Bill Text: IA HF768 | 2019-2020 | 88th General Assembly | Enrolled
Bill Title: A bill for an act relating to agricultural development, by providing for the Iowa finance authority, a beginning farmer tax credit program, fees, and including effective date and retroactive applicability provisions. (Formerly HF 647 and HSB 173.) Effective 5-21-19.
Spectrum: Committee Bill
Status: (Passed) 2019-05-21 - Signed by Governor. H.J. 1084. [HF768 Detail]
Download: Iowa-2019-HF768-Enrolled.html
House
File
768
-
Enrolled
House
File
768
AN
ACT
RELATING
TO
AGRICULTURAL
DEVELOPMENT,
BY
PROVIDING
FOR
THE
IOWA
FINANCE
AUTHORITY,
A
BEGINNING
FARMER
TAX
CREDIT
PROGRAM,
FEES,
AND
INCLUDING
EFFECTIVE
DATE
AND
RETROACTIVE
APPLICABILITY
PROVISIONS.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
Section
1.
Section
2.48,
subsection
3,
paragraph
e,
subparagraph
(1),
Code
2019,
is
amended
to
read
as
follows:
(1)
The
agricultural
assets
transfer
beginning
farmer
tax
credit
program
as
provided
in
section
16.80
chapter
16,
subchapter
VIII,
part
5,
subpart
B
.
Sec.
2.
Section
16.2,
subsection
1,
unnumbered
paragraph
1,
Code
2019,
is
amended
to
read
as
follows:
An
Iowa
finance
authority
board
of
directors
is
created.
The
powers
of
the
authority
are
vested
in
and
shall
be
exercised
by
the
board.
The
authority
includes
nine
members
appointed
by
the
governor
subject
to
confirmation
by
the
senate.
The
authority
also
includes
one
ex
officio
voting
member
who
must
be
designated
by
the
agricultural
development
board
created
in
section
16.2C
and
be
a
member
of
that
board.
Sec.
3.
Section
16.2,
subsections
2
and
3,
Code
2019,
are
amended
to
read
as
follows:
2.
Members
The
members
of
the
authority
shall
be
appointed
by
the
governor
shall
serve
for
staggered
terms
of
six
years
beginning
and
ending
as
provided
in
section
69.19
.
A
person
appointed
by
the
governor
to
fill
a
vacancy
shall
serve
only
House
File
768,
p.
2
for
the
unexpired
portion
of
the
term.
A
member
is
eligible
for
reappointment.
The
ex
officio
voting
member
designated
by
the
agricultural
development
board
shall
serve
at
the
pleasure
of
that
board.
A
member
of
the
authority
may
be
removed
from
office
by
the
governor
for
misfeasance,
malfeasance,
or
willful
neglect
of
duty
or
other
just
cause,
after
notice
and
hearing,
unless
the
notice
and
hearing
is
expressly
waived
in
writing.
3.
Five
Six
members
of
the
authority
constitute
a
quorum
and
the
affirmative
vote
of
a
majority
of
the
appointed
members
is
necessary
for
any
substantive
action
taken
by
the
authority.
The
majority
shall
not
include
any
member
who
has
a
conflict
of
interest
and
a
statement
by
a
member
of
a
conflict
of
interest
shall
be
conclusive
for
this
purpose.
A
vacancy
in
the
membership
does
not
impair
the
right
of
a
quorum
to
exercise
all
rights
and
perform
all
duties
of
the
authority.
Sec.
4.
Section
16.2B,
subsection
3,
paragraph
b,
Code
2019,
is
amended
to
read
as
follows:
b.
Obtain
agricultural
assets
transfer
Claim
beginning
farmer
tax
credits,
including
tax
credit
certificates
issued
pursuant
to
subchapter
VIII,
part
5
,
subpart
B
.
Sec.
5.
Section
16.59,
subsection
4,
Code
2019,
is
amended
to
read
as
follows:
4.
For
a
family
farm
limited
liability
company,
an
aggregate
net
worth
of
all
members,
including
each
member’s
ownership
interest
in
the
family
farm
limited
liability
company,
and
each
member’s
spouse
and
minor
children
of
not
greater
than
twice
the
low
or
moderate
net
worth.
However,
the
aggregate
net
worth
of
each
member
and
that
member’s
spouse
and
minor
children
shall
not
exceed
the
low
or
moderate
net
worth.
Sec.
6.
NEW
SECTION
.
16.77
Definitions.
As
used
in
this
subpart
B,
unless
the
context
otherwise
requires:
1.
