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House
File
2733
-
Introduced
HOUSE
FILE
2733
BY
JUDGE
,
BAETH
,
LEVIN
,
WILBURN
,
KURTH
,
BROWN-POWERS
,
MATSON
,
SCHOLTEN
,
RAMIREZ
,
CROKEN
,
MADISON
,
KRESSIG
,
McBURNEY
,
NIELSEN
,
WICHTENDAHL
,
R.
JOHNSON
,
GOSA
,
EHLERT
,
GJERDE
,
OLSON
,
WESSEL-KROESCHELL
,
BAGNIEWSKI
,
B.
MEYER
,
GAINES
,
COOLING
,
TUREK
,
KONFRST
,
and
JACOBY
A
BILL
FOR
An
Act
relating
to
water
quality,
including
a
water
quality
1
monitoring
network
and
the
water
quality
initiative,
an
2
agricultural
best
management
practices
tax
credit,
an
3
Iowa
clean
water
farm
program
and
property
tax
credit,
and
4
water
quality
practices
loans,
making
appropriations,
and
5
including
applicability
provisions.
6
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
7
TLSB
5878YH
(6)
91
sb/js
H.F.
2733
DIVISION
I
1
WATER
QUALITY
MONITORING
NETWORK
2
Section
1.
IOWA
FLOOD
CENTER
——
APPROPRIATION.
There
3
is
appropriated
from
the
general
fund
of
the
state
to
the
4
state
board
of
regents
for
the
fiscal
year
beginning
July
1,
5
2026,
and
ending
June
30,
2027,
the
following
amount,
or
so
6
much
thereof
as
is
necessary,
to
be
used
for
the
purposes
7
designated:
8
For
purposes
of
supporting
a
water
quality
monitoring
9
network
under
the
supervision
of
the
Iowa
flood
center
of
the
10
state
university
of
Iowa:
11
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
$
600,000
12
DIVISION
II
13
WATER
QUALITY
INITIATIVE
14
Sec.
2.
WATER
QUALITY
INITIATIVE
——
DEPARTMENT
OF
15
AGRICULTURE
AND
LAND
STEWARDSHIP.
16
1.
There
is
appropriated
from
the
environment
first
fund
17
created
in
section
8.57A
to
the
department
of
agriculture
18
and
land
stewardship
for
the
fiscal
year
beginning
July
1,
19
2026,
and
ending
June
30,
2027,
the
following
amount,
or
so
20
much
thereof
as
is
necessary,
to
be
used
for
the
purposes
21
designated:
22
For
deposit
in
the
water
quality
initiative
fund
created
in
23
section
466B.45
,
for
purposes
of
supporting
the
water
quality
24
initiative
administered
by
the
division
of
soil
conservation
25
and
water
quality
as
provided
in
section
466B.42
,
including
26
salaries,
support,
maintenance,
and
miscellaneous
purposes:
27
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
$
7,125,000
28
2.
There
is
appropriated
from
the
rebuild
Iowa
29
infrastructure
fund
created
in
section
8.57
to
the
department
30
of
agriculture
and
land
stewardship
for
the
fiscal
year
31
beginning
July
1,
2026,
and
ending
June
30,
2027,
the
following
32
amounts,
or
so
much
thereof
as
is
necessary,
to
be
used
for
the
33
purposes
designated:
34
For
deposit
in
the
water
quality
initiative
fund
created
in
35
-1-
LSB
5878YH
(6)
91
sb/js
1/
13
H.F.
2733
section
466B.45
for
purposes
of
supporting
the
water
quality
1
initiative
administered
by
the
division
of
soil
conservation
2
and
water
quality
as
provided
in
section
466B.42,
including
3
salaries,
support,
maintenance,
and
miscellaneous
purposes,
4
notwithstanding
section
8.57,
subsection
3,
paragraph
“c”:
5
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
$
24,600,000
6
3.
a.
The
moneys
appropriated
in
subsections
1
and
2
shall
7
be
used
to
support
projects
in
subwatersheds
as
designated
8
by
the
division
that
are
part
of
high-priority
watersheds
9
identified
by
the
water
resources
coordinating
council
10
established
pursuant
to
section
466B.3
.
11
b.
