Senate File 80 - Introduced
SENATE FILE
BY JOHNSON
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 certification
2 procedures and eligibility requirements, providing refund of
3 the sales and use taxes, providing refund of sales and use
4 taxes, and including effective and retroactive applicability
5 date provisions.
6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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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 2009,
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 of this subsection, persons shall
1 21 be treated as related to each other if such persons would be
1 22 treated as a single employer under the regulations prescribed
1 23 under section 52(b) of the Internal Revenue Code. In the case
1 24 of a corporation that is a member of an affiliated group of
1 25 corporations filing a consolidated return, such corporation
1 26 shall be treated as selling electricity to an unrelated person
1 27 if such electricity is sold to such a person by another member
1 28 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. To be eligible to receive the wind energy
1 32 production tax credit, the owner must first receive approval
1 33 of the board of supervisors of the county in which the
1 34 qualified facility is located. The application for approval
1 35 may be submitted prior to commencement of the construction of
2 1 the qualified facility but shall be submitted no later than
2 2 the close of the owner's first taxable year for which the
2 3 credit is to be applied for. The application must contain the
2 4 owner's name and address, the address of the qualified
2 5 facility, and the dates of the owner's first and last taxable
2 6 years for which the credit will be applied for. Within
2 7 forty=five days of the receipt of the application for
2 8 approval, the board of supervisors shall either approve or
2 9 disapprove the application. After the forty=five=day limit,
2 10 the application is deemed to be approved.
2 11 b. Upon approval of the application, the owner may apply
2 12 for the tax credit as provided in subsection 2. In addition,
2 13 approval of the application is acceptance by the applicant for
2 14 the assessment of the qualified facility for property tax
2 15 purposes for a period of twelve years and approval by the
2 16 board of supervisors for the payment of the property taxes
2 17 levied on the qualified property to the state. For purposes
2 18 of property taxation, An owner may apply for special valuation
2 19 of the qualified facility under a city ordinance or county
2 20 ordinance enacted under section 427B.26 for which the property
2 21 is eligible. If the qualified facility is not eligible for
2 22 special valuation under a city ordinance or county ordinance,
2 23 the qualified facility shall be centrally assessed, and the
2 24 property tax collected shall be remitted to the state for a
2 25 period of twelve years. A qualified facility shall be exempt
2 26 from any replacement tax under section 437A.6 for the period
2 27 during which the facility is subject to property taxation.
2 28 The property taxes to be paid to the state are those property
2 29 taxes which make up the consolidated tax levied on the
2 30 qualified facility and which are due and payable in the
2 31 twelve=year period beginning with the first fiscal year
2 32 beginning on or after the end of the owner's first taxable
2 33 year for which the credit is applied for. Upon approval of
2 34 the application, the The board of supervisors shall notify the
2 35 county treasurer to state designate on the tax statement which
3 1 lists the taxes on the qualified facility that the amount of
3 2 the property taxes shall to be paid to the department, if
3 3 applicable. Payment of the designated property taxes to the
3 4 department shall be in the same manner as required for the
3 5 payment of regular property taxes and failure to pay
3 6 designated property taxes to the department shall be treated
3 7 the same as failure to pay property taxes to the county
3 8 treasurer.
3 9 c. Once the owner of the qualified facility receives
3 10 approval under paragraph "a", subsequent approval under
3 11 paragraph "a" is not required for the same qualified facility
3 12 for subsequent taxable years.
3 13 Sec. 4. REFUNDS. Refunds of taxes, interest, or penalties
3 14 which may arise from claims resulting from the amendment of
3 15 section 476B.4 in this Act, for the exemption of sales of wind
3 16 energy conversion property as provided in section 423.3,
3 17 subsection 54, occurring between January 1, 2008, and the
3 18 effective date of this Act, shall be limited to twenty=five
3 19 thousand dollars in the aggregate and shall not be allowed
3 20 unless refund claims are filed prior to October 1, 2009,
3 21 notwithstanding any other provision of law. If the amount of
3 22 claims totals more than twenty=five thousand dollars in the
3 23 aggregate, the department of revenue shall prorate the
3 24 twenty=five thousand dollars among all claimants in relation
3 25 to the amounts of the claimants' valid claims. Claimants
3 26 shall not be entitled to interest on any refunds.
3 27 Sec. 5. EFFECTIVE AND APPLICABILITY DATES. This Act,
3 28 being deemed of immediate importance, takes effect upon
3 29 enactment and applies retroactively to January 1, 2008, for
3 30 tax years beginning on or after that date.
3 31 EXPLANATION
3 32 This bill modifies eligibility requirements and
3 33 certification procedures applicable to the wind energy
3 34 production tax credit established in Code chapter 476B.
3 35 The bill specifies a maximum nameplate capacity for
4 1 qualifying electrical production facilities of no more than 30
4 2 megawatts. Under current law, no maximum limitation is
4 3 applicable. The bill deletes a provision which had prevented
4 4 eligibility for the wind energy production tax credit for any
4 5 kilowatt=hour of electricity produced on wind energy
4 6 conversion property for which the owner had claimed or
4 7 received specified special property tax valuation or sales tax
4 8 exemptions, thus preserving credit availability for owners
4 9 having received special valuation and claimed the sales tax
4 10 exemptions. Because of the retroactivity of the elimination
4 11 of the restriction of the receipt of the tax credit to those
4 12 who have not received the sales tax exemption, a provision for
4 13 refund of sales tax paid is included in the bill.
4 14 Additionally, the bill modifies tax credit certification
4 15 procedures, removing a requirement that eligibility for the
4 16 wind energy production tax credit required approval of the
4 17 board of supervisors for the county in which a qualified
4 18 facility is located.
4 19 The bill takes effect upon enactment and applies
4 20 retroactively to January 1, 2008, for tax years beginning on
4 21 or after that date.
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