“Agricultural
development
board”
means
the
agricultural
development
board
created
in
section
16.2C.
2.
“Agricultural
lease
agreement”
or
“agreement”
means
an
agreement
for
the
transfer
of
agricultural
assets,
that
must
at
least
include
a
lease
of
agricultural
land,
from
an
eligible
taxpayer
to
a
qualified
beginning
farmer
as
provided
in
section
16.79A.
House
File
768,
p.
3
3.
“Department”
means
the
department
of
revenue.
4.
“Eligible
taxpayer”
means
a
taxpayer
who
may
participate
in
the
beginning
farmer
tax
credit
program,
including
by
meeting
all
the
criteria
as
provided
in
section
16.79.
5.
“Program”
means
the
beginning
farmer
tax
credit
program
created
pursuant
to
section
16.78.
6.
“Qualified
beginning
farmer”
means
a
beginning
farmer
as
defined
in
section
16.58
who
meets
the
requirements
to
participate
in
a
beginning
farmer
tax
credit
program
as
provided
in
section
16.79.
7.
“Tax
credit”
means
the
beginning
farmer
tax
credit
allowed
under
section
16.82.
Sec.
7.
NEW
SECTION
.
16.78
Beginning
farmer
tax
credit
program
——
establishment
and
administration.
1.
A
beginning
farmer
tax
credit
program
is
established
under
the
control
of
the
authority.
2.
The
authority
and
the
department
shall
cooperate
in
administering
the
program.
The
department
shall
have
all
rulemaking
powers
necessary
to
administer
its
responsibilities
under
this
subpart
as
it
does
under
chapter
422.
3.
To
every
extent
practicable,
the
authority
shall
administer
the
program
in
a
manner
that
encourages
participation
by
eligible
taxpayers
and
qualifying
beginning
farmers
for
the
primary
purposes
of
providing
beginning
farmers
access
to
farmland
and
enhancing
the
stability
of
the
beginning
farmer’s
farming
business.
4.
The
authority
and
the
department
shall
each
adopt
rules
in
accordance
with
chapter
17A
as
necessary
for
the
administration
of
their
respective
responsibilities
under
this
subpart.
The
eligibility
requirements
for
taxpayers
and
the
qualifications
for
beginning
farmers
as
provided
in
the
rules
shall
not
be
more
stringent
than
provided
in
this
subpart.
5.
The
authority
shall
provide
for
the
preparation
or
revision
and
publication
or
distribution
of
forms
necessary
to
administer
their
responsibilities
under
this
subpart.
Sec.
8.
NEW
SECTION
.
16.79
Beginning
farmer
tax
credit
program
——
eligibility
criteria.
1.
A
taxpayer
is
eligible
to
participate
in
the
beginning
farmer
tax
credit
program
if
the
taxpayer
meets
all
of
the
House
File
768,
p.
4
following
requirements:
a.
The
taxpayer
is
a
person
who
may
acquire
or
otherwise
obtain
or
lease
agricultural
land
in
this
state
pursuant
to
chapter
9H
or
9I.
However,
the
taxpayer
must
not
be
a
person
who
may
acquire
or
otherwise
obtain
or
lease
agricultural
land
exclusively
because
of
an
exception
provided
in
one
of
those
chapters
or
in
a
provision
of
another
chapter
of
this
Code
including
but
not
limited
to
chapter
10,
10D,
or
501,
or
section
15E.207.
b.
The
taxpayer
has
entered
into
an
agricultural
lease
agreement
with
a
qualified
beginning
farmer
to
lease
agricultural
land
as
provided
in
section
16.79A.
c.
The
taxpayer
has
not
been
at
fault
for
terminating
a
prior
agreement
under
the
program
or
another
agreement
in
which
the
taxpayer
was
allowed
to
claim
a
tax
credit
under
section
175.37
as
it
existed
prior
to
January
1,
2015,
or
section
16.80
as
it
existed
prior
to
January
1,
2018.
d.
If
the
agreement
includes
the
lease
of
a
confinement
feeding
operation
structure
as
defined
in
section
459.102,
the
taxpayer
is
not
a
party
to
a
pending
administrative
or
judicial
action,
including
a
contested
case
proceeding
under
chapter
17A,
relating
to
an
alleged
violation
involving
an
animal
feeding
operation
as
regulated
by
the
department
of
natural
resources,
regardless
of
whether
the
pending
action
is
brought
by
the
department
or
the
attorney
general.
e.
