Iowa 2025-2026 Regular Session

Iowa House Bill HF2732

Introduced
3/9/26  

Caption

A bill for an act providing for water quality practices, including an edge-of-field practice tax credit and cover crop practice tax credit.

Impact

The program offers substantial tax relief, allowing eligible taxpayers, defined as those with a net worth not exceeding $2 million and who qualify for the family farm tax credit, to claim up to 50% of the costs for implementing approved water quality practices. This initiative is expected to enhance agricultural sustainability in Iowa, enabling farmers to adopt practices that limit water runoff and improve overall soil health, contributing to long-term environmental benefits.

Summary

House File 2732 introduces a comprehensive water quality practice program administered by the Department of Agriculture and Land Stewardship (DALS), in cooperation with the Department of Revenue (DOR). This program aims to promote soil health and prevent environmental degradation by instituting new water quality practices. It features two primary tax credits: the edge-of-field practice tax credit and the cover crop practice tax credit, which are designed to incentivize farmers to adopt sustainable practices that manage nutrients and sediment more effectively.

Contention

However, there are notable concerns regarding the implementation and monitoring of compliance under this new program. The bill includes provisions for the DALS to enter privately owned land to ensure compliance with water quality practices, which some landowners may view as an intrusion. Furthermore, there is a cap of $10 million per fiscal year on the total tax credits awarded, which raises questions about the accessibility of these incentives to all eligible farmers, potentially leaving some without assistance in implementing necessary water quality practices.

Companion Bills

No companion bills found.

Previously Filed As

IA HF2733

A bill for an act relating to water quality, including a water quality monitoring network and the water quality initiative, an agricultural best management practices tax credit, an Iowa clean water farm program and property tax credit, and water quality practices loans, making appropriations, and including applicability provisions.

IA HB2486

Modifies provisions relating to soil and water practices

IA S2093

Establishes prohibited practices for creditors.

IA SB2816

Income tax; increase amount of credit for approved reforestation practices.

IA SB2861

Income tax; increase amount of credit for approved reforestation practices.

IA A05660

Establishes the carbon farming certification committee for the purpose of developing a certification framework, determining qualified carbon removal practices eligible for the carbon farming tax credit, and promulgating certification standards for qualified carbon removal practices; provides for the development of educational materials to encourage carbon farming by promoting farming practices which reduce, sequester and mitigate greenhouse gas emissions on land used in support of a farm operation; establishes carbon farming tax credits.

IA S01529

Establishes the carbon farming certification committee for the purpose of developing a certification framework, determining qualified carbon removal practices eligible for the carbon farming tax credit, and promulgating certification standards for qualified carbon removal practices; provides for the development of educational materials to encourage carbon farming by promoting farming practices which reduce, sequester and mitigate greenhouse gas emissions on land used in support of a farm operation; establishes carbon farming tax credits.

IA HB5902

Innovative Practices for Soil Health Act of 2025

IA HF151

A bill for an act relating to surface water quality by requiring the establishment and maintenance of riparian protection measures, providing for financing, and providing penalties.

IA SF435

A bill for an act relating to surface water quality by requiring the establishment and maintenance of riparian protection measures, providing for financing, and providing penalties.

Similar Bills

No similar bills found.