Amend Senate File 516 as follows:
   1.  By striking everything after the enacting clause and inserting: 
   Section 1.  Section 422.7, Code 2011, is amended by adding the following new subsection:
   NEW SUBSECTION.  34.
  a.  Subtract, to the extent not otherwise deducted or excluded and subject to the limitations of this subsection, thirty percent of the allowable costs incurred for the construction or installation of a solar energy system or a wind energy system.
   b.  The deduction allowed under paragraph“a” shall be limited to the following amounts:
   (1)  In the case of commercial or agricultural construction or installation, fifteen thousand dollars.
   (2)  In the case of residential construction or installation, three thousand dollars.
   c.  To be eligible for a deduction under this subsection, a taxpayer shall meet all of the following conditions:
   (1)  An applicant shall complete and submit an energy audit conducted either by or on behalf of the applicant’s electric utility or through a private energy audit service. The level of energy audit to be conducted shall be determined under rules adopted by the department in consultation with the utilities board of the utilities division of the department of commerce.
   (2)  The solar energy system or wind energy system must qualify for the energy star efficiency rating developed by the United States environmental protection agency, or a similar certification program or status designated by the department by rule, if available.
   (3)  The installation must be performed by a licensed or certified installer qualified to install solar energy or wind energy systems and equipment, and must meet or exceed all applicable local building codes and ordinances.
   d.  A taxpayer who is eligible for a deduction under this subsection shall not be eligible to claim the wind energy production tax credit provided in chapter 476B or the renewable energy tax credit provided in chapter 476C.
   e.  On or before January 1, annually, the department shall submit a written report to the governor and the general assembly regarding the amounts claimed as a deduction pursuant to this subsection.
   f.  For purposes of this subsection, the following terms have the following meanings:
   (1)  “Allowable costs” means amounts incurred in the construction or installation of a solar energy system or a wind energy system which are determined by the department by rule to qualify for the deduction pursuant to this subsection.
   (2)  “Residential” means a primary or vacation residence, and excludes rental property.
   (3)  “Solar energy system” means a solar energy facility which collects and converts incident solar radiation into energy to generate electricity.
   (4)  “Wind energy system” means a wind energy conversion system that collects and converts wind into energy to generate electricity, with a nameplate generating capacity of less than or equal to twenty megawatts.
   Sec. 2.  Section 422.35, Code 2011, is amended by adding the following new subsection:
   NEW SUBSECTION.  25.
  a.  Subtract, to the extent not otherwise deducted or excluded and subject to the limitations of this subsection, thirty percent of the allowable costs incurred for the construction or installation of a solar energy system or a wind energy system.
   b.  The deduction allowed under paragraph“a” shall be limited to the following amounts:
   (1)  In the case of commercial or agricultural construction or installation, fifteen thousand dollars.
   (2)  In the case of residential construction or installation, three thousand dollars.
   c.  To be eligible for a deduction under this subsection, a taxpayer shall meet all of the following conditions:
   (1)  An applicant shall complete and submit an energy audit conducted either by or on behalf of the applicant’s electric utility or through a private energy audit service. The level of energy audit to be conducted shall be determined under rules adopted by the department in consultation with the utilities board of the utilities division of the department of commerce.
   (2)  The solar energy system or wind energy system must qualify for the energy star efficiency rating developed by the United States environmental protection agency, or a similar certification program or status designated by the department by rule, if available.
   (3)  The installation must be performed by a licensed or certified installer qualified to install solar energy or wind energy systems and equipment, and must meet or exceed all applicable local building codes and ordinances.
   d.  A taxpayer who is eligible for a deduction under this subsection shall not be eligible to claim the wind energy production tax credit provided in chapter 476B or the renewable energy tax credit provided in chapter 476C.
   e.  On or before January 1, annually, the department shall submit a written report to the governor and the general assembly regarding the amounts claimed as a deduction pursuant to this subsection.
   f.  For purposes of this subsection, the following terms have the following meanings:
   (1)  “Allowable costs” means amounts incurred in the construction or installation of a solar energy system or a wind energy system which are determined by the department by rule to qualify for the deduction pursuant to this subsection.
   (2)  “Residential” means a primary or vacation residence, and excludes rental property.
   (3)  “Solar energy system” means a solar energy facility which collects and converts incident solar radiation into energy to generate electricity.
   (4)  “Wind energy system” means a wind energy conversion system that collects and converts wind into energy to generate electricity, with a nameplate generating capacity of less than or equal to twenty megawatts.
   Sec. 3.  RETROACTIVE APPLICABILITY.  This Act applies retroactively to January 1, 2011, for tax years beginning on or after that date.>
   2.  Title page, by striking lines 1 through 4 and inserting <An Act excluding from the computation of net income specified amounts incurred in the construction and installation of solar energy systems and wind energy systems and including retroactive applicability provisions.>

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MARK CHELGREN