Bill Text: IA HF532 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act establishing a solar installation tax credit available against the individual and corporate income taxes, the moneys and credits tax, and the franchise tax, and including effective date and retroactive applicability provisions.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2023-03-01 - Introduced, referred to Commerce. H.J. 453. [HF532 Detail]
Download: Iowa-2023-HF532-Introduced.html
House
File
532
-
Introduced
HOUSE
FILE
532
BY
GJERDE
A
BILL
FOR
An
Act
establishing
a
solar
installation
tax
credit
available
1
against
the
individual
and
corporate
income
taxes,
the
2
moneys
and
credits
tax,
and
the
franchise
tax,
and
including
3
effective
date
and
retroactive
applicability
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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Section
1.
NEW
SECTION
.
422.10C
Solar
installation
tax
1
credits.
2
1.
For
installations
occurring
on
or
after
January
1,
2022,
3
the
taxes
imposed
under
this
subchapter,
less
the
credits
4
allowed
under
section
422.12,
shall
be
reduced
by
a
solar
5
installation
tax
credit
equal
to
the
sum
of
the
following:
6
a.
Fifty
percent
of
the
federal
residential
energy
efficient
7
property
credit
related
to
solar
energy
provided
in
section
8
25D(a)(1)
and
section
25D(a)(2)
of
the
Internal
Revenue
Code,
9
not
to
exceed
five
thousand
dollars.
10
b.
Fifty
percent
of
the
federal
energy
credit
related
to
11
solar
energy
systems
provided
in
section
48(a)(2)(A)(i)(II)
and
12
section
48(a)(2)(A)(i)(III)
of
the
Internal
Revenue
Code,
not
13
to
exceed
twenty
thousand
dollars.
14
2.
Any
credit
in
excess
of
the
tax
liability
is
not
15
refundable
but
the
excess
for
the
tax
year
may
be
credited
16
to
the
tax
liability
for
the
following
ten
years
or
until
17
depleted,
whichever
is
earlier.
The
director
of
revenue
shall
18
adopt
rules
to
implement
this
section.
19
3.
a.
An
individual
may
claim
the
tax
credit
allowed
a
20
partnership,
limited
liability
company,
S
corporation,
estate,
21
or
trust
electing
to
have
the
income
taxed
directly
to
the
22
individual.
The
amount
claimed
by
the
individual
shall
be
23
based
upon
the
pro
rata
share
of
the
individual’s
earnings
of
24
the
partnership,
limited
liability
company,
S
corporation,
25
estate,
or
trust.
26
b.
(1)
A
taxpayer
who
is
eligible
to
claim
a
credit
under
27
this
section
shall
not
be
eligible
to
claim
a
renewable
energy
28
tax
credit
under
chapter
476C.
29
(2)
A
taxpayer
shall
not
be
eligible
to
claim
both
the
tax
30
credit
under
this
section
and
the
solar
energy
tax
credit
under
31
section
422.11L
for
the
same
installation.
32
c.
A
taxpayer
may
claim
more
than
one
credit
under
this
33
section,
but
may
claim
only
one
credit
per
separate
and
34
distinct
solar
installation.
The
department
shall
establish
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criteria,
by
rule,
for
determining
what
constitutes
a
separate
1
and
distinct
installation.
2
d.
(1)
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
(2)
The
department
shall
accept
and
approve
applications
9
on
a
first-come,
first-served
basis
until
the
maximum
amount
10
of
tax
credits
that
may
be
claimed
pursuant
to
subsection
4
11
is
reached.
If
for
a
tax
year
the
aggregate
amount
of
tax
12
credits
applied
for
exceeds
the
amount
specified
in
subsection
13
4,
the
department
shall
establish
a
wait
list
for
tax
credits.
14
Valid
applications
filed
by
the
taxpayer
by
May
1
following
the
15
year
of
the
installation
but
not
approved
by
the
department
16
shall
be
placed
on
a
wait
list
in
the
order
the
applications
17
were
received
and
those
applicants
shall
be
given
priority
18
for
having
their
applications
approved
in
succeeding
years.
19
Placement
on
a
wait
list
pursuant
to
this
subparagraph
shall
20
not
constitute
a
promise
binding
the
state.
The
availability
21
of
a
tax
credit
and
approval
of
a
tax
credit
application
22
pursuant
to
this
section
in
a
future
year
is
contingent
upon
23
the
availability
of
tax
credits
in
that
particular
year.
24
4.
a.
The
cumulative
value
of
tax
credits
claimed
annually
25
by
applicants
pursuant
to
this
section
shall
not
exceed
five
26
million
dollars.
Of
this
amount,
at
least
one
million
dollars
27
shall
be
reserved
for
claims
associated
with
or
resulting
from
28
residential
solar
energy
system
installations.
In
the
event
29
that
the
total
amount
of
claims
submitted
for
residential
solar
30
energy
system
installations
in
a
tax
year
is
an
amount
less
31
than
one
million
dollars,
the
remaining
unclaimed
reserved
32
amount
shall
be
made
available
for
claims
associated
with
or
33
resulting
from
nonresidential
solar
energy
system
installations
34
received
for
the
tax
year.
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b.
If
an
amount
of
tax
credits
available
for
a
tax
year
1
pursuant
to
paragraph
“a”
goes
unclaimed,
the
amount
of
the
2
unclaimed
tax
credits
shall
be
made
available
for
the
following
3
tax
year
in
addition
to,
and
cumulated
with,
the
amount
4
available
pursuant
to
paragraph
“a”
for
the
following
tax
year.