The
moneys
appropriated
in
subsections
1
and
2
shall
be
12
used
to
support
projects
in
watersheds
generally,
including
13
regional
watersheds,
as
designated
by
the
division
and
14
high-priority
watersheds
identified
by
the
water
resources
15
coordinating
council
established
pursuant
to
section
466B.3
.
16
4.
In
supporting
projects
in
subwatersheds
and
watersheds
17
as
provided
in
subsection
3,
all
of
the
following
apply:
18
a.
The
demonstration
projects
shall
utilize
water
quality
19
practices
as
described
in
the
Iowa
nutrient
reduction
strategy
20
as
defined
in
section
455B.171
.
21
b.
The
division
shall
implement
demonstration
projects
as
22
provided
in
paragraph
“a”
by
providing
for
participation
by
23
persons
who
hold
a
legal
interest
in
agricultural
land
used
in
24
farming.
To
every
extent
practical,
the
division
shall
provide
25
for
collaborative
participation
by
such
persons
who
hold
a
26
legal
interest
in
agricultural
land
located
within
the
same
27
subwatershed.
28
c.
The
division
shall
implement
a
demonstration
project
on
29
a
cost-share
basis
as
determined
by
the
division.
However,
30
except
for
edge-of-field
practices,
the
state’s
share
of
the
31
amount
shall
not
exceed
50
percent
of
the
estimated
cost
of
32
establishing
the
practice
as
determined
by
the
division
or
33
50
percent
of
the
actual
cost
of
establishing
the
practice,
34
whichever
is
less.
35
-2-
LSB
5878YH
(6)
91
sb/js
2/
13
H.F.
2733
d.
The
demonstration
projects
shall
be
used
to
educate
other
1
persons
about
the
feasibility
and
value
of
establishing
similar
2
water
quality
practices.
The
division
shall
promote
field
day
3
events
for
purposes
of
allowing
interested
persons
to
establish
4
water
quality
practices
on
their
agricultural
land.
5
e.
The
division
shall
conduct
water
quality
evaluations
6
within
supported
subwatersheds.
Within
a
reasonable
period
7
after
accumulating
information
from
such
evaluations,
the
8
division
shall
create
an
aggregated
database
of
water
quality
9
practices.
Any
information
identifying
a
person
holding
a
10
legal
interest
in
agricultural
land
or
specific
agricultural
11
land
shall
be
a
confidential
record
under
section
22.7
.
12
5.
The
moneys
appropriated
in
subsections
1
and
2
shall
13
be
used
to
support
education
and
outreach
in
a
manner
that
14
encourages
persons
who
hold
a
legal
interest
in
agricultural
15
land
used
for
farming
to
implement
water
quality
practices,
16
including
the
establishment
of
such
practices
in
watersheds
17
generally,
and
not
limited
to
subwatersheds
or
high-priority
18
watersheds.
19
6.
The
moneys
appropriated
in
subsections
1
and
2
may
be
20
used
to
contract
with
persons
to
coordinate
the
implementation
21
of
efforts
provided
in
this
section.
22
7.
The
moneys
appropriated
in
subsections
1
and
2
may
23
be
used
by
the
department
to
support
urban
soil
and
water
24
conservation
efforts,
which
may
include
but
are
not
limited
25
to
management
practices
related
to
bioretention,
landscaping,
26
the
use
of
permeable
or
pervious
pavement,
and
soil
quality
27
restoration.
The
moneys
shall
be
allocated
on
a
cost-share
28
basis
as
provided
in
chapter
161A
.
29
8.
Notwithstanding
any
other
provision
of
law
to
the
30
contrary,
the
department
may
use
moneys
appropriated
in
31
subsections
1
and
2
to
carry
out
the
provisions
of
this
32
section
on
a
cost-share
basis
in
combination
with
other
moneys
33
available
to
the
department
from
a
state
or
federal
source.
34
9.
Not
more
than
10
percent
of
the
moneys
appropriated
in
35
-3-
LSB
5878YH
(6)
91
sb/js
3/
13
H.F.
2733
this
section
may
be
used
to
pay
for
the
costs
of
administering
1
and
implementing
the
water
quality
initiative
by
the
2
department’s
division
of
soil
conservation
and
water
quality
as
3
provided
in
section
466B.42
and
this
section.
4
DIVISION
III
5
AGRICULTURAL
BEST
MANAGEMENT
PRACTICES
TAX
CREDIT
6
Sec.
