Bill Text: IA HF2556 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act relating to the solar energy system tax credit, and including effective date and retroactive applicability provisions.(Formerly HF 2395.)
Spectrum: Committee Bill
Status: (Engrossed - Dead) 2022-04-04 - Subcommittee: Goodwin, Dawson, and T. Taylor. S.J. 691. [HF2556 Detail]
Download: Iowa-2021-HF2556-Introduced.html
House
File
2556
-
Introduced
HOUSE
FILE
2556
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
HF
2395)
A
BILL
FOR
An
Act
relating
to
the
solar
energy
system
tax
credit,
and
1
including
effective
date
and
retroactive
applicability
2
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
5571HV
(2)
89
jm/jh
H.F.
2556
Section
1.
Section
422.11L,
subsection
3,
paragraph
d,
Code
1
2022,
is
amended
to
read
as
follows:
2
d.
(1)
(a)
A
taxpayer
must
submit
an
application
to
the
3
department
for
each
separate
and
distinct
solar
installation.
4
The
application
must
be
approved
by
the
department
in
order
to
5
claim
the
tax
credit.
The
application
must
be
filed
by
May
6
1
following
the
year
of
the
installation
of
the
solar
energy
7
system.
8
(b)
Notwithstanding
the
May
1
application
deadline
in
9
subparagraph
division
(a),
a
taxpayer
submitting
an
application
10
for
an
installation
described
in
subsection
1,
paragraph
“a”
,
11
that
was
completed
during
the
2021
calendar
year,
has
until
12
June
30,
2022,
to
submit
an
application
for
review
pursuant
to
13
subsection
7.
14
(2)
The
department
shall
accept
and
approve
applications
15
on
a
first-come,
first-served
basis
until
the
maximum
amount
16
of
tax
credits
that
may
be
claimed
pursuant
to
subsection
4
17
is
reached.
If
for
a
tax
year
the
aggregate
amount
of
tax
18
credits
applied
for
exceeds
the
amount
specified
in
subsection
19
4
,
the
department
shall
establish
a
wait
list
for
tax
credits.
20
Valid
Except
as
provided
in
subparagraph
(1),
subparagraph
21
division
(b),
valid
applications
filed
by
the
taxpayer
by
May
22
1
following
the
year
of
the
installation
but
not
approved
by
23
the
department
shall
be
placed
on
a
wait
list
in
the
order
24
the
applications
were
received
and
those
applicants
shall
25
be
given
priority
for
having
their
applications
approved
26
in
succeeding
years.
Placement
on
a
wait
list
pursuant
to
27
this
subparagraph
shall
not
constitute
a
promise
binding
the
28
state.
The
availability
of
a
tax
credit
and
approval
of
a
tax
29
credit
application
pursuant
to
this
section
in
a
future
year
30
is
contingent
upon
the
availability
of
tax
credits
in
that
31
particular
year.
32
Sec.
2.
Section
422.11L,
subsection
4,
paragraph
a,
Code
33
2022,
is
amended
to
read
as
follows:
34
a.
The
Except
as
provided
in
subsection
7,
the
cumulative
35
-1-
LSB
5571HV
(2)
89
jm/jh
1/
4
H.F.
2556
value
of
tax
credits
claimed
annually
by
applicants
pursuant
1
to
this
section
shall
not
exceed
five
million
dollars.
Of
2
this
amount,
at
least
one
million
dollars
shall
be
reserved
3
for
claims
associated
with
or
resulting
from
residential
solar
4
energy
system
installations.
In
the
event
that
the
total
5
amount
of
claims
submitted
for
residential
solar
energy
system
6
installations
in
a
tax
year
is
an
amount
less
than
one
million
7
dollars,
the
remaining
unclaimed
reserved
amount
shall
be
8
made
available
for
claims
associated
with
or
resulting
from
9
nonresidential
solar
energy
system
installations
received
for
10
the
tax
year.
11
Sec.
3.
Section
422.11L,
Code
2022,
is
amended
by
adding
the
12
following
new
subsection:
13
NEW
SUBSECTION
.
7.
a.
Notwithstanding
any
other
law
to
the
14
contrary,
the
following
applicants
shall
be
eligible
to
claim
15
the
credit
for
the
tax
year
beginning
on
or
after
January
1,
16
2022,
but
before
January
1,
2023,
for
the
credit
described
in
17
subsection
1,
paragraph
“a”
,
as
if
the
credit
did
not
expire:
18
(1)
An
applicant
with
a
valid
application
who
was
on
the
19
wait
list
pursuant
to
subsection
3,
paragraph
“d”
,
subparagraph
20
(2),
as
of
December
31,
2021,
and
who
did
not
receive
the
21
credit.
