Bill Text: IA HF2586 | 2021-2022 | 89th General Assembly | Introduced

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Bill Title: A bill for an act relating to electric motor vehicles, including by creating an electric vehicle charging station grant program and fund, creating an electric vehicle registration fee tax credit, and exempting customers of an electric utility who have paid electric vehicle registration fees from certain user or franchise fees, making appropriations, and including applicability provisions.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2022-04-25 - Introduced, referred to Appropriations. H.J. 854. [HF2586 Detail]

Download: Iowa-2021-HF2586-Introduced.html

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House File 2586 - Introduced
HOUSE FILE 2586
BY ISENHART
A BILL FOR
An Act relating to electric motor vehicles, including by
creating an electric vehicle charging station grant program
and fund, creating an electric vehicle registration fee tax
credit, and exempting customers of an electric utility who
have paid electric vehicle registration fees from certain
user or franchise fees, making appropriations, and including
applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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Section 1. NEW SECTION . 307.50 Electric vehicle charging
station grant program —— fund.
1. The department shall establish and administer an
electric vehicle charging station grant program to provide
grants to private entities to incentivize the construction
of electric vehicle charging stations and to build electric
vehicle charging stations on the state capitol complex grounds.
2. a. An electric vehicle charging station grant fund is
created in the state treasury under the administration and
control of the department.
(1) (a) Moneys transferred to the fund pursuant to
subparagraph division (b) are appropriated to the department to
provide grants to private entities to build electric vehicle
charging stations at locations more than one mile away from a
highway identified by the federal highway administration of
the United States department of transportation as part of a
designated alternative fuel corridor.
(b) Notwithstanding section 8.57H, subsection 2, for the
fiscal year beginning July 1, 2022, and for each fiscal year
thereafter, there is transferred from the Iowa coronavirus
capital projects fund created in section 8.57H to the electric
vehicle charging station grant fund seven million six hundred
thousand dollars or the balance of the Iowa coronavirus capital
projects fund, whichever is lower.
(c) This subparagraph is repealed July 1, 2025, or on the
date the balance of the Iowa coronavirus capital projects fund
is transferred to the electric vehicle charging station grant
fund, whichever occurs earlier.
(2) (a) Moneys deposited in the fund pursuant to
subparagraph division (b) are appropriated to the department to
build electric vehicle charging stations on the state capitol
complex grounds.
(b) (i) For the fiscal year beginning July 1, 2022,
and for each fiscal year thereafter, there is appropriated
to the electric vehicle charging station grant fund from
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moneys received by the state from any partial settlement with
Volkswagen for violations of the federal Clean Air Act that
are eligible for use under this subparagraph division pursuant
to the terms of the settlement agreement, an amount necessary
to build electric vehicle charging stations on the state
capitol complex grounds, as determined by the department of
administrative services.
(ii) If the amount appropriated under subparagraph
subdivision (i) is insufficient, for the fiscal year beginning
July 1, 2022, and for each fiscal year thereafter, there is
transferred from the Iowa coronavirus capital projects fund
created in section 8.57H to the electric vehicle charging
station grant fund an amount necessary to build electric
vehicle charging stations on the state capitol complex grounds,
as determined by the department of administrative services,
notwithstanding section 8.57H, subsection 2. This subparagraph
subdivision is repealed July 1, 2025.
b. Notwithstanding section 8.33, moneys in the fund
that remain unencumbered or unobligated at the close of a
fiscal year shall not revert but shall remain available for
expenditure for the purposes designated. Notwithstanding
section 12C.7, subsection 2, interest or earnings on moneys in
the fund shall be credited to the fund.
3. The department shall adopt rules pursuant to chapter
17A to administer the electric vehicle charging station grant
program, including but not limited to rules providing for an
application process and establishing the criteria necessary to
award grants to applicants that plan to build electric vehicle
charging stations. The department may establish a limit on the
amount of moneys that may be awarded in order to maximize the
use of the moneys in the fund.
Sec. 2. Section 321.116, Code 2022, is amended to read as
follows:
321.116 Battery electric and plug-in hybrid electric motor
vehicle fees.
