Text: H08351 Text: H08353 Text: H08300 - H08399 Text: H Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Amend Senate File 449, as amended, passed, and 1 2 reprinted by the Senate, as follows: 1 3 #1. By striking everything after the enacting 1 4 clause and inserting the following: 1 5 "Section 1. NEW SECTION. 422.11J WIND ENERGY 1 6 PRODUCTION TAX CREDIT. 1 7 The taxes imposed under this division, less the 1 8 credits allowed under sections 422.12 and 422.12B, 1 9 shall be reduced by a wind energy production tax 1 10 credit allowed under chapter 476B. 1 11 Sec. 2. Section 422.33, Code Supplement 2003, is 1 12 amended by adding the following new subsection: 1 13 NEW SUBSECTION. 16. The taxes imposed under this 1 14 division shall be reduced by a wind energy production 1 15 tax credit allowed under chapter 476B. 1 16 Sec. 3. Section 422.60, Code Supplement 2003, is 1 17 amended by adding the following new subsection: 1 18 NEW SUBSECTION. 9. The taxes imposed under this 1 19 division shall be reduced by a wind energy production 1 20 tax credit allowed under chapter 476B. 1 21 Sec. 4. NEW SECTION. 432.12E WIND ENERGY 1 22 PRODUCTION TAX CREDIT. 1 23 The taxes imposed under this chapter shall be 1 24 reduced by a wind energy production tax credit allowed 1 25 under chapter 476B. 1 26 Sec. 5. NEW SECTION. 476B.1 DEFINITIONS. 1 27 For purposes of this chapter, unless the context 1 28 otherwise requires: 1 29 1. "Board" means the utilities board within the 1 30 utilities division of the department of commerce. 1 31 2. "Department" means the department of revenue. 1 32 3. "Qualified electricity" means electricity 1 33 produced from wind at a qualified facility. 1 34 4. "Qualified facility" means an electrical 1 35 production facility that meets all of the following: 1 36 a. Produces electricity from wind. 1 37 b. Is located in Iowa. 1 38 c. Was originally placed in service on or after 1 39 July 1, 2004, but before July 1, 2007. 1 40 Sec. 6. NEW SECTION. 476B.2 GENERAL RULE. 1 41 The owner of a qualified facility shall, for each 1 42 kilowatt-hour of qualified electricity that the owner 1 43 sells during the ten-year period beginning on the date 1 44 the qualified facility was originally placed in 1 45 service, be allowed a wind energy production tax 1 46 credit to the extent provided in this chapter against 1 47 the tax imposed in chapter 422, divisions II, III, and 1 48 V, and chapter 432. 1 49 Sec. 7. NEW SECTION. 476B.3 CREDIT AMOUNT. 1 50 The wind energy production tax credit allowed under 2 1 this chapter equals the product of one cent multiplied 2 2 by the number of kilowatt-hours of qualified 2 3 electricity sold by the owner during the taxable year. 2 4 Sec. 8. NEW SECTION. 476B.4 LIMITATIONS. 2 5 1. a. The wind energy production tax credit shall 2 6 not be allowed for any kilowatt-hour of electricity 2 7 produced on wind energy conversion property for which 2 8 the owner has claimed or otherwise received for that 2 9 property the benefit of special valuation under 2 10 section 427B.26 or section 441.21, subsection 8, or 2 11 the exemption from retail sales tax under section 2 12 422.45, subsection 48, or section 423.3, subsection 2 13 53, as applicable. 2 14 b. The disallowance of the tax credit pursuant to 2 15 paragraph "a" does not apply to an owner of a 2 16 qualified facility that owns, directly or indirectly, 2 17 in the aggregate, a total annual turbine nameplate 2 18 capacity of all such property of less than one 2 19 megawatt. 2 20 2. The wind energy production tax credit shall not 2 21 be allowed for any kilowatt-hour of electricity that 2 22 is sold to a related person. For purpose of this 2 23 subsection, persons shall be treated as related to 2 24 each other if such persons would be treated as a 2 25 single employer under the regulations prescribed under 2 26 section 52(b) of the Internal Revenue Code. In the 2 27 case of a corporation that is a member of an 2 28 affiliated group of corporations filing a consolidated 2 29 return, such corporation shall be treated as selling 2 30 electricity to an unrelated person if such electricity 2 31 is sold to such a person by another member of such 2 32 group. 2 33 Sec. 9. NEW SECTION. 476B.5 APPLICATION FOR TAX 2 34 CREDIT CERTIFICATES. 2 35 1. a. To be eligible to receive the wind energy 2 36 production tax credit, the owner must first receive 2 37 approval of the board of supervisors of the county in 2 38 which the qualified facility is located. The 2 39 application for approval may be submitted prior to 2 40 commencement of the construction of the qualified 2 41 facility but shall be submitted no later than the 2 42 close of the owner's first taxable year for which the 2 43 credit is to be applied for. The application must 2 44 contain the owner's name and address, the address of 2 45 the qualified facility, and the dates of the owner's 2 46 first and last taxable years for which the credit will 2 47 be applied for. Within forty-five days of the receipt 2 48 of the application for approval, the board of 2 49 supervisors shall either approve or disapprove the 2 50 application. After the forty-five-day limit, the 3 1 application is deemed to be approved. 