Bill Text: IA SSB1120 | 2017-2018 | 87th General Assembly | Introduced
Bill Title: A bill for an act creating a geothermal tax credit available against the franchise tax and including effective date and retroactive applicability provisions.
Spectrum: Committee Bill
Status: (N/A - Dead) 2017-02-20 - Subcommittee Meeting: 02/21/2017 1:30PM Senate Lobbyist Lounge [SSB1120 Detail]
Download: Iowa-2017-SSB1120-Introduced.html
Senate
Study
Bill
1120
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
COMMERCE
BILL
BY
CHAIRPERSON
ANDERSON)
A
BILL
FOR
An
Act
creating
a
geothermal
tax
credit
available
against
the
1
franchise
tax
and
including
effective
date
and
retroactive
2
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
1799XC
(1)
87
mm/sc/rn
S.F.
_____
Section
1.
Section
422.60,
Code
2017,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
14.
a.
For
purposes
of
this
subsection,
3
unless
the
context
otherwise
requires:
4
(1)
“Qualified
geothermal
energy
system
property”
means
any
5
equipment
that
uses
the
ground
or
groundwater
as
a
thermal
6
energy
source
to
heat
a
structure
or
as
a
thermal
energy
sink
7
to
cool
a
structure.
8
(2)
“Qualified
geothermal
energy
system
property
9
expenditures”
means
an
expenditure
for
qualified
geothermal
10
energy
system
property
if
depreciation
or
amortization
is
11
allowable
to
the
taxpayer
under
the
Internal
Revenue
Code
with
12
respect
to
the
property,
and
if
the
property
is
installed
on
or
13
in
connection
with
a
structure
located
in
Iowa.
14
b.
The
taxes
imposed
under
this
division
shall
be
reduced
by
15
a
geothermal
tax
credit
equal
to
ten
percent
of
the
qualified
16
geothermal
energy
system
property
expenditures
made
by
the
17
taxpayer
during
the
tax
year.
18
c.
Qualified
geothermal
energy
system
property
expenditures
19
shall
be
deemed
to
have
been
made
on
the
date
the
installation
20
is
complete
or,
in
the
case
of
new
construction
or
21
reconstruction,
the
date
the
original
use
of
the
structure
by
22
the
taxpayer
begins.
23
d.
Any
credit
in
excess
of
the
tax
liability
is
not
24
refundable
but
the
excess
for
the
tax
year
may
be
credited
25
to
the
tax
liability
for
the
following
ten
years
or
until
26
depleted,
whichever
is
earlier.
27
Sec.
2.
EFFECTIVE
UPON
ENACTMENT.
This
Act,
being
deemed
of
28
immediate
importance,
takes
effect
upon
enactment.
29
Sec.
3.
RETROACTIVE
APPLICABILITY.
This
Act
applies
30
retroactively
to
January
1,
2017,
for
tax
years
beginning
on
31
or
after
that
date.
32
EXPLANATION
33
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
34
the
explanation’s
substance
by
the
members
of
the
general
assembly.
35
-1-
LSB
1799XC
(1)
87
mm/sc/rn
1/
2
S.F.
_____
This
bill
creates
a
geothermal
tax
credit
available
against
1
the
franchise
tax
equal
to
10
percent
of
the
expenditures
made
2
by
a
taxpayer
for
qualified
geothermal
energy
system
property
3
if
depreciation
or
amortization
is
allowable
to
the
taxpayer
4
under
the
Internal
Revenue
Code
with
respect
to
the
property,
5
and
if
the
property
is
installed
on
or
in
connection
with
a
6
structure
located
in
Iowa.
“Qualified
geothermal
energy
system
7
property”
and
other
related
terms
are
defined
in
the
bill.
For
8
purposes
of
the
tax
credit,
expenditures
are
deemed
to
be
made
9
on
the
date
the
installation
is
complete
or,
in
the
case
of
new
10
construction
or
reconstruction,
the
date
the
original
use
of
11
the
structure
begins.
12
The
tax
credit
is
nonrefundable,
but
any
amount
in
excess
of
13
the
taxpayer’s
tax
liability
may
be
carried
forward
for
up
to
14
10
years.
15
The
bill
takes
effect
upon
enactment
and
applies
16
retroactively
to
January
1,
2017,
for
tax
years
beginning
on
17
or
after
that
date.
18
-2-
LSB
1799XC
(1)
87
mm/sc/rn
2/
2
