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 -1- 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