Bill Text: IA HF2454 | 2013-2014 | 85th General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: A bill for an act relating to the beginning farmer tax credit program, including the agricultural assets transfer tax credit and the custom farming contract tax credit, by extending the carryforward period, and including effective date and retroactive applicability provisions. Divisions I, II, and VI effective 5-23-14, Divisions III and VII effective 1-1-15, and Divisions IV and V effective 1-1-18.

Spectrum: Committee Bill

Status: (Passed) 2014-05-23 - Signed by Governor. H.J. 897. [HF2454 Detail]

Download: Iowa-2013-HF2454-Amended.html

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House File 2454 - Reprinted
HOUSE FILE 2454
BY COMMITTEE ON WAYS AND MEANS
(SUCCESSOR TO HF 2401)
(SUCCESSOR TO HF 2006)
(As Amended and Passed by the House April 1, 2014 )
A BILL FOR
An Act relating to the beginning farmer tax credit program,
including the agricultural assets transfer tax credit
and the custom farming contract tax credit, by extending
the carryforward period, and including effective date and
retroactive applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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DIVISION I
PAST VERSIONS OF THE AGRICULTURAL ASSETS TRANSFER TAX CREDIT
Section 1. APPLICABILITY OF CARRYFORWARD PROVISIONS.
1. This section shall apply, notwithstanding any of the
following:
a. The five-year carryforward period during which a
taxpayer may claim a tax credit in excess of the taxpayer’s
liability as provided in section 175.37, as enacted in 2006
Iowa Acts, chapter 1161, including any subsequent amendments to
that section.
b. The directive to strike future amendments to section
175.37, as provided in 2013 Iowa Acts, chapter 125, section 25,
subsection 3.
c. The repeal of section 175.37 as provided in 2014 Iowa
Acts, Senate File 2328, section 112, if enacted.
2. For any tax year commencing in calendar years 2008
through 2012, a tax credit that could have been first issued,
awarded, or allowed and claimed under section 175.37, as that
section applied when the tax credit could have been first
claimed, and which is in excess of the taxpayer’s liability,
may be credited to the tax liability of that taxpayer for ten
tax years following the tax year for which the taxpayer could
have first claimed the tax credit, or until depleted, whichever
is earlier.
3. The carryforward provisions of this section shall
continue to be effective until no longer applicable, including
by application to tax years beginning on or after January 1,
2018.
Sec. 2. EFFECTIVE UPON ENACTMENT. This division of this
Act, being deemed of immediate importance, takes effect upon
enactment.
Sec. 3. RETROACTIVE APPLICABILITY. This division of this
Act applies retroactively to January 1, 2008, for tax years
beginning on or after that date.
DIVISION II
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CURRENT VERSION OF THE AGRICULTURAL ASSETS TRANSFER TAX CREDIT
Sec. 4. Section 175.37, subsection 6, Code 2014, is amended
to read as follows:
6. A tax credit in excess of the taxpayer’s liability for
the tax year may be credited to the tax liability for the
following five 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 taxpayer redeems the tax
credit. A tax credit shall not be transferable to any other
person other than the taxpayer’s estate or trust upon the
taxpayer’s death.
Sec. 5. APPLICABILITY OF CARRYFORWARD PROVISIONS.
1. This section shall apply, notwithstanding any of the
following:
a. The five-year carryforward period during which a
taxpayer may claim a tax credit in excess of the taxpayer’s
liability as provided in section 175.37, subsection 7, Code
2013.
b. The directive to strike future amendments to section
175.37, as provided in 2013 Iowa Acts, chapter 125, section 25,
subsection 3.
c. The repeal of section 175.37 as provided in 2014 Iowa
Acts, Senate File 2328, section 112, if enacted.
2. For any tax year commencing in calendar year 2013 or
2014, a tax credit that could have been or could be first
issued, awarded, or allowed and claimed under section 175.37,
as that section applies when the tax credit could have been or
is first claimed, and in excess of the taxpayer’s liability,
may be credited to the tax liability of that taxpayer for ten
tax years following the tax year for which the taxpayer could
have first claimed or could first claim the tax credit, or
until depleted, whichever is earlier.
