Senate File 516 S-3187 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 taxpayer who is eligible for a deduction under 39 this subsection shall not be eligible to claim the wind 40 energy production tax credit provided in chapter 476B 41 or the renewable energy tax credit provided in chapter 42 476C. 43 e. On or before January 1, annually, the department 44 shall submit a written report to the governor and the 45 general assembly regarding the amounts claimed as a 46 deduction pursuant to this subsection. 47 f. For purposes of this subsection, the following 48 terms have the following meanings: 49 (1) “Allowable costs” means amounts incurred in 50 -1- SF516.2144 (1) 84 rn/sc 1/ 3 #1.

the construction or installation of a solar energy 1 system or a wind energy system which are determined by 2 the department by rule to qualify for the deduction 3 pursuant to this subsection. 4 (2) “Residential” means a primary or vacation 5 residence, and excludes rental property. 6 (3) “Solar energy system” means a solar energy 7 facility which collects and converts incident solar 8 radiation into energy to generate electricity. 9 (4) “Wind energy system” means a wind energy 10 conversion system that collects and converts wind 11 into energy to generate electricity, with a nameplate 12 generating capacity of less than or equal to twenty 13 megawatts. 14 Sec. 2. Section 422.35, Code 2011, is amended by 15 adding the following new subsection: 16 NEW SUBSECTION . 25. a. Subtract, to the extent 17 not otherwise deducted or excluded and subject to the 18 limitations of this subsection, thirty percent of 19 the allowable costs incurred for the construction or 20 installation of a solar energy system or a wind energy 21 system. 22 b. The deduction allowed under paragraph “a” shall 23 be limited to the following amounts: 24 (1) In the case of commercial or agricultural 25 construction or installation, fifteen thousand dollars. 26 (2) In the case of residential construction or 27 installation, three thousand dollars. 28 c. To be eligible for a deduction under this 29 subsection, a taxpayer shall meet all of the following 30 conditions: 31 (1) An applicant shall complete and submit an 32 energy audit conducted either by or on behalf of the 33 applicant’s electric utility or through a private 34 energy audit service. The level of energy audit to 35 be conducted shall be determined under rules adopted 36 by the department in consultation with the utilities 37 board of the utilities division of the department of 38 commerce. 39 (2) The solar energy system or wind energy system 40 must qualify for the energy star efficiency rating 41 developed by the United States environmental protection 42 agency, or a similar certification program or status 43 designated by the department by rule, if available. 44 (3) The installation must be performed by a 45 licensed or certified installer qualified to install 46 solar energy or wind energy systems and equipment, and 47 must meet or exceed all applicable local building codes 48 and ordinances. 49 d. A taxpayer who is eligible for a deduction under 50 -2- SF516.2144 (1) 84 rn/sc 2/ 3

this subsection shall not be eligible to claim the wind 1 energy production tax credit provided in chapter 476B 2 or the renewable energy tax credit provided in chapter 3 476C. 4 e. On or before January 1, annually, the department 5 shall submit a written report to the governor and the 6 general assembly regarding the amounts claimed as a 7 deduction pursuant to this subsection. 8 f. For purposes of this subsection, the following 9 terms have the following meanings: 10 (1) “Allowable costs” means amounts incurred in 11 the construction or installation of a solar energy 12 system or a wind energy system which are determined by 13 the department by rule to qualify for the deduction 14 pursuant to this subsection. 15 (2) “Residential” means a primary or vacation 16 residence, and excludes rental property. 17 (3) “Solar energy system” means a solar energy 18 facility which collects and converts incident solar 19 radiation into energy to generate electricity. 20 (4) “Wind energy system” means a wind energy 21 conversion system that collects and converts wind 22 into energy to generate electricity, with a nameplate 23 generating capacity of less than or equal to twenty 24 megawatts. 25 Sec. 3. RETROACTIVE APPLICABILITY. This Act 26 applies retroactively to January 1, 2011, for tax years 27 beginning on or after that date. > 28 2. Title page, by striking lines 1 through 4 and 29 inserting < An Act excluding from the computation of net 30 income specified amounts incurred in the construction 31 and installation of solar energy systems and wind 32 energy systems and including retroactive applicability 33 provisions. > 34 ______________________________ MARK CHELGREN -3- SF516.2144 (1) 84 rn/sc 3/ 3 #2.