Senate File 516 H-1713 Amend Senate File 516, as passed by the Senate, as 1 follows: 2 1. By striking everything after the enacting clause 3 and inserting: 4 < Section 1. NEW SECTION . 422.11Y Energy system tax 5 credits. 6 1. The taxes imposed under this division, less the 7 credits allowed under section 422.12, shall be reduced 8 by an energy system tax credit equal to the sum of the 9 following: 10 a. Twenty-five percent of the federal residential 11 energy efficient property credit related to solar 12 energy and wind energy systems provided in section 13 25D of the Internal Revenue Code, not to exceed three 14 thousand dollars. 15 b. Twenty-five percent of the federal energy 16 credit related to solar energy and wind energy systems 17 provided in section 48 of the Internal Revenue Code, 18 not to exceed fifteen thousand dollars. 19 2. Any credit in excess of tax liability is 20 refundable. In lieu of claiming a refund, the 21 taxpayer may elect to have the overpayment shown on the 22 taxpayer’s final, completed return credited to the tax 23 liability for the following tax year. 24 3. a. An individual may claim the tax credit 25 allowed a partnership, limited liability company, S 26 corporation, estate, or trust electing to have the 27 income taxed directly to the individual. The amount 28 claimed by the individual shall be based upon the 29 pro rata share of the individual’s earnings of the 30 partnership, limited liability company, S corporation, 31 estate, or trust. 32 b. A taxpayer who is eligible to claim a credit 33 under this section shall not be eligible to claim a 34 wind energy production tax credit under chapter 476B or 35 a renewable energy tax credit under chapter 476C. 36 4. The cumulative value of tax credits claimed 37 annually by applicants pursuant to this section shall 38 not exceed ten million dollars. 39 5. On or before January 1, annually, the department 40 shall submit a written report to the governor and the 41 general assembly regarding the number and value of 42 tax credits claimed under this section, and any other 43 information the department may deem meaningful and 44 appropriate. 45 Sec. 2. Section 422.33, Code 2011, is amended by 46 adding the following new subsection: 47 NEW SUBSECTION . 29. a. The taxes imposed under 48 this division shall be reduced by an energy system tax 49 credit equal to twenty-five percent of the federal 50 -1- SF516.2617 (3) 84 rn/rj 1/ 2 #1.

energy credit related to solar energy and wind energy 1 systems provided in section 48 of the Internal Revenue 2 Code, not to exceed fifteen thousand dollars. 3 b. The taxpayer may claim the credit pursuant to 4 this subsection according to the same requirements, 5 conditions, and limitations as provided pursuant to 6 section 422.11Y. 7 Sec. 3. Section 476B.4, Code 2011, is amended to 8 read as follows: 9 476B.4 Limitation. 10 1. The wind energy production tax credit shall not 11 be allowed for any kilowatt-hour of electricity that 12 is sold to a related person. For purposes of this 13 section , persons shall be treated as related to each 14 other if such persons would be treated as a single 15 employer under the regulations prescribed under section 16 52(b) of the Internal Revenue Code. In the case of a 17 corporation that is a member of an affiliated group 18 of corporations filing a consolidated return, such 19 corporation shall be treated as selling electricity to 20 an unrelated person if such electricity is sold to such 21 a person by another member of such group. 22 2. A taxpayer who is eligible to claim a wind 23 energy production tax credit under this chapter shall 24 not be eligible to claim an energy system tax credit 25 under section 422.11Y or 422.33. 26 Sec. 4. Section 476C.2, Code 2011, is amended by 27 adding the following new subsection: 28 NEW SUBSECTION . 3. A taxpayer who is eligible to 29 claim a renewable energy tax credit under this chapter 30 shall not be eligible to claim an energy system tax 31 credit under section 422.11Y or 422.33. 32 Sec. 5. EFFECTIVE UPON ENACTMENT. This Act, being 33 deemed of immediate importance, takes effect upon 34 enactment. 35 Sec. 6. RETROACTIVE APPLICABILITY. This Act 36 applies retroactively to tax years beginning on or 37 after January 1, 2011. > 38 2. Title page, striking lines 1 through 3, and 39 inserting < An Act providing for specified energy 40 system tax credits, and including effective date and 41 retroactive > 42 ______________________________ COMMITTEE ON WAYS AND MEANS SANDS of Louisa, Chairperson -2- SF516.2617 (3) 84 rn/rj 2/ 2 #2.