The deadline to apply for the Iowa Agricultural Asset Transfer Tax Credit, otherwise known as the Beginning Farmer Tax Credit, is October 1, 2015. For landowners leasing agricultural assets to a beginning farmer and wishing to take advantage of the tax credit, an application must be submitted to the Iowa Agricultural Development Division by the deadline to be considered for the 2015 tax year.
The Beginning Farmer Tax Credit was passed by the Iowa legislature in 2006 and became operative for the 2007 tax year. The goal of the Iowa legislature was to ensure that agricultural land remained active and continued to produce agricultural products. The tax credit has specific guidelines, including limitations and qualifications on the asset that can be leased. For example, a qualifying asset is agricultural land, buildings, and depreciable property located in Iowa and used for farming purposes. Depending upon the underlying asset and lease agreement, the specific value of the tax credit will vary. For those applying, the application fee and other requirements will vary based upon similar factors.
A joint application must be submitted by the beginning farmer and the asset owner. Additional financial information and other documents may be required. The application form can be download at the Iowa Finance Authority website: http://iowafinanceauthority.gov/File/DownloadFile/5260.
© 2015 Houghton Vandenack Williams
For more information, Contact Us
VW Tax & Business Law Blog 