Bill Text: IA HF2061 | 2019-2020 | 88th General Assembly | Introduced

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Bill Title: A bill for an act relating to registration fees paid for certain electric vehicles, including by altering the amounts of the registration fees, creating a tax credit for registration fees paid, and exempting customers of an electric utility who have paid registration fees from certain user or franchise fees, and including applicability provisions.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-01-21 - Introduced, referred to Transportation. H.J. 106. [HF2061 Detail]

Download: Iowa-2019-HF2061-Introduced.html

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House File 2061 - Introduced
HOUSE FILE 2061
BY ISENHART
A BILL FOR
An Act relating to registration fees paid for certain electric
vehicles, including by altering the amounts of the
registration fees, creating a tax credit for registration
fees paid, and exempting customers of an electric utility
who have paid registration fees from certain user or
franchise fees, and including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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Section 1. Section 321.116, Code 2020, is amended to read
as follows:
321.116 Battery electric and plug-in hybrid electric motor
vehicle fees.
1. For each battery electric motor vehicle subject to an
annual registration fee under section 321.109, subsection 1 ,
paragraph “a” , and operated on the public highways of this
state, the owner shall pay an annual battery electric motor
vehicle registration fee, which shall be in addition to the
annual registration fee imposed for the vehicle under section
321.109, subsection 1 , paragraph “a” . For purposes of this
subsection , “battery electric motor vehicle” means a motor
vehicle equipped with electrical drivetrain components and not
equipped with an internal combustion engine, that is propelled
exclusively by one or more electrical motors using electrical
energy stored in a battery or other energy storage device that
can be recharged by plugging into an electrical outlet or
electric vehicle charging station. The amount of the fee shall
be as follows:
a. For the period beginning January July 1, 2020, and ending
December 31, 2020, sixty-five dollars thirty-two dollars and
fifty cents .
b. For the period beginning January 1, 2021, and ending
December 31, 2021, ninety-seven dollars and fifty cents
sixty-five dollars .
c. On or after January 1, 2022, one hundred thirty dollars.
2. For each plug-in hybrid electric motor vehicle subject to
an annual registration fee under section 321.109, subsection
1 , paragraph “a” , and operated on the public highways of this
state, the owner shall pay an annual plug-in hybrid electric
motor vehicle registration fee, which shall be in addition
to the annual registration fee imposed for the vehicle under
section 321.109, subsection 1 , paragraph “a” . For purposes of
this subsection , “plug-in hybrid electric motor vehicle” means a
motor vehicle equipped with electrical drivetrain components,
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an internal combustion engine, and a battery or other energy
storage device that can be recharged by plugging into an
electrical outlet or electric vehicle charging station. The
amount of the fee shall be as follows:
a. For the period beginning January July 1, 2020, and ending
December 31, 2020, thirty-two dollars and fifty cents sixteen
dollars and twenty-five cents .
b. For the period beginning January 1, 2021, and ending
December 31, 2021, forty-eight dollars and seventy-five cents
thirty-two dollars and fifty cents .
c. On or after January 1, 2022, sixty-five dollars.
3. The department shall document the average number of
miles traveled per vehicle per year by battery electric motor
vehicles and plug-in hybrid electric motor vehicles registered
under this section.
Sec. 2. NEW SECTION . 321.116A Electric vehicle registration
fee tax credit.
1. a. A person who paid a registration fee pursuant to
section 321.116 or section 321.117, subsection 2, may claim a
tax credit in an amount equal to the registration fee paid.
b. The tax credit shall be allowed against taxes imposed
under chapter 422, division II or III.
c. An individual may claim a tax credit under this section
of a partnership, limited liability company, S corporation,
estate, or trust electing to have income taxed directly to
the individual. The amount claimed by the individual shall
be based upon the pro rata share of the individual’s earnings
from the partnership, limited liability company, S corporation,
estate, or trust.
d. Any tax credit in excess of the taxpayer’s liability
for the tax year is not refundable but may be credited to the
tax liability for the following five years or until depleted,
whichever is earlier.
e. A tax credit shall not be carried back to a tax year
prior to the tax year in which the taxpayer first receives the
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tax credit.
2. The department of transportation shall control the
issuance of all tax credit certificates to persons who pay
a registration fee pursuant to section 321.116 or section
321.117, subsection 2.
3. a. To claim a tax credit under this section, a taxpayer
shall include one or more tax credit certificates with the
taxpayer’s tax return.
b. The tax credit certificate shall contain the taxpayer’s
name, address, tax identification number, the amount of the
credit, and any other information required by the department
of revenue.
c. The tax credit certificate, unless rescinded by the
department of transportation, shall be accepted by the
department of revenue as payment for taxes imposed pursuant to
chapter 422, divisions II and III, subject to any conditions or
restrictions placed by the department of transportation upon
the face of the tax credit certificate.
