Senate File 456 - Enrolled




                                           SENATE FILE 456

                             AN ACT
 MODIFYING PROVISIONS APPLICABLE TO FACILITIES QUALIFYING FOR
    WIND ENERGY PRODUCTION AND RENEWABLE ENERGY TAX CREDITS AND
    INCLUDING EFFECTIVE AND RETROACTIVE APPLICABILITY DATE
    PROVISIONS.

 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 476B.1, subsection 4, paragraph d, Code
 2009, is amended to read as follows:
    d.  (1)  For applications filed on or after March 1, 2008,
 consists of one or more wind turbines connected to a common
 gathering line which have a combined nameplate capacity of no
 less than two megawatts and no more than thirty megawatts.
    (2)  For applications filed on or after July 1, 2009, by a
 private college or university, community college, institution
 under the control of the state board of regents, public or
 accredited nonpublic elementary and secondary school, or
 public hospital as defined in section 249J.3, for the
 applicant's own use of qualified electricity, consists of wind
 turbines with a combined nameplate capacity of three=fourths
 of a megawatt or greater.
    Sec. 2.  Section 476B.4, Code 2009, is amended to read as
 follows:
    476B.4  LIMITATIONS LIMITATION.
    1.  The wind energy production tax credit shall not be
 allowed for any kilowatt=hour of electricity produced on wind
 energy conversion property for which the owner has claimed or
 otherwise received for that property the benefit of special
 valuation under section 427B.26 or section 441.21, subsection
 8, or the exemption from retail sales tax under section
 422.45, subsection 48, Code Supplement 2003, or section 423.3,
 subsection 54, as applicable.
    2.  The wind energy production tax credit shall not be
 allowed for any kilowatt=hour of electricity that is sold to a
 related person.  For purpose purposes of this subsection
 section, persons shall be treated as related to each other if
 such persons would be treated as a single employer under the
 regulations prescribed under section 52(b) of the Internal
 Revenue Code.  In the case of a corporation that is a member
 of an affiliated group of corporations filing a consolidated
 return, such corporation shall be treated as selling
 electricity to an unrelated person if such electricity is sold
 to such a person by another member of such group.
    Sec. 3.  Section 476B.5, subsection 4, Code 2009, is
 amended to read as follows:
    4.  The maximum amount of nameplate generating capacity of
 all qualified facilities the board may find eligible under
 this chapter shall not exceed four one hundred fifty megawatts
 of nameplate generating capacity.
    Sec. 4.  Section 476B.6, subsection 1, Code 2009, is
 amended to read as follows:
    1.  a.  If a city or a county in which a qualified facility
 is located has enacted an ordinance under section 427B.26 and
 an owner has filed for and received special valuation pursuant
 to that ordinance, the owner is not required to obtain
 approval from the city council or county board of supervisors
 to apply for the wind energy production tax credit pursuant to
 subsection 2.
    a.  b.  (1)  To be eligible to receive the wind energy
 production tax credit, If neither a city nor a county in which
 a qualified facility is located has enacted an ordinance under
 section 427B.26, or a qualified facility is not eligible for
 special valuation pursuant to an ordinance adopted by a city
 or a county under section 427B.26, the owner must first
 receive approval of the applicable city council or county
 board of supervisors of the city or county in which the
 qualified facility is located in order to be eligible to
 receive the wind energy production tax credit.  The
 application for approval may be submitted prior to
 commencement of the construction of the qualified facility but
 shall be submitted no later than the close of the owner's
 first taxable year for which the credit is to be applied for.
 The application must contain the owner's name and address, the
 address of the qualified facility, and the dates of the
 owner's first and last taxable years for which the credit will
 be applied for.  Within forty=five days of the receipt of the
 application for approval, the city council or county board of
 supervisors, as applicable, shall either approve or disapprove
 the application.  After the forty=five=day limit time period
 has expired, the application is deemed to be approved.
    b.  (2)  Upon approval of the an application submitted
 pursuant to subparagraph (1), the owner may apply for the tax
 credit as provided in subsection 2.  In addition, approval of
 the application submitted pursuant to subparagraph (1) is
 acceptance by the applicant for the assessment of the
 qualified facility for property tax purposes for a period of
 twelve years and approval by the city council or county board
 of supervisors, as applicable, for the payment of the property
 taxes levied on the qualified property to the state.  For
 purposes of property taxation, the qualified facility
 receiving approval of an application submitted pursuant to
 subparagraph (1) shall be centrally assessed and shall be
 exempt from any replacement tax under section 437A.6 for the
 period during which the facility is subject to property
 taxation.  The property taxes to be paid to the state are
 those property taxes which make up the consolidated tax levied
 on the qualified facility and which are due and payable in the
