Senate
File
463
-
Introduced
SENATE
FILE
463
BY
COMMITTEE
ON
NATURAL
RESOURCES
AND
ENVIRONMENT
(SUCCESSOR
TO
SSB
1154)
A
BILL
FOR
An
Act
providing
for
an
alternative
motor
fuel
facility
tax
1
credit
and
including
effective
date
and
applicability
2
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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463
Section
1.
NEW
SECTION
.
422.11Y
Alternative
motor
fuel
1
facility
tax
credit.
2
1.
The
taxes
imposed
under
this
division,
less
the
3
credits
allowed
under
section
422.12,
shall
be
reduced
by
an
4
alternative
motor
fuel
facility
tax
credit.
In
order
to
be
5
eligible
to
claim
the
tax
credit,
the
taxpayer
must
comply
with
6
this
section
and
rules
adopted
by
the
department
necessary
to
7
administer
and
enforce
this
section.
8
2.
The
taxpayer
must
construct,
install,
and
place
in
9
service
an
alternative
motor
fuel
facility
which
serves
a
motor
10
vehicle
that
is
designed
by
a
manufacturer
to
operate
using
one
11
of
the
following:
12
a.
A
biofuel
which
is
one
of
the
following:
13
(1)
Biodiesel
blended
fuel
designated
as
B-25
or
higher
as
14
classified
pursuant
to
section
214A.2,
and
meets
the
standards
15
provided
in
that
section.
16
(2)
E-85
gasoline
as
defined
in
section
214A.1,
which
meets
17
the
standards
of
section
214A.2.
18
b.
Compressed
natural
gas.
19
c.
Liquefied
natural
gas.
20
d.
Liquefied
petroleum
gas.
21
e.
Hydrogen.
22
f.
Electricity.
23
3.
An
alternative
motor
fuel
facility
is
limited
to
24
infrastructure,
equipment,
or
machinery
used
to
store,
25
dispense,
and
meter
alternative
motor
fuel.
For
liquid
fuel,
26
it
may
include
associated
pipes
and
motor
fuel
pumps
or
meters.
27
For
hydrogen
fuel
or
natural
gas,
it
may
include
pipes,
28
compressors,
or
vaporizers.
For
electric
fuel,
it
may
include
29
charging
equipment,
infrastructure,
or
batteries.
30
4.
The
amount
of
the
alternative
motor
fuel
facility
tax
31
credit
equals
thirty
percent
of
the
cost
to
the
taxpayer
of
32
purchasing
the
infrastructure,
equipment,
or
machinery
and
33
thirty
percent
of
the
cost
to
the
taxpayer
of
installing
the
34
infrastructure,
equipment,
or
machinery.
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5.
The
alternative
motor
fuel
facility
must
comply
with
1
any
applicable
federal
and
state
standards
and
the
latest
2
applicable
and
available
A.S.T.M.
international
specifications.
3
6.
The
alternative
motor
fuel
facility
tax
credit
may
be
4
claimed
by
a
person
on
a
commercial
or
residential
basis.
5
a.
A
person
may
claim
the
tax
credit
on
a
commercial
basis,
6
if
the
alternative
motor
fuel
facility
is
part
of
a
business
7
selling
qualified
alternative
motor
fuel
on
a
retail
basis,
8
including
a
dealer
as
defined
in
section
214A.1,
or
may
claim
9
the
tax
credit
if
the
alternative
motor
fuel
facility
is
used
10
by
a
business
for
its
own
vehicle
fleet
or
employees.
The
tax
11
credit
must
be
taken
in
equal
installments
in
three
consecutive
12
tax
years,
beginning
with
the
tax
year
in
which
the
alternative
13
motor
fuel
facility
is
placed
in
service.
If
any
part
of
the
14
alternative
motor
fuel
facility
is
taken
out
of
service
and
not
15
immediately
replaced,
the
tax
credit
expires
and
the
taxpayer
16
cannot
take
any
remaining
installment
of
the
tax
credit.
17
b.
A
person
may
claim
the
tax
credit
on
a
residential
basis,
18
if
the
alternative
motor
fuel
facility
is
part
of
a
home
or
19
farm
and
is
used
for
personal,
family,
household,
or
farm
use.
