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PAG LIN
1 1 Section 1. NEW SECTION. 422.11H WIND ENERGY PRODUCTION
1 2 TAX CREDIT.
1 3 The taxes imposed under this division, less the credits
1 4 allowed under sections 422.12 and 422.12B, shall be reduced by
1 5 a wind energy production tax credit allowed under chapter
1 6 476B.
1 7 Sec. 2. Section 422.33, Code 2003, is amended by adding
1 8 the following new subsection:
1 9 NEW SUBSECTION. 14. The taxes imposed under this division
1 10 shall be reduced by a wind energy production tax credit
1 11 allowed under chapter 476B.
1 12 Sec. 3. Section 422.60, Code 2003, is amended by adding
1 13 the following new subsection:
1 14 NEW SUBSECTION. 7. The taxes imposed under this division
1 15 shall be reduced by a wind energy production tax credit
1 16 allowed under chapter 476B.
1 17 Sec. 4. NEW SECTION. 432.12D WIND ENERGY PRODUCTION TAX
1 18 CREDIT.
1 19 The taxes imposed under this chapter shall be reduced by a
1 20 wind energy production tax credit allowed under chapter 476B.
1 21 Sec. 5. NEW SECTION. 476B.1 DEFINITIONS.
1 22 For purposes of this chapter, unless the context otherwise
1 23 requires:
1 24 1. "Board" means the utilities board within the utilities
1 25 division of the department of commerce.
1 26 2. "Department" means the department of revenue and
1 27 finance.
1 28 3. "Qualified electricity" means electricity produced from
1 29 wind at a qualified facility.
1 30 4. "Qualified facility" means an electrical production
1 31 facility that meets all of the following:
1 32 a. Produces electricity from wind.
1 33 b. Is located in Iowa.
1 34 c. Was originally placed in service on or after July 1,
1 35 2004, but before July 1, 2009.
2 1 Sec. 6. NEW SECTION. 276B.2 GENERAL RULE.
2 2 The owner of a qualified facility shall, for each kilowatt-
2 3 hour of qualified electricity that the owner sells during the
2 4 ten-year period beginning on the date the qualified facility
2 5 was originally placed in service, be allowed a wind energy
2 6 production tax credit to the extent provided in this chapter
2 7 against the tax imposed in chapter 422, divisions II, III, and
2 8 V, and chapter 432.
2 9 Sec. 7. NEW SECTION. 476B.3 CREDIT AMOUNT.
2 10 1. The wind energy production tax credit allowed under
2 11 this chapter equals the credit amount for the calendar year
2 12 multiplied by the number of kilowatt-hours of qualified
2 13 electricity sold by the owner during the taxable year
2 14 beginning in that calendar year. The credit amount equals one
2 15 cent for the 2004 calendar year for taxable years beginning in
2 16 the 2004 calendar year. The credit amount shall be adjusted
2 17 for inflation each calendar year for taxable years beginning
2 18 in that calendar year. The adjustment for inflation shall be
2 19 made by multiplying the credit amount for the 2004 calendar
2 20 year by the inflation adjustment factor for the calendar year.
2 21 If the adjustment amount is not a multiple of one-tenth of one
2 22 cent, such amount shall be rounded to the nearest one-tenth of
2 23 one cent.
2 24 2. For purposes of this section, "inflation adjustment
2 25 factor" means, with respect to any calendar year, a fraction,
2 26 the numerator of which is the gross domestic product implicit
2 27 price deflator for the preceding calendar year and the
2 28 denominator of which is the gross domestic product implicit
2 29 price deflator for the 2003 calendar year. The term "gross
2 30 domestic product implicit price deflator" means the most
2 31 recent revision of the implicit price deflator for the gross
2 32 domestic product as computed and published by the United
2 33 States department of commerce before March 15 of the calendar
2 34 year. The adjusted credit amount shall be published by the
2 35 board no later than April 15 of each calendar year.
3 1 Computation of the inflation adjustment factor and adjusted
3 2 credit amount by the board are not rules as defined in section
3 3 17A.2.
3 4 Sec. 8. NEW SECTION. 476B.4 LIMITATIONS.
