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References to codes and rules regarding
Iowa charitable conservation contribution tax credit, effective 2008

Summary from Iowa Department of Revenue: Effective for tax years beginning on or after January 1, 2008, a tax credit is available for individual income and corporation income tax equal to 50 percent of the fair market value of a qualified real property interest located in Iowa that is conveyed as an unconditional charitable donation in perpetuity by a taxpayer to a qualified organization exclusively for conservation purposes. The maximum amount of the credit is $100,000.  The amount of the contribution for which the tax credit is claimed is not deductible as an itemized deduction for Iowa income tax purposes.
The terms “conservation purpose,” “qualified organization” and “qualified real property interest” mean the same as set forth in Section 170(h) of the Internal Revenue Code. Any tax credit in excess of the tax liability is not refundable but may be credited to the tax liability for the following 20 years or until depleted, whichever is the earlier.  

Legislation: Iowa Code sections 421.14 and 422.68 for the new tax credit: Tax credit is equal to 50 percent of the fair market value of a qualified real property interest located in Iowa that is conveyed as an unconditional charitable donation in perpetuity to a qualified organization exclusively for conservation purposes -- as defined below. "Qualified real property interest" is defined in Federal Internal Revenue Code, Section 170(h)(2) "Qualified organization" is defined in the federal Internal Revenue Code, Section 170(h)(3) "Conservation purposes" is defined in the federal Internal Revenue Code, Section 170(h)(4) - Except that for purposes of this Iowa tax credit, a conservation purpose does not include donating land "for open space for the purpose of fulfilling density requirements to obtain subdivision or building permits."

Rules: Iowa Administrative Code References: For individual income tax, see Rule 701-52.37(422) For corporation income tax, see Rule 701-52.37(422) Rule 701-41.5(15) - itemized charitable deduction is not allowed for individuals for amount of the contribution that's eligible for the charitable conservation contribution tax credit. Regarding the sequence of tax credits to be deducted: - 701-42.23(422) shows the listing for individual income tax. - 701-52.12(422) shows the listing corporation income tax.

 

For more information

Related links on the Iowa income tax credit for contributions of conservation land, effective for the 2008 tax year:

• Overview of new Iowa Tax Credit
• Tax credit vs. itemized deduction
• Information on how to claim the new tax credit
• Examples show implications of tax incentives for your bottom line

 

 

This factsheet is provided for information only. Always consult your attorney or tax advisor for legal or professional advice for your situation.

More information on tax issues:
Income taxes | Capital gains taxes | Estate & inheritance taxes | Property taxes | Cautions

 

This information released October 2008, Iowa Natural Heritage Foundation