On March 23, 2018, President Trump signed into law the Consolidated Appropriations Act, 2018 (P.L. 115-141). Among other changes to the Internal Revenue Code (IRC), this bill included a fix to the so called “grain glitch,” which occurred when IRC section 199 was repealed under Tax Cuts and Jobs Act (TCJA) in 2018.

• New DPAD 199A(g) Deduction for Specified Agricultural and Horticultural Cooperatives
  The Iowa Department of Revenue has released new guidance for Specified Agricultural and Horticultural Cooperatives claiming the IRC section 199A(g) deduction (New DPAD). For tax years 2019 and later, qualifying co-ops will generally be allowed to claim 100% of the federal 199A(g) deduction and will be required to take 100% of any reduction to the cooperative’s IRC section 1382 deduction resulting from the new DPAD allocated to patrons for Iowa purposes.

This information was sent via GovDelivery to those subscribed to receive Law & Policy updates from the Department. To receive notifications of resources and guidance issued by the Department, subscribe to updates by selecting the tax topics of interest.