The
taxpayer
is
not
classified
as
a
habitual
violator
for
a
violation
of
state
law
involving
an
animal
feeding
operation
as
regulated
by
the
department
of
natural
resources
under
chapter
459.
f.
The
taxpayer
is
not
a
partner
of
a
partnership,
shareholder
of
a
family
farm
corporation,
or
member
of
a
family
farm
limited
liability
company
that
is
the
lessee
of
an
agricultural
asset
that
is
part
of
an
agricultural
lease
agreement.
2.
A
beginning
farmer
is
a
qualified
beginning
farmer
eligible
to
participate
in
the
program
by
meeting
all
of
the
following
criteria:
a.
Is
a
resident
of
the
state.
If
the
beginning
farmer
is
a
partnership,
all
partners
must
be
residents
of
the
state.
If
a
House
File
768,
p.
5
beginning
farmer
is
a
family
farm
corporation,
all
shareholders
must
be
residents
of
the
state.
If
the
beginning
farmer
is
a
family
farm
limited
liability
company,
all
members
must
be
residents
of
the
state.
b.
Has
sufficient
education,
training,
or
experience
in
farming.
If
the
beginning
farmer
is
a
partnership,
at
least
one
partner
who
is
not
a
minor
must
have
sufficient
education,
training,
or
experience
in
farming.
If
the
beginning
farmer
is
a
family
farm
corporation,
at
least
one
shareholder
who
is
not
a
minor
must
have
sufficient
education,
training,
or
experience
in
farming.
If
the
beginning
farmer
is
a
family
farm
limited
liability
company,
at
least
one
member
who
is
not
a
minor
must
have
sufficient
education,
training,
or
experience
in
farming.
c.
Has
access
to
adequate
working
capital
and
production
items.
d.
Will
materially
and
substantially
participate
in
farming.
If
the
beginning
farmer
is
a
partnership,
family
farm
corporation,
or
family
farm
limited
liability
company,
at
least
one
of
the
partners,
shareholders,
or
members
who
is
not
a
minor
must
materially
and
substantially
participate
in
farming.
e.
Does
not
own
more
than
a
ten
percent
ownership
interest
in
an
agricultural
asset
included
in
the
agreement.
Sec.
9.
NEW
SECTION
.
16.79A
Agricultural
lease
agreement.
1.
A
beginning
farmer
tax
credit
is
allowed
only
for
agricultural
assets
that
are
subject
to
an
agricultural
lease
agreement
entered
into
by
an
eligible
taxpayer
and
a
qualifying
beginning
farmer
participating
in
the
beginning
farmer
tax
credit
program
established
pursuant
to
section
16.78.
2.
The
agreement
must
include
the
lease
of
agricultural
land
located
in
this
state,
including
any
improvements,
and
may
provide
for
the
rental
of
agricultural
equipment
as
defined
in
section
322F.1.
3.
a.
The
agreement
must
include
provisions
which
describe
the
consideration
paid
for
the
agreement
in
a
manner
that
allows
the
authority
to
calculate
the
value
of
the
lease
in
order
to
determine
the
tax
credit
amount
as
provided
in
section
16.82.
b.
The
agreement
must
be
in
writing.
c.
The
agreement
must
be
for
at
least
two
years,
but
not
House
File
768,
p.
6
more
than
five
years.
The
agreement
may
be
renewed
by
the
eligible
taxpayer
and
qualified
beginning
farmer
for
a
term
of
at
least
two
years,
but
not
more
than
five
years.
d.
The
agreement
shall
not
include
a
lease
or
rental
of
equipment
intended
as
a
security.
e.
The
agreement
cannot
be
assigned
and
the
agricultural
land
subject
to
the
agreement
shall
not
be
subleased.
f.
(1)
The
agricultural
assets
shall
not
be
leased
or
rented
at
a
rate
that
is
substantially
higher
than
the
market
rate
for
similar
agricultural
assets
leased
or
rented
within
the
same
community.
(2)
As
used
in
subparagraph
(1),
when
referring
to
an
agricultural
asset
that
is
cropland,
“substantially
higher”
means
not
more
than
thirty
percent
above
the
average
cash
rent
paid
for
cropland
rented
in
the
same
county
according
to
the
most
recent
cash
rent
survey
for
cropland
published
by
a
unit
of
Iowa
state
university
of
science
and
technology
recognized
by
the
authority.
4.
a.
The
agreement
may
be
amended
after
the
authority
approves
an
application
and
makes
a
tax
credit
award
without
changing
the
eligibility
status
of
the
taxpayer,
except
as
provided
in
paragraph
“b”
.
b.
