Bill Text: IA HF2468 | 2015-2016 | 86th General Assembly | Enrolled
Bill Title: A bill for an act relating to the administration of the tax and related laws by the department of revenue, including the renewable energy tax credit, the solar energy system tax credit, appeal procedures for certain centrally assessed property, an extension of the utility replacement tax task force, requiring background checks for job applicants and persons performing work for the department of revenue, a sales and use tax exemption for certain items used in performance of a construction contract with designated exempt entities, a geothermal tax credit, the adoption tax credit, and including effective date and retroactive and other applicability provisions. (Formerly HSB 658)
Spectrum: Committee Bill
Status: (Enrolled - Dead) 2016-05-13 - Sent to Governor. H.J. 999. [HF2468 Detail]
Download: Iowa-2015-HF2468-Enrolled.html
House File 2468 - Enrolled
HOUSE FILE
BY COMMITTEE ON WAYS AND
MEANS
(SUCCESSOR TO HSB 658)
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A BILL FOR
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House File 2468
AN ACT
RELATING TO THE ADMINISTRATION OF THE TAX AND RELATED LAWS
BY THE DEPARTMENT OF REVENUE, INCLUDING THE RENEWABLE
ENERGY TAX CREDIT, THE SOLAR ENERGY SYSTEM TAX CREDIT,
APPEAL PROCEDURES FOR CERTAIN CENTRALLY ASSESSED PROPERTY,
AN EXTENSION OF THE UTILITY REPLACEMENT TAX TASK FORCE,
REQUIRING BACKGROUND CHECKS FOR JOB APPLICANTS AND PERSONS
PERFORMING WORK FOR THE DEPARTMENT OF REVENUE, A SALES AND
USE TAX EXEMPTION FOR CERTAIN ITEMS USED IN PERFORMANCE OF
A CONSTRUCTION CONTRACT WITH DESIGNATED EXEMPT ENTITIES,
A GEOTHERMAL TAX CREDIT, THE ADOPTION TAX CREDIT, AND
INCLUDING EFFECTIVE DATE AND RETROACTIVE AND OTHER
APPLICABILITY PROVISIONS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. NEW SECTION. 421.48 Background checks.
An applicant for employment with the department of revenue
shall be subject to a national criminal history check through
the federal bureau of investigation. A contractor, vendor,
employee, or any other individual performing work for the
department of revenue, shall be subject to a national criminal
history check through the federal bureau of investigation
at least once every ten years. The department of revenue
shall request the national criminal history check and shall
provide the individual's fingerprints to the department of
public safety for submission through the state criminal
history repository to the federal bureau of investigation.
The individual shall authorize release of the results of the
national criminal history check to the department of revenue.
The department of revenue shall pay the actual cost of the
fingerprinting and national criminal history check, if any.
The results of a criminal history check conducted pursuant to
this section shall not be considered a public record under
chapter 22.
Sec. 2. NEW SECTION. 422.10A Geothermal tax credit.
1. For purposes of this section, unless the context
otherwise requires:
a. "Qualified geothermal heat pump property" means any
equipment that uses the ground or groundwater as a thermal
energy source to heat the dwelling unit of the taxpayer or
as a thermal energy sink to cool such dwelling unit, which
equipment meets the requirements of the federal energy star
program in effect at the time that the expenditure for such
equipment is made.
b. "Qualified geothermal heat pump property expenditures"
means an expenditure for qualified geothermal heat pump
property installed on or in connection with a dwelling unit
located in Iowa and used as a residence by the taxpayer.
2. Except as provided in subsection 6, the taxes imposed
under this division, less the credits allowed under section
422.12, shall be reduced by a geothermal tax credit equal to
ten percent of the qualified geothermal heat pump property
expenditures made by the taxpayer during the tax year.
3. Qualified geothermal heat pump property expenditures
shall be deemed to have been made on the date the installation
is complete or, in the case of new construction or
reconstruction, the date the original use of the structure by
the taxpayer begins.
4. In the case of a taxpayer whose dwelling unit is part
of a multiple housing cooperative organized under chapter
499A or a horizontal property regime under chapter 499B,
the taxpayer shall be treated as having made the taxpayer's
proportionate share of any qualified geothermal heat pump
property expenditures made by the cooperative or the regime.
5. Any credit in excess of the tax liability is not
refundable but the excess for the tax year may be credited
to the tax liability for the following ten years or until
depleted, whichever is earlier.
6. The credit provided in this section shall not be
available during any tax year in which the federal residential
energy efficient property tax credit for geothermal heat pumps
provided in section 25D(a)(5) of the Internal Revenue Code is
available. Any amount of expenditures used to calculate the
credit provided in section 25D(a)(5) of the Internal Revenue
Code shall not be considered qualified geothermal heat pump
property expenditures for purposes of this section.
