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