Senate
Study
Bill
1192
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
BOLKCOM)
A
BILL
FOR
An
Act
increasing
the
cumulative
value
of
solar
energy
tax
1
credits
which
may
be
claimed
annually,
and
including
2
effective
date
and
retroactive
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
1955XC
(3)
86
rn/sc
S.F.
_____
Section
1.
Section
422.11L,
subsection
1,
paragraph
a,
Code
1
2015,
is
amended
to
read
as
follows:
2
a.
Sixty
percent
of
the
federal
residential
energy
efficient
3
property
credit
related
to
solar
energy
provided
in
section
4
25E(a)(1)
25D(a)(1)
and
section
25D(a)(2)
of
the
Internal
5
Revenue
Code,
not
to
exceed
five
thousand
dollars.
6
Sec.
2.
Section
422.11L,
subsection
4,
paragraph
a,
Code
7
2015,
is
amended
to
read
as
follows:
8
a.
The
cumulative
value
of
tax
credits
claimed
annually
9
by
applicants
pursuant
to
this
section
shall
not
exceed
four
10
six
million
five
hundred
thousand
dollars.
Of
this
amount,
11
at
least
one
million
dollars
shall
be
reserved
for
claims
12
associated
with
or
resulting
from
residential
solar
energy
13
system
installations.
In
the
event
that
the
total
amount
14
of
claims
submitted
for
residential
solar
energy
system
15
installations
in
a
tax
year
is
an
amount
less
than
one
million
16
dollars,
the
remaining
unclaimed
reserved
amount
shall
be
17
made
available
for
claims
associated
with
or
resulting
from
18
nonresidential
solar
energy
system
installations
received
for
19
the
tax
year.
20
Sec.
3.
EFFECTIVE
UPON
ENACTMENT.
This
Act,
being
deemed
of
21
immediate
importance,
takes
effect
upon
enactment.
22
Sec.
4.
RETROACTIVE
APPLICABILITY.
This
Act
applies
23
retroactively
to
January
1,
2015,
for
tax
years
beginning
and
24
installations
occurring
on
or
after
that
date.
25
EXPLANATION
26
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
27
the
explanation’s
substance
by
the
members
of
the
general
assembly.
28
This
bill
increases
the
limitation
on
the
cumulative
value
29
of
solar
energy
income
tax
credits
that
may
be
claimed
annually
30
from
$4.5
million
to
$6.5
million.
The
increase
would
be
31
applicable
to
the
combined
amount
of
individual,
corporate,
and
32
franchise
solar
income
tax
credits
claimed
pursuant
to
Code
33
sections
422.11L,
422.33,
and
422.60.
34
The
bill
also
makes
a
technical
correction
to
an
Internal
35
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LSB
1955XC
(3)
86
rn/sc
1/
2
S.F.
_____
Revenue
Code
reference
relating
to
the
federal
solar
energy
tax
1
credits.
2
The
bill
takes
effect
upon
enactment
and
applies
3
retroactively
to
January
1,
2015,
for
tax
years
beginning
on
4
or
after
that
date.
5
-2-
LSB
1955XC
(3)
86
rn/sc
2/
2