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1. For each battery electric motor vehicle subject to an
annual registration fee under section 321.109, subsection 1 ,
paragraph “a” , and operated on the public highways of this
state, the owner shall pay an annual battery electric motor
vehicle registration fee, which shall be in addition to the
annual registration fee imposed for the vehicle under section
321.109, subsection 1 , paragraph “a” . For purposes of this
subsection , “battery electric motor vehicle” means a motor
vehicle equipped with electrical drivetrain components and not
equipped with an internal combustion engine, that is propelled
exclusively by one or more electrical motors using electrical
energy stored in a battery or other energy storage device that
can be recharged by plugging into an electrical outlet or
electric vehicle charging station. The amount of the fee shall
be as follows:
a. For the period beginning January 1, 2020, and ending
December 31, 2020, sixty-five dollars.
b. For the period beginning January 1, 2021, and ending
December 31, 2021, ninety-seven dollars and fifty cents.
c. On or after January 1, 2022, is one hundred thirty
dollars.
2. For each plug-in hybrid electric motor vehicle subject to
an annual registration fee under section 321.109, subsection
1 , paragraph “a” , and operated on the public highways of this
state, the owner shall pay an annual plug-in hybrid electric
motor vehicle registration fee, which shall be in addition
to the annual registration fee imposed for the vehicle under
section 321.109, subsection 1 , paragraph “a” . For purposes of
this subsection , “plug-in hybrid electric motor vehicle” means a
motor vehicle equipped with electrical drivetrain components,
an internal combustion engine, and a battery or other energy
storage device that can be recharged by plugging into an
electrical outlet or electric vehicle charging station. The
amount of the fee shall be as follows:
a. For the period beginning January 1, 2020, and ending
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December 31, 2020, thirty-two dollars and fifty cents.
b. For the period beginning January 1, 2021, and ending
December 31, 2021, forty-eight dollars and seventy-five cents.
c. On or after January 1, 2022, is sixty-five dollars.
3. The department shall document the average number of
miles traveled per vehicle per year by battery electric motor
vehicles and plug-in hybrid electric motor vehicles registered
under this section.
4. For purposes of this section:
a. “Battery electric motor vehicle” means a motor vehicle
equipped with electrical drivetrain components and not
equipped with an internal combustion engine, that is propelled
exclusively by one or more electrical motors using electrical
energy stored in a battery or other energy storage device that
can be recharged by plugging into an electrical outlet or
electric vehicle charging station.
b. “Plug-in hybrid electric motor vehicle” means a motor
vehicle equipped with electrical drivetrain components, an
internal combustion engine, and a battery or other energy
storage device that can be recharged by plugging into an
electrical outlet or electric vehicle charging station.
Sec. 3. NEW SECTION . 321.116A Electric vehicle registration
fee tax credit.
1. a. A person who paid a registration fee pursuant to
section 321.116 or section 321.117, subsection 2, may claim a
tax credit in an amount equal to the registration fee paid.
b. The tax credit shall be allowed against taxes imposed
under chapter 422, subchapter II or III.
c. An individual may claim a tax credit under this section
of a partnership, limited liability company, S corporation,
estate, or trust electing to have income taxed directly to
the individual. The amount claimed by the individual shall
be based upon the pro rata share of the individual’s earnings
from the partnership, limited liability company, S corporation,
estate, or trust.
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d. Any tax credit in excess of the taxpayer’s liability
for the tax year is not refundable but may be credited to the
tax liability for the following five years or until depleted,
whichever is earlier.
e. A tax credit shall not be carried back to a tax year
prior to the tax year in which the taxpayer first receives the
tax credit.
2. The department of transportation shall control the
issuance of all tax credit certificates to persons who pay
a registration fee pursuant to section 321.116 or section
321.117, subsection 2.
3. a. To claim a tax credit under this section, a taxpayer
shall include one or more tax credit certificates with the
taxpayer’s tax return.
b. The tax credit certificate shall contain the taxpayer’s
name, address, tax identification number, the amount of the
credit, and any other information required by the department
of revenue.
c. The tax credit certificate, unless rescinded by the
department of transportation, shall be accepted by the
department of revenue as payment for taxes imposed pursuant to
chapter 422, subchapters II and III, subject to any conditions
or restrictions placed by the department of transportation upon
the face of the tax credit certificate.
d. Tax credit certificates issued pursuant to this section
shall not be transferred to any other person.