3 5 1. The wind energy production tax credit shall not be
3 6 allowed for any kilowatt-hour of electricity produced on wind
3 7 energy conversion property for which the owner has claimed or
3 8 otherwise received for that property the benefit of special
3 9 valuation under section 427B.26 or section 441.21, subsection
3 10 8, or the exemption from retail sales tax under section
3 11 422.45, subsection 48.
3 12 2. The wind energy production tax credit shall not be
3 13 allowed for any kilowatt-hour of electricity that is sold to a
3 14 related person. For purpose of this subsection, persons shall
3 15 be treated as related to each other if such persons would be
3 16 treated as a single employer under the regulations prescribed
3 17 under section 52(b) of the Internal Revenue Code. In the case
3 18 of a corporation that is a member of an affiliated group of
3 19 corporations filing a consolidated return, such corporation
3 20 shall be treated as selling electricity to an unrelated person
3 21 if such electricity is sold to such a person by another member
3 22 of such group.
3 23 Sec. 9. NEW SECTION. 476B.5 APPLICATION FOR TAX CREDIT
3 24 CERTIFICATES.
3 25 1. To receive the wind energy production tax credit, an
3 26 owner of the qualified facility must submit an application for
3 27 a tax credit certificate to the board not later than thirty
3 28 days after the close of its taxable year. The owner's
3 29 application must contain, but need not be limited to, all of
3 30 the following information: the owner's name, tax
3 31 identification number, and address, the number of kilowatt-
3 32 hours of qualified electricity sold by the owner during the
3 33 preceding taxable year, the address of the qualified facility
3 34 at which the qualified electricity was produced, a certified
3 35 statement of the number, if any, of kilowatt-hours of
4 1 electricity produced on wind energy conversion property for
4 2 which the owner has claimed or otherwise received for that
4 3 property the benefit of special valuation under section
4 4 427B.26 or section 441.21, subsection 8, or the exemption from
4 5 the retail sales tax under section 422.45, subsection 48, and
4 6 the denomination that each tax credit certificate is to carry.
4 7 2. The board shall, in conjunction with the department,
4 8 prescribe appropriate forms and instructions to enable owners
4 9 to claim the tax credit allowed under this chapter. If the
4 10 board prescribes these forms and instructions, an owner's
4 11 application for a tax credit certificate shall not be valid
4 12 unless made on and in accordance with these forms and
4 13 instructions.
4 14 Sec. 10. NEW SECTION. 476B.6 ISSUANCE OF TAX CREDIT
4 15 CERTIFICATES.
4 16 1. If the owner meets the criteria for eligibility for the
4 17 wind energy production tax credit, the board shall issue one
4 18 or more tax credit certificates to the owner not later than
4 19 thirty days after the application is submitted to the board.
4 20 Each tax credit certificate must contain the owner's name,
4 21 address, and tax identification number, amount of tax credits,
4 22 and the expiration date of the tax credit certificate, which
4 23 shall be seven years from its date of issuance and any other
4 24 information required by the department. Once issued by the
4 25 board, the tax credit certificate shall be binding on the
4 26 board and the department and shall not be modified,
4 27 terminated, or rescinded.
4 28 2. If the tax credit application is filed by a
4 29 partnership, limited liability company, S corporation, estate,
4 30 trust, or other reporting entity all of the income of which is
4 31 taxed directly to its equity holders or beneficiaries, the tax
4 32 credit certificate may, at the election of the owner, be
4 33 issued directly to equity holders or beneficiaries of the
4 34 owner in proportion to their pro rata share of the income of
4 35 such entity. If the owner elects to have the tax credit
5 1 certificate issued directly to its equity holders or
5 2 beneficiaries, the owner must, in the application made under
5 3 section 476B.5, identify its equity holders or beneficiaries,
5 4 and the amount of such entity's income that is allocable to
5 5 each equity holder or beneficiary.
5 6 Sec. 11. NEW SECTION. 476B.7 TRANSFER OF TAX CREDIT
5 7 CERTIFICATES.
5 8 Wind energy production tax credit certificates issued under
5 9 this chapter may be transferred to any person or entity.
