Senate
File
434
-
Introduced
SENATE
FILE
434
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
SF
238)
A
BILL
FOR
An
Act
relating
to
an
electric
or
natural
gas
vehicle
facility
1
tax
credit
and
including
effective
date
and
retroactive
2
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
1595SV
(3)
85
da/sc
S.F.
434
Section
1.
Section
422.7,
Code
2013,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
51.
a.
A
taxpayer
taking
a
depreciation
3
allowance
under
section
168
of
the
Internal
Revenue
Code
for
4
property
described
in
section
422.11C
is
not
allowed
to
take
5
the
allowance
for
purposes
of
this
division
to
the
extent
that
6
a
tax
credit
is
taken
for
the
purchase
and
installation
of
7
the
property
under
section
422.11C.
If
a
credit
is
taken
for
8
the
purchase
and
installation
of
the
property
under
section
9
422.11C,
the
taxpayer
shall
add
the
amount
of
the
allowance
10
taken
on
such
property
to
the
extent
of
the
amount
of
the
11
credit.
12
b.
A
taxpayer
taking
an
expensing
allowance
under
section
13
179
of
the
Internal
Revenue
Code
for
property
described
in
14
section
422.11C
is
not
allowed
to
take
the
allowance
for
15
purposes
of
this
division
to
the
extent
that
a
tax
credit
16
is
taken
for
the
purchase
and
installation
of
such
property
17
under
section
422.11C.
If
a
credit
is
taken
for
the
purchase
18
and
installation
of
the
property
under
section
422.11C,
the
19
taxpayer
shall
add
the
amount
of
the
allowance
taken
on
such
20
property
to
the
extent
of
the
amount
of
the
credit.
21
c.
This
subsection
is
repealed
on
January
1,
2020.
22
Sec.
2.
NEW
SECTION
.
422.11C
Electric
or
natural
gas
23
vehicle
facility
tax
credit.
24
1.
As
used
in
this
section,
“motor
vehicle”
means
the
same
25
as
defined
in
section
322.2.
26
2.
The
taxes
imposed
under
this
division,
less
the
credits
27
allowed
under
section
422.12,
shall
be
reduced
by
an
electric
28
or
natural
gas
vehicle
facility
tax
credit.
In
order
to
be
29
eligible
to
claim
the
tax
credit,
the
taxpayer
must
comply
with
30
this
section
and
rules
adopted
by
the
department
necessary
to
31
administer
and
enforce
this
section.
32
3.
a.
The
taxpayer
claiming
the
tax
credit
on
an
33
agricultural
basis
as
provided
in
subsection
9
must
construct,
34
install,
and
place
in
service
any
of
the
following:
35
-1-
LSB
1595SV
(3)
85
da/sc
1/
8
S.F.
434
(1)
An
electric
vehicle
facility
that
serves
a
motor
vehicle
1
designed
by
a
manufacturer
to
operate
using
electricity.
2
(2)
A
natural
gas
vehicle
facility
that
serves
a
motor
3
vehicle
that
is
any
of
the
following:
4
(a)
Designed
by
the
manufacturer
to
operate
using
5
compressed
natural
gas.
6
(b)
Converted
as
an
aftermarket
alternative
fuel
vehicle
7
to
operate
using
compressed
natural
gas
if
the
conversion
8
equipment
is
certified
by
the
United
States
environmental
9
protection
agency,
including
as
provided
in
40
C.F.R.
pt.
85.
10
b.
The
taxpayer
claiming
the
tax
credit
on
a
commercial
11
basis
as
provided
in
subsection
9
must
construct,
install,
and
12
place
in
service
any
of
the
following:
13
(1)
An
electric
vehicle
facility
that
serves
a
motor
vehicle
14
designed
by
a
manufacturer
to
operate
using
electricity.
15
(2)
A
natural
gas
vehicle
facility
that
serves
a
motor
16
vehicle
that
is
any
of
the
following:
17
(a)
Designed
by
the
manufacturer
to
operate
using
18
compressed
natural
gas.
19
(b)
Converted
as
an
aftermarket
alternative
fuel
vehicle
20
to
operate
using
compressed
natural
gas
if
the
conversion
21
equipment
is
certified
by
the
United
States
environmental
22
protection
agency,
including
as
provided
in
40
C.F.R.
pt.
85.
23
c.
The
taxpayer
claiming
the
tax
credit
on
a
residential
24
basis
as
provided
in
subsection
9
must
construct,
install,
25
and
place
in
service
an
electric
vehicle
facility
that
serves
26
a
motor
vehicle
designed
by
a
manufacturer
to
operate
using
27
electricity.
28
4.
a.
