Senate File 520 - Introduced SENATE FILE 520 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO SF 463) (SUCCESSOR TO SSB 1154) A BILL FOR An Act providing for an electric or natural gas vehicle 1 facility tax credit and including effective date and 2 applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1598SZ (2) 84 da/rj

S.F. 520 Section 1. NEW SECTION . 422.11Y Electric or natural gas 1 vehicle facility tax credit. 2 1. The taxes imposed under this division, less the credits 3 allowed under section 422.12, shall be reduced by an electric 4 or natural gas vehicle 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 electric or natural gas vehicle facility which 10 serves a motor vehicle that is designed by a manufacturer to 11 operate using one of the following: 12 a. Compressed natural gas. 13 b. Electricity. 14 3. An electric or natural gas vehicle facility is limited 15 to infrastructure, equipment, or machinery used to store, 16 dispense, dry, and meter compressed natural gas or electricity. 17 For compressed natural gas, it may include pipes, compressors, 18 dryers, or vaporizers. For electricity, it may include 19 charging equipment, infrastructure, or batteries. 20 4. The amount of the electric or natural gas vehicle 21 facility tax credit equals thirty percent of the cost to the 22 taxpayer of purchasing the infrastructure, equipment, or 23 machinery and thirty percent of the cost to the taxpayer of 24 installing the infrastructure, equipment, or machinery. 25 5. The electric or natural gas vehicle facility must comply 26 with any applicable federal and state standards and the latest 27 applicable and available A.S.T.M. international specifications. 28 6. The electric or natural gas vehicle facility tax credit 29 may be claimed by a person on a commercial or residential 30 basis. 31 a. A person may claim the tax credit on a commercial basis, 32 if the electric or natural gas vehicle facility is part of a 33 business selling qualified electricity or compressed natural 34 gas on a retail basis, or may claim the tax credit if the 35 -1- LSB 1598SZ (2) 84 da/rj 1/ 4

S.F. 520 electric or natural gas vehicle facility is used by a business 1 for its own vehicle fleet or employees. The tax credit must 2 be taken in equal installments in three consecutive tax years, 3 beginning with the tax year in which the electric or natural 4 gas vehicle facility is placed in service. If any part of 5 the electric or natural gas vehicle facility is taken out of 6 service and not immediately replaced, the tax credit expires 7 and the taxpayer cannot take any remaining installment of the 8 tax credit. 9 b. A person may claim the tax credit on a residential basis, 10 if the electric or natural gas vehicle facility is part of a 11 home or farm and is used for personal, family, household, or 12 farm use. The entire amount of the tax credit must be claimed 13 in the tax year in which the electric or natural gas vehicle 14 facility is first placed in service. 15 7. Any tax credit in excess of the taxpayer’s tax liability 16 shall be refunded. In lieu of claiming a refund, the taxpayer 17 may elect to have the overpayment shown on the retail dealer’s 18 final, completed return credited to the tax liability for the 19 following tax year. 20 8. An individual may claim the tax credit allowed a 21 partnership, limited liability company, S corporation, estate, 22 or trust electing to have the income taxed directly to the 23 individual. The amount claimed by the individual shall be 24 based upon the pro rata share of the individual’s earnings of 25 the partnership, limited liability company, S corporation, 26 estate, or trust. 27 9. A person shall not claim a tax credit under this section 28 for an electric or natural gas vehicle facility that was placed 29 in service on or after January 1, 2015. However, a person 30 claiming the tax credit on a commercial basis who placed the 31 electric or natural gas vehicle facility in service prior to 32 January 1, 2015, may continue to claim the tax credit for 33 tax years ending on or after January 1, 2015, as provided in 34 subsection 6, paragraph “a” . 35 -2- LSB 1598SZ (2) 84 da/rj 2/ 4

S.F. 520 10. 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 electric or natural gas vehicle facility 5 tax credit for each tax year that the taxpayer is eligible to 6 claim 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 a tax credit 14 on a commercial basis is subject to the same penalty for taking 15 the electric or natural gas vehicle facility out of service as 16 provided 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 electric or natural gas facility 24 tax credit for persons who construct, install, and place in 25 service a facility that stores, dispenses, dries, and meters 26 electricity and compressed natural gas. The amount of the 27 tax credit is 30 percent of the cost of purchasing and of 28 installing the facility. A person may claim the tax credit 29 on a commercial (as a retailer) or residential basis (for 30 personal, business, or farm use). A person claiming the tax 31 credit on a commercial basis must claim one-third of the tax 32 credit for each of three tax years. Any tax credit in excess of 33 the taxpayer’s tax liability is refundable or may be used in 34 calculating a future tax liability. 35 -3- LSB 1598SZ (2) 84 da/rj 3/ 4

S.F. 520 The tax credit applies to tax years beginning on and after 1 January 1, 2012. The taxpayer must place the facility in 2 service before January 1, 2015, but may claim the tax credit 3 for a previous installation after that date. The bill’s 4 provisions are repealed on January 1, 2019. The bill takes 5 effect on January 1, 2012, for tax years beginning on or after 6 that date. 7 -4- LSB 1598SZ (2) 84 da/rj 4/ 4