SSB 1175 (LSB 1447XC (3) 85)

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 income tax credits and including effective date and applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 422.11L, subsection 3, Code 2013, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  c.  A taxpayer may claim more than one credit under this section, but may claim only one credit per separate and distinct solar installation. The department shall establish criteria, by rule, for determining what constitutes a separate and distinct installation.
    Sec. 2.  Section 422.11L, subsection 4, Code 2013, is amended to read as follows:
   4.
  a.  The cumulative value of tax credits claimed annually by applicants pursuant to this section shall not exceed one million five hundred thousand dollars.
   b.  If an amount of tax credits available for a tax year pursuant to paragraph “a” goes unclaimed, the amount of the unclaimed tax credits shall be made available for the following tax year in addition to, and cumulated with, the amount available pursuant to paragraph “a” for the following tax year.
    Sec. 3.  EFFECTIVE UPON ENACTMENT.  This Act, being deemed of immediate importance, takes effect upon enactment.
    Sec. 4.  RETROACTIVE APPLICABILITY.  This Act applies retroactively to January 1, 2013, for tax years beginning on or after that date.
EXPLANATION
   This bill relates to the individual and corporate income tax credits for solar energy systems. The bill makes two modifications to existing provisions contained in Code section 422.11L.
   The bill permits a taxpayer to claim more than one credit provided the credit is being claimed for separate and distinct solar installations. The bill directs the department of revenue to establish criteria, by rule, for determining what constitutes a separate and distinct installation.
   The bill provides that if not all of the tax credits available for a tax year are claimed, the amount of the unclaimed tax credits shall be made available for the following tax year in addition to, and cumulated with, the amount otherwise annually allocated for a tax year. Current Code provides that the cumulative value of tax credits which may be claimed annually by applicants shall not exceed $1.5 million. 
   The bill takes effect upon enactment and applies retroactively to January 1, 2013, for tax years beginning on or after that date.