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 Iowa Finance Authority has stated that there are currently more than $6 million in tax credits approved to carry over into 2018. This means that they are no longer able to accept any new applications in 2018. They anticipate having about $2 million of credits to allocate in 2019, if no legislation intervenes. Stay tuned for further information on these applications.
Several bills were introduced in the Legislature last year, but they did not see a vote. Persons concerned about the cuts to this credit should contact their legislators. The Iowa Finance Authority Beginning Farmer Tax Credit web page is here.
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