3.
NEW
SECTION
.
422.12R
Agricultural
best
management
7
practices
tax
credit.
8
The
tax
imposed
under
this
subchapter,
less
the
credits
9
allowed
under
section
422.12,
shall
be
reduced
by
an
10
agricultural
best
management
practices
tax
credit
authorized
11
pursuant
to
section
466B.50.
12
Sec.
4.
Section
422.33,
Code
2026,
is
amended
by
adding
the
13
following
new
subsection:
14
NEW
SUBSECTION
.
33.
The
tax
imposed
under
this
subchapter
15
shall
be
reduced
by
an
agricultural
best
management
practices
16
tax
credit
authorized
pursuant
to
section
466B.50.
17
Sec.
5.
NEW
SECTION
.
466B.50
Agricultural
best
management
18
practices
tax
credit.
19
1.
As
used
in
this
section:
20
a.
“Agricultural
best
management
practices
plan”
means
a
plan
21
approved
by
the
division
that
provides
significant
improvement
22
to
water
quality
in
this
state
utilizing
eligible
practices,
23
and
is
consistent
with
other
state
and
federal
programs
that
24
address
agriculture
nonpoint
source
pollution
management.
25
b.
“Division”
means
the
division
of
soil
conservation
and
26
water
quality
within
the
department
of
agriculture
and
land
27
stewardship.
28
c.
“Eligible
practice”
means
the
installation
of
29
infrastructure,
including
conservation
structures,
practices,
30
or
other
measures
that
reduce
contributing
nutrient
loads
31
under
section
466B.43.
“Eligible
practice”
also
includes
other
32
practices
used
to
reduce
contributing
nutrient
loads
including
33
but
not
limited
to
alternative
water
systems,
stream
crossings
34
and
hardened
access
points,
stream
channel
stabilizations,
35
-4-
LSB
5878YH
(6)
91
sb/js
4/
13
H.F.
2733
stormwater
retention
ponds,
surface
water
runoff
impoundments,
1
constructed
wetlands,
wetland
restorations,
fuel
tank
storage
2
treatments,
capping
and
plugging
abandoned
wells,
or
integrated
3
pest
management
principles.
4
2.
The
taxes
imposed
by
chapter
422,
subchapters
II
and
5
III,
shall
be
reduced
by
an
agricultural
best
management
6
practices
tax
credit.
The
credit
shall
equal
fifty
percent
of
7
any
unreimbursed
costs
incurred
by
the
taxpayer
during
the
tax
8
year
for
the
completion
of
an
eligible
practice
that
is
in
the
9
approved
plan
of
the
taxpayer.
10
3.
After
completion
of
any
eligible
practice,
the
division
11
shall
inspect
the
completion
of
the
eligible
practice,
and,
if
12
completed,
then
certify
the
eligible
practice
as
completed.
13
The
taxpayer
shall
provide
the
certification
to
the
department
14
of
revenue
when
filing
a
return
in
a
manner
approved
by
the
15
department
of
revenue.
16
4.
A
taxpayer
shall
not
claim
the
credit
for
the
same
17
eligible
practice
in
the
same
area
more
than
one
time.
18
5.
For
purposes
of
this
section,
an
individual
may
claim
19
a
credit
incurred
by
a
partnership,
S
corporation,
limited
20
liability
company,
estate,
or
trust
electing
to
have
the
income
21
taxed
directly
to
the
individual.
The
amount
claimed
by
the
22
individual
shall
be
based
upon
the
pro
rata
share
of
the
23
individual’s
earnings
of
a
partnership,
S
corporation,
limited
24
liability
company,
estate,
or
trust.
25
6.
The
credit
shall
be
available
to
the
taxpayer
for
a
26
period
not
to
exceed
ten
consecutive
tax
years
and
shall
not
27
exceed
one
hundred
fifty
thousand
dollars
in
the
aggregate
per
28
plan.
29
7.
Any
credit
in
excess
of
tax
liability
is
refundable.
In
30
lieu
of
claiming
a
refund,
the
taxpayer
may
elect
to
have
the
31
overpayment
shown
on
the
taxpayer’s
final,
completed
return
32
credited
to
the
tax
liability
for
the
following
tax
year.
33
8.
