Senate File 216 - Introduced
SENATE FILE
BY COMMITTEE ON ENVIRONMENT
AND ENERGY INDEPENDENCE
(SUCCESSOR TO SF 79)
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act modifying wind energy production tax credit eligibility
2 requirements, providing for a refund of sales and use taxes,
3 and including effective and retroactive applicability date
4 provisions.
5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
6 TLSB 1671SV 83
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PAG LIN
1 1 Section 1. Section 476B.1, subsection 4, paragraph d, Code
1 2 2009, is amended to read as follows:
1 3 d. For applications filed on or after March 1, 2008,
1 4 consists of one or more wind turbines connected to a common
1 5 gathering line which have a combined nameplate capacity of no
1 6 less than two megawatts and no more than thirty megawatts.
1 7 Sec. 2. Section 476B.4, Code 2009, is amended to read as
1 8 follows:
1 9 476B.4 LIMITATIONS LIMITATION.
1 10 1. The wind energy production tax credit shall not be
1 11 allowed for any kilowatt=hour of electricity produced on wind
1 12 energy conversion property for which the owner has claimed or
1 13 otherwise received for that property the benefit of special
1 14 valuation under section 427B.26 or section 441.21, subsection
1 15 8, or the exemption from retail sales tax under section
1 16 422.45, subsection 48, Code Supplement 2003, or section 423.3,
1 17 subsection 54, as applicable.
1 18 2. The wind energy production tax credit shall not be
1 19 allowed for any kilowatt=hour of electricity that is sold to a
1 20 related person. For purpose purposes of this subsection
1 21 section, persons shall be treated as related to each other if
1 22 such persons would be treated as a single employer under the
1 23 regulations prescribed under section 52(b) of the Internal
1 24 Revenue Code. In the case of a corporation that is a member
1 25 of an affiliated group of corporations filing a consolidated
1 26 return, such corporation shall be treated as selling
1 27 electricity to an unrelated person if such electricity is sold
1 28 to such a person by another member of such group.
1 29 Sec. 3. Section 476B.6, subsection 1, Code 2009, is
1 30 amended to read as follows:
1 31 1. a. If a city or a county in which a qualified facility
1 32 is located has enacted an ordinance under section 427B.26 and
1 33 an owner has filed for and received special valuation pursuant
1 34 to that ordinance, the owner is not required to obtain
1 35 approval from the city council or county board of supervisors
2 1 to apply for the wind energy production tax credit pursuant to
2 2 subsection 2.
2 3 a. b. (1) To be eligible to receive the wind energy
2 4 production tax credit, If neither a city nor a county in which
2 5 a qualified facility is located has enacted an ordinance under
2 6 section 427B.26, or a qualified facility is not eligible for
2 7 special valuation pursuant to an ordinance adopted by a city
2 8 or a county under section 427B.26, the owner must first
2 9 receive approval of the applicable city council or county
2 10 board of supervisors of the city or county in which the
2 11 qualified facility is located in order to be eligible to
2 12 receive the wind energy production tax credit. The
2 13 application for approval may be submitted prior to
2 14 commencement of the construction of the qualified facility but
2 15 shall be submitted no later than the close of the owner's
2 16 first taxable year for which the credit is to be applied for.
2 17 The application must contain the owner's name and address, the
2 18 address of the qualified facility, and the dates of the
2 19 owner's first and last taxable years for which the credit will
2 20 be applied for. Within forty=five days of the receipt of the
2 21 application for approval, the city council or county board of
2 22 supervisors, as applicable, shall either approve or disapprove
2 23 the application. After the forty=five=day limit time period
2 24 has expired, the application is deemed to be approved.
2 25 b. (2) Upon approval of the an application submitted
2 26 pursuant to subparagraph (1), the owner may apply for the tax
2 27 credit as provided in subsection 2. In addition, approval of
2 28 the application submitted pursuant to subparagraph (1) is
2 29 acceptance by the applicant for the assessment of the
2 30 qualified facility for property tax purposes for a period of
2 31 twelve years and approval by the city council or county board
2 32 of supervisors, as applicable, for the payment of the property
2 33 taxes levied on the qualified property to the state. For
2 34 purposes of property taxation, the qualified facility
2 35 receiving approval of an application submitted pursuant to
3 1 subparagraph (1) shall be centrally assessed and shall be
3 2 exempt from any replacement tax under section 437A.6 for the
3 3 period during which the facility is subject to property
3 4 taxation. The property taxes to be paid to the state are
3 5 those property taxes which make up the consolidated tax levied
3 6 on the qualified facility and which are due and payable in the
3 7 twelve=year period beginning with the first fiscal year
3 8 beginning on or after the end of the owner's first taxable
3 9 year for which the credit is applied for. Upon approval of
3 10 the application, the city council or county board of
3 11 supervisors, as applicable, shall notify the county treasurer
3 12 to state designate on the tax statement which lists the taxes
3 13 on the qualified facility that the amount of the property
3 14 taxes shall to be paid to the department. Payment of the
3 15 designated property taxes to the department shall be in the
3 16 same manner as required for the payment of regular property
3 17 taxes and failure to pay designated property taxes to the
3 18 department shall be treated the same as failure to pay
3 19 property taxes to the county treasurer.
3 20 c. Once the owner of the qualified facility receives
3 21 approval under paragraph "a" "b", subsequent approval under
3 22 paragraph "a" "b" is not required for the same qualified
3 23 facility for subsequent taxable years.
3 24 Sec. 4. REFUNDS. Refunds of taxes, interest, or penalties
3 25 which may arise from claims resulting from the amendment of
3 26 section 476B.4 in this Act, for the exemption of sales of wind
3 27 energy conversion property as provided in section 423.3,
3 28 subsection 54, occurring between January 1, 2008, and the
3 29 effective date of this Act, shall not be allowed unless refund
3 30 claims are filed prior to October 1, 2009, notwithstanding any
3 31 other provision of law. Claimants shall not be entitled to
3 32 interest on any refunds.
3 33 Sec. 5. EFFECTIVE AND APPLICABILITY DATES. This Act,
3 34 being deemed of immediate importance, takes effect upon
3 35 enactment and applies retroactively to January 1, 2008, for
4 1 tax years beginning on or after that date.
4 2 EXPLANATION
4 3 This bill modifies eligibility requirements applicable to
4 4 the wind energy production tax credit established in Code
4 5 chapter 476B.
4 6 The bill provides for a maximum combined nameplate capacity
4 7 restriction of no more than 30 megawatts for wind energy
4 8 production facilities applying for the wind energy production
4 9 tax credit.
4 10 The bill deletes a provision which had prevented
4 11 eligibility for the wind energy production tax credit for any
4 12 kilowatt=hour of electricity produced on wind energy
4 13 conversion property for which the owner had claimed or
4 14 received specified special property tax valuation or sales tax
4 15 exemptions, thus preserving credit availability for owners
4 16 having received special valuation or having claimed the sales
4 17 tax exemption. Because of the retroactivity of the
4 18 elimination of the restriction of the receipt of the tax
4 19 credit to those who have not received the sales tax exemption,
4 20 a provision for refund of sales tax paid is included in the
4 21 bill.
4 22 The bill takes effect upon enactment and applies
4 23 retroactively to January 1, 2008, for tax years beginning on
4 24 or after that date.
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