Bill Text: IA HF631 | 2011-2012 | 84th General Assembly | Introduced
Bill Title: A bill for an act providing for a cow-calf tax credit, providing for an appropriation, and including applicability provisions. (Formerly HSB 182)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2011-12-31 - END OF 2011 ACTIONS [HF631 Detail]
Download: Iowa-2011-HF631-Introduced.html
House
File
631
-
Introduced
HOUSE
FILE
631
BY
COMMITTEE
ON
AGRICULTURE
(SUCCESSOR
TO
HSB
182)
A
BILL
FOR
An
Act
providing
for
a
cow-calf
tax
credit,
providing
for
an
1
appropriation,
and
including
applicability
provisions.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
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Section
1.
NEW
SECTION
.
422.120
Cow-calf
tax
credit
1
allowed.
2
1.
a.
There
is
allowed
a
cow-calf
tax
credit
for
cow-calf
3
operations
located
in
the
state.
The
amount
of
the
tax
credit
4
equals
ten
cents
for
each
corn
equivalent
consumed
by
the
5
qualified
livestock
in
the
cow-calf
operation
as
specified
6
under
this
section.
The
tax
credit
shall
be
refunded
as
7
provided
in
section
422.122.
8
b.
(1)
The
tax
credit
shall
be
available
to
an
individual
9
or
corporate
taxpayer
if
the
taxpayer’s
federal
taxable
income
10
is
not
more
than
ninety-nine
thousand
six
hundred
dollars
for
11
the
tax
year.
In
the
case
of
married
taxpayers,
their
combined
12
federal
taxable
income
shall
be
used
to
determine
if
they
13
qualify
for
the
credit.
14
(2)
For
each
subsequent
tax
year,
the
maximum
taxable
income
15
amount
specified
in
subparagraph
(1)
shall
be
multiplied
by
the
16
cumulative
index
factor
for
that
tax
year.
“Cumulative
index
17
factor”
means
the
product
of
the
annual
index
factor
for
the
18
2012
calendar
year
and
all
annual
index
factors
for
subsequent
19
calendar
years.
The
cumulative
index
factor
applies
to
all
tax
20
years
beginning
on
or
after
January
1
of
the
calendar
year
for
21
which
the
latest
annual
index
factor
has
been
determined.
22
(3)
The
annual
index
factor
for
the
2012
calendar
year
is
23
one
hundred
percent.
For
each
subsequent
calendar
year,
the
24
annual
index
factor
equals
the
annual
inflation
factor
for
that
25
calendar
year
as
computed
in
section
422.4
for
purposes
of
the
26
individual
income
tax.
27
2.
a.
The
amount
of
the
tax
credit
per
cow-calf
operation
28
is
determined
by
adding
together
for
each
head
of
qualified
29
livestock
in
the
cow-calf
operation
the
product
of
ten
cents
30
times
the
number
of
corn
equivalents
consumed
by
that
head
of
31
qualified
livestock.
The
amount
of
tax
credit
per
cow-calf
32
operation
per
tax
year
shall
not
exceed
three
thousand
dollars
33
and
the
amount
of
the
tax
credit
per
taxpayer
per
tax
year
34
shall
not
exceed
three
thousand
dollars.
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b.
The
maximum
amount
of
corn
equivalents
for
a
head
of
1
qualified
livestock
in
a
cow-calf
operation
is
one
hundred
2
eleven
and
one-half.
3
3.
As
used
in
this
division,
“cow-calf
operation”
means
an
4
operation
that
includes
qualified
livestock
of
the
following
5
livestock:
6
a.
Mature
beef
cows
bred
or
for
breeding.
7
b.
Bred
yearling
heifers.
8
c.
Breeding
bulls.
9
4.
If
the
cow-calf
operation
is
carried
on
partly
within
and
10
partly
without
the
state,
the
portion
of
the
cow-calf
operation
11
attributable
to
this
state
shall
be
determined
pursuant
to
12
rules
adopted
by
the
department.
The
department
may
adjust
the
13
allocation
upon
request
of
the
taxpayer
in
order
to
reflect
the
14
actual
cow-calf
operation
carried
on
within
this
state.
15
5.
In
calculating
the
tax
credit
for
cow-calf
operations
16
for
tax
years
beginning
in
the
2012
calendar
year,
mature
beef
17
cows
bred
or
for
breeding,
bred
yearling
heifers,
and
breeding
18
bulls
in
the
operations’
inventory
on
December
31
of
the
tax
19
year
which
were
also
in
the
operations’
inventory
on
July
1
of
20
the
tax
year
and
stockers
and
feeders
sold
during
the
tax
year
21
may
be
counted.
In
calculating
the
tax
credit
for
cow-calf
22
operations
for
tax
years
beginning
on
or
after
January
1,
2013,
23
only
those
bred
cows,
bred
heifers,
and
breeding
bulls
in
the
24
operations’
inventory
on
December
31
of
the
tax
year
which
were
25
also
in
the
operations’
inventory
on
July
1
of
the
tax
year
may
26
be
counted.
27
6.
An
individual
may
claim
the
tax
credit
allowed
28
a
partnership,
limited
liability
company,
subchapter
S
29
corporation,
or
estate
or
trust
electing
to
have
the
income
30
taxed
directly
to
the
individual.
