Bill Text: IA SF215 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act relating to the solar energy system tax credit available against the individual and corporate income tax, the franchise tax, the moneys and credits tax, and including effective date and retroactive applicability provisions.
Spectrum: Partisan Bill (Democrat 7-0)
Status: (Introduced - Dead) 2021-02-08 - Subcommittee: Dawson, Goodwin, and Jochum. S.J. 274. [SF215 Detail]
Download: Iowa-2021-SF215-Introduced.html
Senate
File
215
-
Introduced
SENATE
FILE
215
BY
BOLKCOM
,
HOGG
,
JOCHUM
,
GIDDENS
,
CELSI
,
TRONE
GARRIOTT
,
and
PETERSEN
A
BILL
FOR
An
Act
relating
to
the
solar
energy
system
tax
credit
available
1
against
the
individual
and
corporate
income
tax,
the
2
franchise
tax,
the
moneys
and
credits
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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DIVISION
I
1
SOLAR
ENERGY
SYSTEM
STATE
TAX
CREDIT
2
Section
1.
Section
422.11L,
Code
2021,
is
amended
by
3
striking
the
section
and
inserting
in
lieu
thereof
the
4
following:
5
422.11L
Solar
energy
system
tax
credits.
6
1.
As
used
in
this
section:
7
a.
“Commercial
solar
energy
system”
means
a
solar
energy
8
system
on
property
that
is
not
residential
or
multiresidential.
9
b.
“Residential
solar
energy
system”
means
a
solar
energy
10
system
on
residential
property
or
multiresidential
property.
11
c.
“Solar
energy
system”
means
a
system
of
equipment
capable
12
of
collecting
and
converting
incident
solar
radiation
into
13
thermal,
mechanical,
or
electrical
energy
and
transporting
the
14
energy
by
a
separate
apparatus
to
storage
or
to
a
point
of
use.
15
2.
Beginning
with
installations
completed
on
or
after
16
January
1,
2021,
the
taxes
imposed
under
this
subchapter,
less
17
the
credits
allowed
under
section
422.12,
shall
be
reduced
by
18
a
solar
energy
system
tax
credit
equal
to
fifteen
percent
of
19
the
gross
cost
of
the
solar
energy
system,
not
to
exceed
the
20
following
amounts:
21
a.
For
a
residential
solar
energy
system,
five
thousand
22
dollars.
23
b.
For
a
commercial
solar
energy
system,
twenty
thousand
24
dollars.
25
3.
Any
credit
in
excess
of
the
tax
liability
is
not
26
refundable
but
the
excess
for
the
tax
year
may
be
credited
27
to
the
tax
liability
for
the
following
ten
years
or
until
28
depleted,
whichever
is
earlier.
29
4.
a.
An
individual
may
claim
the
tax
credit
allowed
a
30
partnership,
limited
liability
company,
S
corporation,
estate,
31
or
trust
electing
to
have
the
income
taxed
directly
to
the
32
individual.
The
amount
claimed
by
the
individual
shall
be
33
based
upon
the
pro
rata
share
of
the
individual’s
earnings
of
34
the
partnership,
limited
liability
company,
S
corporation,
35
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estate,
or
trust.
1
b.
A
taxpayer
who
is
eligible
to
claim
a
credit
under
this
2
section
shall
not
be
eligible
to
claim
a
renewable
energy
tax
3
credit
under
chapter
476C.
4
c.
A
taxpayer
may
claim
more
than
one
credit
under
this
5
section,
but
may
claim
only
one
credit
per
separate
and
6
distinct
solar
energy
system
installation.
The
department
7
shall
establish
criteria,
by
rule,
for
determining
what
8
constitutes
a
separate
and
distinct
installation.
9
d.
(1)
A
taxpayer
must
submit
an
application
to
the
10
department
for
each
separate
and
distinct
solar
energy
11
system
installation.
The
application
must
be
approved
by
the
12
department
in
order
to
claim
the
tax
credit.
The
application
13
must
be
filed
by
May
1
following
the
year
of
the
installation
14
of
the
solar
energy
system.
15
(2)
The
department
shall
accept
and
approve
applications
16
on
a
first-come,
first-served
basis
until
the
maximum
amount
17
of
tax
credits
that
may
be
claimed
pursuant
to
subsection
5
18
is
reached.
If
for
a
tax
year
the
aggregate
amount
of
tax
19
credits
applied
for
exceeds
the
amount
specified
in
subsection
20
5,
the
department
shall
establish
a
wait
list
for
tax
credits.
