the
members
of
the
general
assembly.
7
BEGINNING
FARMER
TAX
CREDIT
PROGRAM
EXTENDED.
This
bill
8
extends
the
period
of
existence
of
the
beginning
farmer
tax
9
credit
program
(program)
and
dollar
amount
limits
on
tax
credit
10
certificates
issued
under
the
program
from
December
31,
2017,
11
to
December
31,
2023,
as
codified
in
Code
sections
175.36A
12
through
175.39.
13
BACKGROUND
——
HISTORY.
Code
chapter
175
provides
a
number
of
14
programs
to
assist
beginning
farmers.
Generally,
a
beginning
15
farmer
is
an
individual,
partnership,
family
farm
corporation,
16
or
family
farm
limited
liability
company
(see
Code
chapter
9H)
17
who
has
a
low
or
moderate
net
worth
and
who
is
either
engaged
in
18
farming
or
intends
to
engage
in
farming
(Code
section
175.2).
19
In
2006,
the
general
assembly
enacted
SF
2268
(2006
Iowa
Acts,
20
chapter
1161)
establishing
an
agricultural
assets
transfer
tax
21
credit
(Code
section
175.37),
administered
by
the
agricultural
22
development
authority,
to
assist
beginning
farmers
to
acquire
23
agricultural
assets
by
lease
or
rental
arrangements.
In
2009,
24
the
general
assembly
enacted
SF
483
(2009
Iowa
Acts,
chapter
25
135),
which
allowed
the
authority
to
issue
up
to
$6
million
in
26
tax
credit
certificates
each
year
to
support
the
tax
credit.
27
CURRENT
PROGRAM.
In
2013,
the
general
assembly
enacted
28
HF
599
(2013
Iowa
Acts,
chapter
125),
creating
the
beginning
29
farmer
tax
credit
program
and
HF
607
(2013
Iowa
Acts,
30
chapter
100)
transferring
administration
of
the
program
31
to
the
Iowa
finance
authority
(authority).
A
taxpayer
who
32
holds
agricultural
assets
(agricultural
land,
depreciable
33
agricultural
property,
crops,
or
livestock),
and
who
helps
34
a
beginning
farmer
acquire
agricultural
assets
by
a
form
of
35
-1-
LSB
5548YH
(2)
85
da/sc
1/
2
H.F.
2006
specified
legal
arrangement
including
a
lease
or
custom
farming
1
contract
is
entitled
to
claim
a
tax
credit
against
individual
2
or
corporate
tax
liability.
House
File
599
also
allows
the
3
authority
to
issue
up
to
$12
million
in
certificates
for
both
4
tax
credits
each
year.
The
program
and
the
dollar
amount
5
limits
on
tax
credit
certificates
issued
under
the
program
6
applied
retroactively
to
tax
years
beginning
on
or
after
7
January
1,
2013,
and
is
to
expire
on
December
31,
2017.
The
8
Code
editor
is
directed
to
restore
the
agricultural
assets
9
transfer
tax
credit
and
the
ceiling
amount
as
they
existed
10
immediately
prior
to
the
enactment
of
HF
599.
11
-2-
LSB
5548YH
(2)
85
da/sc
2/
2