Text: HF02308 Text: HF02310 Text: HF02300 - HF02399 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. NEW SECTION. 15E.221 RENEWABLE ENERGY TAX 1 2 CREDIT FOR PLACING ENERGY PROPERTY INTO SERVICE. 1 3 1. For tax years beginning on or after January 1, 2003, a 1 4 renewable energy tax credit shall be allowed against the taxes 1 5 imposed under chapter 422, divisions II, III, and V, and under 1 6 chapter 432. An individual may claim the credit of a 1 7 partnership, limited liability company, S corporation, estate, 1 8 or trust electing to have income taxed directly to the 1 9 individual. The amount claimed by the individual shall be 1 10 based upon the pro rata share of the individual's earnings 1 11 from the partnership, limited liability company, S 1 12 corporation, estate, or trust. 1 13 2. The tax credit allowed under this section shall be for 1 14 ten percent of the cost of energy property placed into service 1 15 during a tax year. For purposes of this section, "energy 1 16 property" means an alternate energy production facility or a 1 17 small hydro facility, both as defined in section 476.42. 1 18 3. Any tax credit in excess of the taxpayer's liability 1 19 for the tax year may be credited to the tax liability for the 1 20 following years until depleted. A tax credit shall not be 1 21 carried back to a tax year prior to the tax year in which the 1 22 taxpayer redeems the tax credit. 1 23 4. A taxpayer seeking a tax credit under this section 1 24 shall submit an application to the department of economic 1 25 development for certification of eligibility for a tax credit. 1 26 5. The department of revenue and finance, in consultation 1 27 with the department of economic development, shall develop a 1 28 system for registration, authorization, and redemption of tax 1 29 credits issued by the state under this section. The 1 30 department of revenue and finance and the department of 1 31 economic development shall adopt any other policies, 1 32 procedures, or rules pursuant to chapter 17A necessary for the 1 33 administration of this section and of tax credits issued by 1 34 the state under this section. 1 35 Sec. 2. NEW SECTION. 422.11F RENEWABLE ENERGY TAX 2 1 CREDIT. 2 2 The taxes imposed under this division, less the credits 2 3 allowed under section 422.12 and any other nonrefundable 2 4 credit, shall be reduced by a tax credit as authorized 2 5 pursuant to section 15E.221. 2 6 Sec. 3. Section 422.33, Code Supplement 2001, is amended 2 7 by adding the following new subsection: 2 8 NEW SUBSECTION. 12. The taxes imposed under this division 2 9 shall be reduced by a tax credit as authorized pursuant to 2 10 section 15E.221. 2 11 Sec. 4. Section 422.60, Code 2001, is amended by adding 2 12 the following new subsection: 2 13 NEW SUBSECTION. 4. The taxes imposed under this division 2 14 shall be reduced by a tax credit as authorized pursuant to 2 15 section 15E.221. 2 16 Sec. 5. NEW SECTION. 432.12A RENEWABLE ENERGY TAX 2 17 CREDIT. 2 18 The taxes imposed under this chapter shall be reduced by a 2 19 tax credit as authorized pursuant to section 15E.221. 2 20 Sec. 6. Section 476.2, subsection 6, Code 2001, is amended 2 21 to read as follows: 2 22 6. The board shall provide the general assembly with a 2 23 reporton the energy efficiency planning efforts undertaken by2 24utilities required to offer energy efficiency plans pursuant2 25to section 476.6, subsection 17providing an analysis of the 2 26 costs and benefits of generating and transmitting electricity 2 27 from renewable sources, and shall include a proposal for a 2 28 formula for establishing a fair cost for transmitting 2 29 electricity from renewable sources. The report shall be 2 30 completed by January 1,19982003. 2 31 Sec. 7. Section 476.44, subsection 2, Code 2001, is 2 32 amended to read as follows: 2 33 2. a. An electric utility subject to this division, 2 34 except a utilitywhichthat elects rate regulation pursuant to 2 35 section 476.1A, shall not be required to purchase, at any one 3 1 time, more than its scheduled percentage share ofone hundred3 2five megawatts of powerits Iowa retail load from alternative 3 3 energy production facilities or small hydro facilities at the 3 4 rates established pursuant to section 476.43. The board shall 3 5allocate the one hundred five megawattsmake the allocations 3 6 based upon each utility's percentage of the total Iowa retail 3 7 peak demand, fortheeach year, beginning January 1,1990,of 3 8 all utilities subject to this section, based on the following 3 9 schedule: 3 10 (1) Until January 1, 2002, two percent. 3 11 (2) Beginning January 1, 2004, four percent. 3 12 (3) Beginning January 1, 2006, seven percent. 3 13 (4) Beginning January 1, 2008, ten percent. 3 14 (5) Beginning January 1, 2010, fifteen percent. 3 15 (6) Beginning January 1, 2012, twenty percent. 3 16 b. If a utility undergoes reorganization as defined in 3 17 section 476.76, the board shall combine the allocated 3 18 purchases of power for each utility involved in the 3 19 reorganization. 