21
Valid
applications
filed
by
the
taxpayer
by
May
1
following
the
22
year
of
the
installation
but
not
approved
by
the
department
23
shall
be
placed
on
a
wait
list
in
the
order
the
applications
24
were
received
and
those
applicants
shall
be
given
priority
25
for
having
their
applications
approved
in
succeeding
years.
26
Placement
on
a
wait
list
pursuant
to
this
subparagraph
shall
27
not
constitute
a
promise
binding
the
state.
The
availability
28
of
a
tax
credit
and
approval
of
a
tax
credit
application
29
pursuant
to
this
section
in
a
future
year
is
contingent
upon
30
the
availability
of
tax
credits
in
that
particular
year.
31
5.
a.
The
cumulative
value
of
tax
credits
claimed
annually
32
by
applicants
pursuant
to
this
section
shall
not
exceed
ten
33
million
dollars.
34
b.
If
an
amount
of
tax
credits
available
for
a
tax
year
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pursuant
to
paragraph
“a”
goes
unclaimed,
the
amount
of
the
1
unclaimed
tax
credits
shall
be
made
available
for
the
following
2
tax
year
in
addition
to,
and
cumulated
with,
the
amount
3
available
pursuant
to
paragraph
“a”
for
the
following
tax
year.
4
6.
On
or
before
January
1,
annually,
the
department
shall
5
submit
a
written
report
to
the
governor
and
the
general
6
assembly
regarding
the
number
and
value
of
tax
credits
claimed
7
under
this
section,
and
any
other
information
the
department
8
may
deem
relevant
and
appropriate.
9
7.
The
director
shall
adopt
rules
pursuant
to
chapter
17A
to
10
administer
this
section.
11
Sec.
2.
Section
422.33,
subsection
29,
paragraph
a,
Code
12
2021,
is
amended
to
read
as
follows:
13
a.
The
Beginning
with
installations
completed
on
or
after
14
January
1,
2021,
the
taxes
imposed
under
this
subchapter
shall
15
be
reduced
by
a
solar
energy
system
tax
credit
equal
to
sixty
16
percent
of
the
federal
energy
credit
related
to
solar
energy
17
systems
provided
in
section
48(a)(2)(A)(i)(II)
and
section
18
48(a)(2)(A)(i)(III)
of
the
Internal
Revenue
Code
,
not
to
exceed
19
twenty
thousand
dollars.
For
installations
occurring
on
or
20
after
January
1,
2016,
the
applicable
percentage
of
the
federal
21
energy
credit
related
to
solar
energy
systems
shall
be
fifty
22
percent
allowed
under
section
422.11L
.
23
Sec.
3.
Section
422.60,
subsection
12,
paragraph
a,
Code
24
2021,
is
amended
to
read
as
follows:
25
a.
The
Beginning
with
the
installations
completed
on
or
26
after
January
1,
2021,
the
taxes
imposed
under
this
subchapter
27
shall
be
reduced
by
a
solar
energy
system
tax
credit
equal
to
28
sixty
percent
of
the
federal
energy
credit
related
to
solar
29
energy
systems
provided
in
section
48(a)(2)(A)(i)(II)
and
30
section
48(a)(2)(A)(i)(III)
of
the
Internal
Revenue
Code
,
not
31
to
exceed
twenty
thousand
dollars.
For
installations
occurring
32
on
or
after
January
1,
2016,
the
applicable
percentage
of
the
33
federal
energy
credit
related
to
solar
energy
systems
shall
be
34
fifty
percent
allowed
under
section
422.11L
.
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Sec.
4.
Section
533.329,
subsection
2,
paragraph
k,
Code
1
2021,
is
amended
to
read
as
follows:
2
k.
The
Beginning
with
the
installations
completed
on
or
3
after
January
1,
2021,
the
moneys
and
credits
tax
imposed
under
4
this
section
shall
be
reduced
by
a
solar
energy
system
tax
5
credit
allowed
under
section
422.11L
.
6
Sec.
5.
WAIT
LIST
FOR
CLAIMS
PRIOR
TO
JANUARY
1,
2021.
The
7
wait
list
pursuant
to
section
422.11L,
subsection
3,
paragraph
8
“d”,
subparagraph
(2),
Code
2021,
in
existence
prior
to
January
9
1,
2021,
shall
remain
in
effect,
and
an
applicant
from
that
10
wait
list
shall
be
given
priority
on
any
new
wait
list
based
11
upon
the
date
the
application
for
the
credit
was
received
by
12
the
department.
13
Sec.
6.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
14
deemed
of
immediate
importance,
takes
effect
upon
enactment.