5 10 Within thirty days of transfer, the transferee must submit the
5 11 transferred tax credit certificate to the board along with a
5 12 statement containing the transferee's name, tax identification
5 13 number, and address, and the denomination that each
5 14 replacement tax credit certificate is to carry and any other
5 15 information required by the department. Within thirty days of
5 16 receiving the transferred tax credit certificate and the
5 17 transferee's statement, the board shall issue one or more
5 18 replacement tax credit certificates to the transferee. Each
5 19 replacement certificate must contain the information required
5 20 under section 476B.6 and must have the same expiration date
5 21 that appeared in the transferred tax credit certificate. Tax
5 22 credit certificate amounts of less than the minimum amount
5 23 established by rule of the board shall not be transferable. A
5 24 tax credit shall not be claimed by a transferee under this
5 25 chapter until a replacement tax credit certificate identifying
5 26 the transferee as the proper holder has been issued.
5 27 The tax credit shall only be transferred once. The
5 28 transferee may use the amount of the tax credit transferred
5 29 against the taxes imposed under chapter 422, divisions II,
5 30 III, and V, and chapter 432 for any tax year the original
5 31 transferor could have claimed the tax credit. Any
5 32 consideration received for the transfer of the tax credit
5 33 shall not be included as income under chapter 422, divisions
5 34 II, III, and V. Any consideration paid for the transfer of
5 35 the tax credit shall not be deducted from income under chapter
6 1 422, divisions II, III, and V.
6 2 Sec. 12. NEW SECTION. 476B.8 USE OF TAX CREDIT
6 3 CERTIFICATES.
6 4 To claim a wind energy production tax credit under this
6 5 chapter, a taxpayer must attach one or more tax credit
6 6 certificates to the taxpayer's tax return. The tax credit
6 7 certificate or certificates attached to the taxpayer's tax
6 8 return shall be issued in the taxpayer's name, expire on or
6 9 after the last day of the taxable year for which the taxpayer
6 10 is claiming the tax credit, and show a tax credit amount equal
6 11 to or greater than the tax credit claimed on the taxpayer's
6 12 tax return. Any tax credit in excess of the taxpayer's tax
6 13 liability for the taxable year may be credited to the
6 14 taxpayer's tax liability for the following seven taxable years
6 15 or until depleted, whichever is the earlier.
6 16 Sec. 13. NEW SECTION. 476B.9 REGISTRATION OF TAX CREDIT
6 17 CERTIFICATES.
6 18 The board shall, in conjunction with the department,
6 19 develop a system for the registration of the wind energy
6 20 production tax credit certificates issued or transferred under
6 21 this chapter and a system that permits verification that any
6 22 tax credit claimed on a tax return is valid and that transfers
6 23 of the tax credit certificates are made in accordance with the
6 24 requirements of this chapter. The tax credit certificates
6 25 issued under this chapter shall not be classified as a
6 26 security pursuant to chapter 502.
6 27 Sec. 14. APPLICABILITY DATE. This Act applies to tax
6 28 years beginning on or after January 1, 2004.
6 29 EXPLANATION
6 30 This bill provides a wind energy production tax credit to
6 31 be used to offset a taxpayer's tax liability under the
6 32 individual or corporate income tax, franchise tax, or
6 33 insurance premiums tax. The credit is based upon the number
6 34 of kilowatt-hours of electricity produced and sold by a
6 35 qualified facility that uses wind energy to generate
7 1 electricity. The credit amount is determined by multiplying
7 2 those kilowatt-hours by one cent. This one cent is adjusted
7 3 for inflation each year. A qualified facility is one located
7 4 in Iowa that was originally placed in operation between July
7 5 1, 2004, and June 30, 2009.
7 6 The credit is nonrefundable. However, the credit may be
7 7 transferred by the taxpayer to another taxpayer or any credit
7 8 not used by the taxpayer may be carried forward for up to
7 9 seven years.
7 10 The bill applies starting with a tax year beginning on or
7 11 after January 1, 2004.
7 12 LSB 2813XS 80
7 13 mg/pj/5.1
Text: SF00436 Text: SF00438 Text: SF00400 - SF00499 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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