d. Tax credit certificates issued pursuant to this section
shall not be transferred to any other person.
Sec. 3. Section 321.117, Code 2020, is amended to read as
follows:
321.117 Motorcycle, autocycle, ambulance, and hearse fees.
1. For all motorcycles and autocycles the annual
registration fee shall be twenty dollars. For all motorized
bicycles the annual registration fee shall be seven dollars.
When the motorcycle or autocycle is more than five model
years old, the annual registration fee shall be ten dollars.
The annual registration fee for ambulances and hearses shall
be fifty dollars. Passenger car plates shall be issued for
ambulances and hearses.
2. In addition to the fee required for a motorcycle under
subsection 1 , the owner of a motorcycle that is a battery
electric motor vehicle or plug-in hybrid electric motor
vehicle, as those terms are defined in section 321.116 , shall
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H.F. 2061
pay an annual electric motorcycle registration fee. The amount
of the fee shall be as follows:
a. For the period beginning January July 1, 2020, and ending
December 31, 2020, four dollars and fifty cents two dollars and
twenty-five cents .
b. For the period beginning January 1, 2021, and ending
December 31, 2021, six dollars and seventy-five cents four
dollars and fifty cents .
c. On or after January 1, 2022, nine dollars.
3. The department shall document the average number of miles
traveled per vehicle per year by motorcycles registered under
subsection 2.
Sec. 4. NEW SECTION . 422.12O Electric vehicle registration
fee tax credit.
The taxes imposed under this division, less the credits
allowed under section 422.12, shall be reduced by an electric
vehicle registration fee tax credit allowed under section
321.116A.
Sec. 5. Section 422.33, Code 2020, is amended by adding the
following new subsection:
NEW SUBSECTION . 31. The taxes imposed under this division
shall be reduced by an electric vehicle registration fee tax
credit allowed under section 321.116A.
Sec. 6. Section 476.6, Code 2020, is amended by adding the
following new subsection:
NEW SUBSECTION . 22. Electric vehicles. A residential
customer of an electric utility subject to rate regulation
by the board shall be exempt from paying any user fee or
franchise fee on the first two hundred eighty-two kilowatt
hours of electricity per month if the residential customer
submits to the electric utility proof that the customer paid
a registration fee required under section 321.116 or section
321.117, subsection 2, within the previous one-year period.
Sec. 7. APPLICABILITY. The following apply to tax years
beginning on or after January 1, 2021:
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1. The section of this Act enacting section 321.116A.
2. The section of this Act enacting section 422.12O.
3. The section of this Act amending section 422.33.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
This bill changes the amount of the annual battery electric
motor vehicle registration fee for the period beginning July
1, 2020, and ending December 31, 2020, from $65 to $32.50, and
the fee for the period beginning January 1, 2021, and ending
December 31, 2021, from $97.50 to $65. The bill changes the
amount of the annual plug-in hybrid electric motor vehicle
registration fee for the period beginning July 1, 2020, and
ending December 31, 2020, from $32.50 to $16.25, and the fee
for the period beginning January 1, 2021, and ending December
31, 2021, from $48.75 to $32.50. The bill changes the amount
of the annual electric motorcycle fee for the period beginning
July 1, 2020, and ending December 31, 2020, from $4.50 to
$2.25, and the fee for the period beginning January 1, 2021,
and ending December 31, 2021, from $6.75 to $4.50.
The bill requires the department of transportation (DOT) to
document the average number of miles traveled per vehicle per
year by registered battery electric motor vehicles, plug-in
hybrid electric motor vehicles, and electric motorcycles.
The bill creates a new tax credit available to persons who
pay registration fees for battery electric and plug-in hybrid
electric motor vehicles and motorcycles. The tax credit is
allowed against personal net income taxes and business taxes
on corporations. The tax credit is not refundable but can be
credited to the tax liability for the following five years or
until depleted, whichever is earlier. However, the tax credit
cannot be carried back to a tax year prior to the tax year in
which the taxpayer first receives the tax credit.
The bill provides that the DOT controls the issuance of tax
credit certificates to persons who pay registration fees for
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battery electric and plug-in hybrid electric motor vehicles
and motorcycles. The tax credit certificate must contain the
taxpayer’s name, address, tax identification number, amount
of the credit, and any other information as required by the
department of revenue (DOR). A person must include the tax
credit certificate with the person’s tax return in order to
claim the tax credit, which, unless rescinded by the DOT,
must be accepted by the DOR as payment for taxes. The bill
prohibits a person from transferring the tax credit certificate
to any other person.
The portions of the bill instituting the new tax credit apply
to tax years beginning on or after January 1, 2021.
Lastly, the bill provides that a residential customer of
an electric utility subject to rate regulation by the Iowa
utilities board is exempt from paying any user fee or franchise
fee on the first 282 kilowatt hours of electricity per month
if the residential customer submits to the electric utility
proof that the customer paid a registration fee for a battery
electric motor vehicle, plug-in hybrid electric motor vehicle,
or electric motorcycle within the previous one-year period.
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