22
(2)
An
applicant
whose
application
went
through
the
review
23
process
of
the
department
and
who
otherwise
had
a
valid
24
application
but
was
nevertheless
sent
a
denial
letter
by
the
25
department
for
the
2021
award
year
regardless
of
whether
or
not
26
the
applicant
appealed
the
denial
letter.
27
(3)
An
applicant
with
a
valid
application
whose
application
28
was
in
the
review
process
of
the
department
but
whose
29
application
expired
due
to
the
expiration
of
the
credit
30
described
in
subsection
1,
paragraph
“a”
.
The
department
31
shall
reinstate
and
review
such
an
expired
application.
32
The
department
shall
use
the
original
submission
date
of
33
reinstated
applications
to
determine
the
order
of
reviewing
34
such
applications.
35
-2-
LSB
5571HV
(2)
89
jm/jh
2/
4
H.F.
2556
(4)
An
applicant
who
has
not
submitted
an
application
for
an
1
installation
that
was
completed
during
the
2021
calendar
year
2
but
who
submits
a
valid
application
on
or
before
June
30,
2022.
3
b.
The
cumulative
value
of
tax
credits
in
subsection
3,
4
paragraph
“d”
,
subparagraph
(2),
shall
not
limit
the
amount
of
5
annual
tax
credits
that
may
be
awarded
for
valid
applications
6
that
qualify
pursuant
to
this
subsection.
7
Sec.
4.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
immediate
8
importance,
takes
effect
upon
enactment.
9
Sec.
5.
RETROACTIVE
APPLICABILITY.
A
tax
credit
award
10
issued
pursuant
to
this
Act
applies
retroactively
to
tax
years
11
beginning
on
or
after
January
1,
2022,
but
before
January
1,
12
2023.
13
EXPLANATION
14
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
15
the
explanation’s
substance
by
the
members
of
the
general
assembly.
16
This
bill
relates
to
the
solar
energy
system
tax
credit
17
available
against
the
individual
and
corporate
income
tax,
the
18
franchise
tax,
and
the
moneys
and
credits
tax.
19
BACKGROUND.
Currently,
the
solar
energy
system
tax
credit
20
expired
for
residential
installations
completed
after
December
21
31,
2021,
due
to
conforming
with
a
version
of
federal
law
that
22
no
longer
applies.
Additionally,
a
maximum
of
$5
million
of
23
both
residential
and
commercial
solar
energy
system
credits
may
24
be
annually
claimed
in
the
aggregate,
and
a
wait
list
exists
25
for
installations
completed
on
or
prior
to
December
31,
2021.
26
CHANGES
IN
THE
BILL.
The
bill
changes
the
solar
energy
27
system
tax
credit
application
due
date
for
residential
28
installations
that
were
completed
during
the
2021
calendar
year
29
from
May
1,
2022,
to
June
30,
2022.
The
bill
also
removes
the
30
annual
maximum
$5
million
limit
placed
on
residential
solar
31
energy
system
tax
credit
claims
for
certain
applicants.
The
32
bill
does
not
extend
the
residential
solar
energy
system
tax
33
credit
for
installations
that
are
completed
after
December
31,
34
2021.
35
-3-
LSB
5571HV
(2)
89
jm/jh
3/
4
H.F.
2556
The
following
residential
solar
energy
system
tax
credit
1
applicants
are
eligible
to
claim
the
solar
energy
system
tax
2
credit
for
the
2022
tax
year
as
if
the
residential
solar
3
energy
system
tax
credit
did
not
expire:
an
applicant
with
a
4
valid
application
who
was
on
the
wait
list
as
of
December
31,
5
2021,
and
who
did
not
receive
the
credit;
an
applicant
whose
6
application
went
through
the
review
process
of
the
department
7
of
revenue
and
who
otherwise
had
a
valid
application
but
8
was
nevertheless
sent
a
denial
letter
by
the
department
of
9
revenue
for
the
2021
award
year
regardless
of
whether
or
not
10
the
applicant
appealed
the
denial
letter;
an
applicant
whose
11
application
was
in
the
review
process
of
the
department
of
12
revenue
but
whose
application
expired
due
to
the
expiration
13
of
the
credit;
and
an
applicant
who
has
not
submitted
an
14
application
for
an
installation
that
was
completed
during
the
15
2021
calendar
year.
16
The
bill
takes
effect
upon
enactment
and
applies
17
retroactively
to
the
tax
year
beginning
on
or
after
January
1,
18
2022,
but
before
January
1,
2023.
19
-4-
LSB
5571HV
(2)
89
jm/jh
4/
4
