Bill Text: IA HF2073 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act reducing the solar energy system tax credit wait list by reducing authorized aggregate tax credits for certain economic development programs.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-01-24 - Introduced, referred to Commerce. H.J. 108. [HF2073 Detail]
Download: Iowa-2021-HF2073-Introduced.html
House
File
2073
-
Introduced
HOUSE
FILE
2073
BY
STAED
A
BILL
FOR
An
Act
reducing
the
solar
energy
system
tax
credit
wait
list
1
by
reducing
authorized
aggregate
tax
credits
for
certain
2
economic
development
programs.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
Section
15.119,
Code
2022,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
6.
a.
In
allocating
the
amount
of
tax
3
credits
authorized
pursuant
to
subsection
1
among
the
programs
4
specified
in
subsection
2,
the
authority
shall
reduce
the
5
amount
of
tax
credits
authorized
pursuant
to
subsection
1
equal
6
to
the
cumulative
value
of
the
solar
energy
system
tax
credits
7
on
the
wait
list,
upon
the
notification
sent
pursuant
to
8
section
422.11L,
subsection
4,
paragraph
“c”
,
subparagraph
(2).
9
b.
A
reduction
pursuant
to
this
subsection
shall
not
exceed
10
seven
million
dollars
in
any
one
fiscal
year.
11
Sec.
2.
Section
422.11L,
subsection
4,
Code
2022,
is
amended
12
to
read
as
follows:
13
4.
a.
The
cumulative
value
of
tax
credits
claimed
annually
14
by
applicants
pursuant
to
this
section
shall
not
exceed
15
five
million
dollars
,
unless
additional
moneys
are
available
16
pursuant
to
paragraph
“c”
.
Of
this
amount,
at
least
one
17
million
dollars
shall
be
reserved
for
claims
associated
with
or
18
resulting
from
residential
solar
energy
system
installations.
19
In
the
event
that
the
total
amount
of
claims
submitted
for
20
residential
solar
energy
system
installations
in
a
tax
year
21
is
an
amount
less
than
one
million
dollars,
the
remaining
22
unclaimed
reserved
amount
shall
be
made
available
for
claims
23
associated
with
or
resulting
from
nonresidential
solar
energy
24
system
installations
received
for
the
tax
year.
25
b.
If
an
amount
of
tax
credits
available
for
a
tax
year
26
pursuant
to
paragraph
“a”
goes
unclaimed,
the
amount
of
the
27
unclaimed
tax
credits
shall
be
made
available
for
the
following
28
tax
year
in
addition
to,
and
cumulated
with,
the
amount
29
available
pursuant
to
paragraph
“a”
for
the
following
tax
year.
30
c.
(1)
The
cumulative
value
of
tax
credits
claimed
annually
31
may
exceed
five
million
dollars
pursuant
to
this
paragraph.
32
The
additional
amount
of
tax
credits
that
may
be
claimed
33
pursuant
to
this
paragraph
shall
equal
the
amount
of
tax
34
credits
placed
on
the
wait
list
pursuant
to
subsection
3,
up
to
35
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the
amount
allowable
under
section
15.119,
subsection
6,
until
1
such
time
the
wait
list
is
eliminated.
2
(2)
(a)
At
the
beginning
of
each
fiscal
year,
the
3
director
of
revenue
shall
notify
the
director
of
the
economic
4
development
authority
of
the
cumulative
value
of
the
tax
5
credits
on
the
wait
list
in
subsection
3,
paragraph
“d”
,
6
subparagraph
(2).
7
(b)
The
director
of
revenue
shall
notify
the
director
of
8
economic
development
authority
when
the
cumulative
value
of
9
the
tax
credits
on
the
wait
list
is
zero,
at
which
point
no
10
additional
amount
of
tax
credit
may
be
claimed
pursuant
to
this
11
paragraph.
12
EXPLANATION
13
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
14
the
explanation’s
substance
by
the
members
of
the
general
assembly.
15
This
bill
reduces
the
solar
energy
system
tax
credit
wait
16
list
by
reducing
authorized
aggregate
tax
credits
for
certain
17
economic
development
programs.
18
Currently,
the
cumulative
value
of
solar
energy
system
tax
19
credits
claimed
is
annually
capped
at
$5
million.
The
bill
20
allows
the
cumulative
value
of
tax
credits
claimed
annually
to
21
exceed
the
$5
million
cap
amount
until
such
time
the
wait
list
22
for
the
tax
credit
is
eliminated.
The
amount
of
tax
credits
23
that
may
be
claimed
in
excess
of
the
$5
million
cap
shall
equal
24
the
amount
of
tax
credits
placed
on
the
wait
list,
but
shall
25
not
exceed
$7
million
over
the
cap.
26
The
bill
requires
the
director
of
revenue,
at
the
beginning
27
of
each
fiscal
year,
to
notify
the
director
of
the
department
28
of
economic
authority
of
the
cumulative
value
of
tax
credits
29
on
the
solar
energy
system
tax
credit
wait
list.
The
bill
30
also
requires
the
director
of
the
department
of
revenue
to
31
notify
the
director
of
the
economic
development
authority
when
32
the
cumulative
value
of
the
tax
credits
on
the
solar
energy
33
system
tax
credit
wait
list
is
zero,
at
which
point
authorized
34
aggregate
tax
credits
for
certain
economic
development
programs
35
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shall
cease
being
reduced.
1
Currently,
certain
economic
development
tax
credit
amounts
2
are
capped
at
$170
million
in
the
aggregate
under
Code
section
3
15.119.
In
allocating
the
tax
credits
pursuant
to
Code
section
4
15.119,
the
bill
requires
the
economic
development
authority
to
5
reduce
the
$170
million
authorized
tax
credit
aggregate
amount
6
by
the
cumulative
value
of
the
solar
energy
system
tax
credits
7
on
the
wait
list
until
such
time
the
wait
list
for
the
solar
8
energy
system
tax
credit
is
eliminated.
9
The
solar
energy
system
tax
credit
is
available
against
10
the
individual
and
corporate
income
taxes,
franchise
tax,
and
11
moneys
and
credits
tax.
12
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