The
department
of
agriculture
and
land
stewardship
shall
34
adopt
rules
pursuant
to
chapter
17A
to
administer
this
section.
35
-5-
LSB
5878YH
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5/
13
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2733
Sec.
6.
CODE
EDITOR
DIRECTIVE.
The
Code
editor
shall
1
designate
section
466B.50,
as
enacted
in
this
division
of
this
2
Act,
as
chapter
466B,
subchapter
V,
entitled
“Agricultural
Best
3
Management
Practices
Tax
Credit”.
4
Sec.
7.
APPLICABILITY.
This
division
of
this
Act
applies
to
5
tax
years
beginning
on
or
after
January
1,
2027.
6
DIVISION
IV
7
CLEAN
WATER
FARM
PROGRAM
AND
PROPERTY
TAX
CREDIT
8
Sec.
8.
NEW
SECTION
.
426D.1
Definitions.
9
As
used
in
this
chapter:
10
1.
“Agricultural
land”
means
the
same
as
defined
in
section
11
425A.2.
12
2.
“Department”
means
the
department
of
revenue.
13
3.
“Division”
means
the
division
of
soil
conservation
and
14
water
quality
within
the
department
of
agriculture
and
land
15
stewardship.
16
4.
“Owner”
means
an
owner
as
defined
in
section
425A.2.
17
5.
“Program”
means
the
Iowa
clean
water
farm
program.
18
Sec.
9.
NEW
SECTION
.
426D.2
Iowa
clean
water
farm
property
19
tax
credit.
20
1.
A
qualifying
owner
shall
be
allowed
an
Iowa
clean
water
21
farm
property
tax
credit
on
agricultural
land
that
has
been
22
certified
by
the
division
and
placed
in
the
program.
23
2.
The
amount
of
the
credit
under
this
section
shall
be
24
equal
to
five
dollars
per
certified
acre
placed
in
the
program.
25
Sec.
10.
NEW
SECTION
.
426D.3
Iowa
clean
water
farm
program
26
——
fund
——
appropriation.
27
1.
The
division
shall
establish
an
Iowa
clean
water
farm
28
program
to
determine
whether
agricultural
land
meets
the
29
criteria
for
the
credit
under
this
chapter
and
the
goal
of
30
preserving
and
protecting
Iowa’s
water
resources
by
reducing
31
contributing
nutrient
loads.
32
2.
An
Iowa
clean
water
farm
fund
is
created
in
the
state
33
treasury
under
the
control
of
the
department.
For
each
fiscal
34
year
beginning
on
or
after
July
1,
2028,
there
is
appropriated
35
-6-
LSB
5878YH
(6)
91
sb/js
6/
13
H.F.
2733
annually
from
the
general
fund
of
the
state
to
the
department
1
of
revenue
to
be
credited
to
the
Iowa
clean
water
farm
fund
an
2
amount
sufficient
to
implement
this
chapter.
3
Sec.
11.
NEW
SECTION
.
426D.4
Qualifying
for
the
credit.
4
1.
In
order
to
qualify
for
the
credit,
an
owner
must
5
first
apply
to
the
division
for
certification
of
the
acres
6
of
agricultural
land
placed
in
the
program.
The
application
7
shall
be
in
a
manner
and
filed
by
the
deadline
prescribed
by
8
the
division.
9
2.
Upon
application,
the
division
shall
conduct
a
10
comprehensive
review
of
the
nutrient
loads
associated
11
with
the
acres
of
agricultural
land
proposed
to
be
placed
12
into
the
program,
including
conservation
structures,
best
13
practices,
or
other
measures
that
have
been
implemented
to
14
reduce
contributing
nutrient
loads
in
Iowa’s
water
resources.
15
After
the
comprehensive
review,
the
division
shall
make
16
a
determination
whether
to
certify
the
proposed
acres
of
17
agricultural
land
as
meeting
the
program
goal
of
preserving
18
and
protecting
Iowa’s
water
resources
by
reducing
contributing
19
nutrient
loads.
20
3.
Upon
certification
of
acres
in
the
program,
the
credit
21
shall
be
allowed
on
the
certified
acres
for
successive
years
22
without
further
application
as
long
as
the
certified
acres
are
23
legally
and
equitably
owned
by
the
qualifying
owner
or
the
24
spouse
of
the
qualifying
owner
on
January
1
of
each
successive
25
assessment
year.