After
verifying
the
eligibility
for
an
electric
or
29
natural
gas
vehicle
facility
tax
credit
as
provided
in
this
30
section,
the
department
of
revenue
shall
issue
the
taxpayer
an
31
electric
or
natural
gas
vehicle
facility
tax
credit
certificate
32
which
must
be
attached
to
the
taxpayer’s
tax
return.
An
33
electric
or
natural
gas
vehicle
facility
tax
credit
certificate
34
shall
include
all
of
the
following:
35
-2-
LSB
1595SV
(3)
85
da/sc
2/
8
S.F.
434
(1)
The
taxpayer’s
name,
address,
tax
identification
1
number,
and
any
other
information
required
by
the
department
2
of
revenue.
3
(2)
A
description
of
the
infrastructure,
equipment,
or
4
machinery
being
purchased
and
installed
which
is
eligible
for
5
the
tax
credit
to
be
claimed
on
the
taxpayer’s
tax
return.
6
(3)
The
amount
of
the
tax
credit
being
claimed.
7
b.
The
department
shall
adopt
rules
establishing
criteria
8
for
the
receipt
of
applications
for
electric
or
natural
gas
9
vehicle
facility
tax
credit
certificates
and
the
issuance
of
10
those
certificates.
A
tax
credit
certificate
shall
be
issued
11
in
the
taxpayer’s
name
and
shall
expire
on
or
after
the
last
12
day
of
the
taxable
year
for
which
the
taxpayer
is
claiming
the
13
tax
credit.
A
tax
credit
certificate
is
nontransferable.
14
5.
The
aggregate
amount
of
electric
or
natural
gas
vehicle
15
facility
tax
credit
certificates
that
may
be
issued
pursuant
16
to
this
section
shall
not
exceed
five
million
dollars
for
all
17
tax
years
that
the
tax
credit
is
available
under
this
section.
18
The
department
shall
issue
the
tax
credit
certificates
on
a
19
first-come,
first-served
basis
to
qualified
applicants
as
20
follows:
21
a.
Two
million
dollars
for
electric
vehicle
facilities.
22
b.
Two
million
dollars
for
natural
gas
vehicle
facilities.
23
(1)
Except
as
provided
in
subparagraph
(2),
a
person
is
not
24
entitled
to
apply
for
tax
credit
certificates
for
all
natural
25
gas
vehicle
facilities
equal
to
more
than
two
hundred
thousand
26
dollars.
27
(2)
A
person
is
not
entitled
to
apply
for
tax
credit
28
certificates
equal
to
more
than
four
hundred
thousand
dollars
29
for
all
natural
gas
vehicle
facilities
that
are
part
of
a
30
business
or
businesses
selling
qualified
compressed
natural
gas
31
on
a
retail
basis.
A
person
is
not
eligible
to
apply
for
a
tax
32
credit
under
both
this
subparagraph
and
subparagraph
(1).
33
c.
One
million
dollars
and
any
moneys
for
use
under
34
paragraphs
“a”
and
“b”
that
are
unobligated
or
unexpended
on
35
-3-
LSB
1595SV
(3)
85
da/sc
3/
8
S.F.
434
July
1,
2019,
for
electric
vehicle
facilities
or
natural
gas
1
vehicle
facilities.
2
6.
An
electric
or
natural
gas
vehicle
facility
is
limited
3
to
infrastructure,
equipment,
or
machinery
used
to
store,
4
dispense,
dry,
and
meter
electricity
or
compressed
natural
5
gas.
For
electricity,
it
may
include
charging
equipment,
6
infrastructure,
or
batteries.
For
compressed
natural
gas,
it
7
may
include
pipes,
compressors,
dryers,
or
vaporizers.
8
7.
The
amount
of
the
electric
or
natural
gas
vehicle
9
facility
tax
credit
equals
thirty
percent
of
the
total
cost
to
10
the
taxpayer
of
purchasing
the
infrastructure,
equipment,
or
11
machinery
and
thirty
percent
of
the
total
cost
to
the
taxpayer
12
of
installing
the
infrastructure,
equipment,
or
machinery.
13
8.
The
electric
or
natural
gas
vehicle
facility
must
comply
14
with
any
applicable
federal
and
state
standards
and
the
latest
15
applicable
and
available
ASTM
international
specifications.
16
9.
The
electric
or
natural
gas
vehicle
facility
tax
credit
17
may
be
claimed
by
a
person
on
an
agricultural,
commercial,
or
18
residential
basis
as
follows:
19
a.
A
person
may
claim
the
tax
credit
on
an
agricultural
20
basis
if
the
electric
or
natural
gas
vehicle
facility
is
21
located
on
land
primarily
used
in
the
production
of
a
crop
as
22
defined
in
section
202.1
or
livestock
as
defined
in
section
23
717.1.
