Bill Text: IA HF2452 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A bill for an act creating a geothermal tax credit available against the individual income tax and including effective date and applicability provisions. (Formerly HF 2174)
Spectrum: Committee Bill
Status: (Engrossed - Dead) 2016-04-25 - Subcommittee, Hogg, Allen, and Anderson. S.J. 782. [HF2452 Detail]
Download: Iowa-2015-HF2452-Introduced.html
House File 2452 - Introduced HOUSE FILE BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HF 2174) A BILL FOR 1 An Act creating a geothermal tax credit available against the 2 individual income tax and including effective date and 3 applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 5658HV (3) 86 mm/sc PAG LIN 1 1 Section 1. NEW SECTION. 422.10A Geothermal tax credit. 1 2 1. For purposes of this section, unless the context 1 3 otherwise requires: 1 4 a. "Qualified geothermal heat pump property" means any 1 5 equipment that uses the ground or groundwater as a thermal 1 6 energy source to heat the dwelling unit of the taxpayer or as a 1 7 thermal energy sink to cool such dwelling unit, which equipment 1 8 meets the requirements of the federal Energy Star program in 1 9 effect at the time that the expenditure for such equipment is 1 10 made. 1 11 b. "Qualified geothermal heat pump property expenditures" 1 12 means an expenditure for qualified geothermal heat pump 1 13 property installed on or in connection with a dwelling unit 1 14 located in Iowa and used as a residence by the taxpayer. 1 15 2. The taxes imposed under this division, less the credits 1 16 allowed under section 422.12, shall be reduced by a geothermal 1 17 tax credit equal to ten percent of the qualified geothermal 1 18 heat pump property expenditures made by the taxpayer during the 1 19 tax year. 1 20 3. Qualified geothermal heat pump property expenditures 1 21 shall be deemed to have been made on the date the installation 1 22 is complete or, in the case of new construction or 1 23 reconstruction, the date the original use of the structure by 1 24 the taxpayer begins. 1 25 4. In the case of a taxpayer whose dwelling unit is part 1 26 of a multiple housing cooperative organized under chapter 1 27 499A or a horizontal property regime under chapter 499B, 1 28 the taxpayer shall be treated as having made the taxpayer's 1 29 proportionate share of any qualified geothermal heat pump 1 30 property expenditures made by the cooperative or the regime. 1 31 5. Any credit in excess of the tax liability is not 1 32 refundable but the excess for the tax year may be credited 1 33 to the tax liability for the following ten years or until 1 34 depleted, whichever is earlier. 1 35 6. A taxpayer who claims a credit under this section shall 2 1 not claim the geothermal heat pump tax credit under section 2 2 422.11I, if available, on the same expenditures. 2 3 Sec. 2. EFFECTIVE DATE. This Act takes effect January 1, 2 4 2017. 2 5 Sec. 3. APPLICABILITY. This Act applies to qualified 2 6 geothermal heat pump property expenditures incurred on or after 2 7 January 1, 2017. 2 8 EXPLANATION 2 9 The inclusion of this explanation does not constitute agreement with 2 10 the explanation's substance by the members of the general assembly. 2 11 This bill creates a geothermal tax credit available 2 12 against the individual income tax equal to 10 percent 2 13 of the expenditures for qualified geothermal heat pump 2 14 property installed on or in connection with a dwelling unit 2 15 located in Iowa and used as a residence by the taxpayer. 2 16 "Qualified geothermal heat pump property" and other related 2 17 terms are defined in the bill. For purposes of the tax 2 18 credit, expenditures are deemed to be made on the date the 2 19 installation is complete or, in the case of new construction 2 20 or reconstruction, the date the original use of the structure 2 21 begins. If the taxpayer's dwelling unit is part of a multiple 2 22 housing cooperative (Code chapter 499A) or a horizontal 2 23 property regime (Code chapter 499B) the taxpayer is treated as 2 24 having made a proportionate share of any expenditures made by 2 25 the cooperative or regime. 2 26 The tax credit is nonrefundable, but any amount in excess of 2 27 the taxpayer's tax liability may be carried forward for up to 2 28 10 years. 2 29 A taxpayer who claims the geothermal tax credit is not 2 30 eligible to claim the geothermal heat pump tax credit under 2 31 Code section 422.11I, if available, on the same expenditures. 2 32 Code section 422.11I currently provides a tax credit equal 2 33 to 20 percent of the federal residential energy efficiency 2 34 property tax credit for geothermal heat pumps, but that federal 2 35 credit is scheduled to expire after the 2016 tax year. 3 1 The bill takes effect January 1, 2017, and applies to 3 2 qualified geothermal heat pump property expenditures incurred 3 3 on or after that date. LSB 5658HV (3) 86 mm/sc