House File 2289 - Introduced HOUSE FILE BY REICHERT and KRESSIG Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act providing for a property tax credit for buildings meeting 2 certification requirements for designation as a green 3 building, making an appropriation, and including an effective 4 and applicability date provision. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 5783HH 82 7 rn/rj/5 PAG LIN 1 1 Section 1. NEW SECTION. 425B.1 GREEN BUILDING PROPERTY 1 2 TAX CREDIT FUND. 1 3 There is created as a permanent fund in the office of the 1 4 treasurer of state a fund to be known as the green building 1 5 property tax credit fund. For the purposes of establishing 1 6 and maintaining this fund, for each fiscal year there is 1 7 appropriated from the general fund of the state and deposited 1 8 into the green building property tax credit fund an amount 1 9 sufficienct to implement this chapter. 1 10 Sec. 2. NEW SECTION. 425B.2 DEFINITIONS. 1 11 As used in this chapter, unless the context otherwise 1 12 requires: 1 13 1. "Department" means the department of public safety. 1 14 2. "Energy star designation" means qualification pursuant 1 15 to a joint program of the United States environmental 1 16 protection agency and the United States department of energy 1 17 certifying appliances and homes which meet specified energy 1 18 efficiency guidelines. 1 19 3. "Green building" means a building used for residential, 1 20 commercial, or industrial purposes which, either through 1 21 renovation or new construction, meets the LEED silver rating 1 22 standard of the United States green building council, the 1 23 energy star designation, a high energy efficiency score based 1 24 upon the HERS index, or one or more other standards or 1 25 designations as established by the department by rule. 1 26 4. "HERS index" means a home energy rating system score 1 27 established by the residential energy services network in 1 28 which a home is compared to the energy specifications of a 1 29 reference home and assigned an energy efficiency score. 1 30 5. "LEED silver rating standard" means the United States 1 31 green building council leadership in energy and environmental 1 32 design rating standard for green buildings, referred to as the 1 33 silver standard. 1 34 6. "Property owner" or "owner" means the owner or owners 1 35 of property, as shown by the transfer books in the office of 2 1 the county auditor of the county in which the property is 2 2 located. 2 3 Sec. 3. NEW SECTION. 425B.3 WHERE CREDIT GIVEN == 2 4 APPORTIONMENT == PAYMENT. 2 5 1. The green building property tax credit fund shall be 2 6 apportioned each year so as to give a credit against the tax 2 7 levied on ten percent of the assessed valuation of 2 8 residential, commercial, or industrial green building 2 9 property. 2 10 2. The director of the department of administrative 2 11 services shall issue warrants on the green building property 2 12 tax credit fund payable under this chapter to the county 2 13 treasurer of the several counties of the state. The amount 2 14 due each county shall be paid in two payments on November 15 2 15 and March 15 of each fiscal year, drawn upon warrants payable 2 16 to the respective county treasurers. The two payments shall 2 17 be as nearly equal as possible. 2 18 3. The amount of credits shall be apportioned by each 2 19 county treasurer to the several taxing districts as provided 2 20 by law, in the same manner as though the amount of the credit 2 21 had been paid by the owner. However, the several taxing 2 22 districts shall not draw the funds so credited until after the 2 23 semiannual allocations have been received by the county 2 24 treasurer, as provided in this chapter. Each county treasurer 2 25 shall show on each tax receipt the amount received from the 2 26 green building property tax credit fund. 2 27 4. The green building property tax credit allowed in this 2 28 chapter shall not exceed the actual amount of taxes payable on 2 29 a green building, exclusive of any special assessments levied 2 30 against the building. 2 31 Sec. 4. NEW SECTION. 425B.4 CLAIM FOR CREDIT. 2 32 1. A claim for credit shall be made on claim forms 2 33 prescribed by the department of revenue and made available by 2 34 the county assessor of the county in which the green building 2 35 is located. In addition to the completed claim form, the 3 1 owner shall supply a legible copy of a green building property 3 2 tax credit eligibility certificate obtained from the 3 3 department of public safety. The claim shall be filed not 3 4 later than July 1 of the year for which the owner is claiming 3 5 the credit. A claim filed after July 1 of the year for which 3 6 the person is claiming the credit shall be considered as a 3 7 claim filed for the following year. 3 8 2. Upon the filing and allowance of the claim, the claim 3 9 shall be allowed on the green building for a ten=year period, 3 10 and shall remain allowed for successive years within the 3 11 ten=year period without further filing as long as the building 3 12 continues to be legally or equitably owned by the owner. If 3 13 the building is sold, the credit for the period after the sale 3 14 which would have been allowable under this chapter to the 3 15 prior owner had the building not been sold shall be allowable 3 16 to the new owner. A tax credit for the year of sale shall be 3 17 allocated between the parties on the basis of the number of 3 18 days during such year that the building was owned by each. 3 19 Sec. 5. NEW SECTION. 