Senate File 619 H-1523 Amend Senate File 619, as amended, passed, and reprinted by 1 the Senate, as follows: 2 1. Page 64, after line 8 by inserting: 3 < DIVISION ___ 4 SOLAR ENERGY SYSTEMS 5 PART A 6 TAX CREDIT 7 Sec. ___. Section 422.11L, Code 2021, is amended by striking 8 the section and inserting in lieu thereof the following: 9 422.11L Solar energy system tax credits. 10 1. As used in this section: 11 a. “Commercial solar energy system” means a solar energy 12 system on nonresidential property. 13 b. “Residential solar energy system” means a solar energy 14 system on residential property or multiresidential property. 15 c. “Solar energy system” means a system of equipment capable 16 of collecting and converting incident solar radiation into 17 thermal, mechanical, or electrical energy and transporting the 18 energy by a separate apparatus to storage or to a point of use. 19 2. Beginning with installations completed on or after 20 January 1, 2021, but before December 31, 2030, the taxes 21 imposed under this subchapter, less the credits allowed under 22 section 422.12, shall be reduced by a solar energy system tax 23 credit equal to fifteen percent of the gross cost of the solar 24 energy system, not to exceed the following amounts: 25 a. For a residential solar energy system, five thousand 26 dollars. 27 b. For a commercial solar energy system, twenty thousand 28 dollars. 29 3. Any credit in excess of the tax liability is not 30 refundable but the excess for the tax year may be credited 31 to the tax liability for the following ten years or until 32 depleted, whichever is earlier. 33 4. a. An individual may claim the tax credit allowed a 34 partnership, limited liability company, S corporation, estate, 35 -1- SF 619.2567 (2) 89 jm/jh 1/ 5 #1.

or trust electing to have the income taxed directly to the 1 individual. The amount claimed by the individual shall be 2 based upon the pro rata share of the individual’s earnings of 3 the partnership, limited liability company, S corporation, 4 estate, or trust. 5 b. A taxpayer who is eligible to claim a credit under this 6 section shall not be eligible to claim a renewable energy tax 7 credit under chapter 476C. 8 c. A taxpayer may claim more than one credit under this 9 section, but may claim only one credit per separate and 10 distinct solar energy system installation. The department 11 shall establish criteria, by rule, for determining what 12 constitutes a separate and distinct installation. 13 d. (1) A taxpayer must submit an application to the 14 department for each separate and distinct solar energy 15 system installation. The application must be approved by the 16 department in order to claim the tax credit. The application 17 must be filed by May 1 following the year of the installation 18 of the solar energy system. 19 (2) The department shall accept and approve applications 20 on a first-come, first-served basis until the maximum amount 21 of tax credits that may be claimed pursuant to subsection 5 22 is reached. If for a tax year the aggregate amount of tax 23 credits applied for exceeds the amount specified in subsection 24 5, the department shall establish a wait list for tax credits. 25 Valid applications filed by the taxpayer by May 1 following the 26 year of the installation but not approved by the department 27 shall be placed on a wait list in the order the applications 28 were received and those applicants shall be given priority 29 for having their applications approved in succeeding years. 30 Placement on a wait list pursuant to this subparagraph shall 31 not constitute a promise binding the state. The availability 32 of a tax credit and approval of a tax credit application 33 pursuant to this section in a future year is contingent upon 34 the availability of tax credits in that particular year. 35 -2- SF 619.2567 (2) 89 jm/jh 2/ 5

5. a. The cumulative value of tax credits claimed annually 1 by applicants pursuant to this section shall not exceed ten 2 million dollars. 3 b. If an amount of tax credits available for a tax year 4 pursuant to paragraph “a” goes unclaimed, the amount of the 5 unclaimed tax credits shall be made available for the following 6 tax year in addition to, and cumulated with, the amount 7 available pursuant to paragraph “a” for the following tax year. 8 6. On or before January 1, annually, the department shall 9 submit a written report to the governor and the general 10 assembly regarding the number and value of tax credits claimed 11 under this section, and any other information the department 12 may deem relevant and appropriate. 13 7. This section is repealed January 1, 2041. 14 8. The director shall adopt rules pursuant to chapter 17A to 15 administer this section. 16 Sec. ___. Section 422.33, subsection 29, paragraph a, Code 17 2021, is amended to read as follows: 18 a. The Beginning with installations completed on or after 19 January 1, 2021, but before December 31, 2030, the taxes 20 imposed under this subchapter shall be reduced by a solar 21 energy system tax credit equal to sixty percent of the federal 22 energy credit related to solar energy systems provided in 23 section 48(a)(2)(A)(i)(II) and section 48(a)(2)(A)(i)(III) 24 of the Internal Revenue Code , not to exceed twenty thousand 25 dollars. For installations occurring on or after January 1, 26 2016, the applicable percentage of the federal energy credit 27 related to solar energy systems shall be fifty percent allowed 28 under section 422.11L . 29 Sec. ___. Section 422.60, subsection 12, paragraph a, Code 30 2021, is amended to read as follows: 31 a. The Beginning with the installations completed on or 32 after January 1, 2021, but before December 31, 2030, the taxes 33 imposed under this subchapter shall be reduced by a solar 34 energy system tax credit equal to sixty percent of the federal 35 -3- SF 619.2567 (2) 89 jm/jh 3/ 5

