Bill Text: IA HF2452 | 2015-2016 | 86th General Assembly | Introduced

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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

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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:
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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.
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