S.F. 520 Section 1. Section 422.7, Code 2011, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 54. a. A taxpayer taking a depreciation 3 allowance under section 168 of the Internal Revenue Code for 4 property described in section 422.11Y is not allowed to take 5 the allowance to the extent that a tax credit is taken for the 6 purchase of the property under section 422.11Y. 7 b. A taxpayer taking an expensing allowance under section 8 179 of the Internal Revenue Code for property described in 9 section 422.11Y is not allowed to take the allowance to the 10 extent that a tax credit is taken for the purchase of such 11 property under section 422.11Y. 12 c. This subsection is repealed on January 1, 2019. 13 Sec. 2. NEW SECTION . 422.11Y Electric or natural gas 14 vehicle facility tax credit. 15 1. As used in this section, “motor vehicle” means the same 16 as defined in section 322.2. 17 2. The taxes imposed under this division, less the credits 18 allowed under section 422.12, shall be reduced by an electric 19 or natural gas vehicle facility tax credit. In order to be 20 eligible to claim the tax credit, the taxpayer must comply with 21 this section and rules adopted by the department necessary to 22 administer and enforce this section. 23 3. a. The taxpayer claiming the tax credit on a commercial 24 basis as provided in this section must construct, install, and 25 place in service any of the following: 26 (1) An electric vehicle facility which serves a motor 27 vehicle that is designed by a manufacturer to operate using 28 electricity. 29 (2) A natural gas vehicle facility which serves a motor 30 vehicle that is designed by a manufacturer to operate using 31 compressed natural gas. 32 b. The taxpayer claiming the tax credit on a residential 33 basis as provided in this section must construct, install, and 34 place in service an electric vehicle facility which serves a 35 -1- SF 520 (4) 84 da/rj 1/ 5

S.F. 520 motor vehicle that is designed by a manufacturer to operate 1 using electricity. 2 4. a. After verifying the eligibility for an electric or 3 natural gas vehicle facility tax credit as provided in this 4 section, the department of revenue shall issue the taxpayer an 5 electric or natural gas vehicle facility tax credit certificate 6 which must be attached to the taxpayer’s tax return. An 7 electric or natural gas vehicle facility tax credit certificate 8 shall include all of the following: 9 (1) The taxpayer’s name, address, tax identification 10 number, and any other information required by the department 11 of revenue. 12 (2) A description of the infrastructure, equipment, or 13 machinery being purchased and installed which is eligible for 14 the tax credit to be claimed on the taxpayer’s tax return. 15 (3) The amount of the tax credit being claimed. 16 b. The department shall adopt rules establishing criteria 17 for the receipt of applications for electric or natural gas 18 vehicle facility tax credit certificates and the issuance of 19 those certificates. A tax credit certificate shall be issued 20 in the taxpayer’s name and shall expire on or after the last 21 day of the taxable year for which the taxpayer is claiming the 22 tax credit. A tax credit certificate is nontransferable. 23 c. The aggregate amount of electric or natural gas vehicle 24 facility tax credit certificates that may be issued pursuant 25 to this section shall not exceed five million dollars for all 26 tax years that the tax credit is available under this section. 27 The department shall issue the tax credit certificates on a 28 first-come, first-served basis to qualified applicants. 29 5. An electric or natural gas vehicle facility is limited 30 to infrastructure, equipment, or machinery used to store, 31 dispense, dry, and meter compressed natural gas or electricity. 32 For compressed natural gas, it may include pipes, compressors, 33 dryers, or vaporizers. For electricity, it may include 34 charging equipment, infrastructure, or batteries. 35 -2- SF 520 (4) 84 da/rj 2/ 5