The
underlying
lease
for
agricultural
land
may
only
be
amended
without
submitting
a
new
application
if
any
of
the
following
apply:
(1)
The
terms
of
the
amended
lease
are
more
favorable
to
the
qualified
beginning
farmer,
including
but
not
limited
to
the
rent
payment
being
reduced.
(2)
A
party
has
changed
their
name.
(3)
The
owner
of
an
agricultural
asset
is
changed
to
the
owner’s
estate
or
trust
upon
the
eligible
taxpayer’s
death.
c.
If
an
amendment
to
an
agreement
changes
the
total
amount
that
will
be
paid
to
the
eligible
taxpayer
under
the
agreement,
the
eligible
taxpayer
shall
notify
the
authority
in
a
manner
and
form
prescribed
by
the
authority
within
thirty
days
of
the
date
the
amendment
is
executed
by
the
parties.
(1)
If
the
amendment
will
reduce
the
total
amount
paid
to
the
eligible
taxpayer
under
the
agreement,
the
authority
shall
recalculate
and
reduce
the
eligible
taxpayer’s
tax
credit
award
House
File
768,
p.
7
under
section
16.82A.
(2)
If
the
amendment
will
increase
the
total
amount
paid
to
the
eligible
taxpayer
under
the
agreement,
the
tax
credit
award
shall
not
be
increased
unless
the
eligible
taxpayer
submits
an
amended
application
to
the
authority
in
the
manner
and
form
prescribed
by
the
authority
and
that
meets
the
requirements
of
section
16.81.
If
the
amended
application
is
approved
under
section
16.81,
the
authority
may
increase
the
amount
of
the
tax
credit
award.
The
increased
amount
of
the
tax
credit
award
shall
be
subject
to
the
aggregate
award
limitation
in
section
16.82A
for
the
calendar
year
in
which
the
increased
award
is
made.
(3)
This
paragraph
“c”
does
not
apply
to
an
amendment
to
an
agreement
that
requires
a
new
application
under
paragraph
“b”
in
order
to
be
valid.
5.
An
eligible
taxpayer
or
qualified
beginning
farmer
may
terminate
an
agreement
as
provided
in
the
agreement
or
by
law.
The
eligible
taxpayer
must
notify
the
authority
of
the
termination
within
thirty
days
of
the
date
of
termination
in
the
manner
and
form
prescribed
by
the
authority.
Sec.
10.
NEW
SECTION
.
16.81
Beginning
farmer
tax
credit
——
application.
1.
The
deadline
for
submitting
an
application
to
the
authority
to
claim
a
beginning
farmer
tax
credit
is
August
1
of
each
year.
The
application
shall
be
for
a
period
that
is
not
longer
than
the
term
of
the
lease.
2.
a.
The
authority
shall
impose,
assess,
and
collect
application
fees
on
an
interim
basis
until
December
31,
2021.
The
amount
of
an
application
fee
shall
not
be
more
than
the
following:
(1)
For
an
application
that
includes
an
agreement
for
the
lease
of
one
hundred
acres
or
less
of
agricultural
land,
a
fee
of
three
hundred
dollars.
(2)
For
an
application
that
includes
an
agreement
for
the
lease
of
more
than
one
hundred
acres,
but
not
more
than
two
hundred
fifty
acres
of
agricultural
land,
a
fee
of
four
hundred
dollars.
(3)
For
an
application
that
includes
an
agreement
for
the
lease
of
more
than
two
hundred
fifty
acres
of
agricultural
House
File
768,
p.
8
land,
a
fee
of
five
hundred
dollars.
(4)
For
an
amendment
to
an
agreement
that
is
part
of
an
application
that
has
been
previously
approved,
a
fee
of
one
hundred
dollars.
b.
Any
amount
of
fees
collected
by
the
authority
under
this
subsection
shall
be
considered
repayment
receipts
as
defined
in
section
8.2.
c.
This
subsection
is
repealed
on
January
1,
2022.
3.
a.
The
authority
shall
impose,
assess,
and
collect
application
fees
and
shall
adopt
rules
as
necessary
to
administer
this
subsection,
including
by
providing
for
the
rate
of
those
fees.
b.
The
authority
may
establish
different
rates
based
on
separate
categories
of
applications
or
agricultural
lease
agreements
as
determined
relevant
by
the
authority.
c.
The
authority
shall
calculate
the
rates
of
the
application
fees
to
be
effective
for
each
successive
twelve-month
period.