 twelve=year period beginning with the first fiscal year
 beginning on or after the end of the owner's first taxable
 year for which the credit is applied for.  Upon approval of
 the application, the city council or county board of
 supervisors, as applicable, shall notify the county treasurer
 to state designate on the tax statement which lists the taxes
 on the qualified facility that the amount of the property
 taxes shall to be paid to the department.  Payment of the
 designated property taxes to the department shall be in the
 same manner as required for the payment of regular property
 taxes and failure to pay designated property taxes to the
 department shall be treated the same as failure to pay
 property taxes to the county treasurer.
    c.  Once the owner of the qualified facility receives
 approval under paragraph "a" "b", subsequent approval under
 paragraph "a" "b" is not required for the same qualified
 facility for subsequent taxable years.
    Sec. 5.  Section 476C.3, subsection 3, Code 2009, is
 amended to read as follows:
    3.  A facility that is not operational within thirty months
 after issuance of an approval for the facility by the board
 shall cease to be an eligible renewable energy facility.
 However, a wind energy conversion facility that is approved as
 eligible under this section but is not operational within
 eighteen months due to the unavailability of necessary
 equipment shall be granted an additional twelve twenty=four
 months to become operational.  A facility that is granted and
 thereafter loses approval may reapply to the board for a new
 determination.
    Sec. 6.  Section 476C.3, subsection 4, Code 2009, is
 amended to read as follows:
    4.  The maximum amount of nameplate generating capacity of
 all wind energy conversion facilities the board may find
 eligible under this chapter shall not exceed one three hundred
 eighty thirty megawatts of nameplate generating capacity.  The
 maximum 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 twenty megawatts
 of nameplate generating capacity and one hundred sixty=seven
 billion British thermal units of heat for a commercial
 purpose.  Of the maximum 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 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 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.
    Sec. 7.  REFUNDS.  Refunds of taxes, interest, or penalties
 which may arise from claims resulting from the amendment of
 section 476B.4 in this Act, for the exemption of sales of wind
 energy conversion property as provided in section 423.3,
 subsection 54, occurring between January 1, 2008, and the
 effective date of this Act, shall be limited to one hundred
 thousand dollars in the aggregate and shall not be allowed
 unless refund claims are filed prior to October 1, 2009,
 notwithstanding any other provision of law.  If the amount of
 claims totals more than one hundred thousand dollars in the
 aggregate, the department of revenue shall prorate the one
 hundred thousand dollars among all claimants in relation to
 the amounts of the claimants' valid claims.  Claimants shall
 not be entitled to interest on any refunds.
    Sec. 8.  RENEWABLE ENERGY TAX CREDIT ELIGIBILITY STUDY.
 The utilities board of the utilities division of the
 department of commerce shall conduct a study to evaluate
 whether procedures applicable to eligible renewable energy
 facilities which have been approved for the renewable energy
 tax credit but are not yet operational pursuant to section
 476C.3, subsection 3, and eligible renewable energy facilities
 which have been placed on a waiting list for approval pursuant
 to section 476C.3, subsection 5, are in need of modification.
 The study shall include a survey of each facility which has
 been approved to determine the extent to which progress has
 been made toward achieving operational status.  The study
 shall also include a survey of each facility which has been
 determined eligible and is awaiting approval, to ascertain
 whether the facility continues to seek approval and is
 committed to becoming operational once approval is obtained.
 Based on the results of the surveys, the board shall submit
 recommendations to the general assembly by January 1, 2010,
 regarding whether statutory or procedural modifications are
 necessary to ensure that facilities are being effectively and
 efficiently maintained in an approved or eligible status.
    Sec. 9.  EFFECTIVE AND APPLICABILITY DATES.  The sections
 of this Act enacting section 476B.1, subsection 4, paragraph
 "d", subparagraph (1), and amending sections 476B.4 and
 476B.6, being deemed of immediate importance, take effect upon
 enactment and apply retroactively to January 1, 2008, for tax
 years beginning on or after that date.


                                                             
                               JOHN P. KIBBIE
                               President of the Senate


                                                             
                               PATRICK J. MURPHY
                               Speaker of the House

    I hereby certify that this bill originated in the Senate and
 is known as Senate File 456, Eighty=third General Assembly.


                                                             
                               MICHAEL E. MARSHALL
                               Secretary of the Senate
 Approved                , 2009


                                
 CHESTER J. CULVER
 Governor

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