The
amount
claimed
by
the
31
individual
shall
be
based
upon
the
pro
rata
share
of
the
32
individual’s
earning
of
the
partnership,
limited
liability
33
company,
subchapter
S
corporation,
or
estate
or
trust.
34
7.
A
fraudulent
claim
for
a
credit
refund
under
this
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division
shall
cause
the
forfeiture
of
any
right
or
interest
1
to
a
tax
credit
refund
in
subsequent
tax
years
under
this
2
division.
3
Sec.
2.
NEW
SECTION
.
422.121
Appropriation
——
limitation.
4
Beginning
with
the
fiscal
year
beginning
July
1,
2011,
there
5
is
appropriated
annually
from
the
general
fund
of
the
state
two
6
million
dollars
to
refund
the
tax
credit
allowed
under
this
7
division.
8
Sec.
3.
NEW
SECTION
.
422.122
Refund
of
cow-calf
tax
credit
9
claims.
10
1.
Each
tax
year
the
total
amount
of
tax
credit
for
cow-calf
11
operations
refund
claims
that
shall
be
paid
pursuant
to
section
12
422.120
shall
not
exceed
the
amount
appropriated
by
the
general
13
assembly
for
that
purpose.
If
the
total
dollar
amount
of
the
14
refund
claims
exceeds
that
amount,
each
claim
shall
be
paid
an
15
amount
equal
to
that
total
dollar
amount
divided
by
the
total
16
number
of
claims,
not
to
exceed
the
amount
of
the
taxpayer’s
17
claim.
Remaining
funds
shall
be
prorated
among
those
claims
18
not
paid
in
full
in
the
proportion
that
each
such
claim
bears
19
to
the
total
amount
of
such
claims
not
paid
in
full.
20
2.
In
the
case
where
refund
claims
are
not
paid
in
full,
the
21
amount
of
the
refund
to
which
the
taxpayer
is
entitled
is
the
22
amount
computed
in
subsection
1,
and
paid
to
the
taxpayer,
and
23
the
taxpayer
is
not
entitled
to
any
unpaid
portion
of
a
claim
24
and
is
not
entitled
to
carry
forward
or
backward
to
another
tax
25
year
any
unpaid
portion
of
a
claim.
A
taxpayer
shall
not
use
a
26
refund
as
an
estimated
payment
for
the
succeeding
tax
year.
27
3.
A
taxpayer
must
file
a
claim
for
refund
within
ten
months
28
from
the
last
day
of
the
taxpayer’s
tax
year.
An
extension
for
29
filing
shall
not
be
allowed.
The
department
shall
determine
by
30
February
28
of
the
calendar
year
following
the
calendar
year
in
31
which
the
claims
were
filed
if
the
total
amount
of
claims
for
32
refund
exceeds
the
amount
appropriated
for
that
purpose
by
the
33
general
assembly
for
the
tax
year.
If
the
claim
is
not
payable
34
on
February
28
because
the
taxpayer
is
a
fiscal
year
filer,
the
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claim
shall
be
considered
as
a
claim
filed
for
the
following
1
tax
year.
2
4.
A
claim
for
refund
shall
be
made
on
claim
forms
to
be
3
made
available
by
the
department.
In
order
for
a
taxpayer
to
4
have
a
valid
refund
claim,
the
taxpayer
must
supply
legible
5
copies
of
documents
the
director
deems
necessary
to
verify
the
6
amount
of
the
refund.
7
Sec.
4.
DIRECTIONS
TO
CODE
EDITOR.
The
Code
editor
shall
8
codify
sections
designated
in
this
Act
as
422.120
through
9
422.122
as
a
new
division
in
chapter
422.
10
Sec.
5.
APPLICABILITY.
The
sections
of
this
Act
enacting
11
sections
422.120
through
422.122,
establishing
a
tax
credit
and
12
refund
for
cow-calf
operations,
apply
to
tax
years
beginning
on
13
or
after
January
1,
2012.
14
EXPLANATION
15
This
bill
restores
the
so-called
cow-calf
tax
credit
16
originally
enacted
by
the
general
assembly
in
1996
(1996
Iowa
17
Acts,
ch.
1197),
and
repealed
by
the
general
assembly
in
2009
18
(2009
Iowa
Acts,
ch.
179).
The
bill
provides
for
a
tax
credit
19
for
a
cow-calf
operations
located
in
this
state
and
includes
20
a
standing
limited
appropriation
to
support
the
tax
credit.
21
The
bill
eliminates
other
livestock
operations
which
were
22
originally
part
of
the
statute
but
never
made
eligible
for
the
23
tax
credit
funding.
24
The
amount
of
the
tax
credit
is
computed
by
multiplying
a
25
designated
amount
by
the
amount
of
corn
equivalents
consumed
26
by
qualifying
livestock
($.10
x
111.5).
Qualifying
livestock
27
includes
mature
beef
cows
bred
or
for
breeding,
bred
yearling
28
heifers,
and
breeding
bulls.
A
taxpayer
must
have
a
federal
29
taxable
income
of
not
more
than
$99,600
for
the
tax
year.
The
30
amount
of
tax
credit
per
cow-calf
operation
cannot
exceed
31
$3,000.
The
tax
credit
is
available
to
an
individual
or
32
corporate
taxpayer
who
owns
qualifying
livestock.
33
The
amount
of
the
standing
limited
appropriation
is
$2
34
million
per
fiscal
year,
beginning
with
the
FY
2011-2012.
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