H.F. 2452 Section 1. Section 427.1, Code Supplement 2011, is amended 1 by adding the following new subsection: 2 NEW SUBSECTION . 38. Energy-efficient, sustainable 3 development, water saving, and environmental quality property. 4 a. For assessment years beginning on or after January 1, 5 2013, the exemption provided under this subsection for each 6 eligible property is limited to one of the following: 7 (1) Two percent of the amount of actual value of the 8 permanent improvements to the property if the property was 9 certified by the United States green building council during 10 the previous five years as meeting or exceeding the LEED silver 11 rating. 12 (2) Five percent of the amount of actual value of the 13 permanent improvements to the property if the property was 14 certified by the United States green building council during 15 the previous five years as meeting or exceeding the LEED gold 16 rating and certified as being smart grid-ready. 17 (3) Ten percent of the amount of actual value of the 18 permanent improvements to the property if the property was 19 certified by the United States green building council during 20 the previous five years as meeting or exceeding the LEED 21 platinum rating and certified as being smart grid-ready as 22 defined in paragraph “b” , subparagraph (6), subparagraph 23 division (c). 24 b. For the purposes of this subsection: 25 (1) “Demand response program” means a system with the 26 capability to reduce or change an electrical energy customer’s 27 normal or typical electrical energy consumption in response 28 to specified circumstances or in response to peak electrical 29 energy demand events. 30 (2) “LEED silver rating” means the United States green 31 building council leadership in energy and environmental design 32 green building rating system, version 3.0, referred to as the 33 silver standard. 34 (3) “LEED gold rating” means the United States green 35 -1- LSB 5955YH (5) 84 md/sc 1/ 4

H.F. 2452 building council leadership in energy and environmental design 1 green building rating system, version 3.0, referred to as the 2 gold standard. 3 (4) “LEED platinum rating” means the United States green 4 building council leadership in energy and environmental design 5 green building rating system, version 3.0, referred to as the 6 platinum standard. 7 (5) “Smart grid” means a digital network as part of 8 an electrical energy grid that connects electrical energy 9 providers through two-way communications with electrical energy 10 delivery systems and electrical energy customers to make energy 11 generation and delivery systems more efficient and to increase 12 electrical energy grid reliability. 13 (6) “Smart grid-ready” means that a property is one of the 14 following: 15 (a) Determined to have the ability to participate in a 16 demand response program. 17 (b) Determined to be capable of being connected to a smart 18 grid. 19 (c) Determined to be connected to a smart grid and 20 determined to be participating in a demand response program. 21 c. Each taxpayer claiming an exemption under this subsection 22 shall file with the assessor not later than February 1 of the 23 assessment year for which the exemption is first requested, 24 a statement upon forms to be prescribed by the director 25 of revenue specifying the applicable LEED rating and, if 26 applicable, the smart grid requirements that have been 27 certified for the property during the previous five years 28 by the United States green building council. The statement 29 shall be accompanied by other supporting documentation of the 30 certification as required by the department of revenue. 31 d. Once the exemption is granted, the exemption shall be 32 allowed for five assessment years without further filing so 33 long as the permanent improvements to the property continue 34 to meet the applicable requirements for the exemption. The 35 -2- LSB 5955YH (5) 84 md/sc 2/ 4

H.F. 2452 taxpayer shall notify the assessing authority if during the 1 five-year exemption period, the property ceases to meet the 2 applicable requirements for the exemption. 3 e. Following the expiration of the exemption under paragraph 4 “d” , the property shall not be eligible for another exemption 5 under this subsection. 6 Sec. 2. IMPLEMENTATION. Section 25B.7 shall not apply to 7 this Act. 8 EXPLANATION 9 This bill establishes a property tax exemption for property 10 meeting specified energy efficiency and environmental quality 11 standards. For assessment years beginning on or after January 12 1, 2013, the exemption provided in the bill for each eligible 13 property is limited to one of the following: (1) 2 percent 14 of the amount of actual value of the permanent improvements 15 to the property if the property was certified by the United 16 States green building council during the previous five years 17 as meeting or exceeding the LEED silver rating, as defined in 18 the bill; (2) 5 percent of the amount of actual value of the 19 permanent improvements to the property if the property was 20 certified by the United States green building council during 21 the previous five years as meeting or exceeding the LEED gold 22 rating, as defined in the bill, and as being smart grid-ready, 23 as defined in the bill; and (3) 10 percent of the amount of 24 actual value of the permanent improvements to the property if 25 the property was certified by the United States green building 26 council during the previous five years as meeting or exceeding 27 the LEED platinum rating, as defined in the bill, and as being 28 smart grid-ready, defined in the bill as being connected to a 29 smart grid and participating in a demand response program. 30 The bill requires each taxpayer claiming an exemption 31 to file with the assessor not later than February 1 of the 32 assessment year for which the exemption is first requested, 33 a statement upon forms to be prescribed by the director 34 of revenue specifying the applicable LEED rating and, if 35 -3- LSB 5955YH (5) 84 md/sc 3/ 4

H.F. 2452 applicable, the smart grid requirements that have been 1 certified by the United States green building council during 2 the previous five years for the property. This statement must 3 also be accompanied by other supporting documentation of the 4 certification as required by the department of revenue. 5 If granted, the exemption continues for five assessment 6 years without further filing as long as the permanent 7 improvements to the property continue to meet the applicable 8 requirements for the exemption. The taxpayer is required 9 to notify the assessing authority if during the five-year 10 exemption period, the property ceases to meet the applicable 11 requirements for the exemption. 12 The bill provides that following expiration of the 13 exemption, the property is not eligible for the exemption under 14 the bill in any future assessment year. 15 The bill provides that the provisions in Code section 25B.7, 16 relating to the obligation of the state to reimburse local 17 jurisdictions for property tax credits and exemptions, do not 18 apply to the exemption in the bill. 19 -4- LSB 5955YH (5) 84 md/sc 4/ 4