Bill Text: IA HF2535 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act establishing a solar electricity generation replacement tax corporate tax credit for electricity generated on certain property and including applicability provisions.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-02-24 - Introduced, referred to Commerce. H.J. 420. [HF2535 Detail]
Download: Iowa-2021-HF2535-Introduced.html
House
File
2535
-
Introduced
HOUSE
FILE
2535
BY
ISENHART
A
BILL
FOR
An
Act
establishing
a
solar
electricity
generation
replacement
1
tax
corporate
tax
credit
for
electricity
generated
on
2
certain
property
and
including
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
Section
422.33,
Code
2022,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
32.
a.
As
used
in
this
subsection,
unless
3
the
context
otherwise
requires:
4
(1)
“Conservation
buffer
strip”
means
a
riparian
buffer,
5
filter
strip,
contour
buffer
strip,
field
border,
or
any
6
vegetative
barrier
that
meets
the
criteria
established
by
the
7
United
States
department
of
agriculture
natural
resources
8
conservation
service.
9
(2)
“Farming
operation”
means
one
or
more
of
the
following:
10
(a)
Cultivation
of
land
for
the
production
of
food
for
human
11
consumption.
12
(b)
Raising
of
poultry.
13
(c)
Production
of
fruit
or
other
horticultural
crops.
14
(d)
Grazing
of
livestock.
15
(e)
Creation
of
an
actively
maintained
habitat
for
16
pollinating
insects.
17
(3)
“Solar
energy
conversion
facility”
or
“facility”
means
18
the
same
as
defined
in
section
476C.1.
19
b.
Each
taxpayer
that
is
subject
to
the
tax
imposed
on
20
electric
generation
under
section
437A.6
shall
be
eligible
21
for
a
credit
against
the
amount
of
taxes
imposed
under
this
22
subchapter
in
an
amount
equal
to
the
tax
imposed
under
section
23
437A.6
on
each
solar
energy
conversion
facility
owned
or
24
operated
by
the
taxpayer
during
the
applicable
tax
year
if
25
the
tax
year
begins
within
ten
years
following
the
date
the
26
facility
was
initially
placed
into
service
and
if
all
of
the
27
following
conditions
are
met
on
the
facility,
subject
to
the
28
limitation
of
paragraph
“c”
,
subparagraph
(1):
29
(1)
A
portion
of
the
land
upon
which
the
solar
energy
30
conversion
facility
is
located
is
used
by
a
person
who
is
31
actively
engaged
in
a
farming
operation
on
the
land.
32
(2)
The
solar
energy
conversion
facility
is
situated
on
33
the
land
in
a
manner
that
facilitates
the
establishment
or
34
continuation
of
a
farming
operation
on
the
land.
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(3)
A
conservation
buffer
strip
at
least
fifty
feet
in
width
1
is
maintained
between
all
streams
on
the
land,
if
any,
and
any
2
source
of
nitrogen,
manure,
or
any
other
regulated
contaminant
3
that
is
applied
on
the
land
in
conjunction
with
a
farming
4
operation.
5
(4)
If
the
farming
operation
on
the
land
includes
actively
6
maintaining
a
habitat
for
pollinating
insects,
the
total
area
7
of
the
habitat
for
such
purpose
does
not
exceed
fifty
percent
8
of
the
total
area
of
the
land.
9
c.
(1)
The
maximum
amount
of
taxes
imposed
on
each
solar
10
energy
conversion
facility
under
section
437A.6
that
may
be
11
used
for
the
calculation
of
the
credit
allowed
under
this
12
subsection
shall
be
the
total
amount
of
taxes
imposed
on
the
13
facility
under
section
437A.6,
but
not
to
exceed
the
lesser
of
14
the
following:
15
(a)
The
amount
of
taxes
due
under
section
437A.6
on
the
16
first
five
megawatts
of
electricity
generated
by
the
solar
17
energy
conversion
facility.
18
(b)
The
amount
of
taxes
due
under
section
437A.6
on
19
the
electricity
generated
on
a
portion
of
the
solar
energy
20
conversion
facility,
not
to
exceed
twenty
acres.
21
(2)
Any
credit
in
excess
of
the
tax
liability
is
not
22
refundable
but
the
excess
for
the
tax
year
may
be
credited
to
23
the
tax
liability
for
the
following
ten
tax
years
or
until
24
depleted,
whichever
is
the
earlier.
