December 2017

December 2017


Key 2017 Developments in Agricultural Law & Taxation

As the year concludes, we’re taking some time to review the most significant happenings in agricultural law and taxation in 2017. Some closed chapters on drawn-out litigation or administrative action. Others signal the beginning of much more activity to come. In any event, 2017 did not disappoint in terms of lots to discuss. We review these highlights below, in no particular order. And we’ll continue to keep you posted as the calendar rolls ahead to 2018.

We also want to thank you all for your support of CALT throughout 2017. We appreciate your attendance at our seminars and webinars, your phone calls and your emails. We look forward to serving you in 2018. Happy new year!

Read our 2017 review here.


New Year, New Tax Law!

On December 22, 2017, President Trump signed H.R.1 into law. This new law implements the most significant changes to our tax code in more than 30 years. Most changes go into effect January 1, 2018, meaning that they will impact tax returns filed in 2019. However, tax practitioners and their clients need to understand how the law is impacting them in 2018 so they can make good business decisions and plan accordingly.

As mentioned elsewhere in this newsletter, CALT will be providing many educational opportunities and resources during the upcoming weeks to educate tax professionals and producers about this new law. Stay tuned for more information. We will be keeping you posted!

To read a detailed summary of the new law, click here.


2018 Ushers in Cuts to Iowa Beginning Farmer Tax Credit Program

We told you last April about changes that would come to the Iowa Beginning Farmer Tax Credit program in 2018, absent legislation. Because those legislative changes did not occur, cuts to the program are now being felt by beginning farmers and landlords around Iowa.

In 2009, the Iowa Legislature placed a cap of $6 million on the value of beginning farmer credits that could be awarded in Iowa. When it created the custom farming contract tax credit (CFTC) in 2013, the Legislature increased this cap to $12 million, $8 million of which was allotted to credits for leasing land, machinery and breeding livestock, and $4 million of which was allotted to the CFTC. The 2013 legislation also raised the percentages of available credits. The 2013 provisions expire on January 1, 2018. This means the following changes kick in January 1, 2018:

  • The allocation for Beginning Farmer Tax Credits is reduced from $12 million to $6 million
  • The custom farming contract tax credit is eliminated
  • The tax credit for cash rent leases decreases from 7% to 5% and the credit for crop share leases decreases from 17% to 15%
  • The additional 1% credit for leasing to a beginning farmer who is a veteran is eliminated

Continue reading here.

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CALT does not provide legal advice. Any information provided on this website is not intended to be a substitute for legal services from a competent professional. CALT's work is supported by fee-based seminars and generous private gifts. Any opinions, findings, conclusions or recommendations expressed in the material contained on this website do not necessarily reflect the views of Iowa State University.

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