The
total
amount
of
application
fees
collected
by
the
authority
for
that
period
shall
not
be
more
than
the
authority’s
estimate
of
the
total
amount
of
revenues
necessary
to
administer
the
provisions
of
this
subpart
based
on
the
expected
revenue
to
be
collected
from
the
application
fees
and
the
expected
costs
to
be
incurred
by
the
authority
in
administering
the
provisions
of
this
subpart
during
that
period.
The
authority
may
adjust
the
rates
throughout
that
period
as
the
authority
determines
necessary
to
comply
with
this
paragraph.
d.
The
amount
of
application
fees
collected
by
the
authority
under
this
subsection
shall
be
considered
repayment
receipts
as
defined
in
section
8.2.
e.
(1)
The
rules
described
in
this
subsection
shall
first
take
effect
immediately
after
the
repeal
of
subsection
2.
(2)
This
paragraph
“e”
is
repealed
immediately
after
the
rules
described
in
this
subsection
take
effect.
4.
An
eligible
taxpayer
shall
not
participate
in
the
beginning
farmer
tax
credit
program
for
more
than
ten
years,
and
shall
not
receive
more
than
ten
tax
credit
certificates
under
the
program.
5.
The
agricultural
development
board
shall
review
and
House
File
768,
p.
9
recommend
approval
of
an
application
for
a
tax
credit
as
provided
by
rules
adopted
by
the
authority.
The
application
must
include
a
copy
of
the
agricultural
lease
agreement.
The
authority
may
require
that
the
parties
to
an
agreement
provide
additional
information
as
determined
relevant
by
the
authority.
6.
The
authority
shall
approve
all
beginning
farmer
tax
credit
applications
that
meet
the
requirements
of
this
subpart
and
make
tax
credit
awards
on
a
first-come,
first-served
basis,
subject
to
the
limitations
in
section
16.82A.
7.
After
the
authority
has
approved
an
application
and
made
a
tax
credit
award,
all
of
the
following
apply:
a.
The
authority
shall
issue
beginning
farmer
tax
credit
certificates
to
an
eligible
taxpayer
on
an
annual
basis
as
provided
in
section
16.82A.
b.
An
eligible
taxpayer
may
claim
the
tax
credit
each
tax
year
as
provided
in
section
16.82.
8.
Any
financial,
contractual,
or
legal
authorization
records
provided
to
the
authority
shall
be
kept
confidential
and
are
not
subject
to
chapter
22.
Sec.
11.
NEW
SECTION
.
16.82
Beginning
farmer
tax
credit
——
allowance.
1.
A
beginning
farmer
tax
credit
is
authorized
under
the
beginning
farmer
tax
credit
program
as
provided
in
section
16.78.
The
beginning
farmer
tax
credit
is
allowed
against
the
taxes
imposed
in
chapter
422,
division
II,
as
provided
in
section
422.11E,
and
in
chapter
422,
division
III,
as
provided
in
section
422.33,
subsection
21,
to
facilitate
the
transfer
of
agricultural
assets
from
an
eligible
taxpayer
to
a
qualifying
beginning
farmer
participating
in
the
program.
2.
An
individual
may
claim
a
beginning
farmer
tax
credit
under
this
section
of
a
partnership,
limited
liability
company,
S
corporation,
estate,
or
trust
electing
to
have
income
taxed
directly
to
the
individual.
The
amount
claimed
by
the
individual
shall
be
based
upon
the
pro
rata
share
of
the
individual’s
earnings
from
the
partnership,
limited
liability
company,
S
corporation,
estate,
or
trust.
3.
Subject
to
the
limitations
described
in
subsections
5,
6,
and
7,
the
authority
shall
determine
the
amount
of
the
tax
credit
under
an
agreement
using
the
following
methods:
House
File
768,
p.
10
a.
In
the
case
of
an
agreement
on
a
fixed
basis,
in
which
an
eligible
taxpayer
receives
a
fixed
cash
rent
payment,
the
amount
of
the
tax
credit
equals
five
percent
of
the
amount
of
the
fixed
cash
rent
payment
for
each
year.
b.
In
the
case
of
an
agreement
on
a
commodity
share
basis,
in
which
an
eligible
taxpayer
receives
as
a
rent
payment
a
percentage
of
the
commodity
produced,
the
amount
of
the
tax
credit
shall
equal
fifteen
percent
of
the
gross
amount
that
the
eligible
taxpayer
would
receive
as
a
rent
payment
from
the
sale
of
the
eligible
taxpayer’s
share
of
the
crop
in
each
harvest
year.
