Bill Text: IA SF238 | 2013-2014 | 85th General Assembly | Introduced

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Bill Title: A bill for an act relating to an electric or natural gas vehicle facility tax credit and including effective date and retroactive applicability provisions. (See SF 434.)

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2013-12-31 - END OF 2013 ACTIONS [SF238 Detail]

Download: Iowa-2013-SF238-Introduced.html

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Senate File 238 - Introduced
SENATE FILE 238
BY McCOY and KAPUCIAN
(COMPANION TO LSB 1595HH BY
HUSEMAN)
A BILL FOR
An Act relating to an electric or natural gas vehicle facility
tax credit and including effective date and retroactive
applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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Section 1. Section 422.7, Code 2013, is amended by adding
the following new subsection:
NEW SUBSECTION . 51. a. A taxpayer taking a depreciation
allowance under section 168 of the Internal Revenue Code for
property described in section 422.11C is not allowed to take
the allowance for purposes of this division to the extent that
a tax credit is taken for the purchase and installation of
the property under section 422.11C. If a credit is taken for
the purchase and installation of the property under section
422.11C, the taxpayer shall add the amount of the allowance
taken on such property to the extent of the amount of the
credit.
b. A taxpayer taking an expensing allowance under section
179 of the Internal Revenue Code for property described in
section 422.11C is not allowed to take the allowance for
purposes of this division to the extent that a tax credit
is taken for the purchase and installation of such property
under section 422.11C. If a credit is taken for the purchase
and installation of the property under section 422.11C, the
taxpayer shall add the amount of the allowance taken on such
property to the extent of the amount of the credit.
c. This subsection is repealed on January 1, 2020.
Sec. 2. NEW SECTION . 422.11C Electric or natural gas
vehicle facility tax credit.
1. As used in this section, “motor vehicle” means the same
as defined in section 322.2.
2. The taxes imposed under this division, less the credits
allowed under section 422.12, shall be reduced by an electric
or natural gas vehicle facility tax credit. In order to be
eligible to claim the tax credit, the taxpayer must comply with
this section and rules adopted by the department necessary to
administer and enforce this section.
3. a. The taxpayer claiming the tax credit on an
agricultural basis as provided in subsection 8 must construct,
install, and place in service any of the following:
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(1) An electric vehicle facility that serves a motor vehicle
designed by a manufacturer to operate using electricity.
(2) A natural gas vehicle facility that serves a motor
vehicle designed by a manufacturer to operate using compressed
natural gas.
b. The taxpayer claiming the tax credit on a commercial
basis as provided in subsection 8 must construct, install, and
place in service any of the following:
(1) An electric vehicle facility that serves a motor vehicle
designed by a manufacturer to operate using electricity.
(2) A natural gas vehicle facility that serves a motor
vehicle designed by a manufacturer to operate using compressed
natural gas.
c. The taxpayer claiming the tax credit on a residential
basis as provided in subsection 8 must construct, install,
and place in service an electric vehicle facility that serves
a motor vehicle designed by a manufacturer to operate using
electricity.
4. a. After verifying the eligibility for an electric or
natural gas vehicle facility tax credit as provided in this
section, the department of revenue shall issue the taxpayer an
electric or natural gas vehicle facility tax credit certificate
which must be attached to the taxpayer’s tax return. An
electric or natural gas vehicle facility tax credit certificate
shall include all of the following:
(1) The taxpayer’s name, address, tax identification
number, and any other information required by the department
of revenue.
(2) A description of the infrastructure, equipment, or
machinery being purchased and installed which is eligible for
the tax credit to be claimed on the taxpayer’s tax return.
(3) The amount of the tax credit being claimed.
b. The department shall adopt rules establishing criteria
for the receipt of applications for electric or natural gas
vehicle facility tax credit certificates and the issuance of
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those certificates. A tax credit certificate shall be issued
in the taxpayer’s name and shall expire on or after the last
day of the taxable year for which the taxpayer is claiming the
tax credit. A tax credit certificate is nontransferable.
c. The aggregate amount of electric or natural gas vehicle
facility tax credit certificates that may be issued pursuant
to this section shall not exceed five million dollars for all
tax years that the tax credit is available under this section.
The department shall issue the tax credit certificates on a
first-come, first-served basis to qualified applicants.
5. An electric or natural gas vehicle facility is limited
to infrastructure, equipment, or machinery used to store,
dispense, dry, and meter compressed natural gas or electricity.
For compressed natural gas, it may include pipes, compressors,
dryers, or vaporizers. For electricity, it may include
charging equipment, infrastructure, or batteries.
6. The amount of the electric or natural gas vehicle
facility tax credit equals thirty percent of the total cost to
the taxpayer of purchasing the infrastructure, equipment, or
machinery and thirty percent of the total cost to the taxpayer
of installing the infrastructure, equipment, or machinery.
7. The electric or natural gas vehicle facility must comply
with any applicable federal and state standards and the latest
applicable and available ASTM international specifications.
8. The electric or natural gas vehicle facility tax credit
may be claimed by a person on an agricultural, commercial, or
residential basis as follows:
a. A person may claim the tax credit on an agricultural
basis if the electric or natural gas vehicle facility is
located on land primarily used in the production of a crop as
defined in section 202.1 or livestock as defined in section
717.1. The electric or natural gas vehicle facility must be
used by an agricultural producer as defined in section 15E.202
or a person under the management of the agricultural producer.
