Senate File 503 - Introduced SENATE FILE 503 BY HOGG A BILL FOR An Act providing an additional renewable energy tax credit. 1 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 2 TLSB 2500XS (5) 84 rn/sc

S.F. 503 Section 1. Section 476C.2, Code 2011, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 1A. In addition to the energy tax credits 3 provided pursuant to subsection 1, a producer or purchaser of 4 renewable energy may receive additional renewable energy tax 5 credits in amounts and pursuant to a timetable as follows: 6 a. A one cent per kilowatt-hour production tax credit for 7 up to four hundred megawatts of electricity for wind energy 8 conversion facilities installed on or before December 31, 2014, 9 and for up to one hundred megawatts of additional capacity 10 installed each year beginning January 1, 2015, through December 11 31, 2020. 12 b. (1) A one and one-half cent per kilowatt-hour production 13 tax credit for up to two hundred fifty megawatts of electricity 14 generated by a biomass conversion facility, a solar energy 15 conversion facility, or a refuse conversion facility installed 16 on or before December 31, 2015, and for up to fifty megawatts 17 of additional capacity installed each year beginning January 1, 18 2016, through December 31, 2020. 19 (2) A four dollar and fifty cent per million British thermal 20 unit tax credit for the energy production capacity equivalent 21 of two hundred fifty megawatts of methane gas or other biogas 22 used to generate electricity and installed on or before 23 December 31, 2015, and for up to the energy production capacity 24 equivalent of fifty megawatts of additional capacity installed 25 each year beginning January 1, 2016, through December 31, 2020. 26 (3) For a producer or purchaser of renewable energy 27 specified in subparagraphs (1) or (2), a twenty-five percent 28 tax credit for the reasonable costs of construction of an 29 eligible renewable energy facility, as determined by the board 30 by rule. 31 EXPLANATION 32 This bill increases tax credits available to renewable 33 energy producers or purchasers pursuant to Code chapter 476C. 34 The bill provides for an additional one cent per 35 -1- LSB 2500XS (5) 84 rn/sc 1/ 2

S.F. 503 kilowatt-hour production tax credit for up to 400 megawatts of 1 electricity for wind energy conversion facilities installed on 2 or before December 31, 2014, and for up to 100 megawatts of 3 additional capacity installed each year beginning January 1, 4 2015, and ending December 31, 2020. The bill also provides for 5 a one and one-half cent per kilowatt-hour production tax credit 6 for up to 250 megawatts of electricity generated by a biomass 7 conversion facility, a solar energy conversion facility, or 8 a refuse conversion facility installed on or before December 9 31, 2015, and for up to 50 megawatts of additional capacity 10 installed each year beginning January 1, 2016, through December 11 31, 2020. 12 The bill additionally provides for a $4.50 per million 13 British thermal unit tax credit for up to the energy production 14 capacity equivalent of 250 megawatts of methane gas or other 15 biogas used to generate electricity installed on or before 16 December 31, 2015, and for up to the energy production capacity 17 equivalent of 50 megawatts of additional capacity installed 18 each year beginning January 1, 2016, through December 31, 2020. 19 The bill further provides that a producer or purchaser of 20 renewable energy may receive a 25 percent tax credit for the 21 reasonable costs of construction of an eligible renewable 22 energy facility, as determined by the Iowa utilities board by 23 rule. 24 -2- LSB 2500XS (5) 84 rn/sc 2/ 2