Senate File 619 S-3213 Amend the amendment, S-3209, to Senate File 619, as follows: 1 1. Page 64, after line 11 by inserting: 2 < DIVISION ___ 3 SOLAR ENERGY SYSTEM STATE TAX CREDIT 4 Sec. ___. Section 422.11L, Code 2021, is amended by striking 5 the section and inserting in lieu thereof the following: 6 422.11L Solar energy system tax credits. 7 1. As used in this section: 8 a. “Commercial solar energy system” means a solar energy 9 system on property that is not residential or multiresidential. 10 b. “Residential solar energy system” means a solar energy 11 system on residential property or multiresidential property. 12 c. “Solar energy system” means a system of equipment capable 13 of collecting and converting incident solar radiation into 14 thermal, mechanical, or electrical energy and transporting the 15 energy by a separate apparatus to storage or to a point of use. 16 2. Beginning with installations completed on or after 17 January 1, 2021, the taxes imposed under this subchapter, less 18 the credits allowed under section 422.12, shall be reduced by 19 a solar energy system tax credit equal to fifteen percent of 20 the gross cost of the solar energy system, not to exceed the 21 following amounts: 22 a. For a residential solar energy system, five thousand 23 dollars. 24 b. For a commercial solar energy system, twenty thousand 25 dollars. 26 3. Any credit in excess of the tax liability is not 27 refundable but the excess for the tax year may be credited 28 to the tax liability for the following ten years or until 29 depleted, whichever is earlier. 30 4. a. An individual may claim the tax credit allowed a 31 partnership, limited liability company, S corporation, estate, 32 or trust electing to have the income taxed directly to the 33 individual. The amount claimed by the individual shall be 34 based upon the pro rata share of the individual’s earnings of 35 -1- S 3209.2540 (2) 89 jm/jh 1/ 4 #1.

the partnership, limited liability company, S corporation, 1 estate, or trust. 2 b. A taxpayer who is eligible to claim a credit under this 3 section shall not be eligible to claim a renewable energy tax 4 credit under chapter 476C. 5 c. A taxpayer may claim more than one credit under this 6 section, but may claim only one credit per separate and 7 distinct solar energy system installation. The department 8 shall establish criteria, by rule, for determining what 9 constitutes a separate and distinct installation. 10 d. (1) A taxpayer must submit an application to the 11 department for each separate and distinct solar energy 12 system installation. The application must be approved by the 13 department in order to claim the tax credit. The application 14 must be filed by May 1 following the year of the installation 15 of the solar energy system. 16 (2) The department shall accept and approve applications 17 on a first-come, first-served basis until the maximum amount 18 of tax credits that may be claimed pursuant to subsection 5 19 is reached. If for a tax year the aggregate amount of tax 20 credits applied for exceeds the amount specified in subsection 21 5, the department shall establish a wait list for tax credits. 22 Valid applications filed by the taxpayer by May 1 following the 23 year of the installation but not approved by the department 24 shall be placed on a wait list in the order the applications 25 were received and those applicants shall be given priority 26 for having their applications approved in succeeding years. 27 Placement on a wait list pursuant to this subparagraph shall 28 not constitute a promise binding the state. The availability 29 of a tax credit and approval of a tax credit application 30 pursuant to this section in a future year is contingent upon 31 the availability of tax credits in that particular year. 32 5. a. The cumulative value of tax credits claimed annually 33 by applicants pursuant to this section shall not exceed ten 34 million dollars. 35 -2- S 3209.2540 (2) 89 jm/jh 2/ 4

b. If an amount of tax credits available for a tax year 1 pursuant to paragraph “a” goes unclaimed, the amount of the 2 unclaimed tax credits shall be made available for the following 3 tax year in addition to, and cumulated with, the amount 4 available pursuant to paragraph “a” for the following tax year. 5 6. On or before January 1, annually, the department shall 6 submit a written report to the governor and the general 7 assembly regarding the number and value of tax credits claimed 8 under this section, and any other information the department 9 may deem relevant and appropriate. 10 7. The director shall adopt rules pursuant to chapter 17A to 11 administer this section. 12 Sec. ___. Section 422.33, subsection 29, paragraph a, Code 13 2021, is amended to read as follows: 14 a. The Beginning with installations completed on or after 15 January 1, 2021, the taxes imposed under this subchapter shall 16 be reduced by a solar energy system tax credit equal to sixty 17 percent of the federal energy credit related to solar energy 18 systems provided in section 48(a)(2)(A)(i)(II) and section 19 48(a)(2)(A)(i)(III) of the Internal Revenue Code , not to exceed 20 twenty thousand dollars. For installations occurring on or 21 after January 1, 2016, the applicable percentage of the federal 22 energy credit related to solar energy systems shall be fifty 23 percent allowed under section 422.11L . 24 Sec. ___. Section 422.60, subsection 12, paragraph a, Code 25 2021, is amended to read as follows: 26 a. The Beginning with the installations completed on or 27 after January 1, 2021, the taxes imposed under this subchapter 28 shall be reduced by a solar energy system tax credit equal to 29 sixty percent of the federal energy credit related to solar 30 energy systems provided in section 48(a)(2)(A)(i)(II) and 31 section 48(a)(2)(A)(i)(III) of the Internal Revenue Code , not 32 to exceed twenty thousand dollars. For installations occurring 33 on or after January 1, 2016, the applicable percentage of the 34 federal energy credit related to solar energy systems shall be 35 -3- S 3209.2540 (2) 89 jm/jh 3/ 4

fifty percent allowed under section 422.11L . 1 Sec. ___. Section 533.329, subsection 2, paragraph k, Code 2 2021, is amended to read as follows: 3 k. The Beginning with the installations completed on or 4 after January 1, 2021, the moneys and credits tax imposed under 5 this section shall be reduced by a solar energy system tax 6 credit allowed under section 422.11L . 7 Sec. ___. WAIT LIST FOR CLAIMS PRIOR TO JANUARY 1, 8 2021. The wait list pursuant to section 422.11L, subsection 3, 9 paragraph “d”, subparagraph (2), Code 2021, in existence prior 10 to January 1, 2021, shall remain in effect, and an applicant 11 from that wait list shall be given priority on any new wait 12 list based upon the date the application for the credit was 13 received by the department. 14 Sec. ___. EFFECTIVE DATE. This division of this Act, being 15 deemed of immediate importance, takes effect upon enactment. 16 Sec. ___. RETROACTIVE APPLICABILITY. This division of this 17 Act applies retroactively to January 1, 2021, for tax years 18 ending on or after that date. > 19 2. By renumbering as necessary. 20 ______________________________ KEVIN KINNEY -4- S 3209.2540 (2) 89 jm/jh 4/ 4 #2.