3 2 b. Upon approval of the application, the owner may 3 3 apply for the tax credit as provided in subsection 2. 3 4 In addition, approval of the application is approval 3 5 by the board of supervisors for the payment of the 3 6 property taxes levied on the qualified property to the 3 7 state. The property taxes to be paid to the state are 3 8 those property taxes which make up the consolidated 3 9 tax levied on the qualified facility and which are due 3 10 and payable in the twelve-year period beginning with 3 11 the first fiscal year beginning on or after the end of 3 12 the owner's first taxable year for which the credit is 3 13 applied for. Upon approval of the application, the 3 14 board of supervisors shall notify the county treasurer 3 15 to state on the tax statement which lists the taxes on 3 16 the qualified facility that the amount of the property 3 17 taxes shall be paid to the department. Payment of the 3 18 designated property taxes to the department shall be 3 19 in the same manner as required for the payment of 3 20 regular property taxes and failure to pay designated 3 21 property taxes to the department shall be treated the 3 22 same as failure to pay property taxes to the county 3 23 treasurer. 3 24 c. Once the owner of the qualified facility 3 25 receives approval under paragraph "a", subsequent 3 26 approval under paragraph "a" is not required for the 3 27 same qualified facility for subsequent taxable years. 3 28 2. To receive the wind energy production tax 3 29 credit, an owner of the qualified facility must submit 3 30 an application for a tax credit certificate to the 3 31 board not later than thirty days after the close of 3 32 the taxable year for which the credit is applied for. 3 33 The owner's application must contain, but need not be 3 34 limited to, all of the following information: the 3 35 owner's name, tax identification number, and address, 3 36 the number of kilowatt-hours of qualified electricity 3 37 sold by the owner during the preceding taxable year, 3 38 the address of the qualified facility at which the 3 39 qualified electricity was produced, and the 3 40 denomination that each tax credit certificate is to 3 41 carry. For the first taxable year for which the 3 42 credit is applied for, there shall be attached to the 3 43 application a notarized copy of the board of 3 44 supervisors' approval as required in subsection 1. 3 45 3. The board shall, in conjunction with the 3 46 department, prescribe appropriate forms, including 3 47 board of supervisors' approval forms, and instructions 3 48 to enable owners to claim the tax credit allowed under 3 49 this chapter. If the board prescribes these forms and 3 50 instructions, an owner's application for a tax credit 4 1 certificate shall not be valid unless made on and in 4 2 accordance with these forms and instructions. 4 3 Sec. 10. NEW SECTION. 476B.6 ISSUANCE OF TAX 4 4 CREDIT CERTIFICATES. 4 5 1. If the owner meets the criteria for eligibility 4 6 for the wind energy production tax credit, the board 4 7 shall determine the validity of the application and if 4 8 valid, shall approve the application for credit. Once 4 9 approval of the credit for a qualified facility is 4 10 granted, subsequent approval is not required for the 4 11 same qualified facility. However, application is 4 12 required to be filed as provided in section 476B.5, 4 13 subsection 2, for purposes of the issuance of credit 4 14 certificates. The board shall issue one or more tax 4 15 credit certificates to the owner not later than thirty 4 16 days after the application is submitted to the board. 4 17 Each tax credit certificate must contain the owner's 4 18 name, address, and tax identification number, amount 4 19 of tax credits, the first taxable year the 4 20 certificates may be used, which shall not be for a 4 21 taxable year beginning prior to July 1, 2005, and the 4 22 expiration date of the tax credit certificate, which 4 23 shall be seven years from its date of issuance and any 4 24 other information required by the department. Once 4 25 issued by the board, the tax credit certificate shall 4 26 be binding on the board and the department and shall 4 27 not be modified, terminated, or rescinded. The board 4 28 shall notify the department and identify the qualified 4 29 facility for which the owner received tax credit 4 30 certificates that property taxes levied on the 4 31 qualified facility are to be paid to the department. 