House File 104 - Introduced HOUSE FILE 104 BY PETTENGILL A BILL FOR An Act relating to the property tax exemption for the value 1 added by certain geothermal heating or cooling systems and 2 including applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1665YH (2) 86 md/sc

H.F. 104 Section 1. Section 427.1, subsection 38, paragraphs a and b, 1 Code 2015, 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 or the value added by any new or refitted construction or 6 installation of a geothermal heating or cooling system on or 7 after July 1, 2015, on property classified as multiresidential, 8 commercial, industrial, or agricultural . The exemption 9 shall be allowed for ten consecutive years. The exemption 10 shall apply to any value added by the addition of mechanical, 11 electrical, plumbing, ductwork, or other equipment, labor, 12 and expenses included in or required for the construction 13 or installation of the geothermal system, as well as the 14 proportionate value of any well field associated with the 15 system and attributable to the owner. 16 b. A person claiming an exemption under this subsection 17 shall obtain the appropriate forms from the assessor. The 18 forms shall be prescribed by the director of revenue. The 19 claim shall be filed no later than February 1 of the first 20 assessment year the exemption is requested and shall contain 21 information pertaining to all costs and other information 22 associated with construction and installation of the system. 23 Once the exemption is allowed, the exemption shall continue to 24 be allowed for ten consecutive successive years without further 25 filing as long as the property continues to be classified as 26 residential , multiresidential, commercial, industrial, or 27 agricultural property. 28 Sec. 2. IMPLEMENTATION. Section 25B.7 does not apply to the 29 property tax exemption enacted in this Act. 30 Sec. 3. APPLICABILITY. This Act applies to assessment years 31 beginning on or after January 1, 2016. 32 EXPLANATION 33 The inclusion of this explanation does not constitute agreement with 34 the explanation’s substance by the members of the general assembly. 35 -1- LSB 1665YH (2) 86 md/sc 1/ 2

H.F. 104 Current Code section 427.1(38) provides a property 1 tax exemption on the value added by any new or refitted 2 construction or installation of a geothermal heating or cooling 3 system on or after July 1, 2012, on property classified as 4 residential. Under current law, that exemption is allowed for 5 10 consecutive years. 6 This bill authorizes the exemption for the refitted 7 construction or installation of a geothermal heating or cooling 8 system on property classified as multiresidential, commercial, 9 industrial, or agricultural property. 10 The bill also removes the 10-year limitation on the duration 11 of the exemption. 12 The bill makes inapplicable Code section 25B.7. Code 13 section 25B.7 provides that for a property tax credit or 14 exemption enacted on or after January 1, 1997, if a state 15 appropriation made to fund the credit or exemption is not 16 sufficient to fully fund the credit or exemption, the political 17 subdivision shall be required to extend to the taxpayer only 18 that portion of the credit or exemption estimated by the 19 department of revenue to be funded by the state appropriation. 20 The bill applies to assessment years beginning on or after 21 January 1, 2016. 22 -2- LSB 1665YH (2) 86 md/sc 2/ 2