The
amount
of
the
tax
credit
shall
be
based
on
an
equation
established
by
rule
adopted
by
the
authority
which
shall
use
data
compiled
by
the
United
States
department
of
agriculture,
which
shall
include
all
of
the
following
factors:
(1)
The
past
ten-year
average
per
bushel
yield
for
the
same
type
of
grain
as
produced
under
the
agreement
in
the
same
county
where
the
leased
agricultural
land
is
located
excluding
the
years
of
highest
and
lowest
per
bushel
yields.
(2)
The
per
bushel
state
price
established
for
the
same
type
of
grain
harvested
as
described
in
subparagraph
(1).
Price
information
shall
be
averaged
from
the
past
five
years
excluding
the
years
of
the
highest
and
lowest
per
bushel
state
price.
c.
In
the
case
of
an
agreement
made
on
a
flexible
basis
in
which
an
eligible
taxpayer
receives
a
rent
payment
consisting
of
a
fixed
cash
payment
and
an
amount
subject
to
adjustment
according
to
a
risk-sharing
arrangement,
or
receives
a
rent
payment
consisting
of
an
amount
subject
to
adjustment
according
to
a
risk-sharing
arrangement,
the
amount
of
the
tax
credit
equals
the
sum
of
the
following
amounts:
(1)
To
the
extent
that
a
portion
of
the
amount
of
the
rent
payment
is
calculated
on
a
fixed
basis
as
described
in
paragraph
“a”
,
that
portion
of
the
tax
credit
equals
five
percent
of
the
fixed
cash
payment
in
the
same
manner
as
provided
in
paragraph
“a”
.
(2)
To
the
extent
that
a
portion
of
the
amount
of
the
rent
payment
is
calculated
on
a
commodity
share
basis
as
described
in
paragraph
“b”
,
that
portion
of
the
tax
credit
equals
fifteen
percent
of
the
amount
that
the
eligible
taxpayer
would
receive
House
File
768,
p.
11
from
the
sale
of
the
eligible
taxpayer’s
share
of
the
commodity
in
the
same
manner
as
provided
in
paragraph
“b”
.
(3)
(a)
To
the
extent
that
the
amount
of
the
rent
payment
may
be
adjusted
after
taking
into
account
all
risk-sharing
factors
provided
in
the
agreement,
that
portion
of
the
tax
credit
equals
fifteen
percent
of
the
highest
adjusted
amount
that
the
eligible
taxpayer
could
receive
in
excess
of
the
amounts
calculated
in
subparagraphs
(1)
and
(2)
based
on
an
equation
adopted
by
rule
by
the
authority.
(b)
As
used
in
subparagraph
division
(a),
“risk-sharing
factor”
means
an
occurrence
or
lack
of
occurrence
that
may
affect
the
commodity’s
production
or
profitability
as
provided
in
the
agreement,
and
which
may
include
but
is
not
limited
to
production
costs,
per
acre
crop
yield,
gross
revenue,
or
market
price.
(c)
The
authority
shall
adopt
rules
establishing
criteria
for
commonly
used
risk-sharing
factors
and
adjustment
limits.
4.
The
authority
shall
provide
the
department
with
data,
in
the
format
prescribed
by
the
department,
of
eligible
taxpayers
and
persons
who
have
been
decertified
due
to
lease
termination
or
other
cause
of
ineligibility
by
January
31
of
each
year.
The
data
shall
include
the
amount
of
the
tax
credit
issued
for
the
most
recent
year
and
all
expected
future
tax
credits
under
an
agreement
for
each
eligible
taxpayer
and
the
type
of
agreement.
5.
The
amount
of
tax
credits
that
may
be
awarded
to
an
eligible
taxpayer
for
any
one
year
under
all
agreements
shall
not
exceed
fifty
thousand
dollars.
6.
The
amount
of
the
tax
credit
shall
be
reduced
by
the
percent
ownership
interest
of
the
qualifying
beginning
farmer
in
the
agricultural
asset.
7.
A
tax
credit
in
excess
of
the
eligible
taxpayer’s
tax
liability
for
the
tax
year
is
not
refundable
but
may
be
credited
to
the
tax
liability
for
the
following
ten
tax
years
or
until
depleted,
whichever
is
earlier.
A
tax
credit
shall
not
be
carried
back
to
a
tax
year
prior
to
the
tax
year
in
which
the
eligible
taxpayer
redeems
the
tax
credit.
8.
a.
To
claim
a
tax
credit
under
this
section,
an
eligible
taxpayer
shall
include
one
or
more
tax
credit
certificates
with
House
File
768,
p.