26
Sec.
12.
NEW
SECTION
.
426D.5
Notification
by
department
and
27
computation
by
county
auditor.
28
1.
On
an
annual
basis,
the
division
shall
provide
the
29
department
the
number
of
certified
acres
in
the
program
by
30
county.
31
2.
Annually,
the
department
of
revenue
shall
certify
to
32
the
county
auditor
of
each
county
the
credit
and
its
amount
33
in
dollars.
Each
county
auditor
shall
then
enter
the
credit
34
against
the
property
tax
levied
on
each
certified
acre
in
each
35
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county
payable
during
the
ensuing
year,
designating
on
the
tax
1
lists
the
credit
as
being
from
the
Iowa
clean
water
farm
fund,
2
and
credit
shall
then
be
given
to
the
several
taxing
districts
3
in
which
the
certified
acres
are
located
in
an
amount
equal
to
4
the
credits
allowed
on
the
taxes
of
the
certified
acres.
The
5
amount
of
credits
shall
be
apportioned
by
each
county
treasurer
6
to
the
several
taxing
districts
as
provided
by
law,
in
the
same
7
manner
as
though
the
amount
of
the
credit
had
been
paid
by
the
8
owners
of
the
certified
acres.
However,
the
several
taxing
9
districts
shall
not
draw
the
funds
so
credited
until
after
10
the
semiannual
allocations
have
been
received
by
the
county
11
treasurer,
as
provided
in
this
chapter.
Each
county
treasurer
12
shall
show
on
each
tax
receipt
the
amount
of
credit
received
13
from
the
Iowa
clean
water
farm
fund.
14
Sec.
13.
NEW
SECTION
.
426D.6
Verification
of
claims.
15
1.
The
assessor
shall
retain
a
permanent
file
of
current
16
Iowa
clean
water
farm
property
tax
credit
claims
in
the
county.
17
The
assessor
shall
notify
the
department
of
transfer
of
18
certified
acres
when
notice
is
received
from
the
office
of
the
19
county
recorder.
20
2.
The
county
recorder
shall
give
notice
to
the
assessor
21
of
each
transfer
of
title
filed
for
certified
acres
in
the
22
county.
The
notice
shall
describe
the
property
transferred,
23
the
name
of
the
person
transferring
the
title
to
the
property,
24
and
the
name
of
the
person
to
whom
title
to
the
property
has
25
been
transferred.
26
Sec.
14.
APPLICABILITY.
This
division
of
this
Act
applies
27
to
assessment
years
beginning
on
or
after
January
1,
2027.
28
DIVISION
V
29
WATER
QUALITY
PRACTICES
LOANS
AND
GRANTS
PROGRAM
30
Sec.
15.
NEW
SECTION
.
455B.199E
Agricultural
water
quality
31
practices
loans
and
grants.
32
1.
Subject
to
available
funding,
the
department
of
natural
33
resources
shall
establish
and
administer
a
water
quality
34
practices
loans
and
grants
program
to
provide
no-interest
loans
35
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and
grants
to
any
of
the
following:
1
a.
Any
person
for
the
construction,
renovation,
improvement
2
or
equipping
of
facilities
or
structures
to
implement
3
agricultural
best
management
practices
to
prevent
pollution
of
4
state
waters.
5
b.
A
local
government
entity
that
has
developed
a
6
no-interest
loan
program
to
provide
loans
or
other
incentives
7
to
facilitate
the
construction,
renovation,
improvement,
or
8
equipping
of
facilities
or
structures
described
in
paragraph
9
“a”
.
10
c.
A
financial
institution
working
with
a
local
government
11
to
establish
a
program
pursuant
to
paragraph
“b”
.
12
2.
The
department
shall
adopt
rules
for
the
water
quality
13
practices
loans
and
grants
program
and
shall
determine
the
14
terms
and
conditions
of
any
loan
or
grant.
15
3.
For
purposes
of
this
section,
“facilities
or
structures”
16
may
include
riparian
buffers
planted
in
trees
and
maintained
in
17
accordance
with
the
terms
and
conditions
of
the
loan
or
grant.
18
EXPLANATION
19
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
20
the
explanation’s
substance
by
the
members
of
the
general
assembly.
