The bill establishes a water quality practice program administered by the Department of Agriculture and Land Stewardship (DALS) in collaboration with the Department of Revenue (DOR). The program aims to implement new water quality practices within existing farming operations, focusing on measures that limit sediment and nutrient runoff, thereby promoting soil health. It introduces two tax credits: an edge-of-field practice tax credit and a cover crop practice tax credit, which eligible taxpayers can apply for. To qualify, individuals must meet specific criteria, including being eligible for the family farm tax credit and having a net worth not exceeding $2 million. The tax credits are capped at 50% of the costs associated with establishing the respective practices, and the total amount awarded in any fiscal year cannot exceed $10 million.

Additionally, the bill grants DALS and soil conservation district commissioners the authority to inspect land where these water quality practices are implemented, similar to existing powers for soil and water conservation practices. If an eligible taxpayer fails to comply with program requirements, DALS can revoke the tax credit and require repayment, which DOR will treat as a tax payment due. The bill also outlines the application approval process, the issuance of tax credit certificates, and limitations on the transferability and use of the tax credits.

Statutes affected:
Introduced: 422.12