12
the
eligible
taxpayer’s
tax
return
pursuant
to
rules
adopted
by
the
department.
b.
A
tax
credit
shall
not
be
transferable
to
any
other
person
other
than
the
eligible
taxpayer’s
estate
or
trust
upon
the
eligible
taxpayer’s
death
pursuant
to
rules
adopted
by
the
department.
9.
If
an
agreement
is
terminated
by
the
eligible
taxpayer,
all
of
the
following
shall
apply:
a.
Any
tax
credit
properly
claimed
by
the
eligible
taxpayer
prior
to
the
date
of
termination
or
for
the
year
during
which
the
termination
occurred
shall
be
allowed
except
as
provided
in
paragraph
“b”
,
but
no
additional
tax
credits
may
be
issued
or
claimed
under
the
program
for
that
agreement.
The
eligible
taxpayer
may
apply
for
and
be
awarded
another
beginning
farmer
tax
credit
under
a
new
agreement
for
the
same
agricultural
assets
as
provided
in
this
section.
b.
If
the
authority
determines
that
the
eligible
taxpayer
is
at
fault
for
the
termination,
any
beginning
farmer
tax
credit
that
is
claimed
by
the
eligible
taxpayer
for
the
year
during
which
the
termination
occurred
shall
be
disallowed
and
the
amount
shall
be
considered
a
tax
payment
due.
If
an
eligible
taxpayer
does
not
notify
the
authority
of
the
termination
within
thirty
days
of
the
date
of
the
termination
in
the
manner
and
form
prescribed
by
the
authority,
the
eligible
taxpayer
shall
be
conclusively
deemed
at
fault
for
the
termination.
Sec.
12.
NEW
SECTION
.
16.82A
Beginning
farmer
tax
credit
awards
——
amount
and
availability.
1.
a.
Upon
approval
of
an
application
as
provided
in
section
16.81,
the
authority
shall
make
a
tax
credit
award
to
the
eligible
taxpayer.
The
tax
credit
award
shall
equal
the
sum
of
the
tax
credits
calculated
by
the
authority
under
section
16.82
for
all
eligible
years
under
the
approved
agreement.
b.
The
authority
shall
notify
the
eligible
taxpayer
of
the
tax
credit
award
under
the
program.
The
notification
shall
include
the
total
tax
credit
award,
the
amount
of
the
tax
credit
award
that
will
be
issued
by
way
of
a
tax
credit
certificate
in
each
future
year
under
the
approved
agreement,
and
a
statement
that
the
eligible
taxpayer
has
no
right
to
House
File
768,
p.
13
receive
tax
credit
certificates
and
claim
tax
credits
under
the
program
if
all
requirements
of
the
agreement
and
the
program
are
not
satisfied.
c.
If
after
making
a
tax
credit
award
the
eligible
taxpayer
or
qualified
beginning
farmer
no
longer
meets
the
requirements
of
the
agreement
or
the
program,
the
authority
may
revoke
a
tax
credit
award
and
may
rescind
a
tax
credit
certificate.
2.
The
amount
of
beginning
farmer
tax
credits
that
may
be
awarded
by
the
authority
in
any
one
calendar
year
under
the
beginning
farmer
tax
credit
program
shall
not
in
the
aggregate
exceed
a
limit
of
twelve
million
dollars.
Tax
credits
shall
be
awarded
by
the
authority
not
later
than
December
15
of
each
calendar
year
after
the
agricultural
development
board
reviews
applications
as
provided
in
section
16.81
and
the
authority
determines
tax
credit
amounts
for
the
approved
applications
as
provided
in
section
16.82,
aggregated
for
purposes
of
meeting
the
annual
program
award
limits.
3.
a.
The
authority
shall
issue
tax
credit
certificates
on
an
annual
basis
to
eligible
taxpayers
who
have
received
a
tax
credit
award.
The
tax
credit
certificate
shall
contain
the
information
required
by
the
department.
b.
The
aggregate
amount
of
tax
credit
certificates
issued
to
an
eligible
taxpayer
shall
not
exceed
the
eligible
taxpayer’s
tax
credit
award.
c.
A
tax
credit
certificate,
unless
rescinded
by
the
authority,
shall
be
accepted
by
the
department
as
payment
for
taxes
pursuant
to
chapter
422,
divisions
II
and
III,
subject
to
any
conditions
or
restrictions
placed
by
the
authority
upon
the
face
of
the
tax
credit
certificate
and
subject
to
the
limitations
of
the
program.