21
This
bill
relates
to
water
quality
and
appropriates
moneys
22
to
support
a
water
quality
monitoring
network
and
the
water
23
quality
initiative,
creates
an
agricultural
best
management
24
practices
tax
credit
(ABMP
credit),
establishes
an
Iowa
clean
25
water
farm
program
and
property
tax
credit
(CWF
credit),
and
26
establishes
a
water
quality
practices
loans
and
grants
program.
27
DIVISION
I
——
WATER
QUALITY
MONITORING
NETWORK.
The
bill
28
appropriates
moneys
from
the
general
fund
of
the
state
to
29
the
state
board
of
regents
for
FY
2026-2027
for
purposes
30
of
supporting
a
water
quality
monitoring
network
under
the
31
supervision
of
the
Iowa
flood
center
of
the
state
university
32
of
Iowa.
33
DIVISION
II
——
WATER
QUALITY
INITIATIVE.
The
bill
34
appropriates
moneys
from
the
environment
first
fund
and
35
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the
rebuild
Iowa
infrastructure
fund
to
the
department
of
1
agriculture
and
land
stewardship
(DALS)
for
FY
2026-2027
2
for
purposes
of
supporting
the
water
quality
initiative
3
administered
by
the
division
of
soil
conservation
and
water
4
quality
(division).
5
The
bill
requires
the
appropriated
moneys
to
be
used
for
6
watershed
projects
designated
by
the
division
or
the
water
7
resources
coordinating
council,
education
and
outreach
that
8
encourages
persons
who
hold
a
legal
interest
in
agricultural
9
land
used
for
farming
to
implement
water
quality
practices,
or
10
contracts
to
coordinate
the
implementation
of
water
quality
11
improvement
efforts.
The
bill
also
allows
the
appropriated
12
moneys
to
be
used
by
DALS
to
support
certain
urban
soil
and
13
water
conservation
efforts.
14
The
bill
allows
DALS
to
use
the
appropriated
moneys
to
15
carry
out
the
purposes
of
the
water
quality
initiative
on
a
16
cost-share
basis
in
combination
with
other
available
state
or
17
federal
funds.
18
The
bill
restricts
DALS
from
using
more
than
10
percent
19
of
the
moneys
appropriated
for
administrative
costs
of
20
administering
and
implementing
the
water
quality
initiative.
21
DIVISION
III
——
AGRICULTURAL
BEST
MANAGEMENT
PRACTICES
22
TAX
CREDIT.
The
bill
defines
“agricultural
best
management
23
practices
plan”
(plan)
to
mean
a
plan
approved
by
the
division
24
that
provides
significant
improvement
to
water
quality
in
this
25
state
utilizing
eligible
practices,
and
is
consistent
with
26
other
state
and
federal
programs
that
address
agriculture
27
nonpoint
source
pollution
management.
28
The
bill
defines
“eligible
practice”
to
mean
the
29
installation
of
infrastructure,
including
conservation
30
structures,
practices,
or
other
measures
that
reduce
31
contributing
nutrient
loads
under
Code
section
466B.43.
32
“Eligible
practice”
also
includes
other
practices
used
to
33
reduce
contributing
nutrient
loads
including
but
not
limited
to
34
alternative
water
systems,
stream
crossings
and
hardened
access
35
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points,
stream
channel
stabilizations,
stormwater
retention
1
ponds,
surface
water
runoff
impoundments,
constructed
wetlands,
2
wetland
restorations,
fuel
tank
storage
treatments,
capping
3
and
plugging
abandoned
wells,
or
integrated
pest
management
4
principles.
5
A
taxpayer
may
claim
the
ABMP
credit
that
is
equal
to
50
6
percent
of
any
unreimbursed
costs
incurred
by
the
taxpayer
7
during
the
tax
year
for
the
completion
of
an
eligible
practice
8
that
is
in
the
plan
approved
by
the
division.
9
After
completion
of
any
eligible
practice,
the
bill
10
requires
the
division
to
inspect
the
completion
of
the
eligible
11
practice,
and,
if
completed,
then
certify
the
eligible
practice
12
as
completed.
The
taxpayer
shall
provide
the
certification
13
to
the
department
of
revenue
when
filing
a
return
in
a
manner
14
approved
by
the
department
of
revenue.
