Senate Amendment to House File 2468 H-8307 Amend House File 2468, as amended, passed, and 1 reprinted by the House, as follows: 2 1. Page 1, after line 19 by inserting: 3 < Sec. ___. NEW SECTION . 422.10A Geothermal tax 4 credit. 5 1. For purposes of this section, unless the context 6 otherwise requires: 7 a. “Qualified geothermal heat pump property” means 8 any equipment that uses the ground or groundwater as 9 a thermal energy source to heat the dwelling unit of 10 the taxpayer or as a thermal energy sink to cool such 11 dwelling unit, which equipment meets the requirements 12 of the federal energy star program in effect at the 13 time that the expenditure for such equipment is made. 14 b. “Qualified geothermal heat pump property 15 expenditures” means an expenditure for qualified 16 geothermal heat pump property installed on or in 17 connection with a dwelling unit located in Iowa and 18 used as a residence by the taxpayer. 19 2. Except as provided in subsection 6, the taxes 20 imposed under this division, less the credits allowed 21 under section 422.12, shall be reduced by a geothermal 22 tax credit equal to ten percent of the qualified 23 geothermal heat pump property expenditures made by the 24 taxpayer during the tax year. 25 3. Qualified geothermal heat pump property 26 expenditures shall be deemed to have been made on the 27 date the installation is complete or, in the case 28 of new construction or reconstruction, the date the 29 original use of the structure by the taxpayer begins. 30 4. In the case of a taxpayer whose dwelling unit 31 is part of a multiple housing cooperative organized 32 under chapter 499A or a horizontal property regime 33 under chapter 499B, the taxpayer shall be treated as 34 having made the taxpayer’s proportionate share of any 35 -1- HF2468.3936.S (1) 86 jh 1/ 3 #1.

qualified geothermal heat pump property expenditures 1 made by the cooperative or the regime. 2 5. Any credit in excess of the tax liability is 3 not refundable but the excess for the tax year may be 4 credited to the tax liability for the following ten 5 years or until depleted, whichever is earlier. 6 6. The credit provided in this section shall not 7 be available during any tax year in which the federal 8 residential energy efficient property tax credit for 9 geothermal heat pumps provided in section 25D(a)(5) of 10 the Internal Revenue Code is available. Any amount 11 of expenditures used to calculate the credit provided 12 in section 25D(a)(5) of the Internal Revenue Code 13 shall not be considered qualified geothermal heat pump 14 property expenditures for purposes of this section. > 15 2. Page 4, after line 26 by inserting: 16 < Sec. ___. Section 476C.1, subsection 6, paragraph 17 d, Code 2016, is amended to read as follows: 18 d. Was initially placed into service on or after 19 July 1, 2005, and before January 1, 2017 2018 . > 20 3. Page 5, after line 28 by inserting: 21 < Sec. ___. Section 476C.5, Code 2016, is amended to 22 read as follows: 23 476C.5 Certificate issuance period. 24 A producer or purchaser of renewable energy shall 25 receive renewable energy tax credit certificates for 26 a ten-year period for each eligible renewable energy 27 facility under this chapter . The ten-year period for 28 issuance of the tax credit certificates begins with the 29 date the purchaser of renewable energy first purchases 30 electricity, hydrogen fuel, methane gas or other biogas 31 used to generate electricity, or heat for commercial 32 purposes from the eligible renewable energy facility 33 for which a tax credit is issued under this chapter , 34 or the date the producer of the renewable energy first 35 -2- HF2468.3936.S (1) 86 jh 2/ 3 #2. #3.

uses the energy produced by the eligible renewable 1 energy facility for on-site consumption. Renewable 2 energy tax credit certificates shall not be issued for 3 renewable energy purchased or produced for on-site 4 consumption after December 31, 2026 2027 . > 5 4. Page 6, after line 30 by inserting: 6 < ___. The section of this Act amending section 7 476C.1. > 8 5. Page 6, after line 31 by inserting: 9 < ___. The section of this Act amending section 10 476C.5. > 11 6. Page 6, after line 31 by inserting: 12 < Sec. ___. EFFECTIVE DATE. The section of this Act 13 enacting section 422.10A takes effect January 1, 2017. > 14 7. Page 7, after line 12 by inserting: 15 < Sec. ___. RETROACTIVE APPLICABILITY. The 16 following provision or provisions of this Act apply 17 retroactively to January 1, 2016, for tax years 18 beginning on or after that date: 19 1. The section of this Act amending section 476C.1. 20 2. The section of this Act amending section 21 476C.5. > 22 8. Page 7, after line 25 by inserting: 23 < Sec. ___. APPLICABILITY. The section of this 24 Act enacting section 422.10A applies to qualified 25 geothermal heat pump property expenditures incurred on 26 or after January 1, 2017. > 27 9. Title page, line 9, after < entities, > by 28 inserting < a geothermal tax credit, > 29 10. By renumbering as necessary. 30 -3- HF2468.3936.S (1) 86 jh 3/ 3 #4. #5. #6. #7. #8. #9.