House File 645 S-3215 Amend House File 645, as passed by the House, as 1 follows: 2 1. By striking everything after the enacting clause 3 and inserting: 4 < Section 1. NEW SECTION . 422.11K Wind energy 5 system tax credits. 6 1. The taxes imposed under this division, less the 7 credits allowed under section 422.12, shall be reduced 8 by a wind energy system tax credit equal to the sum of 9 the following: 10 a. Fifty percent of the federal residential energy 11 efficient property credit related to small wind energy 12 provided in section 25D(a)(4) of the Internal Revenue 13 Code, not to exceed five thousand dollars. 14 b. Fifty percent of the federal energy credit 15 related to small wind energy provided in section 16 48(a)(2)(A)(i)(IV) of the Internal Revenue Code, not to 17 exceed five thousand dollars. 18 2. Any credit in excess of the tax liability is 19 not refundable but the excess for the tax year may be 20 credited to the tax liability for the following ten 21 years or until depleted, whichever is earlier. The 22 director of revenue shall adopt rules to implement this 23 section. 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 tax 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 c. A taxpayer may claim more than one credit 37 under this section, but may claim only one credit 38 per separate and distinct small wind energy system 39 installation. The department shall establish criteria, 40 by rule, for determining what constitutes a separate 41 and distinct installation. 42 d. A taxpayer must submit an application to the 43 department for each separate and distinct small wind 44 energy installation. The application must be approved 45 by the department in order to claim the tax credit. 46 The application must be filed by May 1 following the 47 year of the installation of the small wind energy 48 system. 49 4. a. The cumulative value of tax credits claimed 50 -1- HF645.2199 (3) 86 rn/sc 1/ 5 #1.

annually by applicants pursuant to this section shall 1 not exceed one hundred fifty thousand dollars. 2 b. If an amount of tax credits available for a 3 tax year pursuant to paragraph “a” goes unclaimed, 4 the amount of the unclaimed tax credits shall be made 5 available for the following tax year in addition to, 6 and cumulated with, the amount available pursuant to 7 paragraph “a” for the following tax year. 8 5. On or before January 1, annually, the department 9 shall submit a written report to the governor and 10 the general assembly regarding the number and value 11 of tax credits claimed under this section, and any 12 other information the department may deem relevant and 13 appropriate. 14 Sec. 2. Section 422.11L, subsection 1, Code 2015, 15 is amended by adding the following new paragraph: 16 NEW PARAGRAPH . c. Notwithstanding paragraphs “a” 17 and “b” of this subsection, for installations occurring 18 on or after January 1, 2016, the applicable percentages 19 of the federal residential energy efficiency property 20 tax credit related to solar energy and the federal 21 energy credit related to solar energy systems shall be 22 fifty percent. 23 Sec. 3. Section 422.11L, subsection 4, paragraph a, 24 Code 2015, is amended to read as follows: 25 a. The cumulative value of tax credits claimed 26 annually by applicants pursuant to this section shall 27 not exceed four five million five hundred thousand 28 dollars. Of this amount, at least one million 29 dollars shall be reserved for claims associated with 30 or resulting from residential solar energy system 31 installations. In the event that the total amount of 32 claims submitted for residential solar energy system 33 installations in a tax year is an amount less than 34 one million dollars, the remaining unclaimed reserved 35 amount shall be made available for claims associated 36 with or resulting from nonresidential solar energy 37 system installations received for the tax year. 38 Sec. 4. Section 422.33, subsection 29, paragraph a, 39 Code 2015, is amended to read as follows: 40 a. The taxes imposed under this division shall 41 be reduced by a solar energy system tax credit 42 equal to sixty percent of the federal energy credit 43 related to solar energy systems provided in section 44 48(a)(2)(A)(i)(II) and section 48(a)(2)(A)(i)(III) 45 of the Internal Revenue Code, not to exceed twenty 46 thousand dollars. For installations occurring on or 47 after January 1, 2016, the applicable percentage of the 48 federal energy credit related to solar energy systems 49 shall be fifty percent. 50 -2- HF645.2199 (3) 86 rn/sc 2/ 5

