Iowa House Bill HF2676

Iowa 2023-2024 Regular Session

• Introduced: 3/27/24

Caption

A bill for an act providing a credit refund for taxpayers who own or lease cow-calf operations that maintain a herd of qualified cattle, and providing an appropriation.(Formerly HSB 739.)

Impact

The bill significantly alters provisions related to agricultural tax credits in Iowa. Specifically, it increases the income caps for eligibility, adjusting the previous $99,600 up to $191,000 for the 2024 tax year. It also raises the maximum allowable credit that can be claimed from $3,000 to $4,000 and sets aside $3 million in state funds to cover these credits. Additionally, it requires taxpayers to document their herd counts electronically, streamlining operational compliance while maintaining accountability in claims.

Summary

House File 2676, introduced by the Committee on Ways and Means, aims to provide a tax credit refund for taxpayers who own or lease cow-calf operations maintaining a herd of qualified cattle. The bill seeks to re-establish a framework for these tax credits previously outlined in the 1996 Iowa Act, which specifically targeted livestock production but was eliminated in 2009. This proposed legislation is intended to support the agricultural sector, particularly those engaged in cow-calf operations, by offering financial relief through a structured tax credit system.

Contention

While the bill is positioned to benefit agricultural producers, it may face some contention concerning its funding and the sustainability of the appropriated amounts versus the demand for credits. Critics may argue about the implications for state finances, particularly if the appropriation proves insufficient in covering all claims made. Questions may also arise regarding the fairness of benefits distribution among taxpayers, particularly if certain operations qualify disproportionately relative to others based on the various caps elaborated in the bill.