20
The
entire
amount
of
the
tax
credit
must
be
claimed
in
the
tax
21
year
in
which
the
alternative
motor
fuel
facility
is
first
22
placed
in
service.
23
7.
Any
tax
credit
in
excess
of
the
taxpayer’s
tax
liability
24
shall
be
refunded.
In
lieu
of
claiming
a
refund,
the
taxpayer
25
may
elect
to
have
the
overpayment
shown
on
the
retail
dealer’s
26
final,
completed
return
credited
to
the
tax
liability
for
the
27
following
tax
year.
28
8.
A
person
shall
not
claim
a
tax
credit
under
this
section
29
for
an
alternative
motor
fuel
facility
that
was
placed
in
30
service
on
or
after
January
1,
2015.
However,
a
person
who
31
placed
the
alternative
motor
fuel
facility
in
service
prior
to
32
January
1,
2015,
may
continue
to
claim
the
tax
credit
after
33
that
date
as
if
the
alternative
motor
fuel
facility
were
placed
34
in
service
on
January
1,
2012.
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9.
This
section
is
repealed
on
January
1,
2019.
1
Sec.
2.
Section
422.33,
Code
2011,
is
amended
by
adding
the
2
following
new
subsection:
3
NEW
SUBSECTION
.
11D.
The
taxes
imposed
under
this
division
4
shall
be
reduced
by
an
alternative
motor
fuel
facility
tax
5
credit
for
each
tax
year
that
the
taxpayer
is
eligible
to
claim
6
the
tax
credit
under
this
subsection.
7
a.
The
taxpayer
must
claim
the
tax
credit
on
a
commercial
8
basis
or
residential
basis
in
the
same
manner
as
provided
9
in
section
422.11Y.
The
taxpayer
must
claim
the
tax
credit
10
according
to
the
same
requirements,
for
the
same
amount,
and
11
for
the
same
period
as
provided
in
section
422.11Y.
The
amount
12
of
the
tax
credit
shall
be
calculated
in
the
same
manner
as
13
provided
in
section
422.11Y.
A
taxpayer
claiming
tax
credit
on
14
a
commercial
basis
is
subject
to
the
same
penalty
for
taking
15
the
alternative
motor
fuel
facility
out
of
service
as
provided
16
in
section
422.11Y.
17
b.
This
subsection
is
repealed
on
January
1,
2019.
18
Sec.
3.
EFFECTIVE
DATE.
This
Act
takes
effect
January
1,
19
2012.
20
Sec.
4.
APPLICABILITY.
This
Act
applies
to
tax
years
21
beginning
on
and
after
January
1,
2012.
22
EXPLANATION
23
This
bill
creates
an
alternative
motor
fuel
facility
24
tax
credit
for
persons
who
construct,
install,
and
place
in
25
service
a
facility
that
stores,
dispenses,
and
meters
biodiesel
26
blended
fuel
with
25
percent
or
more
biodiesel;
so-called
27
E-85
gasoline,
containing
between
70
and
85
percent
ethanol;
28
compressed
natural
gas;
liquefied
natural
gas;
liquefied
29
petroleum
gas;
hydrogen;
and
electricity.
The
amount
of
30
the
tax
credit
is
30
percent
of
the
cost
of
purchasing
and
31
installing
the
facility.
A
person
may
claim
the
tax
credit
32
on
a
commercial
(as
a
retailer)
or
residential
basis
(for
33
personal,
business,
or
farm
use).
A
person
claiming
the
tax
34
credit
on
a
commercial
basis
must
claim
one-third
of
the
tax
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463
credit
for
each
of
three
tax
years.
Any
tax
credit
in
excess
of
1
the
taxpayer’s
tax
liability
is
refundable
or
may
be
used
in
2
calculating
a
future
tax
liability.
3
The
tax
credit
applies
to
tax
years
beginning
on
and
after
4
January
1,
2012.
The
taxpayer
must
place
the
facility
in
5
service
by
January
1,
2015,
but
may
claim
the
tax
credit
for
a
6
previous
installation
after
that
date.
The
bill’s
provisions
7
are
repealed
on
January
1,
2019.
The
bill
takes
effect
on
8
January
1,
2012,
for
tax
years
beginning
on
or
after
that
date.
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