Sec. 4. Section 321.117, subsection 2, Code 2022, is amended
to read as follows:
2. a. In addition to the fee required for a motorcycle
under subsection 1 , the owner of a motorcycle that is a
battery electric motor vehicle or plug-in hybrid electric motor
vehicle, as those terms are defined in section 321.116 , shall
pay an annual electric motorcycle registration fee. The amount
of the fee shall be as follows:
a. For the period beginning January 1, 2020, and ending
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December 31, 2020, four dollars and fifty cents.
b. For the period beginning January 1, 2021, and ending
December 31, 2021, six dollars and seventy-five cents.
c. On or after January 1, 2022, is nine dollars.
b. The department shall document the average number of miles
traveled per vehicle per year by motorcycles registered under
this subsection.
Sec. 5. NEW SECTION . 422.12O Electric vehicle registration
fee tax credit.
The taxes imposed under this subchapter, less the credits
allowed under section 422.12, shall be reduced by an electric
vehicle registration fee tax credit allowed under section
321.116A.
Sec. 6. Section 422.33, Code 2022, is amended by adding the
following new subsection:
NEW SUBSECTION . 32. The taxes imposed under this subchapter
shall be reduced by an electric vehicle registration fee tax
credit allowed under section 321.116A.
Sec. 7. Section 476.6, Code 2022, is amended by adding the
following new subsection:
NEW SUBSECTION . 22. Electric vehicles. A residential
customer of an electric utility subject to rate regulation
by the board shall be exempt from paying any user fee or
franchise fee on the first two hundred eighty-two kilowatt
hours of electricity per month if the residential customer
submits to the electric utility proof that the customer paid
a registration fee required under section 321.116 or section
321.117, subsection 2, within the previous one-year period.
Sec. 8. APPLICABILITY. The following apply to tax years
beginning on or after January 1, 2023:
1. The section of this Act enacting section 321.116A.
2. The section of this Act enacting section 422.12O.
3. The section of this Act enacting section 422.33,
subsection 32.
EXPLANATION
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The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
This bill requires the department of transportation (DOT) to
establish and administer an electric vehicle charging station
grant program. The bill creates an electric vehicle charging
station grant fund which is administered and controlled by
the DOT. The bill transfers moneys from the Iowa coronavirus
capital projects fund to the electric vehicle charging station
grant fund, and appropriates such moneys to the DOT to provide
grants for the construction of electric vehicle charging
stations outside of alternative fuel corridors designated by
the federal highway administration. The bill also appropriates
moneys from the Volkswagen partial settlement and transfers
moneys from the Iowa coronavirus capital projects fund to the
electric vehicle charging station grant fund to build electric
vehicle charging stations on the state capitol complex grounds,
in amounts determined by the department of administrative
services. The DOT must adopt rules to administer the grant
program. The DOT may establish a limit on the amount of moneys
that may be awarded as a grant in order to maximize the use of
the moneys in the fund.
The bill strikes out-of-date provisions relating to the
increase in registration fees imposed on owners of battery
electric and plug-in hybrid electric motor vehicles.
The bill requires the DOT to document the average number
of miles traveled per vehicle per year by registered battery
electric motor vehicles, plug-in hybrid electric motor
vehicles, and electric motorcycles.
The bill creates a new tax credit available to persons who
pay registration fees for battery electric and plug-in hybrid
electric motor vehicles and motorcycles. The tax credit is
allowed against personal net income taxes and business taxes
on corporations. The tax credit is not refundable but can be
credited to the tax liability for the following five years or
until depleted, whichever is earlier. However, the tax credit
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cannot be carried back to a tax year prior to the tax year in
which the taxpayer first receives the tax credit.
The bill provides that the DOT controls the issuance of tax
credit certificates to persons who pay registration fees for
battery electric and plug-in hybrid electric motor vehicles
and motorcycles. The tax credit certificate must contain the
taxpayer’s name, address, tax identification number, amount
of the credit, and any other information as required by the
department of revenue (DOR). A person must include the tax
credit certificate with the person’s tax return in order to
claim the tax credit, which, unless rescinded by the DOT,
must be accepted by the DOR as payment for taxes. The bill
prohibits a person from transferring the tax credit certificate
to any other person.
The portions of the bill relating to the new tax credit apply
to tax years beginning on or after January 1, 2023.
Lastly, the bill provides that a residential customer of
an electric utility subject to rate regulation by the Iowa
utilities board is exempt from paying any user fee or franchise
fee on the first 282 kilowatt hours of electricity per month
if the residential customer submits to the electric utility
proof that the customer paid a registration fee for a battery
electric motor vehicle, plug-in hybrid electric motor vehicle,
or electric motorcycle within the previous one-year period.
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