5
5.
On
or
before
January
1,
annually,
the
department
shall
6
submit
a
written
report
to
the
governor
and
the
general
7
assembly
regarding
the
number
and
value
of
tax
credits
claimed
8
under
this
section,
and
any
other
information
the
department
9
may
deem
relevant
and
appropriate.
10
Sec.
2.
Section
422.33,
Code
2023,
is
amended
by
adding
the
11
following
new
subsection:
12
NEW
SUBSECTION
.
33.
The
taxes
imposed
under
this
subchapter
13
shall
be
reduced
by
a
solar
installation
tax
credit
allowed
14
under
section
422.10C.
15
Sec.
3.
Section
422.60,
Code
2023,
is
amended
by
adding
the
16
following
new
subsection:
17
NEW
SUBSECTION
.
16.
The
taxes
imposed
under
this
subchapter
18
shall
be
reduced
by
a
solar
installation
tax
credit
allowed
19
under
section
422.10C.
20
Sec.
4.
Section
476C.2,
subsection
3,
Code
2023,
is
amended
21
to
read
as
follows:
22
3.
A
taxpayer
who
is
eligible
to
claim
a
renewable
energy
23
tax
credit
under
this
chapter
shall
not
be
eligible
to
claim
a
24
solar
installation
tax
credit
under
section
422.10C,
422.33,
25
422.60,
or
533.329,
or
the
solar
energy
system
tax
credit
under
26
section
422.11L
,
or
422.33
,
422.60,
or
533.329
.
27
Sec.
5.
Section
533.329,
subsection
2,
Code
2023,
is
amended
28
by
adding
the
following
new
paragraph:
29
NEW
PARAGRAPH
.
n.
The
moneys
and
credits
tax
imposed
under
30
this
section
shall
be
reduced
by
a
solar
installation
tax
31
credit
allowed
under
section
422.10C.
32
Sec.
6.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
immediate
33
importance,
takes
effect
upon
enactment.
34
Sec.
7.
RETROACTIVE
APPLICABILITY.
This
Act
applies
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retroactively
to
January
1,
2022,
for
tax
years
beginning
on
1
or
after
that
date.
2
EXPLANATION
3
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
4
the
explanation’s
substance
by
the
members
of
the
general
assembly.
5
This
bill
establishes
a
solar
installation
tax
credit
6
available
against
the
individual
and
corporate
income
taxes,
7
the
moneys
and
credits
tax,
and
the
franchise
tax.
8
The
solar
installation
credit
is
similar
to
the
solar
energy
9
systems
tax
credit
in
Code
section
422.11L,
except
the
solar
10
installation
credit
established
in
the
bill
couples
with
11
current
federal
law.
12
The
credit
is
equal
to
50
percent
of
the
federal
residential
13
energy
efficient
property
credit
related
to
solar
energy
14
provided
in
section
25D
of
the
Internal
Revenue
Code,
not
to
15
exceed
$5,000,
and
50
percent
of
the
federal
energy
credit
16
related
to
solar
energy
systems
provided
in
section
48
of
the
17
Internal
Revenue
Code,
not
to
exceed
$20,000.
The
credit
is
18
nonrefundable,
but
may
be
carried
forward
for
10
years,
or
19
until
depleted.
20
The
bill
provides
that
an
individual
may
claim
the
tax
21
credit
allowed
a
partnership,
limited
liability
company,
S
22
corporation,
estate,
or
trust
based
upon
the
individual’s
pro
23
rata
share
of
the
earnings.
A
taxpayer
who
is
eligible
to
24
claim
a
credit
under
the
bill
shall
not
be
eligible
to
claim
25
a
renewable
energy
tax
credit
under
Code
chapter
476C.
A
26
taxpayer
shall
not
be
eligible
to
both
claim
the
tax
credit
27
under
the
bill
and
the
solar
energy
tax
credit
under
Code
28
section
422.11L
for
the
same
installation.
29
Further,
the
bill
restricts
the
cumulative
total
of
solar
30
energy
systems
tax
credits
issued
for
all
taxpayers
to
an
31
amount
not
exceeding
$5
million
annually.
Of
this
amount,
32
at
least
$1
million
shall
be
reserved
for
claims
associated
33
with
or
resulting
from
residential
solar
installations.
In
34
the
event
that
the
total
amount
of
claims
submitted
for
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residential
solar
installations
in
a
tax
year
is
an
amount
1
less
than
$1
million,
the
remaining
unclaimed
reserved
amount
2
shall
be
made
available
for
claims
associated
with
or
resulting
3
from
nonresidential
solar
installations
received
for
the
tax
4
year.
If
an
amount
of
tax
credits
available
for
a
tax
year
5
goes
unclaimed,
the
amount
of
the
unclaimed
tax
credits
shall
6
be
made
available
for
the
following
tax
year
in
addition
to,
7
and
cumulated
with,
the
$5
million
amount
available
for
the
8
following
tax
year.
9
The
bill
contains
reporting
requirements
regarding
the
10
number
and
value
of
tax
credits
claimed,
and
any
other
11
information
the
department
may
deem
relevant
and
appropriate.
12
The
bill
takes
effect
upon
enactment,
and
applies
13
retroactively
to
tax
years
beginning
on
or
after
January
1,
14
2023.
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