The
electric
or
natural
gas
vehicle
facility
must
be
24
used
by
an
agricultural
producer
as
defined
in
section
15E.202
25
or
a
person
under
the
management
of
the
agricultural
producer.
26
The
tax
credit
must
be
taken
in
equal
installments
in
three
27
consecutive
tax
years,
beginning
with
the
tax
year
in
which
the
28
electric
or
natural
gas
vehicle
facility
is
placed
in
service.
29
If
any
part
of
the
electric
or
natural
gas
vehicle
facility
30
is
taken
out
of
service
and
not
immediately
replaced,
the
tax
31
credit
expires
and
the
taxpayer
cannot
take
any
remaining
32
installment
of
the
tax
credit.
33
b.
A
person
may
claim
the
tax
credit
on
a
commercial
basis
34
if
the
electric
or
natural
gas
vehicle
facility
is
part
of
a
35
-4-
LSB
1595SV
(3)
85
da/sc
4/
8
S.F.
434
business
selling
qualified
electricity
or
compressed
natural
1
gas
on
a
retail
basis,
or
may
claim
the
tax
credit
if
the
2
electric
or
natural
gas
vehicle
facility
is
used
by
a
business
3
for
its
own
vehicle
fleet
or
employees.
The
tax
credit
must
4
be
taken
in
equal
installments
in
three
consecutive
tax
years,
5
beginning
with
the
tax
year
in
which
the
electric
or
natural
6
gas
vehicle
facility
is
placed
in
service.
If
any
part
of
7
the
electric
or
natural
gas
vehicle
facility
is
taken
out
of
8
service
and
not
immediately
replaced,
the
tax
credit
expires
9
and
the
taxpayer
cannot
take
any
remaining
installment
of
the
10
tax
credit.
11
c.
A
person
may
claim
the
tax
credit
on
a
residential
basis
12
only
for
an
electric
vehicle
facility
that
is
for
personal,
13
family,
or
household
use.
The
entire
amount
of
the
tax
credit
14
must
be
claimed
in
the
tax
year
in
which
the
electric
vehicle
15
facility
is
first
placed
in
service.
16
10.
Any
tax
credit
in
excess
of
the
taxpayer’s
tax
liability
17
shall
be
refunded.
In
lieu
of
claiming
a
refund,
the
taxpayer
18
may
elect
to
have
the
overpayment
shown
on
the
retail
dealer’s
19
final,
completed
return
credited
to
the
tax
liability
for
the
20
following
tax
year.
21
11.
An
individual
may
claim
the
tax
credit
allowed
a
22
partnership,
limited
liability
company,
S
corporation,
estate,
23
or
trust
electing
to
have
the
income
taxed
directly
to
the
24
individual.
The
amount
claimed
by
the
individual
shall
be
25
based
upon
the
pro
rata
share
of
the
individual’s
earnings
of
26
the
partnership,
limited
liability
company,
S
corporation,
27
estate,
or
trust.
28
12.
A
person
shall
not
claim
a
tax
credit
under
this
section
29
for
an
electric
or
natural
gas
vehicle
facility
that
was
placed
30
in
service
on
or
after
January
1,
2016.
However,
a
person
31
claiming
the
tax
credit
on
an
agricultural
or
commercial
basis
32
who
placed
the
electric
or
natural
gas
vehicle
facility
in
33
service
prior
to
January
1,
2016,
may
continue
to
claim
the
tax
34
credit
for
tax
years
ending
on
or
after
January
1,
2016,
as
35
-5-
LSB
1595SV
(3)
85
da/sc
5/
8
S.F.
434
provided
in
subsection
9,
paragraph
“a”
.
1
13.
This
section
is
repealed
on
January
1,
2020.
2
Sec.
3.
Section
422.33,
Code
2013,
is
amended
by
adding
the
3
following
new
subsection:
4
NEW
SUBSECTION
.
11.
The
taxes
imposed
under
this
division
5
shall
be
reduced
by
an
electric
or
natural
gas
vehicle
facility
6
tax
credit
for
each
tax
year
that
the
taxpayer
is
eligible
to
7
claim
the
tax
credit
under
this
subsection.
8
a.
The
taxpayer
must
claim
the
tax
credit
on
an
agricultural
9
or
commercial
basis
in
the
same
manner
as
provided
in
section
10
422.11C.
The
taxpayer
must
claim
the
tax
credit
according
11
to
the
same
requirements,
for
the
same
amount,
and
for
the
12
same
period
as
provided
in
section
422.11C.
The
amount
of
the
13
tax
credit
shall
be
calculated
in
the
same
manner
as
provided
14
in
section
422.11C.