The tax credit must be taken in equal installments in three
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consecutive tax years, beginning with the tax year in which the
electric or natural gas vehicle facility is placed in service.
If any part of the electric or natural gas vehicle facility
is taken out of service and not immediately replaced, the tax
credit expires and the taxpayer cannot take any remaining
installment of the tax credit.
b. A person may claim the tax credit on a commercial basis
if the electric or natural gas vehicle facility is part of a
business selling qualified electricity or compressed natural
gas on a retail basis, or may claim the tax credit if the
electric or natural gas vehicle facility is used by a business
for its own vehicle fleet or employees. The tax credit must
be taken in equal installments in three consecutive tax years,
beginning with the tax year in which the electric or natural
gas vehicle facility is placed in service. If any part of
the electric or natural gas vehicle facility is taken out of
service and not immediately replaced, the tax credit expires
and the taxpayer cannot take any remaining installment of the
tax credit.
c. A person may claim the tax credit on a residential basis
only for an electric vehicle facility that is for personal,
family, or household use. The entire amount of the tax credit
must be claimed in the tax year in which the electric vehicle
facility is first placed in service.
9. Any tax credit in excess of the taxpayer’s tax liability
shall be refunded. In lieu of claiming a refund, the taxpayer
may elect to have the overpayment shown on the retail dealer’s
final, completed return credited to the tax liability for the
following tax year.
10. An individual may claim the tax credit allowed a
partnership, limited liability company, S corporation, estate,
or trust electing to have the 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 of
the partnership, limited liability company, S corporation,
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estate, or trust.
11. A person shall not claim a tax credit under this section
for an electric or natural gas vehicle facility that was placed
in service on or after January 1, 2016. However, a person
claiming the tax credit on an agricultural or commercial basis
who placed the electric or natural gas vehicle facility in
service prior to January 1, 2016, may continue to claim the tax
credit for tax years ending on or after January 1, 2016, as
provided in subsection 8, paragraph “a” .
12. This section is repealed on January 1, 2020.
Sec. 3. Section 422.33, Code 2013, is amended by adding the
following new subsection:
NEW SUBSECTION . 11. The taxes imposed under this division
shall be reduced by an electric or natural gas vehicle facility
tax credit for each tax year that the taxpayer is eligible to
claim the tax credit under this subsection.
a. The taxpayer must claim the tax credit on an agricultural
or commercial basis in the same manner as provided in section
422.11C. The taxpayer must claim the tax credit according
to the same requirements, for the same amount, and for the
same period as provided in section 422.11C. The amount of the
tax credit shall be calculated in the same manner as provided
in section 422.11C. A taxpayer claiming a tax credit on an
agricultural or commercial basis is subject to the same penalty
for taking the electric or natural gas vehicle facility out of
service as provided in section 422.11C.
b. This subsection is repealed on January 1, 2020.
Sec. 4. Section 422.35, Code 2013, is amended by adding the
following new subsection:
NEW SUBSECTION . 15. a. A taxpayer taking a depreciation
allowance under section 168 of the Internal Revenue Code for
property described in section 422.33, subsection 11, is not
allowed to take the allowance for purposes of this division
to the extent that a tax credit is taken for the purchase and
installation of the property under section 422.33, subsection
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11. If a credit is taken for the purchase and installation of
the property under section 422.33, subsection 11, the taxpayer
shall add the amount of the allowance taken on such property to
the extent of the amount of the credit.
b. A taxpayer taking an expensing allowance under section
179 of the Internal Revenue Code for property described in
section 422.33, subsection 11, is not allowed to take the
allowance for purposes of this division to the extent that a
tax credit is taken for the purchase and installation of such
property under section 422.33, subsection 11. If a credit
is taken for the purchase and installation of the property
under section 422.33, subsection 11, the taxpayer shall add the
amount of the allowance taken on such property to the extent of
the amount of the credit.
c. This subsection is repealed on January 1, 2020.
Sec. 5. EFFECTIVE UPON ENACTMENT. This Act, being deemed of
immediate importance, takes effect upon enactment.
Sec. 6. RETROACTIVE APPLICABILITY. This Act applies
retroactively to January 1, 2013, for tax years beginning on
or after that date.
EXPLANATION
This bill creates an electric or natural gas vehicle
facility tax credit for persons who construct, install, and
place in service an electric vehicle facility or a natural gas
vehicle facility. The amount of the tax credit is 30 percent
of the total cost of purchasing and of installing the facility.
A person may claim the tax credit on an agricultural (farmer),
commercial (business), or residential (personal, family, or
household) basis. A person claiming the tax credit on an
agricultural or commercial basis may claim the tax credit for
the installation of an electric or natural gas facility. The
person must claim one-third of the tax credit for each of three
tax years. A person claiming the tax credit on a residential
basis may claim the tax credit for the installation of an
electronic facility. The person must claim the tax credit in
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the tax year in which the electronic vehicle service was first
placed in service. Any tax credit in excess of the taxpayer’s
tax liability is refundable or may be used in calculating a
future tax liability.
The taxpayer must place the facility in service before
January 1, 2016, but those taxpayers claiming on an
agricultural or commercial basis may claim the tax credit for a
previous installation after that date.
The tax credit applies retroactively to tax years beginning
on and after January 1, 2013. The bill’s provisions are
repealed on January 1, 2020. The bill takes effect upon
enactment.
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