SENATE FILE 503

BY  HOGG

A BILL FOR

An Act providing an additional renewable energy tax credit.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

   Section 1.  Section 476C.2, Code 2011, is amended by adding the following new subsection:
   NEW SUBSECTION.  1A.  In addition to the energy tax credits provided pursuant to subsection 1, a producer or purchaser of renewable energy may receive additional renewable energy tax credits in amounts and pursuant to a timetable as follows:
   a.  A one cent per kilowatt-hour production tax credit for up to four hundred megawatts of electricity for wind energy conversion facilities installed on or before December 31, 2014, and for up to one hundred megawatts of additional capacity installed each year beginning January 1, 2015, through December 31, 2020.
   b.
  (1)  A one and one-half cent per kilowatt-hour production tax credit for up to two hundred fifty megawatts of electricity generated by a biomass conversion facility, a solar energy conversion facility, or a refuse conversion facility installed on or before December 31, 2015, and for up to fifty megawatts of additional capacity installed each year beginning January 1, 2016, through December 31, 2020.
   (2)  A four dollar and fifty cent per million British thermal unit tax credit for the energy production capacity equivalent of two hundred fifty megawatts of methane gas or other biogas used to generate electricity and installed on or before December 31, 2015, and for up to the energy production capacity equivalent of fifty megawatts of additional capacity installed each year beginning January 1, 2016, through December 31, 2020.
   (3)  For a producer or purchaser of renewable energy specified in subparagraphs (1) or (2), a twenty-five percent tax credit for the reasonable costs of construction of an eligible renewable energy facility, as determined by the board by rule.
EXPLANATION
   This bill increases tax credits available to renewable energy producers or purchasers pursuant to Code chapter 476C.
   The bill provides for an additional one cent per kilowatt-hour production tax credit for up to 400 megawatts of electricity for wind energy conversion facilities installed on or before December 31, 2014, and for up to 100 megawatts of additional capacity installed each year beginning January 1, 2015, and ending December 31, 2020. The bill also provides for a one and one-half cent per kilowatt-hour production tax credit for up to 250 megawatts of electricity generated by a biomass conversion facility, a solar energy conversion facility, or a refuse conversion facility installed on or before December 31, 2015, and for up to 50 megawatts of additional capacity installed each year beginning January 1, 2016, through December 31, 2020.
   The bill additionally provides for a $4.50 per million British thermal unit tax credit for up to the energy production capacity equivalent of 250 megawatts of methane gas or other biogas used to generate electricity installed on or before December 31, 2015, and for up to the energy production capacity equivalent of 50 megawatts of additional capacity installed each year beginning January 1, 2016, through December 31, 2020.
   The bill further provides that a producer or purchaser of renewable energy may receive a 25 percent tax credit for the reasonable costs of construction of an eligible renewable energy facility, as determined by the Iowa utilities board by rule.