S.F. 520 6. The amount of the electric or natural gas vehicle 1 facility tax credit equals thirty percent of the cost to the 2 taxpayer of purchasing the infrastructure, equipment, or 3 machinery and thirty percent of the cost to the taxpayer of 4 installing the infrastructure, equipment, or machinery. 5 7. The electric or natural gas vehicle facility must comply 6 with any applicable federal and state standards and the latest 7 applicable and available A.S.T.M. international specifications. 8 8. The electric or natural gas vehicle facility tax credit 9 may be claimed by a person on a commercial or residential basis 10 as follows: 11 a. A person may claim the tax credit on a commercial basis, 12 if the electric or natural gas vehicle facility is part of a 13 business selling qualified electricity or compressed natural 14 gas on a retail basis, or may claim the tax credit if the 15 electric or natural gas vehicle facility is used by a business 16 for its own vehicle fleet or employees. The tax credit must 17 be taken in equal installments in three consecutive tax years, 18 beginning with the tax year in which the electric or natural 19 gas vehicle facility is placed in service. If any part of 20 the electric or natural gas vehicle facility is taken out of 21 service and not immediately replaced, the tax credit expires 22 and the taxpayer cannot take any remaining installment of the 23 tax credit. 24 b. A person may claim the tax credit on a residential basis 25 only for an electric vehicle facility that is for personal, 26 family, household, or farm use. The entire amount of the tax 27 credit must be claimed in the tax year in which the electric 28 vehicle facility is first placed in service. 29 9. Any tax credit in excess of the taxpayer’s tax liability 30 shall be refunded. In lieu of claiming a refund, the taxpayer 31 may elect to have the overpayment shown on the retail dealer’s 32 final, completed return credited to the tax liability for the 33 following tax year. 34 10. An individual may claim the tax credit allowed a 35 -3- SF 520 (4) 84 da/rj 3/ 5

S.F. 520 partnership, limited liability company, S corporation, estate, 1 or trust electing to have the income taxed directly to the 2 individual. The amount claimed by the individual shall be 3 based upon the pro rata share of the individual’s earnings of 4 the partnership, limited liability company, S corporation, 5 estate, or trust. 6 11. A person shall not claim a tax credit under this section 7 for an electric or natural gas vehicle facility that was placed 8 in service on or after January 1, 2015. However, a person 9 claiming the tax credit on a commercial basis who placed the 10 electric or natural gas vehicle facility in service prior to 11 January 1, 2015, may continue to claim the tax credit for 12 tax years ending on or after January 1, 2015, as provided in 13 subsection 6, paragraph “a” . 14 12. This section is repealed on January 1, 2019. 15 Sec. 3. Section 422.33, Code 2011, is amended by adding the 16 following new subsection: 17 NEW SUBSECTION . 11D. The taxes imposed under this division 18 shall be reduced by an electric or natural gas vehicle facility 19 tax credit for each tax year that the taxpayer is eligible to 20 claim the tax credit under this subsection. 21 a. The taxpayer must claim the tax credit on a commercial 22 basis or residential basis in the same manner as provided 23 in section 422.11Y. The taxpayer must claim the tax credit 24 according to the same requirements, for the same amount, and 25 for the same period as provided in section 422.11Y. The amount 26 of the tax credit shall be calculated in the same manner as 27 provided in section 422.11Y. A taxpayer claiming a tax credit 28 on a commercial basis is subject to the same penalty for taking 29 the electric or natural gas vehicle facility out of service as 30 provided in section 422.11Y. 31 b. This subsection is repealed on January 1, 2019. 32 Sec. 4. Section 422.35, Code 2011, is amended by adding the 33 following new subsection: 34 NEW SUBSECTION . 15. a. A taxpayer taking a depreciation 35 -4- SF 520 (4) 84 da/rj 4/ 5

S.F. 520 allowance under section 168 of the Internal Revenue Code for 1 property described in section 422.33, subsection 11D, is not 2 allowed to take the allowance to the extent that a tax credit 3 is taken for the purchase of the property under section 422.33, 4 subsection 11D. 5 b. A taxpayer taking an expensing allowance under section 6 179 of the Internal Revenue Code for property described in 7 section 422.33, subsection 11D, is not allowed to take the 8 allowance to the extent that a tax credit is taken for the 9 purchase of such property under section 422.33, subsection 11D. 10 c. This subsection is repealed on January 1, 2019. 11 Sec. 5. EFFECTIVE DATE. This Act takes effect January 1, 12 2012. 13 Sec. 6. APPLICABILITY. This Act applies to tax years 14 beginning on and after January 1, 2012. 15 -5- SF 520 (4) 84 da/rj 5/ 5