Bill Text: IA HF644 | 2015-2016 | 86th General Assembly | Introduced

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Bill Title: A bill for an act modifying provisions applicable to the renewable energy tax credit, and including effective date and retroactive applicability provisions. (Formerly HSB 235)

Sponsorship: Committee Bill

Status: (Engrossed - Dead) 2015-05-07 - Fiscal note. SCS. [HF644 Detail]

Download: Iowa-2015-HF644-Introduced.html

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House File 644 - Introduced




                                 HOUSE FILE       
                                 BY  COMMITTEE ON WAYS AND
                                     MEANS

                                 (SUCCESSOR TO HSB 235)

                                      A BILL FOR

  1 An Act modifying provisions applicable to the renewable energy
  2    tax credit, and including effective date and retroactive
  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.  Section 476C.1, subsection 8, Code 2015, is
  1  2 amended to read as follows:
  1  3    8.  "Heat for a commercial purpose" means the heat in British
  1  4 thermal unit equivalents from refuse=derived fuel, methane, or
  1  5 other biogas produced in this state either for commercial use
  1  6 by a producer for on=site consumption or sold to a purchaser
  1  7 of renewable energy for use for a commercial purpose in this
  1  8 state or for use by an institution in this state.  For purposes
  1  9 of this chapter, "heat for a commercial purpose" includes heat
  1 10 captured during the generation of electricity using methane gas
  1 11 or other biogas produced by a biogas recovery facility when
  1 12 such heat is used for a commercial purpose for which fuel or
  1 13 electricity would otherwise be consumed.
  1 14    Sec. 2.  Section 476C.2, subsection 1, Code 2015, is amended
  1 15 to read as follows:
  1 16    1.  A producer or purchaser of renewable energy may receive
  1 17 renewable energy tax credits under this chapter in an amount
  1 18 equal to the sum of the following:
  1 19    a.  one One and one=half cents per kilowatt=hour of
  1 20 electricity, or.
  1 21    b.  four Four dollars and fifty cents per million British
  1 22 thermal units of heat for a commercial purpose, or.
  1 23    c.  four Four dollars and fifty cents per million British
  1 24 thermal units of methane gas or other biogas used to generate
  1 25 electricity, or unless renewable energy tax credits are claimed
  1 26 for such electricity under paragraph "a".
  1 27    d.  one One dollar and forty=four cents per one thousand
  1 28 standard cubic feet of hydrogen fuel generated by and purchased
  1 29 from an eligible renewable energy facility or used for on=site
  1 30 consumption by the producer.
  1 31    Sec. 3.  EFFECTIVE UPON ENACTMENT.  This Act, being deemed of
  1 32 immediate importance, takes effect upon enactment.
  1 33    Sec. 4.  RETROACTIVE APPLICABILITY.  This Act applies
  1 34 retroactively to January 1, 2014, for tax years beginning on
  1 35 or after that date.
  2  1                           EXPLANATION
  2  2 The inclusion of this explanation does not constitute agreement with
  2  3 the explanation's substance by the members of the general assembly.
  2  4    This bill modifies provisions applicable to the renewable
  2  5 energy tax credit established in Code chapter 476C.
  2  6    Currently, the Code chapter defines "heat for a commercial
  2  7 purpose" to mean the heat in British thermal unit equivalents
  2  8 from refuse=derived fuel, methane, or other biogas produced
  2  9 in this state either for commercial use by a producer for
  2 10 on=site consumption or sold to a purchaser of renewable
  2 11 energy for use for a commercial purpose in Iowa or for use
  2 12 by an institution in Iowa.  The bill adds that "heat for a
  2 13 commercial purpose" also includes heat captured during the
  2 14 generation of electricity using methane gas or other biogas
  2 15 produced by a biogas recovery facility when such heat is used
  2 16 for a commercial purpose for which fuel or electricity would
  2 17 otherwise be consumed.
  2 18    Additionally, currently the Code chapter specifies the
  2 19 dollar value of renewable energy tax credits which may be
  2 20 claimed per kilowatt=hour of electricity, or per million
  2 21 British thermal units of heat for a commercial purpose, or per
  2 22 million British thermal units of methane gas or other biogas
  2 23 used to generate electricity, or per one thousand standard
  2 24 cubic feet of hydrogen fuel.  The bill provides that a producer
  2 25 or purchaser of renewable energy is not limited to claiming
  2 26 one form of these four differentiated credits but may instead
  2 27 receive more than one credit corresponding to each type of heat
  2 28 generated or captured by a renewable energy facility.
  2 29    The bill takes effect upon enactment and applies
  2 30 retroactively to January 1, 2014, for tax years beginning on
  2 31 or after that date.
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