S-3215

   Amend House File 645, as passed by the House, as follows:
   1.  By striking everything after the enacting clause and inserting: 
   Section 1.  NEW SECTION.  422.11K  Wind energy system tax credits.
   1.  The taxes imposed under this division, less the credits allowed under section 422.12, shall be reduced by a wind energy system tax credit equal to the sum of the following:
   a.  Fifty percent of the federal residential energy efficient property credit related to small wind energy provided in section 25D(a)(4) of the Internal Revenue Code, not to exceed five thousand dollars.
   b.  Fifty percent of the federal energy credit related to small wind energy provided in section 48(a)(2)(A)(i)(IV) of the Internal Revenue Code, not to exceed five thousand dollars.
   2.  Any credit in excess of the tax liability is not refundable but the excess for the tax year may be credited to the tax liability for the following ten years or until depleted, whichever is earlier. The director of revenue shall adopt rules to implement this section.
   3.  a.  An individual may claim the tax credit allowed a partnership, limited liability company, S corporation, estate, or trust electing to have the income taxed directly to the individual. The amount claimed by the individual shall be based upon the pro rata share of the individual’s earnings of the partnership, limited liability company, S corporation, estate, or trust.
   b.  A taxpayer who is eligible to claim a tax credit under this section shall not be eligible to claim a wind energy production tax credit under chapter 476B or a renewable energy tax credit under chapter 476C.
   c.  A taxpayer may claim more than one credit under this section, but may claim only one credit per separate and distinct small wind energy system installation. The department shall establish criteria, by rule, for determining what constitutes a separate and distinct installation.
   d.  A taxpayer must submit an application to the department for each separate and distinct small wind energy installation. The application must be approved by the department in order to claim the tax credit. The application must be filed by May 1 following the year of the installation of the small wind energy system.
   4.  a.  The cumulative value of tax credits claimed annually by applicants pursuant to this section shall not exceed one hundred fifty thousand dollars. 
   b.  If an amount of tax credits available for a tax year pursuant to paragraph “a” goes unclaimed, the amount of the unclaimed tax credits shall be made available for the following tax year in addition to, and cumulated with, the amount available pursuant to paragraph “a” for the following tax year.
   5.  On or before January 1, annually, the department shall submit a written report to the governor and the general assembly regarding the number and value of tax credits claimed under this section, and any other information the department may deem relevant and appropriate.
   Sec. 2.  Section 422.11L, subsection 1, Code 2015, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  c.  Notwithstanding paragraphs “a” and “b” of this subsection, for installations occurring on or after January 1, 2016, the applicable percentages of the federal residential energy efficiency property tax credit related to solar energy and the federal energy credit related to solar energy systems shall be fifty percent.
   Sec. 3.  Section 422.11L, subsection 4, paragraph a, Code 2015, is amended to read as follows:
   a.  The cumulative value of tax credits claimed annually by applicants pursuant to this section shall not exceed four five million five hundred thousand dollars. Of this amount, at least one million dollars shall be reserved for claims associated with or resulting from residential solar energy system installations. In the event that the total amount of claims submitted for residential solar energy system installations in a tax year is an amount less than one million dollars, the remaining unclaimed reserved amount shall be made available for claims associated with or resulting from nonresidential solar energy system installations received for the tax year.
   Sec. 4.  Section 422.33, subsection 29, paragraph a, Code 2015, is amended to read as follows:
   a.  The taxes imposed under this division shall be reduced by a solar energy system tax credit equal to sixty percent of the federal energy credit related to solar energy systems provided in section 48(a)(2)(A)(i)(II) and section 48(a)(2)(A)(i)(III) of the Internal Revenue Code, not to exceed twenty thousand dollars.  For installations occurring on or after January 1, 2016, the applicable percentage of the federal energy credit related to solar energy systems shall be fifty percent.
   Sec. 5.  Section 422.33, Code 2015, is amended by adding the following new subsection:
   NEW SUBSECTION.  31.  a.  The taxes imposed under this division shall be reduced by a wind energy system tax credit equal to fifty percent of the federal energy credit related to small wind energy systems provided in section 48(a)(2)(A)(i)(IV) of the Internal Revenue Code, not to exceed five thousand dollars.
   b.  The taxpayer may claim the credit pursuant to this subsection according to the same requirements, conditions, and limitations as provided in section 422.11K.
   Sec. 6.  Section 422.60, subsection 12, paragraph a, Code 2015, is amended to read as follows:
   a.  The taxes imposed under this division shall be reduced by a solar energy system tax credit equal to sixty percent of the federal energy credit related to solar energy systems provided in section 48(a)(2)(A)(i)(II) and section 48(a)(2)(A)(i)(III) of the Internal Revenue Code, not to exceed twenty thousand dollars.  For installations occurring on or after January 1, 2016, the applicable percentage of the federal energy credit related to solar energy systems shall be fifty percent.
   Sec. 7.  Section 422.60, Code 2015, is amended by adding the following new subsection:
   NEW SUBSECTION.  14.  a.  The taxes imposed under this division shall be reduced by a wind energy system tax credit equal to fifty percent of the federal energy credit related to small wind energy systems provided in section 48(a)(2)(A)(i)(IV) of the Internal Revenue Code, not to exceed five thousand dollars.
   b.  The taxpayer may claim the credit pursuant to this subsection according to the same requirements, conditions, and limitations as provided in section 422.11K.
   Sec. 8.  Section 476C.1, subsection 6, paragraph b, subparagraph (5), Code 2015, is amended to read as follows:
   (5)  An electric cooperative association that has one or more members organized pursuant to chapter 499 or a municipally owned city utility as defined in section 362.2.
   Sec. 9.  Section 476C.3, subsection 4, paragraph b, Code 2015, is amended to read as follows:
   b.  The maximum annual amount of energy production capacity equivalent of all other facilities the board may find eligible under this chapter shall not exceed a combined output of fifty-three sixty-three megawatts of nameplate generating capacity and one hundred sixty-seven billion British thermal units of heat for a commercial purpose.
   (1)  Of the maximum annual amount of energy production capacity equivalent of all other facilities found eligible under this chapter, no more than ten megawatts of nameplate generating capacity or energy production capacity equivalent shall be allocated annually to any one facility.
   (2)  Of the maximum annual amount of energy production capacity equivalent of all other facilities found eligible under this chapter, fifty-five billion British thermal units of heat for a commercial purpose shall be reserved annually for an eligible facility that is a refuse conversion facility for processed, engineered fuel from a multicounty solid waste management planning area. The maximum amount of annual energy production capacity the board may find eligible for a single refuse conversion facility is fifty-five billion British thermal units of heat for a commercial purpose.
   (3)  Of the maximum annual amount of energy production capacity equivalent of all other facilities found eligible under this chapter, ten megawatts of nameplate generating capacity or energy production equivalent shall be reserved annually for solar facilities owned or contracted for by utilities described in section 476C.1, subsection 6, paragraph “b”, subparagraph (5).
   Sec. 10.  Section 476C.5, Code 2015, is amended to read as follows:
   476C.5  Certificate issuance period.