4 32 2. If the tax credit application is filed by a 4 33 partnership, limited liability company, S corporation, 4 34 estate, trust, or other reporting entity all of the 4 35 income of which is taxed directly to its equity 4 36 holders or beneficiaries, the tax credit certificate 4 37 may, at the election of the owner, be issued directly 4 38 to equity holders or beneficiaries of the owner in 4 39 proportion to their pro rata share of the income of 4 40 such entity. If the owner elects to have the tax 4 41 credit certificate issued directly to its equity 4 42 holders or beneficiaries, the owner must, in the 4 43 application made under section 476B.5, identify its 4 44 equity holders or beneficiaries, and the amount of 4 45 such entity's income that is allocable to each equity 4 46 holder or beneficiary. 4 47 Sec. 11. NEW SECTION. 476B.7 TRANSFER OF TAX 4 48 CREDIT CERTIFICATES. 4 49 Wind energy production tax credit certificates 4 50 issued under this chapter may be transferred to any 5 1 person or entity. Within thirty days of transfer, the 5 2 transferee must submit the transferred tax credit 5 3 certificate to the board along with a statement 5 4 containing the transferee's name, tax identification 5 5 number, and address, and the denomination that each 5 6 replacement tax credit certificate is to carry and any 5 7 other information required by the department. Within 5 8 thirty days of receiving the transferred tax credit 5 9 certificate and the transferee's statement, the board 5 10 shall issue one or more replacement tax credit 5 11 certificates to the transferee. Each replacement 5 12 certificate must contain the information required 5 13 under section 476B.6 and must have the same effective 5 14 taxable year and the same expiration date that 5 15 appeared in the transferred tax credit certificate. 5 16 Tax credit certificate amounts of less than the 5 17 minimum amount established by rule of the board shall 5 18 not be transferable. A tax credit shall not be 5 19 claimed by a transferee under this chapter until a 5 20 replacement tax credit certificate identifying the 5 21 transferee as the proper holder has been issued. 5 22 The tax credit shall only be transferred once. The 5 23 transferee may use the amount of the tax credit 5 24 transferred against the taxes imposed under chapter 5 25 422, divisions II, III, and V, and chapter 432 for any 5 26 tax year the original transferor could have claimed 5 27 the tax credit. Any consideration received for the 5 28 transfer of the tax credit shall not be included as 5 29 income under chapter 422, divisions II, III, and V. 5 30 Any consideration paid for the transfer of the tax 5 31 credit shall not be deducted from income under chapter 5 32 422, divisions II, III, and V. 5 33 Sec. 12. NEW SECTION. 476B.8 USE OF TAX CREDIT 5 34 CERTIFICATES. 5 35 To claim a wind energy production tax credit under 5 36 this chapter, a taxpayer must attach one or more tax 5 37 credit certificates to the taxpayer's tax return. A 5 38 tax credit certificate shall not be used or attached 5 39 to a return filed for a taxable year beginning prior 5 40 to July 1, 2005. The tax credit certificate or 5 41 certificates attached to the taxpayer's tax return 5 42 shall be issued in the taxpayer's name, expire on or 5 43 after the last day of the taxable year for which the 5 44 taxpayer is claiming the tax credit, and show a tax 5 45 credit amount equal to or greater than the tax credit 5 46 claimed on the taxpayer's tax return. Any tax credit 5 47 in excess of the taxpayer's tax liability for the 5 48 taxable year may be credited to the taxpayer's tax 5 49 liability for the following seven taxable years or 5 50 until depleted, whichever is the earlier. 6 1 Sec. 13. NEW SECTION. 476B.9 REGISTRATION OF TAX 6 2 CREDIT CERTIFICATES. 6 3 The board shall, in conjunction with the 6 4 department, develop a system for the registration of 6 5 the wind energy production tax credit certificates 6 6 issued or transferred under this chapter and a system 6 7 that permits verification that any tax credit claimed 6 8 on a tax return is valid and that transfers of the tax 6 9 credit certificates are made in accordance with the 6 10 requirements of this chapter. The tax credit 6 11 certificates issued under this chapter shall not be 6 12 classified as a security pursuant to chapter 502. 6 13 Sec. 14. EFFECTIVE AND APPLICABILITY DATES. This 6 14 Act, being deemed of immediate importance, takes 6 15 effect upon enactment and applies retroactively to 6 16 taxable years beginning on or after January 1, 2004." 6 17 #2. Title page, by striking lines 3 and 4 and 6 18 inserting the following: "insurance premiums tax, 6 19 providing for certain property taxes to be paid to the 6 20 state, and including effective and applicability date 6 21 provisions." 6 22 6 23 6 24 6 25 COMMITTEE ON WAYS AND MEANS 6 26 J. K. VAN FOSSEN of Scott, Chairperson 6 27 SF 449.706 80 6 28 mg/gg
Text: H08351 Text: H08353 Text: H08300 - H08399 Text: H Index Bills and Amendments: General Index Bill History: General Index
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