15
Sec.
7.
RETROACTIVE
APPLICABILITY.
This
division
of
this
16
Act
applies
retroactively
to
January
1,
2021,
for
tax
years
17
ending
on
or
after
that
date.
18
DIVISION
II
19
MAXIMUM
CUMULATIVE
VALUE
OF
TAX
CREDITS
FOR
YEAR
2020
20
Sec.
8.
CUMULATIVE
VALUE
OF
TAX
CREDIT
FOR
YEAR
21
2020.
Notwithstanding
section
422.11L,
subsection
4,
Code
22
2021,
the
maximum
cumulative
value
of
tax
credits
that
may
be
23
claimed
during
the
2020
calendar
year
shall
not
exceed
ten
24
million
dollars.
25
Sec.
9.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
26
deemed
of
immediate
importance,
takes
effect
upon
enactment.
27
Sec.
10.
RETROACTIVE
APPLICABILITY.
This
division
of
this
28
Act
applies
retroactively
to
tax
years
beginning
on
or
after
29
January
1,
2020,
but
before
January
1,
2021.
30
EXPLANATION
31
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
32
the
explanation’s
substance
by
the
members
of
the
general
assembly.
33
This
bill
relates
to
the
solar
energy
system
tax
credit.
34
Under
existing
law,
the
Iowa
solar
energy
system
tax
credit
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available
against
the
individual
or
corporate
income
tax,
the
1
franchise
tax,
or
the
moneys
and
credits
tax
equals
the
sum
of
2
50
percent
of
the
federal
residential
energy
efficient
property
3
credit,
not
to
exceed
$5,000,
plus
50
percent
of
the
federal
4
energy
credit
related
to
solar
energy
systems,
not
to
exceed
5
$20,000.
6
Division
I
strikes
provisions
basing
the
Iowa
solar
energy
7
system
tax
credit
as
a
percentage
of
federal
energy
tax
credits
8
and
creates
a
new
Iowa
solar
energy
system
tax
credit
for
9
installations
completed
on
or
after
January
1,
2021.
The
bill
10
creates
a
residential
solar
energy
system
tax
credit
equal
11
to
15
percent
of
the
gross
cost
of
the
system,
up
to
$5,000.
12
The
bill
creates
a
separate
commercial
solar
energy
system
13
tax
credit
not
to
exceed
15
percent
of
the
gross
cost
of
the
14
system,
up
to
$20,000.
The
tax
credit
is
available
against
the
15
individual
and
corporate
income
taxes,
the
franchise
tax,
and
16
the
moneys
and
credits
tax.
17
The
bill
defines
“residential
solar
energy
system”
to
18
mean
a
solar
energy
project
on
residential
property
or
19
multiresidential
property.
The
bill
defines
“commercial
solar
20
energy
system”
to
mean
a
solar
energy
system
on
a
property
that
21
is
not
residential
or
multiresidential.
22
Any
tax
credit
approved
under
the
bill
is
not
refundable
23
but
the
excess
for
the
tax
year
may
be
credited
to
the
tax
24
liability
for
the
following
10
years
or
until
depleted,
25
whichever
is
earlier.
26
A
taxpayer
eligible
to
claim
a
credit
under
the
bill
is
not
27
eligible
to
claim
a
renewable
energy
tax
credit
under
Code
28
chapter
476C.
29
The
bill
provides
that
a
taxpayer
may
claim
more
than
one
tax
30
credit,
but
may
claim
only
one
credit
per
separate
and
distinct
31
solar
energy
system
installation.
32
The
bill
permanently
increases
the
maximum
cumulative
value
33
of
tax
credits
that
may
be
claimed
during
the
year
from
$4
34
million
to
$10
million.
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The
bill
provides
that
the
wait
list
in
existence
prior
to
1
January
1,
2021,
shall
remain
in
effect,
and
an
applicant
from
2
that
wait
list
shall
be
given
priority
on
any
new
wait
list
3
based
upon
the
date
the
application
for
the
credit
was
received
4
by
the
department.
5
The
division
takes
effect
upon
enactment
and
applies
6
retroactively
to
January
1,
2021,
for
tax
years
ending
on
or
7
after
that
date.
8
Division
II
raises
the
cumulative
value
of
solar
energy
9
system
tax
credits
that
may
be
claimed
during
the
2020
calendar
10
year
from
$4
million
to
$10
million.
The
division
takes
effect
11
upon
enactment
and
applies
retroactively
to
tax
years
beginning
12
on
or
after
January
1,
2020,
but
before
January
1,
2021.
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