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

This Iowa bill establishes a new water quality practice program that provides tax credits to farmers for implementing specific environmental measures on their land. The program offers two main tax credits: one for edge-of-field practices like wetlands or buffer strips that filter water draining from fields, and another for cover crops planted to protect soil health between growing seasons. Farmers must meet eligibility requirements including a net worth limit of two million dollars and qualify for the family farm tax credit to receive these credits. The Department of Agriculture and Land Stewardship will administer the program and has the authority to inspect practices on farms to verify compliance. The bill also clarifies that farmers receiving these tax credits cannot simultaneously receive other non-repayable financial assistance for the same water quality improvements.