Source: Iowa Corn Growers Assn news release
As the 2018 Iowa legislative session comes to a close this week, the Iowa Corn Growers Association (ICGA) President Mark Recker, a farmer from Arlington, says notable progress occurred on many legislative issues positively impacting agriculture.
“We succeeded in championing the passage of many ICGA’s state legislative priorities for the year, including increased, long-term water quality funding, extension of the biofuels infrastructure program, and expanded coupling of section 179 tax expensing,” explained Recker.
2018 ICGA State Legislative Successes include:
• Long-Term Water Quality Funding – With the approval of Senate File 512, the state will now provide nearly $300 million of dedicated funding for water quality efforts over the next 12 years. ICGA farmer-leaders joined Gov. Reynolds at a signing ceremony as she recognized ICGA and many others for helping to champion water quality funding legislation through the statehouse.
• Ethanol Infrastructure – Iowa’s Renewable Fuels Infrastructure Program (RFIP) received a full year of funding at $3 million. The RFIP provides cost-share dollars to retailers that choose to install flex fuel pumps and other E15, E85, and/or biodiesel compatible infrastructure, increasing consumer access to renewable fuels.
• Section 179- Within the tax reform legislation farmers will see an increase in the state-level coupling of the federal Section 179 tax expensing provision. The bill increases the state level from $25,000 to $70,000 for the 2018 tax year, to $100,000 in 2019 tax year, and full coupling at the $1 million level in 2020 and beyond. Section 179 allows farmers and small businesses to expense and depreciate capital expenses on their tax returns. Iowa’s farm families rely on these tax provisions to manage their cash flow and reinvest in their businesses. In a year when taxable income will be lower, reliable tax deductions remain extremely important.
“There are many factors for the success of ICGA’s state legislative policy efforts,” stated Recker. “The greatest being ICGA’s highly engaged members who foster relationships with their elected officials in bringing key issues to the table to support Iowa agriculture.”