Iowa Finance Authority
Programs

Custom Farming Tax Credit Program

The Iowa Legislature created the Custom Hire Tax Credit Program in 2013 as an incentive for hiring beginning farmers. The program offers a tax credit to anyone hiring a beginning farmer to do agricultural contract work for the production of crops or livestock in Iowa.


Beginning Farmer Qualifications:

  • Net Worth: No more than $672,171
  • Age: At least eighteen years old
  • Residence: A resident of Iowa
  • Management: Must be owner/operator
  • Training and Experience: Must have sufficient education, training and experience for the anticipated farm operations
  • Access to Capital: Must have access to the following as needed: Adequate working capital, farm machinery, livestock and agricultural land 
  • The beginning farmer can not be the parent, child, step-child, spouse or sibling of the farm operator

Terms

  • $50,000 maximum credit
  • 7% tax credit on amount actually paid
  • Contract terms are set by those contracting the custom labor
  • Contract must be less than 12 months
  • Payment for custom labor must be verified
  • Additional credit of 1% for the first year if beginning farmer is a military veteran

Fees

  • Application Fee: $200
  • Closing Fee: None

Application

  • Obtain a copy of the Custom Farming Tax Credit Program Application, which includes:
    • Application Instructions
    • Application Checklist
    • Four-page Application
    • Independent Third-Party Verification Form
    • Financial Statement
    • Eligible and Ineligible Projects
Notice Notice
Close
  • All Custom Farming Tax Credit applications must be submitted by November 1 to be considered for that tax year.
  • Maximum net worth is $672,171 as of January 1, 2016
Notice Contact
Close

Steve Ferguson | Program Planner

Tammy Nebola | Program Planner