3. a. For any tax year commencing in calendar years 2015
through 2017, a tax credit that is first issued, awarded, or
allowed and claimed under section 175.37, as that section
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H.F. 2454
applies when the tax credit is first claimed, and in excess of
the taxpayer’s liability, may be credited to the tax liability
of that taxpayer for ten tax years following the tax year that
the taxpayer first claims the tax credit, or until depleted,
whichever is earlier.
b. Paragraph “a” does not apply if 2014 Iowa Acts, Senate
File 2328, is enacted.
4. The carryforward provisions of this section shall
continue to be effective until no longer applicable, including
by application to tax years beginning on or after January 1,
2018.
Sec. 6. EFFECTIVE UPON ENACTMENT. This division of this
Act, being deemed of immediate importance, takes effect upon
enactment.
Sec. 7. RETROACTIVE APPLICABILITY. This division of this
Act applies retroactively to January 1, 2013, for tax years
beginning on or after that date.
DIVISION III
CONDITIONAL FUTURE VERSION OF THE AGRICULTURAL ASSETS TRANSFER
TAX CREDIT —— 2015 CODE
Sec. 8. Section 16.80, subsection 6, if enacted in 2014
Iowa Acts, Senate File 2328, section 60, is amended to read as
follows:
6. A tax credit in excess of the taxpayer’s liability for
the tax year may be credited to the tax liability for the
following five 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 taxpayer redeems the tax
credit. A tax credit shall not be transferable to any other
person other than the taxpayer’s estate or trust upon the
taxpayer’s death.
Sec. 9. APPLICABILITY OF CARRYFORWARD PROVISIONS.
1. This section shall apply, notwithstanding the amendment
to section 16.80 as provided in 2014 Iowa Acts, Senate File
2328, section 122, if enacted.
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2. For any tax year commencing in calendar years 2015
through 2017, a tax credit that is first issued, awarded,
or allowed and claimed under section 16.80, as that section
applies when the tax credit is first claimed, and in excess of
the taxpayer’s liability, may be credited to the tax liability
of that taxpayer for ten tax years following the tax year that
the taxpayer first claims the tax credit, or until depleted,
whichever is earlier.
3. The carryforward provisions of this section shall
continue to be effective until no longer applicable, including
by application to tax years beginning on or after January 1,
2018.
Sec. 10. EFFECTIVE DATE —— CONDITION. This division of
this Act takes effect January 1, 2015, only if 2014 Iowa Acts,
Senate File 2328 is enacted.
DIVISION IV
FIRST CONDITIONAL FUTURE VERSION OF THE AGRICULTURAL ASSETS
TRANSFER TAX CREDIT —— 2018 CODE
Sec. 11. APPLICABILITY OF CARRYFORWARD PROVISIONS. Upon
the repeal of amendments to section 175.37, as enacted in 2013
Iowa Acts, chapter 125, section 25, the following shall apply:
Section 175.37, subsection 7, Code 2013, is amended by striking
the words “five years” and inserting in lieu thereof the words
“ten tax years”.
Sec. 12. EFFECTIVE DATE —— CONDITION. This division of
this Act takes effect January 1, 2018, only if 2014 Iowa Acts,
Senate File 2328, is not enacted.
Sec. 13. APPLICABILITY. This division of this Act applies
to tax years beginning on and after January 1, 2018.
DIVISION V
SECOND CONDITIONAL FUTURE VERSION OF THE AGRICULTURAL ASSETS
TRANSFER TAX CREDIT —— 2018 CODE
Sec. 14. Section 16.80, subsection 7, as amended by 2014
Iowa Acts, Senate File 2328, section 122, if enacted, is
amended to read as follows:
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7. A tax credit in excess of the taxpayer’s liability for
the tax year may be credited to the tax liability for the
following five 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 taxpayer redeems the tax
credit. A tax credit shall not be transferable to any other
person other than the taxpayer’s estate or trust upon the
taxpayer’s death.
Sec. 15. EFFECTIVE DATE —— CONDITION. This division of
this Act takes effect January 1, 2018, only if 2014 Iowa Acts,
Senate File 2328, is enacted.
Sec. 16. APPLICABILITY. This division of this Act applies
to tax years beginning on or after January 1, 2018.
