Senate Study Bill 1175 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON BOLKCOM) A BILL FOR An Act modifying provisions relating to solar energy system 1 income tax credits and including effective date and 2 applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1447XC (3) 85 rn/sc

S.F. _____ Section 1. Section 422.11L, subsection 3, Code 2013, is 1 amended by adding the following new paragraph: 2 NEW PARAGRAPH . c. A taxpayer may claim more than one 3 credit under this section, but may claim only one credit per 4 separate and distinct solar installation. The department shall 5 establish criteria, by rule, for determining what constitutes a 6 separate and distinct installation. 7 Sec. 2. Section 422.11L, subsection 4, Code 2013, is amended 8 to read as follows: 9 4. a. The cumulative value of tax credits claimed annually 10 by applicants pursuant to this section shall not exceed one 11 million five hundred thousand dollars. 12 b. If an amount of tax credits available for a tax year 13 pursuant to paragraph “a” goes unclaimed, the amount of the 14 unclaimed tax credits shall be made available for the following 15 tax year in addition to, and cumulated with, the amount 16 available pursuant to paragraph “a” for the following tax year. 17 Sec. 3. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 18 immediate importance, takes effect upon enactment. 19 Sec. 4. RETROACTIVE APPLICABILITY. This Act applies 20 retroactively to January 1, 2013, for tax years beginning on 21 or after that date. 22 EXPLANATION 23 This bill relates to the individual and corporate income 24 tax credits for solar energy systems. The bill makes two 25 modifications to existing provisions contained in Code section 26 422.11L. 27 The bill permits a taxpayer to claim more than one credit 28 provided the credit is being claimed for separate and distinct 29 solar installations. The bill directs the department of 30 revenue to establish criteria, by rule, for determining what 31 constitutes a separate and distinct installation. 32 The bill provides that if not all of the tax credits 33 available for a tax year are claimed, the amount of the 34 unclaimed tax credits shall be made available for the following 35 -1- LSB 1447XC (3) 85 rn/sc 1/ 2

S.F. _____ tax year in addition to, and cumulated with, the amount 1 otherwise annually allocated for a tax year. Current Code 2 provides that the cumulative value of tax credits which may be 3 claimed annually by applicants shall not exceed $1.5 million. 4 The bill takes effect upon enactment and applies 5 retroactively to January 1, 2013, for tax years beginning on 6 or after that date. 7 -2- LSB 1447XC (3) 85 rn/sc 2/ 2