House File 645 - Enrolled




                              HOUSE FILE       
                              BY  COMMITTEE ON WAYS AND
                                  MEANS

                              (SUCCESSOR TO HSB 212)
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                                   A BILL FOR
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                                         House File 645

                             AN ACT
 MODIFYING AND ENACTING PROVISIONS RELATING TO SPECIFIED
    RENEWABLE ENERGY TAX CREDITS, AND INCLUDING EFFECTIVE DATE
    AND RETROACTIVE APPLICABILITY PROVISIONS.

 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    Section 1.  Section 422.11L, subsection 1, Code 2015, is
 amended by adding the following new paragraph:
    NEW PARAGRAPH.  c.  Notwithstanding paragraphs "a" and "b"
 of this subsection, for installations occurring on or after
 January 1, 2016, the applicable percentages of the federal
 residential energy efficiency property tax credit related to
 solar energy and the federal energy credit related to solar
 energy systems shall be fifty percent.
    Sec. 2.  Section 422.11L, subsection 4, paragraph a, Code
 2015, is amended to read as follows:
    a.  The cumulative value of tax credits claimed annually
 by applicants pursuant to this section shall not exceed four
  five million five hundred thousand dollars. Of this amount,
 at least one million dollars shall be reserved for claims
 associated with or resulting from residential solar energy
 system installations. In the event that the total amount
 of claims submitted for residential solar energy system
 installations in a tax year is an amount less than one million
 dollars, the remaining unclaimed reserved amount shall be
 made available for claims associated with or resulting from
 nonresidential solar energy system installations received for
 the tax year.
    Sec. 3.  Section 422.33, subsection 29, paragraph a, Code
 2015, is amended to read as follows:
    a.  The taxes imposed under this division shall be reduced by
 a solar energy system tax credit equal to sixty percent of the
 federal energy credit related to solar energy systems provided
 in section 48(a)(2)(A)(i)(II) and section 48(a)(2)(A)(i)(III)
 of the Internal Revenue Code, not to exceed twenty thousand
 dollars.  For installations occurring on or after January 1,
 2016, the applicable percentage of the federal energy credit
 related to solar energy systems shall be fifty percent.
    Sec. 4.  Section 422.60, subsection 12, paragraph a, Code
 2015, is amended to read as follows:
    a.  The taxes imposed under this division shall be reduced by
 a solar energy system tax credit equal to sixty percent of the
 federal energy credit related to solar energy systems provided
 in section 48(a)(2)(A)(i)(II) and section 48(a)(2)(A)(i)(III)
 of the Internal Revenue Code, not to exceed twenty thousand
 dollars.  For installations occurring on or after January 1,
 2016, the applicable percentage of the federal energy credit
 related to solar energy systems shall be fifty percent.
    Sec. 5.  Section 476C.1, subsection 6, paragraph b,
 subparagraph (4), Code 2015, is amended to read as follows:
    (4)  An electric cooperative association organized pursuant
 to chapter 499 that sells electricity to end users located in
 this state, a municipally owned city utility as defined in
 section 362.2, or a public utility subject to rate regulation
 pursuant to chapter 476.
    Sec. 6.  Section 476C.3, subsection 4, paragraph b, Code
 2015, is amended to read as follows:
    b.  The maximum amount of energy production capacity
 equivalent of all other facilities the board may find eligible
 under this chapter shall not exceed a combined output of
 fifty=three sixty=three megawatts of nameplate generating
 capacity and, annually, one hundred sixty=seven billion British
 thermal units of heat for a commercial purpose.
    (1)  Of the maximum amount of energy production capacity
 equivalent of all other facilities found eligible under this
 chapter, no more than ten megawatts of nameplate generating
 capacity or energy production capacity equivalent shall be
 allocated to any one facility.
    (2)  Of the maximum amount of energy production capacity
 equivalent of all other facilities found eligible under this
 chapter, fifty=five billion British thermal units of heat for a
 commercial purpose shall be reserved annually for an eligible
 facility that is a refuse conversion facility for processed,
 engineered fuel from a multicounty solid waste management
 planning area. The maximum amount of energy production
 capacity the board may find eligible for a single refuse
 conversion facility is, annually, fifty=five billion British
 thermal units of heat for a commercial purpose.
    (3)  Of the maximum amount of energy production capacity
 equivalent of all other facilities found eligible under this
 chapter, ten megawatts of nameplate generating capacity or
 energy production equivalent shall be reserved for solar
 facilities with a generating capacity of one and one=half
 megawatts or less owned or contracted for by utilities
 described in section 476C.1, subsection 6, paragraph "b",
 subparagraphs (4) and (5).
    Sec. 7.  Section 476C.5, Code 2015, is amended to read as
 follows:
    476C.5  Certificate issuance period.
    A producer or purchaser of renewable energy may shall
  receive renewable energy tax credit certificates for a ten=year
 period for each eligible renewable energy facility under this
 chapter. The ten=year period for issuance of the tax credit
 certificates begins with the date the purchaser of renewable
 energy first purchases electricity, hydrogen fuel, methane
 gas or other biogas used to generate electricity, or heat for
 commercial purposes from the eligible renewable energy facility
 for which a tax credit is issued under this chapter, or the
 date the producer of the renewable energy first uses the energy
 produced by the eligible renewable energy facility for on=site
 consumption. Renewable energy tax credit certificates shall
 not be issued for renewable energy purchased or produced for
 on=site consumption after December 31, 2026.
    Sec. 8.  Section 533.329, subsection 2, Code 2015, is amended
 by adding the following new paragraph:
    NEW PARAGRAPH.  l.  The moneys and credits tax imposed under
 this section shall be reduced by a solar energy system tax
 credit allowed under section 422.11L.
    Sec. 9.  EFFECTIVE UPON ENACTMENT.  This Act, being deemed of
 immediate importance, takes effect upon enactment.
    Sec. 10.  RETROACTIVE APPLICABILITY.
    1.  Except as provided in subsection 2, the sections of this
 Act amending section 476C.3, subsection 4, paragraph "b", and
 section 476C.5, apply retroactively to January 1, 2014, for tax
 years beginning on or after that date.
    2.  The section of this Act amending section 476C.1,
 subsection 6, and section 476C.3, subsection 4, paragraph "b",
 unnumbered paragraph 1, and enacting section 476C.3, subsection
 4, paragraph "b", subparagraph (3), applies retroactively to
 January 1, 2015, for tax years beginning on or after that date.
    3.  The section of this Act amending section 422.11L,
 subsection 4, paragraph "a", applies retroactively to January
 1, 2015, for tax years beginning on or after that date.
    4.  The section of this Act enacting section 533.329,
 subsection 2, paragraph "l", applies retroactively to January
 1, 2015, for tax years beginning on or after that date.


                                                             
                               KRAIG PAULSEN
                               Speaker of the House


                                                             
                               PAM JOCHUM
                               President of the Senate
    I hereby certify that this bill originated in the House and
 is known as House File 645, Eighty=sixth General Assembly.


                                                             
                               CARMINE BOAL
                               Chief Clerk of the House
 Approved                , 2015


                                                             
                               TERRY E. BRANSTAD
                               Governor

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