15
The
ABMP
credit
shall
be
available
to
the
taxpayer
for
a
16
period
not
to
exceed
10
consecutive
tax
years
and
shall
not
17
exceed
$150,000
in
the
aggregate
per
plan.
18
The
bill
makes
the
ABMP
credit
refundable.
In
lieu
19
of
claiming
a
refund,
the
taxpayer
may
elect
to
have
the
20
overpayment
shown
on
the
taxpayer’s
final,
completed
return
21
credited
to
the
tax
liability
for
the
following
tax
year.
22
DALS
is
required
to
adopt
rules
pursuant
to
Code
chapter
17A
23
to
administer
the
bill.
24
The
Code
editor
is
directed
to
designate
Code
section
25
466B.50,
created
in
the
bill,
as
Code
chapter
466B,
subchapter
26
V,
entitled
“Agricultural
Best
Management
Practices
Tax
27
Credit”.
28
The
bill
applies
to
tax
years
beginning
on
or
after
January
29
1,
2027.
30
DIVISION
IV
——
CLEAN
WATER
FARM
PROGRAM
AND
PROPERTY
TAX
31
CREDIT.
The
bill
defines
“agricultural
land”
to
generally
mean
32
tracts
of
10
acres
or
more
excluding
any
buildings
or
other
33
structures
used
in
agricultural
or
horticultural
purposes.
34
The
bill
specifies
a
qualifying
owner
shall
be
allowed
35
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a
CWF
credit
on
agricultural
land
equal
to
$5
per
acre
on
1
property
placed
in
the
Iowa
clean
water
farm
program
that
has
2
been
certified
by
the
division.
An
“owner”
means
an
owner
as
3
defined
in
Code
section
425A.2.
4
Upon
application
to
the
division,
the
bill
requires
the
5
division
to
conduct
a
comprehensive
review
of
the
nutrient
6
loads
associated
with
the
acres
proposed
to
be
placed
into
the
7
program,
including
conservation
structures,
best
practices,
8
or
other
measures
that
have
been
implemented
to
reduce
9
contributing
nutrient
loads
in
Iowa’s
water
resources.
After
10
the
comprehensive
review,
the
division
shall
determine
whether
11
to
certify
the
proposed
acres
as
meeting
the
program
goal
of
12
preserving
and
protecting
Iowa’s
water
resources
by
reducing
13
contributing
nutrient
loads.
14
The
administration
and
apportionment
of
the
CWF
credit
is
15
similar
to
the
agricultural
land
credit
in
Code
chapter
426.
16
The
CWF
credit
is
allowed
on
the
certified
acres
for
successive
17
years
without
further
application
as
long
as
the
certified
18
acres
are
owned
by
the
qualifying
owner
or
the
spouse
of
the
19
qualifying
owner.
20
The
bill
appropriates
from
the
general
fund
of
the
state
the
21
amounts
necessary
to
fund
the
CWF
credit.
22
The
bill
applies
to
assessment
years
beginning
on
or
after
23
January
1,
2027.
24
DIVISION
V
——
WATER
QUALITY
PRACTICES
LOANS
AND
GRANTS
25
PROGRAM.
The
bill
provides
that
the
water
quality
practices
26
loans
and
grants
program
(program)
be
administered
by
the
27
department
of
natural
resources
(DNR)
and
that
the
program
is
28
subject
to
available
funding.
29
The
bill
authorizes
DNR
to
provide
no-interest
loans
30
and
grants
to
any
person
for
the
construction,
renovation,
31
improvement,
or
equipping
of
facilities
or
structures
that
32
implement
agricultural
best
management
practices
intended
to
33
prevent
pollution
of
state
waters.
34
The
bill
also
authorizes
DNR
to
provide
no-interest
loans
35
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and
grants
to
local
government
entities
that
have
developed
1
no-interest
loan
programs
or
other
incentives
to
facilitate
2
the
construction,
renovation,
improvement,
or
equipping
of
the
3
facilities
or
structures.
In
addition,
the
bill
authorizes
4
assistance
to
financial
institutions
that
are
working
with
5
local
governments
to
establish
such
local
loan
or
incentive
6
programs.
7
The
bill
requires
DNR
to
adopt
rules
for
the
program
and
to
8
determine
the
terms
and
conditions
of
any
loan
or
grant
awarded
9
under
the
program.
10
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5878YH
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91
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13/
13