energy credit related to solar energy systems provided in 1 section 48(a)(2)(A)(i)(II) and section 48(a)(2)(A)(i)(III) 2 of the Internal Revenue Code , not to exceed twenty thousand 3 dollars. For installations occurring on or after January 1, 4 2016, the applicable percentage of the federal energy credit 5 related to solar energy systems shall be fifty percent allowed 6 under section 422.11L . 7 Sec. ___. Section 533.329, subsection 2, paragraph k, Code 8 2021, is amended to read as follows: 9 k. The Beginning with the installations completed on or 10 after January 1, 2021, but before December 31, 2030, the moneys 11 and credits tax imposed under this section shall be reduced by 12 a solar energy system tax credit allowed under section 422.11L . 13 Sec. ___. CUMULATIVE VALUE OF SOLAR ENERGY SYSTEM TAX CREDIT 14 FOR YEAR 2021 —— RESERVED CLAIMS. Notwithstanding section 15 422.11L, subsection 5, as enacted by this division of this Act, 16 the maximum cumulative value of tax credits that may be claimed 17 during the 2021 calendar year shall not exceed seventeen 18 million dollars. Of this amount, at least seven million 19 dollars shall be reserved for claims placed on the wait list 20 pursuant to section 422.11L, subsection 3, Code 2021, prior to 21 January 1, 2021. The reserved claims shall be approved using 22 the same priority of approval established for the wait list. 23 In the event claims from the wait list exceed the reserved 24 amount, an applicant from the wait list shall be given priority 25 to make a claim for amounts not reserved for the year 2021, to 26 the extent such claims have not been claimed. In the event the 27 maximum cumulative amount of tax credits have been claimed for 28 the year 2021, an applicant from the wait list shall be given 29 priority on any wait list based upon the date the application 30 for the credit was received by the department. 31 Sec. ___. EFFECTIVE DATE. This part of this division of 32 this Act, being deemed of immediate importance, takes effect 33 upon enactment. 34 Sec. ___. RETROACTIVE APPLICABILITY. This part of this 35 -4- SF 619.2567 (2) 89 jm/jh 4/ 5

division of this Act applies retroactively to January 1, 2021, 1 for tax years ending on or after that date. 2 PART B 3 CORRESPONDING CHANGES DUE TO FUTURE REPEAL OF SOLAR ENERGY 4 SYSTEM TAX CREDIT 5 Sec. ___. Section 422.33, subsection 29, Code 2021, is 6 amended by adding the following new paragraph: 7 NEW PARAGRAPH . c. This subsection is repealed on January 8 1, 2041. 9 Sec. ___. Section 422.60, subsection 12, Code 2021, is 10 amended by adding the following new paragraph: 11 NEW PARAGRAPH . c. This subsection is repealed on January 12 1, 2041. 13 Sec. ___. Section 476C.2, subsection 3, Code 2021, is 14 amended to read as follows: 15 3. a. A taxpayer who is eligible to claim a renewable 16 energy tax credit under this chapter shall not be eligible to 17 claim a solar energy system tax credit under section 422.11L 18 or 422.33 . 19 b. This subsection is repealed on January 1, 2041. 20 Sec. ___. Section 533.329, subsection 2, paragraph k, Code 21 2021, is amended to read as follows: 22 k. (1) The moneys and credits tax imposed under this 23 section shall be reduced by a solar energy system tax credit 24 allowed under section 422.11L . 25 (2) This paragraph is repealed on January 1, 2041. > 26 2. By renumbering as necessary. 27 ______________________________ ISENHART of Dubuque -5- SF 619.2567 (2) 89 jm/jh 5/ 5 #2.