Sec.
13.
NEW
SECTION
.
422.11E
Beginning
farmer
tax
credit
program.
The
taxes
imposed
under
this
division,
less
the
credits
allowed
under
section
422.12,
shall
be
reduced
by
a
beginning
farmer
tax
credit
as
allowed
under
chapter
16,
subchapter
VIII,
part
5,
subpart
B.
Sec.
14.
Section
422.33,
subsection
21,
Code
2019,
is
amended
to
read
as
follows:
21.
The
taxes
imposed
under
this
division
shall
be
reduced
House
File
768,
p.
14
by
an
agricultural
assets
transfer
a
beginning
farmer
tax
credit
as
allowed
under
section
16.80
chapter
16,
subchapter
VIII,
part
5,
subpart
B
.
Sec.
15.
REPEAL.
Sections
16.80
and
422.11M,
Code
2019,
are
repealed.
Sec.
16.
APPLICABILITY
OF
PRIOR
TAX
CREDITS
——
APPROVED
APPLICATIONS
AND
CERTIFICATES.
1.
Notwithstanding
any
provision
of
this
Act
to
the
contrary,
any
agricultural
asset
transfer
tax
credit
application
approved
prior
to
the
effective
date
of
this
Act
under
section
16.80
as
that
section
existed
on
or
before
December
31,
2018,
for
a
year
prior
to
2019
but
for
which
tax
credit
certificates
could
have
been
issued
for
a
tax
year
beginning
on
or
after
January
1,
2019,
shall
be
governed
by
section
16.80,
Code
2019,
and
shall
be
eligible
to
receive
tax
credit
certificates
for
tax
years
beginning
on
or
after
January
1,
2019,
for
the
remainder
of
the
agricultural
lease
term
as
provided
by
section
16.80,
Code
2019.
Tax
credit
certificates
approved
and
issued
pursuant
to
this
subsection
are
not
considered
an
award
subject
to
the
maximum
tax
credit
award
limitation
in
section
16.82A,
as
enacted
in
this
Act.
2.
a.
Any
application
which
was
submitted
prior
to
the
effective
date
of
this
Act
for
the
agricultural
assets
transfer
tax
credit
pursuant
to
section
16.80
as
that
section
existed
on
December
31,
2018,
for
the
tax
year
beginning
January
1,
2019,
shall
be
governed
by
section
16.80,
Code
2019,
except
as
provided
in
paragraph
“b”.
b.
Any
amount
of
tax
credit
certificate
approved
and
issued
pursuant
to
this
subsection
shall
not
be
subject
to
the
maximum
tax
credit
issuance
limitation
in
section
16.80,
subsection
10,
Code
2019,
but
shall
instead
be
counted
in
the
same
manner
as
an
award
for
purposes
of
the
twelve
million
dollar
calendar
year
award
limitation
in
section
16.82A,
subsection
2,
as
enacted
in
this
Act,
and
shall
reduce,
dollar-for-dollar,
that
maximum
calendar
year
award
limitation
for
the
calendar
year
during
which
the
tax
credit
certificate
is
issued.
Sec.
17.
APPLICABILITY
OF
PRIOR
TAX
CREDITS
——
CONTINUANCE
OF
CARRYOVER
PROVISIONS.
For
any
tax
year
commencing
in
calendar
years
2014
through
2018,
a
tax
credit
that
could
House
File
768,
p.
15
have
been
first
issued,
awarded,
or
allowed
and
claimed
under
sections
16.75
through
16.82
as
those
sections
existed
on
December
31,
2017,
or
under
section
16.80
as
that
section
existed
on
December
31,
2018,
may
be
credited
to
the
tax
liability
of
that
taxpayer
for
ten
tax
years
following
the
tax
year
for
which
the
eligible
taxpayer
could
have
first
claimed
the
tax
credit,
or
until
depleted,
whichever
is
earlier.
Sec.
18.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
enactment.
Sec.
19.
RETROACTIVE
APPLICABILITY.
This
Act
applies
retroactively
to
January
1,
2019,
for
tax
years
beginning
on
or
after
that
date.
______________________________
LINDA
UPMEYER
Speaker
of
the
House
______________________________
CHARLES
SCHNEIDER
President
of
the
Senate
I
hereby
certify
that
this
bill
originated
in
the
House
and
is
known
as
House
File
768,
Eighty-eighth
General
Assembly.
______________________________
CARMINE
BOAL
Chief
Clerk
of
the
House
Approved
_______________,
2019
______________________________
KIM
REYNOLDS
Governor