Bill Text: IA SF386 | 2017-2018 | 87th General Assembly | Introduced
Bill Title: A bill for an act creating a geothermal tax credit available against the corporate income tax and including effective date and retroactive applicability provisions. (Formerly SSB 1121.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2017-03-07 - Subcommittee: Feenstra, Quirmbach, and Smith. S.J. 508. [SF386 Detail]
Download: Iowa-2017-SF386-Introduced.html
Senate File 386 - Introduced SENATE FILE BY COMMITTEE ON COMMERCE (SUCCESSOR TO SSB 1121) A BILL FOR 1 An Act creating a geothermal tax credit available against 2 the corporate income tax and including effective date and 3 retroactive applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 1788SV (1) 87 mm/sc/rn PAG LIN 1 1 Section 1. Section 422.33, Code 2017, is amended by adding 1 2 the following new subsection: 1 3 NEW SUBSECTION. 31. a. For purposes of this subsection, 1 4 unless the context otherwise requires: 1 5 (1) "Qualified geothermal energy system property" means any 1 6 equipment that uses the ground or groundwater as a thermal 1 7 energy source to heat a structure or as a thermal energy sink 1 8 to cool a structure. 1 9 (2) "Qualified geothermal energy system property 1 10 expenditures" means an expenditure for qualified geothermal 1 11 energy system property if depreciation or amortization is 1 12 allowable to the taxpayer under the Internal Revenue Code with 1 13 respect to the property, and if the property is installed on or 1 14 in connection with a structure located in Iowa. 1 15 b. The taxes imposed under this division shall be reduced by 1 16 a geothermal tax credit equal to ten percent of the qualified 1 17 geothermal energy system property expenditures made by the 1 18 taxpayer during the tax year. 1 19 c. Qualified geothermal energy system property expenditures 1 20 shall be deemed to have been made on the date the installation 1 21 is complete or, in the case of new construction or 1 22 reconstruction, the date the original use of the structure by 1 23 the taxpayer begins. 1 24 d. Any credit in excess of the tax liability is not 1 25 refundable but the excess for the tax year may be credited 1 26 to the tax liability for the following ten years or until 1 27 depleted, whichever is earlier. 1 28 Sec. 2. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 1 29 immediate importance, takes effect upon enactment. 1 30 Sec. 3. RETROACTIVE APPLICABILITY. This Act applies 1 31 retroactively to January 1, 2017, for tax years beginning on 1 32 or after that date. 1 33 EXPLANATION 1 34 The inclusion of this explanation does not constitute agreement with 1 35 the explanation's substance by the members of the general assembly. 2 1 This bill creates a geothermal tax credit available 2 2 against the corporate income tax equal to 10 percent of the 2 3 expenditures made by a taxpayer for qualified geothermal 2 4 energy system property if depreciation or amortization 2 5 is allowable to the taxpayer under the Internal Revenue 2 6 Code with respect to the property, and if the property is 2 7 installed on or in connection with a structure located in 2 8 Iowa. "Qualified geothermal energy system property" and other 2 9 related terms are defined in the bill. For purposes of the 2 10 tax credit, expenditures are deemed to be made on the date the 2 11 installation is complete or, in the case of new construction 2 12 or reconstruction, the date the original use of the structure 2 13 begins. 2 14 The tax credit is nonrefundable, but any amount in excess of 2 15 the taxpayer's tax liability may be carried forward for up to 2 16 10 years. 2 17 The bill takes effect upon enactment and applies 2 18 retroactively to January 1, 2017, for tax years beginning on 2 19 or after that date. LSB 1788SV (1) 87 mm/sc/rn
