Senate File 79 - Introduced SENATE FILE BY KIBBIE 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 1671SS 83 7 rn/mg:sc/8 PAG LIN 1 1 Section 1. Section 476B.4, Code 2009, is amended to read 1 2 as follows: 1 3 476B.4LIMITATIONSLIMITATION. 1 41. The wind energy production tax credit shall not be 1 5 allowed for any kilowatt=hour of electricity produced on wind 1 6 energy conversion property for which the owner has claimed or 1 7 otherwise received for that property the benefit of special 1 8 valuation under section 427B.26 or section 441.21, subsection 1 9 8, or the exemption from retail sales tax under section 1 10 422.45, subsection 48, Code Supplement 2003, or section 423.3, 1 11 subsection 54, as applicable.1 122.The wind energy production tax credit shall not be 1 13 allowed for any kilowatt=hour of electricity that is sold to a 1 14 related person. For purpose of this subsection, persons shall 1 15 be treated as related to each other if such persons would be 1 16 treated as a single employer under the regulations prescribed 1 17 under section 52(b) of the Internal Revenue Code. In the case 1 18 of a corporation that is a member of an affiliated group of 1 19 corporations filing a consolidated return, such corporation 1 20 shall be treated as selling electricity to an unrelated person 1 21 if such electricity is sold to such a person by another member 1 22 of such group. 1 23 Sec. 2. Section 476B.6, subsection 1, paragraph b, Code 1 24 2009, is amended to read as follows: 1 25 b. Upon approval of the application, the owner may apply 1 26 for the tax credit as provided in subsection 2.In addition, 1 27 approval of the application is acceptance by the applicant for 1 28 the assessment of the qualified facility for property tax 1 29 purposes for a period of twelve years and approval by the 1 30 board of supervisors for the payment of the property taxes 1 31 levied on the qualified property to the state. For purposes 1 32 of property taxation,An owner may apply for special valuation 1 33 of the qualified facility under a city ordinance or county 1 34 ordinance enacted under section 427B.26 for which the property 1 35 is eligible. If the qualified facility is not eligible for 2 1 special valuation under a city ordinance or county ordinance, 2 2 the qualified facility shall be centrally assessed, and the 2 3 property tax collected shall be remitted to the state for a 2 4 period of twelve years. A qualified facility shall be exempt 2 5 from any replacement tax under section 437A.6 for the period 2 6 during which the facility is subject to property taxation. 2 7 The property taxes to be paid to the state are those property 2 8 taxes which make up the consolidated tax levied on the 2 9 qualified facility and which are due and payable in the 2 10 twelve=year period beginning with the first fiscal year 2 11 beginning on or after the end of the owner's first taxable 2 12 year for which the credit is applied for.Upon approval of 2 13 the application, theThe board of supervisors shall notify the 2 14 county treasurer tostatedesignate on the tax statement which 2 15 lists the taxes on the qualified facilitythatthe amount of 2 16 the property taxesshallto be paid to the department, if 2 17 applicable. Payment of the designated property taxes to the 2 18 department shall be in the same manner as required for the 2 19 payment of regular property taxes and failure to pay 2 20 designated property taxes to the department shall be treated 2 21 the same as failure to pay property taxes to the county 2 22 treasurer. 2 23 Sec. 3. REFUNDS. Refunds of taxes, interest, or penalties 2 24 which may arise from claims resulting from the amendment of 2 25 section 476B.4 in this Act, for the exemption of sales of wind 2 26 energy conversion property as provided in section 423.3, 2 27 subsection 54 occurring between January 1, 2009, and the 2 28 effective date of this Act, shall be limited to twenty=five 2 29 thousand dollars in the aggregate and shall not be allowed 2 30 unless refund claims are filed prior to October 1, 2009, 2 31 notwithstanding any other provision of law. If the amount of 2 32 claims totals more than twenty=five thousand dollars in the 2 33 aggregate, the department of revenue shall prorate the 2 34 twenty=five thousand dollars among all claimants in relation 2 35 to the amounts of the claimants' valid claims. Claimants 3 1 shall not be entitled to interest on any refunds. 3 2 Sec. 4. EFFECTIVE AND APPLICABILITY DATES. This Act, 3 3 being deemed of immediate importance, takes effect upon 3 4 enactment and applies retroactively to January 1, 2009, for 3 5 tax years beginning on or after that date. 3 6 EXPLANATION 3 7 This bill modifies eligibility requirements applicable to 3 8 the wind energy production tax credit established in Code 3 9 chapter 476B. 3 10 The bill deletes a provision which had prevented 3 11 eligibility for the wind energy production tax credit for any 3 12 kilowatt=hour of electricity produced on wind energy 3 13 conversion property for which the owner had claimed or 3 14 received specified special property tax valuation or sales tax 3 15 exemptions; thus preserving credit availability for owners 3 16 having received special valuation or having claimed the sales 3 17 tax exemptions. Because of the retroactivity of the 3 18 elimination of the restriction of the receipt of the tax 3 19 credit to those who have not received the sales tax exemption, 3 20 a provision for refund of sales tax paid is included in the 3 21 bill. 3 22 The bill takes effect upon enactment and applies 3 23 retroactively to January 1, 2009, for tax years beginning on 3 24 or after that date. 3 25 LSB 1671SS 83 3 26 rn/mg:sc/8