A
taxpayer
claiming
a
tax
credit
on
an
15
agricultural
or
commercial
basis
is
subject
to
the
same
penalty
16
for
taking
the
electric
or
natural
gas
vehicle
facility
out
of
17
service
as
provided
in
section
422.11C.
18
b.
This
subsection
is
repealed
on
January
1,
2020.
19
Sec.
4.
Section
422.35,
Code
2013,
is
amended
by
adding
the
20
following
new
subsection:
21
NEW
SUBSECTION
.
15.
a.
A
taxpayer
taking
a
depreciation
22
allowance
under
section
168
of
the
Internal
Revenue
Code
for
23
property
described
in
section
422.33,
subsection
11,
is
not
24
allowed
to
take
the
allowance
for
purposes
of
this
division
25
to
the
extent
that
a
tax
credit
is
taken
for
the
purchase
and
26
installation
of
the
property
under
section
422.33,
subsection
27
11.
If
a
credit
is
taken
for
the
purchase
and
installation
of
28
the
property
under
section
422.33,
subsection
11,
the
taxpayer
29
shall
add
the
amount
of
the
allowance
taken
on
such
property
to
30
the
extent
of
the
amount
of
the
credit.
31
b.
A
taxpayer
taking
an
expensing
allowance
under
section
32
179
of
the
Internal
Revenue
Code
for
property
described
in
33
section
422.33,
subsection
11,
is
not
allowed
to
take
the
34
allowance
for
purposes
of
this
division
to
the
extent
that
a
35
-6-
LSB
1595SV
(3)
85
da/sc
6/
8
S.F.
434
tax
credit
is
taken
for
the
purchase
and
installation
of
such
1
property
under
section
422.33,
subsection
11.
If
a
credit
2
is
taken
for
the
purchase
and
installation
of
the
property
3
under
section
422.33,
subsection
11,
the
taxpayer
shall
add
the
4
amount
of
the
allowance
taken
on
such
property
to
the
extent
of
5
the
amount
of
the
credit.
6
c.
This
subsection
is
repealed
on
January
1,
2020.
7
Sec.
5.
EFFECTIVE
UPON
ENACTMENT.
This
Act,
being
deemed
of
8
immediate
importance,
takes
effect
upon
enactment.
9
Sec.
6.
RETROACTIVE
APPLICABILITY.
This
Act
applies
10
retroactively
to
January
1,
2013,
for
tax
years
beginning
on
11
or
after
that
date.
12
EXPLANATION
13
This
bill
creates
an
electric
or
natural
gas
vehicle
14
facility
tax
credit
for
persons
who
construct,
install,
and
15
place
in
service
an
electric
vehicle
facility
or
a
natural
16
gas
vehicle
facility.
The
amount
of
the
tax
credit
is
30
17
percent
of
the
total
cost
of
purchasing
and
of
installing
the
18
facility.
A
person
may
claim
the
tax
credit
on
an
agricultural
19
(farmer),
commercial
(business),
or
residential
(personal,
20
family,
or
household)
basis.
The
bill
provides
that
$5
million
21
is
dedicated
for
the
issuance
of
tax
credit
certificates
which
22
must
be
attached
to
a
person’s
tax
return
in
order
to
claim
23
the
tax
credit.
The
bill
establishes
limits
upon
the
amount
24
of
credit
that
a
person
may
claim
for
either
electric
vehicle
25
facilities
or
natural
gas
facilities.
A
person
claiming
the
26
tax
credit
on
an
agricultural
or
commercial
basis
may
claim
27
the
tax
credit
for
the
installation
of
an
electric
or
natural
28
gas
facility.
The
person
must
claim
one-third
of
the
tax
29
credit
for
each
of
three
tax
years.
A
person
claiming
the
tax
30
credit
on
a
residential
basis
may
claim
the
tax
credit
for
the
31
installation
of
an
electronic
facility.
The
person
must
claim
32
the
tax
credit
in
the
tax
year
in
which
the
electronic
vehicle
33
service
was
first
placed
in
service.
Any
tax
credit
in
excess
34
of
the
taxpayer’s
tax
liability
is
refundable
or
may
be
used
in
35
-7-
LSB
1595SV
(3)
85
da/sc
7/
8
S.F.
434
calculating
a
future
tax
liability.
1
The
taxpayer
must
place
the
facility
in
service
before
2
January
1,
2016,
but
those
taxpayers
claiming
on
an
3
agricultural
or
commercial
basis
may
claim
the
tax
credit
for
a
4
previous
installation
after
that
date.
5
The
tax
credit
applies
retroactively
to
tax
years
beginning
6
on
and
after
January
1,
2013.
The
bill’s
provisions
are
7
repealed
on
January
1,
2020.
The
bill
takes
effect
upon
8
enactment.
9
-8-
LSB
1595SV
(3)
85
da/sc
8/
8