Sec. 5. Section 422.33, Code 2015, is amended by 1 adding the following new subsection: 2 NEW SUBSECTION . 31. a. The taxes imposed under 3 this division shall be reduced by a wind energy system 4 tax credit equal to fifty percent of the federal energy 5 credit related to small wind energy systems provided 6 in section 48(a)(2)(A)(i)(IV) of the Internal Revenue 7 Code, not to exceed five thousand dollars. 8 b. The taxpayer may claim the credit pursuant to 9 this subsection according to the same requirements, 10 conditions, and limitations as provided in section 11 422.11K. 12 Sec. 6. Section 422.60, subsection 12, paragraph a, 13 Code 2015, is amended to read as follows: 14 a. The taxes imposed under this division shall 15 be reduced by a solar energy system tax credit 16 equal to sixty percent of the federal energy credit 17 related to solar energy systems provided in section 18 48(a)(2)(A)(i)(II) and section 48(a)(2)(A)(i)(III) 19 of the Internal Revenue Code, not to exceed twenty 20 thousand dollars. For installations occurring on or 21 after January 1, 2016, the applicable percentage of the 22 federal energy credit related to solar energy systems 23 shall be fifty percent. 24 Sec. 7. Section 422.60, Code 2015, is amended by 25 adding the following new subsection: 26 NEW SUBSECTION . 14. a. The taxes imposed under 27 this division shall be reduced by a wind energy system 28 tax credit equal to fifty percent of the federal energy 29 credit related to small wind energy systems provided 30 in section 48(a)(2)(A)(i)(IV) of the Internal Revenue 31 Code, not to exceed five thousand dollars. 32 b. The taxpayer may claim the credit pursuant to 33 this subsection according to the same requirements, 34 conditions, and limitations as provided in section 35 422.11K. 36 Sec. 8. Section 476C.1, subsection 6, paragraph 37 b, subparagraph (5), Code 2015, is amended to read as 38 follows: 39 (5) An electric cooperative association that has 40 one or more members organized pursuant to chapter 499 41 or a municipally owned city utility as defined in 42 section 362.2 . 43 Sec. 9. Section 476C.3, subsection 4, paragraph b, 44 Code 2015, is amended to read as follows: 45 b. The maximum annual amount of energy production 46 capacity equivalent of all other facilities the board 47 may find eligible under this chapter shall not exceed 48 a combined output of fifty-three sixty-three megawatts 49 of nameplate generating capacity and one hundred 50 -3- HF645.2199 (3) 86 rn/sc 3/ 5

sixty-seven billion British thermal units of heat for a 1 commercial purpose. 2 (1) Of the maximum annual amount of energy 3 production capacity equivalent of all other facilities 4 found eligible under this chapter , no more than ten 5 megawatts of nameplate generating capacity or energy 6 production capacity equivalent shall be allocated 7 annually to any one facility. 8 (2) Of the maximum annual amount of energy 9 production capacity equivalent of all other facilities 10 found eligible under this chapter , fifty-five billion 11 British thermal units of heat for a commercial purpose 12 shall be reserved annually for an eligible facility 13 that is a refuse conversion facility for processed, 14 engineered fuel from a multicounty solid waste 15 management planning area. The maximum amount of annual 16 energy production capacity the board may find eligible 17 for a single refuse conversion facility is fifty-five 18 billion British thermal units of heat for a commercial 19 purpose. 20 (3) Of the maximum annual amount of energy 21 production capacity equivalent of all other facilities 22 found eligible under this chapter, ten megawatts of 23 nameplate generating capacity or energy production 24 equivalent shall be reserved annually for solar 25 facilities owned or contracted for by utilities 26 described in section 476C.1, subsection 6, paragraph 27 “b” , subparagraph (5). 28 Sec. 10. Section 476C.5, Code 2015, is amended to 29 read as follows: 30 476C.5 Certificate issuance period. 31 A producer or purchaser of renewable energy may 32 shall receive renewable energy tax credit certificates 33 for a ten-year period for each eligible renewable 34 energy facility under this chapter . The ten-year 35 period for issuance of the tax credit certificates 36 begins with the date the purchaser of renewable energy 37 first purchases electricity, hydrogen fuel, methane gas 38 or other biogas used to generate electricity, or heat 39 for commercial purposes from the eligible renewable 40 energy facility for which a tax credit is issued under 41 this chapter , or the date the producer of the renewable 42 energy first uses the energy produced by the eligible 43 renewable energy facility for on-site consumption. 44 Renewable energy tax credit certificates shall not be 45 issued for renewable energy purchased or produced for 46 on-site consumption after December 31, 2026. 47 Sec. 11. EFFECTIVE UPON ENACTMENT. This Act, being 48 deemed of immediate importance, takes effect upon 49 enactment. 50 -4- HF645.2199 (3) 86 rn/sc 4/ 5

Sec. 12. RETROACTIVE APPLICABILITY. 1 1. Except as provided in subsection 2, the sections 2 of this Act amending section 476C.3, subsection 4, 3 paragraph “b”, and section 476C.5, apply retroactively 4 to January 1, 2014, for tax years beginning on or after 5 that date. 6 2. The section of this Act amending section 7 476C.1, subsection 6, and section 476C.3, subsection 8 4, paragraph “b”, unnumbered paragraph 1, and 9 enacting section 476C.3, subsection 4, paragraph “b”, 10 subparagraph (3), applies retroactively to January 1, 11 2015, for tax years beginning on or after that date. 12 3. The section of this Act amending section 13 422.11L, subsection 4, paragraph “a”, applies 14 retroactively to January 1, 2015, for tax years 15 beginning on or after that date. 16 4. The sections of this Act enacting section 17 422.11K, section 422.33, subsection 31, and section 18 422.60, subsection 14, apply retroactively to January 19 1, 2015, for tax years beginning on or after that 20 date. > 21 2. Title page, by striking lines 1 through 3 and 22 inserting < An Act modifying and enacting provisions 23 relating to specified renewable energy tax credits, and 24 including effective date and retroactive applicability 25 provisions. > 26 ______________________________ COMMITTEE ON WAYS AND MEANS JOE BOLKCOM, CHAIRPERSON -5- HF645.2199 (3) 86 rn/sc 5/ 5 #2.