Bills › 90th General Assembly
Relating to the farm tenancy net income exclusion available against the individual income tax, and including effective date and retroactive applicability provisions
Sponsored by the House Ways and Means Committee
Topics:TaxesIncome taxes
Same legislation: HF 2503
Where it is now
- Done: IntroducedFebruary 14, 2024
- Done: SubcommitteeFebruary 21, 2024
- Done: House committeeMarch 19, 2024
- Done: Passes the HouseApril 2, 202495–0
- Done: Senate committeeApril 18, 2024
- Stopped: Passes the SenateDied when the General Assembly ended
- Next: To the Governor
- Next: Signed into law
Died when the session ended The General Assembly adjourned on April 19, 2024. Bills that didn’t pass both chambers died. What’s a funnel?
What’s in it
Current law excludes from the individual income tax a retired farmer’s total net income received pursuant to a farm tenancy agreement covering real property held by the retired farmer for or more years, if the farmer materially participated in a farming business for or more years. Under current law, net income from a farm tenancy agreement earned by an entity taxed as a partnership for federal tax purposes, an S corporation, or a trust or estate is not eligible for the farm tenancy lease income exclusion.
Read the full explanation
This bill allows the net income from a farm tenancy agreement earned, received, or reported by an entity taxed as a disregarded entity, partnership for federal tax purposes, an S corporation, a trust, or estate to be eligible for the farm tenancy lease income exclusion in the same manner as if the net income received pursuant to a farm tenancy passes directly from the farm tenant to the eligible individual rather than passing to the eligible individual through an entity taxed as a disregarded entity, a partnership, an S corporation, a trust, or an estate. The bill allows net income accruing to a grantor trust or to a business entity that is a disregarded entity to be deemed to have been distributed to its sole owner to the extent the sole owner of such disregarded entity or trust has the right to withdraw or compel distribution of such net income. The bill takes effect upon enactment and applies retroactively to tax years beginning on or after January 1, 2023.
From the explanation printed with the bill as introduced, written by the Legislative Services Agency. Amendments adopted later aren’t reflected. Full bill text
Senate subcommittee
Named April 3, 2024. On April 10, 2024 it recommended passage. [].
- Sen. Dawn Driscoll REmail
- Sen. Annette Sweeney REmail
- Sen. T. Taylor
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
Fiscal note
Less revenue: up to $3.9M Compare with other bills
The proposed deductions from the individual income tax in House File 2666 are projected to decrease net individual income tax liability and State General Fund revenue by the following amounts: • FY 2025 = $3.9 million • FY 2026 = $1.8 million • FY 2027 = $1.5 million • FY 2028 = $1.5 million • FY 2029 = $1.6 million • FY 2030 = $1.6 million The decrease in tax liability is also projected to decrease the statewide local option income surtax for schools by the following amounts: • FY 2025 = $99,000 • FY 2026 = $44,000 • FY 2027 = $38,000 • FY 2028 = $38,000 • FY 2029 = $39,000 • FY 2030 = $40,000
- Retired Farmer Lease Income Exclusion, Pass-Through Entities · March 21, 2024
- Retired Farmer Lease Income Exclusion, Pass-Through Entities · March 8, 2024
Nonpartisan cost estimates from the Legislative Services Agency’s Fiscal Services Division. The newest is first. Reading a fiscal note
Iowa Code it changes
Amends§422.7
Read from the bill as introduced. Each links to every bill touching that chapter of the Iowa Code. How the Code works
Lobbying
8 for · 0 against · 7 undecided · Who →
Family tree
Where this legislation came from and where it went: earlier tries, the versions it moved through this Assembly, and later bills built on it.
90th General Assembly
Picked up later
Earlier and later bills are matched by wording or an identical title; check the text to be sure it’s the same idea.
Similar bills
- HF 56 Relating to the farm tenancy net income exclusion available against the individual income …91st General Assembly · Renumbered as HF 624Nearly identical
- SF 19 Relating to the farm tenancy net income exclusion available against the individual income …91st General Assembly · In committeeNearly identical
Matched by the wording of each bill’s explanation, or an identical title. Companion bills and renumbered versions of this bill aren’t listed; they’re the same bill.