DIVISION VI
CURRENT VERSION OF THE CUSTOM CONTRACT TAX CREDIT
Sec. 17. Section 175.38, subsection 9, Code 2014, is amended
to read as follows:
9. A custom farming contract tax credit in excess of the
taxpayer’s liability for the tax year may be credited to the
tax liability for the following five 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
taxpayer redeems the tax credit. A tax credit shall not be
transferable to any other person other than the taxpayer’s
estate or trust upon the taxpayer’s death.
Sec. 18. APPLICABILITY OF CARRYFORWARD PROVISIONS.
1. This section shall apply, notwithstanding any of the
following:
a. The five-year carryforward period during which a
taxpayer may claim a tax credit in excess of the taxpayer’s
liability as provided in section 175.38, subsection 9, Code
2014.
b. The repeal of section 175.38, as provided in 2013 Iowa
Acts, chapter 125, section 25, subsection 2.
c. The directive to strike future amendments to section
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175.38, as provided in 2013 Iowa Acts, chapter 125, section 25,
subsection 3.
d. The repeal of section 175.38, as provided in 2014 Iowa
Acts, Senate File 2328, section 112, if enacted.
2. For any tax year commencing in calendar year 2013 or
2014, a tax credit that could have been or could be first
issued, awarded, or allowed and claimed under section 175.38,
as that section applies when the tax credit could have been
or could be first claimed, and in excess of the taxpayer’s
liability, may be credited to the tax liability of that
taxpayer for ten tax years following the tax year for which the
taxpayer first claimed or could first claim the tax credit, or
until depleted, whichever is earlier.
3. a. For any tax year commencing in calendar years 2015
through 2017, a tax credit that is first issued, awarded, or
allowed and claimed under section 175.38, as that section
applies when the tax credit is first claimed, and in excess of
the taxpayer’s liability, may be credited to the tax liability
of that taxpayer for ten tax years following the tax year
for which the taxpayer first claims the tax credit, or until
depleted, whichever is earlier.
b. Paragraph “a” does not apply if 2014 Iowa Acts, Senate
File 2328, is enacted.
4. The carryforward provisions of this section shall
continue to be effective until no longer applicable, including
by application to tax years beginning on or after January 1,
2018.
Sec. 19. EFFECTIVE UPON ENACTMENT. This division of this
Act, being deemed of immediate importance, takes effect upon
enactment.
Sec. 20. RETROACTIVE APPLICABILITY. This division of this
Act applies retroactively to January 1, 2013, for tax years
beginning on or after that date.
DIVISION VII
CONDITIONAL FUTURE VERSION OF THE CUSTOM CONTRACT TAX
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CREDIT —— 2015 CODE
Sec. 21. Section 16.81, subsection 9, if enacted in 2014
Iowa Acts, Senate File 2328, section 61, is amended to read as
follows:
9. A custom farming contract tax credit in excess of the
taxpayer’s liability for the tax year may be credited to the
tax liability for the following five 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
taxpayer redeems the tax credit. A tax credit shall not be
transferable to any other person other than the taxpayer’s
estate or trust upon the taxpayer’s death.
Sec. 22. APPLICABILITY OF CARRYFORWARD PROVISIONS.
1. This section shall apply, notwithstanding the repeal of
section 16.81 as provided in 2014 Iowa Acts, Senate File 2328,
section 120, if enacted.
2. For any tax year commencing in calendar years 2015
through 2017, a tax credit that is first issued, awarded,
or allowed and claimed under section 16.81, as that section
applies when the tax credit is first claimed, and in excess of
the taxpayer’s liability, may be credited to the tax liability
of that taxpayer for ten tax years following the tax year
for which the taxpayer first claims the tax credit, or until
depleted, whichever is earlier.
3. The carryforward provisions of this section shall
continue to be effective until no longer applicable, including
by application to tax years beginning on or after January 1,
2018.
Sec. 23. EFFECTIVE DATE —— CONDITION. This division of
this Act takes effect January 1, 2015, only if 2014 Iowa Acts,
Senate File 2328, is enacted.
Sec. 24. APPLICABILITY. This division of this Act applies
to tax years beginning on and after January 1, 2015.
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