HB 1219 Summary: Agricultural Job Tax Credit

• Creates a tax credit for eligible agricultural businesses (classified under NAICS sector 11) that employ qualified full-time employees performing hand labor in planting, cultivation, or harvesting for at least 12 consecutive months averaging 36+ hours per week.

• Establishes tiered tax credit percentages based on employee wages: 5% credit for federal minimum wage to under $10/hour, 8% for $10-$13/hour, 10% for $13-$15/hour, and 15% for $15/hour or more, calculated on actual annual wages paid.

• Requires eligible agricultural businesses to apply to the Department of Economic Opportunity for tax credit approval, with the department reviewing and approving or denying applications within 10 days and notifying applicants in writing.

• Permits unused tax credits to be carried forward for up to 5 years and applied in subsequent tax years after other credits, as specified in section 220.02(8).

• Takes effect July 1, 2014, and grants the Department of Economic Opportunity and Department of Revenue authority to adopt rules and guidelines for administering the credit program.