House File 186 - IntroducedA Bill ForAn Act 1relating to a tax credit for pollution-control and
2recycling property connected to property used for the care
3and feeding of livestock, and including effective date and
4applicability provisions.
1   Section 1.  Section 427.1, subsection 19, paragraph e,
2subparagraph (1), Code 2019, is amended to read as follows:
   3(1)  For the purposes of this subsection, “pollution-control
   5(a)   “Pollution-control property”means personal property or
6improvements to real property, or any portion thereof, used
7primarily to control or abate pollution of any air or water of
8this state or used primarily to enhance the quality of any air
9or water of this state and “recycling property” means personal
10property or improvements to real property or any portion of
11the property, used primarily in the manufacturing process and
12resulting directly in the conversion of waste glass, waste
13plastic, wastepaper products, waste paperboard, or waste wood
14products into new raw materials or products composed primarily
15of recycled material. In the event such property shall also
16serve other purposes or uses of productive benefit to the owner
17of the property, only such portion of the assessed valuation
18thereof as may reasonably be calculated to be necessary for
19and devoted to the control or abatement of pollution, to the
20enhancement of the quality of the air or water of this state,
21or for recycling shall be exempt from taxation under this
   23(b)  “Pollution-control property” or “recycling property”
24 does not include property used for purposes related to the
25care and feeding of livestock as defined in section 169C.1,
26except for property which is eligible for a family farm tax
27credit as provided in chapter 425A. The exemption calculated
28for pollution-control property or recycling property used for
29the purpose of care and feeding of livestock and which is
30eligible for a family farm tax credit is limited to the first
31one hundred thousand dollars of the property’s assessed value.
32   Sec. 2.  EFFECTIVE DATE.  This Act takes effect January 1,
34   Sec. 3.  APPLICABILITY.  This Act applies to tax years
35beginning on or after January 1, 2020.
2The inclusion of this explanation does not constitute agreement with
3the explanation’s substance by the members of the general assembly.
   4This bill amends Code section 427.1, which provides a
5number of exemptions from property taxation. The Code section
6includes an exemption for certain types of pollution-control
7and recycling property as certified by the department of
8natural resources. The bill limits this tax exemption for such
9property that is related to the care and feeding of livestock
10by requiring that the property used for the care and feeding
11of livestock must be eligible for a family farm tax credit
12under Code chapter 425A. The bill also provides that the tax
13credit still available is limited to the first $100,000 of the
14property’s assessed value. The bill takes effect January 1,
152020, and is applicable for tax years beginning on and after
16that date.