House File 82
HOUSE FILE
BY JOCHUM
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act creating an energy conservation program, tax credits, and
2 an energy conservation program revolving fund and including
3 effective and retroactive applicability date provisions.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 1483HH 80
6 tm/cls/14
PAG LIN
1 1 Section 1. NEW SECTION. 422.11H ENERGY CONSERVATION TAX
1 2 CREDIT.
1 3 The taxes imposed under this division, less the credits
1 4 allowed under sections 422.12 and 422.12B, shall be reduced by
1 5 an energy conservation tax credit as provided for in section
1 6 473.41, subsection 3.
1 7 Sec. 2. Section 422.33, Code 2003, is amended by adding
1 8 the following new subsection:
1 9 NEW SUBSECTION. 14. The taxes imposed under this division
1 10 shall be reduced by an energy conservation tax credit as
1 11 provided for in section 473.41, subsection 3.
1 12 Sec. 3. NEW SECTION. 473.41 ENERGY CONSERVATION PROGRAM.
1 13 1. For purposes of this section, unless the context
1 14 otherwise suggests, "solar, wind, geothermal, or other
1 15 renewable energy system" means a system of equipment capable
1 16 of collecting and converting solar, wind, geothermal, or other
1 17 renewable energy into thermal, mechanical, or electrical
1 18 energy and transforming these forms of energy to storage or to
1 19 a point of use.
1 20 2. The department shall establish and administer an energy
1 21 conservation and weatherization program designed to reduce
1 22 dependency on fossil fuels through energy conservation
1 23 measures and the expanded development and use of renewable
1 24 energy. The department shall adopt rules pursuant to chapter
1 25 17A for purposes of administering the energy conservation
1 26 program.
1 27 3. a. For tax years beginning on or after January 1,
1 28 2003, there shall be allowed a tax credit against the taxes
1 29 imposed in chapter 422, divisions II and III, for costs
1 30 associated with energy conservation measures as provided in
1 31 this subsection. An individual may claim the credit of a
1 32 partnership, limited liability company, S corporation, estate,
1 33 or trust electing to have the income taxed directly to the
1 34 individual. The amount claimed by the individual shall be
1 35 based upon the pro rata share of the individual's earnings
2 1 from the partnership, limited liability company, S
2 2 corporation, estate, or trust. Any tax credit in excess of
2 3 the taxpayer's liability for the tax year shall not be carried
2 4 forward or backward. A tax credit shall not be refunded.
2 5 b. In order to be eligible for the tax credit, the
2 6 taxpayer must be a residential or commercial property owner
2 7 that installs a new or replacement energy conservation
2 8 measure. Eligible energy conservation measures shall meet
2 9 energy efficiency standards established by the United States
2 10 environmental protection agency or the utility company of the
2 11 taxpayer. Eligible energy=efficiency measures shall include
2 12 all of the following:
2 13 (1) Insulation for windows and doors.
2 14 (2) Energy=efficient furnaces, air conditioning units, and
2 15 water heaters.
2 16 (3) Installation of a solar, wind, geothermal, or other
2 17 renewable energy system.
2 18 c. The tax credit claimed under this section shall be
2 19 equivalent to costs of the energy conservation measure
2 20 described in paragraph "b", up to a maximum of five hundred
2 21 dollars during any one tax year.
2 22 4. a. An energy conservation program revolving fund is
2 23 created in the state treasury under the control of the
2 24 department consisting of any money appropriated by the general
2 25 assembly for that purpose and any other moneys available to
2 26 and obtained or accepted by the department from the federal
2 27 government or private sources for placement in the fund.
2 28 Payments of interest, repayments of moneys loaned pursuant to
2 29 the energy conservation program, and recaptures of grants or
2 30 loans shall be deposited in the fund. Moneys in the fund are
2 31 not subject to section 8.33.
2 32 b. Moneys in the fund are subject to appropriation by the
2 33 general assembly to the department for purposes of providing
2 34 zero=interest loans under the energy conservation program.
2 35 The loans shall be available only to low=income persons, as
3 1 defined by the department, and shall be for purposes of
3 2 weatherization of a residential home or for installation of a
3 3 solar, wind, geothermal, or other renewable energy system.
3 4 5. Low=interest loans offered by financial institutions to
3 5 low=income homeowners, as defined by the department, or small
3 6 businesses located in a low=income neighborhood, as defined by
3 7 the department, for purposes of installing approved
3 8 weatherization measures or for the installation of approved
3 9 solar, wind, geothermal, or other renewable energy systems
3 10 shall qualify as community reinvestment as described in
3 11 section 12C.6A, subsection 2.
3 12 Sec. 4. EFFECTIVE AND RETROACTIVE APPLICABILITY DATES.
3 13 This Act, being deemed of immediate importance, takes effect
3 14 upon enactment and applies retroactively to January 1, 2003,
3 15 for tax years beginning on or after that date.
3 16 EXPLANATION
3 17 This bill creates an energy conservation program, an energy
3 18 conservation program revolving fund, and provides energy
3 19 conservation related tax credits.
3 20 The bill provides that the department of natural resources
3 21 shall establish and administer an energy conservation and
3 22 weatherization program designed to reduce dependency on fossil
3 23 fuels through energy conservation measures and the expanded
3 24 development and use of renewable energy.
3 25 The bill provides for an individual or business income tax
3 26 credit for costs associated with energy conservation measures.
3 27 The bill provides that in order to be eligible for the tax
3 28 credit, the taxpayer must be a residential or commercial
3 29 property owner that installs a new or replacement energy
3 30 conservation measure. The bill provides that eligible energy=
3 31 efficiency measures shall include insulation for windows and
3 32 doors, energy=efficient furnaces, air conditioning units, and
3 33 water heaters, and installation of a solar, wind, geothermal,
3 34 or other renewable energy system. The bill provides that the
3 35 tax credit claimed shall be equivalent to costs of the energy
4 1 conservation measure, up to a maximum of $500 during any one
4 2 tax year.
4 3 The bill establishes an energy conservation program
4 4 revolving fund under the control of the department. The bill
4 5 provides that moneys in the fund are subject to appropriation
4 6 to the department for purposes of providing zero=interest
4 7 loans under the energy conservation program. The loans shall
4 8 be available only to low=income persons, as defined by the
4 9 department, and shall be for purposes of weatherization of a
4 10 residential home or for installation of a solar, wind,
4 11 geothermal, or other renewable energy system.
4 12 The bill provides that low=interest loans offered by
4 13 financial institutions to low=income homeowners or small
4 14 businesses located in a low=income neighborhood for purposes
4 15 of installing approved weatherization measures or for the
4 16 installation of approved solar, wind, geothermal, or other
4 17 renewable energy systems shall qualify as community
4 18 reinvestment.
4 19 The bill takes effect upon enactment and applies
4 20 retroactively to January 1, 2003, for tax years beginning on
4 21 or after that date.
4 22 LSB 1483HH 80
4 23 tm/cls/14