House
File
48
-
Introduced
HOUSE
FILE
48
BY
T.
OLSON
A
BILL
FOR
An
Act
relating
to
property
tax
valuation
and
exemption
of
1
value
added
by
installation
of
certain
geothermal,
solar,
2
and
wind
energy
property.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
1049YH
(4)
85
md/sc
H.F.
48
Section
1.
Section
427.1,
subsection
38,
paragraphs
a
and
b,
1
Code
2013,
are
amended
to
read
as
follows:
2
a.
The
value
added
by
any
new
or
refitted
construction
or
3
installation
of
a
geothermal
heating
or
cooling
system
on
or
4
after
July
1,
2012,
on
property
classified
as
residential.
5
The
exemption
shall
be
allowed
for
ten
consecutive
years.
6
The
exemption
shall
apply
to
any
value
added
by
the
addition
7
of
mechanical,
electrical,
plumbing,
ductwork,
or
other
8
equipment,
labor,
and
expenses
included
in
or
required
for
the
9
construction
or
installation
of
the
geothermal
system,
as
well
10
as
the
proportionate
value
of
any
well
field
associated
with
11
the
system
and
attributable
to
the
owner.
12
b.
A
person
claiming
an
exemption
under
this
subsection
13
shall
obtain
the
appropriate
forms
from
the
assessor.
The
14
forms
shall
be
prescribed
by
the
director
of
revenue.
The
15
claim
shall
be
filed
no
later
than
February
1
of
the
first
16
assessment
year
the
exemption
is
requested
and
shall
contain
17
information
pertaining
to
all
costs
and
other
information
18
associated
with
construction
and
installation
of
the
system.
19
Once
the
exemption
is
allowed,
the
exemption
shall
continue
to
20
be
allowed
for
ten
consecutive
years
without
further
filing
as
21
long
as
the
property
continues
to
be
classified
as
residential
22
property.
23
Sec.
2.
Section
441.21,
subsection
8,
paragraphs
b
and
c,
24
Code
2013,
are
amended
to
read
as
follows:
25
b.
Notwithstanding
paragraph
“a”
,
any
construction
or
26
installation
of
a
solar
energy
system
on
property
classified
as
27
agricultural,
residential,
commercial,
or
industrial
property
28
shall
not
increase
the
actual,
assessed
,
and
taxable
values
of
29
the
property
for
five
full
assessment
years
.
30
c.
As
used
in
this
subsection
,
“solar
energy
system”
means
31
either
of
the
following:
32
(1)
A
system
of
equipment
capable
of
collecting
and
33
converting
incident
solar
radiation
or
wind
energy
into
34
thermal,
mechanical
or
electrical
energy
and
transforming
these
35
-1-
LSB
1049YH
(4)
85
md/sc
1/
3
H.F.
48
forms
of
energy
by
a
separate
apparatus
to
storage
or
to
a
1
point
of
use
which
is
constructed
or
installed
after
January
2
1,
1978
2008
.
3
(2)
A
system
that
uses
the
basic
design
of
the
building
to
4
maximize
solar
heat
gain
during
the
cold
season
and
to
minimize
5
solar
heat
gain
in
the
hot
season
and
that
uses
natural
6
means
to
collect,
store,
and
distribute
solar
energy
which
is
7
constructed
or
installed
after
January
1,
1981
2008
.
8
Sec.
3.
IMPLEMENTATION
OF
ACT.
Section
25B.7
shall
not
9
apply
to
this
Act.
10
EXPLANATION
11
In
2012,
a
property
tax
exemption
was
enacted
for
the
value
12
added
by
any
new
or
refitted
construction
or
installation
of
13
a
geothermal
heating
or
cooling
system
on
or
after
July
1,
14
2012,
on
property
classified
as
residential.
The
exemption
15
is
allowed
for
10
consecutive
years
following
application
and
16
approval.
This
bill
removes
the
10-year
limitation
on
the
17
exemption.
18
Current
Code
section
441.21(8)
provides
that
any
19
construction
or
installation
of
a
solar
energy
system
on
20
property
classified
as
agricultural,
residential,
commercial,
21
or
industrial
property
shall
not
increase
the
actual,
assessed,
22
and
taxable
values
of
the
property
for
five
full
assessment
23
years.
The
bill
removes
the
five-year
limitation
and
specifies
24
that
such
added
value
of
solar
energy
systems
constructed
or
25
installed
after
January
1,
2008,
is
exempt
from
taxation.
26
Code
section
441.21(8)
defines
“solar
energy
system”
to
27
mean
either:
(1)
a
system
of
equipment
capable
of
collecting
28
and
converting
incident
solar
radiation
or
wind
energy
into
29
thermal,
mechanical,
or
electrical
energy
and
transforming
30
these
forms
of
energy
by
a
separate
apparatus
to
storage
or
to
31
a
point
of
use
or
(2)
a
system
that
uses
the
basic
design
of
32
the
building
to
maximize
solar
heat
gain
during
the
cold
season
33
and
to
minimize
solar
heat
gain
in
the
hot
season
and
that
uses
34
natural
means
to
collect,
store,
and
distribute
solar
energy.
35
-2-
LSB
1049YH
(4)
85
md/sc
2/
3
H.F.
48
The
bill
provides
that
the
provisions
in
Code
section
25B.7,
1
relating
to
the
obligation
of
the
state
to
reimburse
local
2
jurisdictions
for
property
tax
credits
and
exemptions,
do
not
3
apply
to
the
exemptions
in
the
bill.
4
-3-
LSB
1049YH
(4)
85
md/sc
3/
3