Senate File 516 S-3186 Amend Senate File 516 as follows: 1 1. By striking everything after the enacting clause 2 and inserting: 3 < Section 1. Section 422.7, Code 2011, is amended by 4 adding the following new subsection: 5 NEW SUBSECTION . 34. a. Subtract, to the extent 6 not otherwise deducted or excluded and subject to the 7 limitations of this subsection, thirty percent of 8 the allowable costs incurred for the construction or 9 installation of a solar energy system or a wind energy 10 system. 11 b. The deduction allowed under paragraph “a” shall 12 be limited to the following amounts: 13 (1) In the case of commercial or agricultural 14 construction or installation, fifteen thousand dollars. 15 (2) In the case of residential construction or 16 installation, three thousand dollars. 17 c. To be eligible for a deduction under this 18 subsection, a taxpayer shall meet all of the following 19 conditions: 20 (1) An applicant shall complete and submit an 21 energy audit conducted either by or on behalf of the 22 applicant’s electric utility or through a private 23 energy audit service. The level of energy audit to 24 be conducted shall be determined under rules adopted 25 by the department in consultation with the utilities 26 board of the utilities division of the department of 27 commerce. 28 (2) The solar energy system or wind energy system 29 must qualify for the energy star efficiency rating 30 developed by the United States environmental protection 31 agency, or a similar certification program or status 32 designated by the department by rule, if available. 33 (3) The installation must be performed by a 34 licensed or certified installer qualified to install 35 solar energy or wind energy systems and equipment, and 36 must meet or exceed all applicable local building codes 37 and ordinances. 38 d. A person whose application for a solar energy 39 system tax credit certificate or a wind energy system 40 tax credit certificate is denied may file an appeal 41 with the department within sixty days from the date of 42 denial pursuant to the provisions of chapter 17A. 43 e. A taxpayer who is eligible for a deduction under 44 this subsection shall not be eligible to claim the wind 45 energy production tax credit provided in chapter 476B 46 or the renewable energy tax credit provided in chapter 47 476C. 48 f. On or before January 1, annually, the department 49 shall submit a written report to the governor and the 50 -1- SF516.2136 (2) 84 rn/sc 1/ 3 #1.

general assembly regarding the amounts claimed as a 1 deduction pursuant to this subsection. 2 g. For purposes of this subsection, the following 3 terms have the following meanings: 4 (1) “Allowable costs” means amounts incurred in 5 the construction or installation of a solar energy 6 system or a wind energy system which are determined by 7 the department by rule to qualify for the deduction 8 pursuant to this subsection. 9 (2) “Residential” means a primary or vacation 10 residence, and excludes rental property. 11 (3) “Solar energy system” means a solar energy 12 facility which collects and converts incident solar 13 radiation into energy to generate electricity. 14 (4) “Wind energy system” means a wind energy 15 conversion system that collects and converts wind 16 into energy to generate electricity, with a nameplate 17 generating capacity of less than or equal to twenty 18 megawatts. 19 Sec. 2. Section 422.35, Code 2011, is amended by 20 adding the following new subsection: 21 NEW SUBSECTION . 25. a. Subtract, to the extent 22 not otherwise deducted or excluded and subject to the 23 limitations of this subsection, thirty percent of 24 the allowable costs incurred for the construction or 25 installation of a solar energy system or a wind energy 26 system. 27 b. The deduction allowed under paragraph “a” shall 28 be limited to the following amounts: 29 (1) In the case of commercial or agricultural 30 construction or installation, fifteen thousand dollars. 31 (2) In the case of residential construction or 32 installation, three thousand dollars. 33 c. To be eligible for a deduction under this 34 subsection, a taxpayer shall meet all of the following 35 conditions: 36 (1) An applicant shall complete and submit an 37 energy audit conducted either by or on behalf of the 38 applicant’s electric utility or through a private 39 energy audit service. The level of energy audit to 40 be conducted shall be determined under rules adopted 41 by the department in consultation with the utilities 42 board of the utilities division of the department of 43 commerce. 44 (2) The solar energy system or wind energy system 45 must qualify for the energy star efficiency rating 46 developed by the United States environmental protection 47 agency, or a similar certification program or status 48 designated by the department by rule, if available. 49 (3) The installation must be performed by a 50 -2- SF516.2136 (2) 84 rn/sc 2/ 3

licensed or certified installer qualified to install 1 solar energy or wind energy systems and equipment, and 2 must meet or exceed all applicable local building codes 3 and ordinances. 4 d. A person whose application for a solar energy 5 system tax credit certificate or a wind energy system 6 tax credit certificate is denied may file an appeal 7 with the department within sixty days from the date of 8 denial pursuant to the provisions of chapter 17A. 9 e. A taxpayer who is eligible for a deduction under 10 this subsection shall not be eligible to claim the wind 11 energy production tax credit provided in chapter 476B 12 or the renewable energy tax credit provided in chapter 13 476C. 14 f. On or before January 1, annually, the department 15 shall submit a written report to the governor and the 16 general assembly regarding the amounts claimed as a 17 deduction pursuant to this subsection. 18 g. For purposes of this subsection, the following 19 terms have the following meanings: 20 (1) “Allowable costs” means amounts incurred in the 21 construction or installation of a solar energy system 22 or a wind energy system which are determined by the 23 department by rule to qualify for the tax credit issued 24 pursuant to this subsection. 25 (2) “Residential” means a primary or vacation 26 residence, and excludes rental property. 27 (3) “Solar energy system” means a solar energy 28 facility which collects and converts incident solar 29 radiation into energy to generate electricity. 30 (4) “Wind energy system” means a wind energy 31 conversion system that collects and converts wind 32 into energy to generate electricity, with a nameplate 33 generating capacity of less than or equal to twenty 34 megawatts. 35 Sec. 3. RETROACTIVE APPLICABILITY. This Act 36 applies retroactively to January 1, 2011, for tax years 37 beginning on or after that date. > 38 2. Title page, by striking lines 1 through 4 and 39 inserting < An Act excluding from the computation of net 40 income specified amounts incurred in the construction 41 and installation of solar energy systems and wind 42 energy systems and including retroactive applicability 43 provisions. > 44 ______________________________ MARK CHELGREN -3- SF516.2136 (2) 84 rn/sc 3/ 3 #2.