   A producer or purchaser of renewable energy may shall receive renewable energy tax credit certificates for a ten-year period for each eligible renewable energy facility under this chapter. The ten-year period for issuance of the tax credit certificates begins with the date the purchaser of renewable energy first purchases electricity, hydrogen fuel, methane gas or other biogas used to generate electricity, or heat for commercial purposes from the eligible renewable energy facility for which a tax credit is issued under this chapter, or the date the producer of the renewable energy first uses the energy produced by the eligible renewable energy facility for on-site consumption. Renewable energy tax credit certificates shall not be issued for renewable energy purchased or produced for on-site consumption after December 31, 2026.
   Sec. 11.  EFFECTIVE UPON ENACTMENT.  This Act, being deemed of immediate importance, takes effect upon enactment.
   Sec. 12.  RETROACTIVE APPLICABILITY.
   1.  Except as provided in subsection 2, the sections of this Act amending section 476C.3, subsection 4, paragraph “b”, and section 476C.5, apply retroactively to January 1, 2014, for tax years beginning on or after that date.
   2.  The section of this Act amending section 476C.1, subsection 6, and section 476C.3, subsection 4, paragraph “b”, unnumbered paragraph 1, and enacting section 476C.3, subsection 4, paragraph “b”, subparagraph (3), applies retroactively to January 1, 2015, for tax years beginning on or after that date.
   3.  The section of this Act amending section 422.11L, subsection 4, paragraph “a”, applies retroactively to January 1, 2015, for tax years beginning on or after that date.
   4.  The sections of this Act enacting section 422.11K, section 422.33, subsection 31, and section 422.60, subsection 14, apply retroactively to January 1, 2015, for tax years beginning on or after that date.>
   2.  Title page, by striking lines 1 through 3 and inserting <An Act modifying and enacting provisions relating to specified renewable energy tax credits, and including effective date and retroactive applicability provisions.>

______________________________
COMMITTEE ON WAYS AND MEANS

JOE BOLKCOM, CHAIRPERSON