25
(3)
To
receive
the
credit
under
this
subsection,
the
26
taxpayer
subject
to
the
tax
under
section
437A.6
shall
annually
27
file
an
application
with
the
local
assessor
to,
in
cooperation
28
with
the
soil
and
water
conservation
district
in
which
the
land
29
is
located,
inspect
and
certify
that
all
of
the
conditions
30
of
paragraph
“b”
have
been
met.
Applications
must
be
filed
31
annually
not
later
than
June
30.
Once
an
application
is
filed
32
by
the
credit
applicant,
the
certification,
if
approved,
shall
33
be
sent
to
the
applicant
and
to
the
department.
The
local
34
assessor
shall
file
approved
certifications
with
the
department
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not
later
than
November
1.
1
d.
The
department
shall
adopt
rules
pursuant
to
chapter
2
17A
to
administer
this
subsection,
including
prescribing
forms
3
for
applications
filed
with
the
local
assessor
and
the
form
of
4
certifications
issued
by
the
local
assessor.
5
Sec.
2.
APPLICABILITY.
This
Act
applies
to
tax
years
6
beginning
on
or
after
January
1,
2023.
7
EXPLANATION
8
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
9
the
explanation’s
substance
by
the
members
of
the
general
assembly.
10
This
bill
establishes
a
tax
credit
against
the
corporate
11
income
tax
under
Code
chapter
422,
subchapter
III.
Each
12
taxpayer
that
is
subject
to
the
tax
imposed
on
electric
13
generation
under
Code
section
437A.6
shall
be
eligible
for
a
14
credit
against
the
corporate
income
tax
in
an
amount
equal
to
15
the
tax
imposed
under
Code
section
437A.6
on
each
solar
energy
16
conversion
facility
owned
or
operated
by
the
taxpayer
during
17
the
applicable
tax
year
if
the
tax
year
begins
within
10
years
18
following
the
date
the
facility
was
initially
placed
into
19
service
and
if
all
of
the
following
conditions
are
met:
(1)
a
20
portion
of
the
land
upon
which
the
facility
is
located
is
used
21
by
a
person
who
is
actively
engaged
in
a
farming
operation
on
22
the
land;
(2)
the
facility
is
situated
on
the
land
in
a
manner
23
that
facilitates
the
establishment
or
continuation
of
a
farming
24
operation;
(3)
a
conservation
buffer
strip
at
least
50
feet
in
25
width
is
maintained
between
all
streams
on
the
land,
if
any,
26
and
any
source
of
nitrogen,
manure,
or
any
other
regulated
27
contaminant
that
is
applied
on
the
land
in
conjunction
with
28
a
farming
operation;
and
(4)
if
the
farming
operation
on
the
29
land
includes
actively
maintaining
a
habitat
for
pollinating
30
insects,
the
total
area
of
the
habitat
for
that
purpose
does
31
not
exceed
50
percent
of
the
total
area
of
the
land.
32
The
bill
establishes
a
maximum
amount
of
taxes
imposed
on
33
each
solar
energy
conversion
facility
that
may
be
used
for
the
34
calculation
of
the
credit
allowed
under
the
bill.
Any
credit
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in
excess
of
the
tax
liability
is
not
refundable
but
the
excess
1
for
the
tax
year
may
be
credited
to
the
tax
liability
for
the
2
following
10
tax
years
or
until
depleted,
whichever
is
the
3
earlier.
4
To
receive
the
credit
under
the
bill,
the
person
subject
to
5
the
tax
imposed
on
electric
generation
shall
annually
file
an
6
application
with
the
local
assessor
to,
in
cooperation
with
7
the
soil
and
water
conservation
district
in
which
the
land
is
8
located,
inspect
and
certify
that
all
of
the
conditions
of
the
9
bill
have
been
met.
10
The
bill
requires
the
department
of
revenue
to
adopt
rules
11
to
administer
the
credit,
including
prescribing
forms
for
12
applications
filed
with
the
local
assessor
and
the
form
of
13
certifications
issued
by
the
local
assessor.
14
The
bill
applies
to
tax
years
beginning
on
or
after
January
15
1,
2023.
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