3 20 c. Notwithstanding theone hundred five megawattcurrent 3 21 applicable maximum, the board may increase the amount of power 3 22 that a utility is required to purchase at the rates 3 23 established pursuant to section 476.43 if the board finds that 3 24 a utility, including a reorganized utility, exceeds its19903 25 Iowa retail peak demand level for the utility for the prior 3 26 year by twenty percent, and the additional power the utility 3 27 is required to purchase will encourage the development of 3 28 alternate energy production facilities and small hydro 3 29 facilities. The increase shall not exceed the utility's 3 30 increase in peak demand multiplied by the ratio of the 3 31 utility's share of theone hundred five megawattcurrent 3 32 scheduled maximum to its1990Iowa retail peak demand. 3 33 Sec. 8. NEW SECTION. 476.48 WIND ENERGY ASSISTANCE FUND. 3 34 1. A wind energy assistance fund is created in the state 3 35 treasury under the control of the department of economic 4 1 development. Moneys deposited in the fund shall be used for 4 2 providing no-interest or low-interest loans to small 4 3 businesses, farms, and public facilities that build wind- 4 4 generating capacity. 4 5 2. The wind energy assistance fund may receive moneys 4 6 including, but not limited to, the following: 4 7 a. Moneys appropriated by the general assembly for the 4 8 fund. 4 9 b. Contributions from customer utility bills under 4 10 subsection 3. 4 11 c. Any other moneys available to, obtained, or accepted by 4 12 the board for placement in the fund. 4 13 3. Each electric utility shall periodically notify its 4 14 customers of the availability and purpose of the fund and 4 15 provide them with forms on which they can authorize the 4 16 electric utility to bill a contribution to the fund on a 4 17 monthly basis. The board shall adopt rules pursuant to 4 18 chapter 17A regarding such contributions. 4 19 4. Notwithstanding section 12C.7, subsection 2, interest 4 20 or earnings on moneys deposited in the energy assistance fund 4 21 shall be credited to the fund. Notwithstanding section 8.33, 4 22 moneys remaining in the energy assistance fund at the end of a 4 23 fiscal year shall not revert to the general fund of the state. 4 24 Sec. 9. EFFECTIVE AND APPLICABILITY DATES. Sections 1 4 25 through 5 of this Act take effect January 1, 2003, for tax 4 26 years beginning on or after that date. 4 27 EXPLANATION 4 28 This bill creates new sections in Code chapter 15E that 4 29 provide for a renewable energy tax credit for businesses equal 4 30 to 10 percent of the cost of energy property placed into 4 31 service during the tax year. "Energy property" is defined to 4 32 mean an alternate energy production facility or small hydro 4 33 facility as defined in Code section 476.42, which encompasses 4 34 solar, wind turbines, waste management, resource recovery, 4 35 refuse-derived fuel, agricultural crops or residues, wood- 5 1 burning facilities, and hydroelectric facilities at a dam, 5 2 including the related land, systems, buildings, improvements, 5 3 and transmission or distribution facilities. Unused credits 5 4 may be carried forward to future tax years. New Code sections 5 5 and subsections are also added to various parts of Code 5 6 chapters 422 and 432 to implement the tax credit. This part 5 7 of the bill takes effect January 1, 2003, for tax years 5 8 beginning on or after that date. 5 9 The bill amends Code section 476.2 to provide that by 5 10 January 1, 2003, the utility board shall prepare for the 5 11 general assembly an analysis of the costs and benefits of 5 12 generating and transmitting electricity from renewable 5 13 sources, and shall include a proposal for a formula for 5 14 establishing a fair cost for transmitting electricity from 5 15 renewable sources. 5 16 The bill amends Code section 476.44 to provide that the 5 17 requirement for electric public utilities to purchase 105 5 18 megawatts, or approximately 2 percent of their current Iowa 5 19 retail load, from renewable sources, should increase gradually 5 20 over the next 10 years, culminating in a 20 percent purchase 5 21 requirement by 2012. 5 22 The bill creates new Code section 476.48, which creates a 5 23 wind energy assistance fund to provide no-interest or low- 5 24 interest loans to small businesses, farms, and public 5 25 facilities that build wind-generating capacity. Money for the 5 26 fund primarily will come from contributions from customers of 5 27 electric utilities, but may also come from the general 5 28 assembly and other sources. Interest earned by moneys in the 5 29 fund remains in the fund, and moneys in the fund do not revert 5 30 at the end of the fiscal year. 5 31 LSB 5578HH 79 5 32 jj/sh/8
Text: HF02308 Text: HF02310 Text: HF02300 - HF02399 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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