425B.5 GREEN BUILDING ELIGIBILITY 3 20 CERTIFICATE. 3 21 1. Prior to submitting a claim for a green building 3 22 property tax credit, an owner shall obtain from an architect 3 23 or professional engineer licensed to practice in this state, a 3 24 local building department inspector, or a local contractor, 3 25 certified in green building construction methodologies 3 26 identified by the department pursuant to section 425B.2, 3 27 subsection 3, a completed green building eligibility 3 28 certificate. 3 29 2. The eligibility certificate shall consist of a 3 30 certificate, under seal, that the building with respect to 3 31 which the credit is claimed is a green building. The 3 32 eligibility certification shall be made in accordance with the 3 33 standards and guidelines in effect at the time the property 3 34 which is the basis for the credit was renovated or newly 3 35 constructed in a form and in a manner as prescribed by the 4 1 department by rule, and shall set forth the specific findings 4 2 upon which the certification was based. 4 3 3. The eligibility certificate shall include sufficient 4 4 information to identify the building subject to the 4 5 certificate, and such other information as the department 4 6 shall require. The owner shall file a copy of each 4 7 eligibility certificate obtained with the department. 4 8 Sec. 6. NEW SECTION. 425B.6 COMPUTATION BY AUDITOR. 4 9 1. The credit, if allowed, shall be computed by the county 4 10 auditor on or before August 1 each year for the ten=year 4 11 period for which a green building shall be eligible in an 4 12 amount equal to the tax levied on ten percent of the 4 13 property's assessed valuation. On or before August 1, the 4 14 auditor shall certify the total amount of the credits to the 4 15 department of revenue. 4 16 2. A person whose claim for a green building property tax 4 17 credit is denied may file an appeal with the department within 4 18 sixty days from the date of denial pursuant to the provisions 4 19 of chapter 17A. 4 20 Sec. 7. NEW SECTION. 425B.7 RULES. 4 21 1. The department of public safety, with assistance from 4 22 the department of natural resources, shall adopt rules 4 23 adopting standards for a building to qualify as a green 4 24 building. The department of public safety and the department 4 25 of revenue shall adopt additional rules necessary to 4 26 administer this chapter. 4 27 Sec. 8. EFFECTIVE AND APPLICABILITY DATES. This Act, 4 28 being deemed of immediate importance, takes effect upon 4 29 enactment and applies to property taxes due and payable in 4 30 fiscal years beginning on or after July 1, 2008. 4 31 EXPLANATION 4 32 This bill provides a property tax credit for green 4 33 buildings. The bill creates an annual green building property 4 34 tax credit fund, and provides for a standing unlimited annual 4 35 appropriation from the general fund of the state to the green 5 1 building property tax credit fund in an amount sufficient to 5 2 pay the green building property tax credits. 5 3 The credit shall consist of an amount computed against the 5 4 assessed valuation of residential, commercial, or industrial 5 5 property equal to 10 percent of the assessed value, and shall 5 6 continue for a 10=year period. The bill specifies procedures 5 7 regarding transferring the credit to a successor owner, 5 8 claiming the credit, obtaining a green building eligibility 5 9 certificate from the department of public safety, submitting a 5 10 certificate completed by a professional certified in green 5 11 building construction with the claim to the department of 5 12 revenue, and filing a copy with the department of public 5 13 safety. 5 14 The bill provides that the department of public safety, 5 15 with assistance from the department of natural resources, 5 16 adopt rules adopting standards for a building to qualify as a 5 17 green building. The bill further provides that the department 5 18 of revenue shall adopt additional rules necessary to 5 19 administer the bill's provisions. 5 20 The bill takes effect upon enactment and applies to 5 21 property taxes due and payable in fiscal years beginning on or 5 22 after July 1, 2008. 5 23 LSB 5783HH 82 5 24 rn/rj/5.1