S.F. _____ Section 1. Section 423.3, subsection 54, Code 2013, is 1 amended to read as follows: 2 54. a. The sales price from the sale of wind energy 3 conversion property or hydroelectricity conversion property 4 to be used as an electric power source and the sale of the 5 materials used to manufacture, install, or construct wind 6 energy conversion property or hydroelectricity conversion 7 property used or to be used as an electric power source. 8 b. For purposes of this subsection , “wind : 9 (1) “Wind energy conversion property” means any device, 10 including but not limited to a wind charger, windmill, 11 wind turbine, tower and electrical equipment, pad mount 12 transformers, power lines, and substation, which converts wind 13 energy to a form of usable energy. 14 (2) “Hydroelectricity conversion property” means any device, 15 including but not limited to a generator, turbine, powerhouse, 16 intake, coffer dam, walls, water conduit, tailrace, any other 17 concrete components, electrical equipment substation, poles, 18 wires, transformers, breakers, and switches used to convert 19 water, water power, or hydroelectricity to a form of usable 20 energy. 21 EXPLANATION 22 This bill exempts hydroelectricity conversion property from 23 sales tax. 24 Currently, Code section 423.3, subsection 54, provides 25 a sales tax exemption for the sales price of wind energy 26 conversion property to be used as an electric power source and 27 the sale of the materials used to manufacture, install, or 28 construct wind energy conversion property used or to be used 29 as an electric power source. The bill makes this provision 30 equally applicable to hydroelectricity conversion property, as 31 defined in the bill. 32 By operation of Code section 423.6, an item exempt from the 33 imposition of the sales tax is also exempt from the use tax 34 imposed in Code section 423.5. 35 -1- LSB 2270XC (4) 85 rn/sc 1/ 1