House
File
225
-
Introduced
HOUSE
FILE
225
BY
PETTENGILL
A
BILL
FOR
An
Act
providing
a
franchise
tax
credit
for
the
installation
of
1
geothermal
energy
systems
in
Iowa
and
including
effective
2
date
and
retroactive
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
1666YH
(1)
86
mm/sc
H.F.
225
Section
1.
Section
422.60,
Code
2015,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
14.
a.
The
taxes
imposed
under
this
3
division
shall
be
reduced
by
a
geothermal
energy
system
tax
4
credit
equal
to
sixty
percent
of
the
federal
energy
credit
in
5
section
48
of
the
Internal
Revenue
Code
allowed
for
geothermal
6
energy
systems
described
in
section
48(a)(3)(A)(iii)
and
7
section
48(a)(3)(A)(vii)
of
the
Internal
Revenue
Code
for
8
property
located
in
Iowa.
9
b.
Any
credit
in
excess
of
the
tax
liability
is
not
10
refundable
but
the
excess
for
the
tax
year
may
be
credited
11
to
the
tax
liability
for
the
following
ten
years
or
until
12
depleted,
whichever
is
earlier.
13
c.
The
director
of
revenue
shall
adopt
rules
to
implement
14
this
subsection.
15
Sec.
2.
EFFECTIVE
UPON
ENACTMENT.
This
Act,
being
deemed
of
16
immediate
importance,
takes
effect
upon
enactment.
17
Sec.
3.
RETROACTIVE
APPLICABILITY.
This
Act
applies
18
retroactively
to
January
1,
2015,
for
tax
years
beginning
on
19
or
after
that
date.
20
EXPLANATION
21
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
22
the
explanation’s
substance
by
the
members
of
the
general
assembly.
23
This
bill
provides
a
franchise
tax
credit
in
an
amount
equal
24
to
60
percent
of
the
federal
energy
credit
provided
in
section
25
48
of
the
Internal
Revenue
Code
for
the
installation
of
a
26
geothermal
energy
system,
if
the
property
is
located
in
Iowa.
27
Any
credit
in
excess
of
the
tax
liability
is
nonrefundable,
but
28
may
be
carried
forward
for
up
to
10
years.
29
The
bill
takes
effect
upon
enactment
and
applies
30
retroactively
to
tax
years
beginning
on
or
after
January
1,
31
2015.
32
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LSB
1666YH
(1)
86
mm/sc
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1