Sec. 3. Section 422.11L, subsection 3, paragraph d, Code
2016, is amended to read as follows:
d. (1) A taxpayer must submit an application to the
department for each separate and distinct solar installation.
The application must be approved by the department in order to
claim the tax credit. The application must be filed by May
1 following the year of the installation of the solar energy
system.
(2) The department shall accept and approve applications
on a first=come, first=served basis until the maximum amount
of tax credits that may be claimed pursuant to subsection
4 is reached. If for a tax year the aggregate amount of
tax credits applied for exceeds the amount specified in
subsection 4, the department shall establish a wait list for
tax credits. Valid applications filed by the taxpayer by May
1 following the year of the installation but not approved by
the department shall be placed on a wait list in the order
the applications were received and those applicants shall
be given priority for having their applications approved
in succeeding years. Placement on a wait list pursuant to
this subparagraph shall not constitute a promise binding the
state. The availability of a tax credit and approval of a tax
credit application pursuant to this section in a future year
is contingent upon the availability of tax credits in that
particular year.
Sec. 4. Section 422.11L, Code 2016, is amended by adding
the following new subsection:
NEW SUBSECTION. 6. For purposes of this section, "Internal
Revenue Code" means the Internal Revenue Code of 1954, prior
to the date of its redesignation as the Internal Revenue Code
of 1986 by the Tax Reform Act of 1986, or means the Internal
Revenue Code of 1986 as amended to and including January 1,
2016.
Sec. 5. Section 422.12A, subsection 2, Code 2016, is
amended to read as follows:
2. The taxes imposed under this division, less the credits
allowed under section 422.12, shall be reduced by an adoption
tax credit equal to the amount of qualified adoption expenses
paid or incurred by the taxpayer during the tax year in
connection with the adoption of a child by the taxpayer, not
to exceed two thousand five hundred five thousand dollars per
adoption.
Sec. 6. Section 423.3, subsection 80, Code 2016, is amended
to read as follows:
80. a. For purposes of this subsection, "designated exempt
entity" means an any of the following:
(1) An entity which is designated in section 423.4,
subsection 1 or 6.
(2) An entity which is an instrumentality of a county or
municipal government, including an agent of such entity, if
the entity was created for the purpose of owning, including
pursuant to a lease=purchase agreement, real property located
within a reinvestment district established under chapter 15J.
b. If Subject to the limitations in paragraph "c", if
a contractor, subcontractor, or builder is to use building
materials, supplies, and equipment in the performance of a
construction contract with a designated exempt entity, the
person shall purchase such items of tangible personal property
without liability for the tax if such property will be used in
the performance of the construction contract and a purchasing
agent authorization letter and an exemption certificate,
issued by the designated exempt entity, are presented to the
retailer.
c. (1) The With regard to a construction contract with
a designated exempt entity described in paragraph "a",
subparagraph (1), the sales price of building materials,
supplies, or equipment is exempt from tax by this subsection
only to the extent the building materials, supplies, or
equipment are completely consumed in the performance of the
construction contract with the designated exempt entity.
(2) With regard to a construction contract with a
designated exempt entity described in paragraph "a",
subparagraph (2), the sales price of building materials,
supplies, or equipment is exempt from tax by this subsection
only to the extent the building materials, supplies, or
equipment are completely consumed in the performance of a
construction contract to construct a project, as defined in
section 15J.2, subsection 10, which project has been approved
by the economic development authority board in accordance with
chapter 15J.
c. d. Where Subject to the limitations in paragraph "c",
where the owner, contractor, subcontractor, or builder is also
a retailer holding a retail sales tax permit and transacting
retail sales of building materials, supplies, and equipment,
the tax shall not be due when materials are withdrawn from
inventory for use in construction performed for a designated
exempt entity if an exemption certificate is received from
such entity.
d. e. Tax Subject to the limitations in paragraph "c", tax
shall not apply to tangible personal property purchased and
consumed by a manufacturer as building materials, supplies, or
equipment in the performance of a construction contract for a
designated exempt entity, if a purchasing agent authorization
letter and an exemption certificate are received from such
entity and presented to a retailer.
Sec. 7. Section 429.2, subsection 2, paragraph c, Code
2016, is amended to read as follows:
c. The director of revenue shall consider all evidence
and witnesses offered by the taxpayer and the department,
including but not limited to evidence relating to the proper
valuation of the property involved.
Sec. 8. Section 437A.15, subsection 7, paragraph b, Code
2016, is amended to read as follows:
b. The task force shall study the effects of the
replacement taxes under this chapter and chapter 437B on
local taxing authorities, local taxing districts, consumers,
and taxpayers through January 1, 2016 2019. If the task
force recommends modifications to the replacement tax that
will further the purposes of tax neutrality for local taxing
authorities, local taxing districts, taxpayers, and consumers,
consistent with the stated purposes of this chapter, the
department of management shall transmit those recommendations
to the general assembly.
Sec. 9. Section 437B.11, subsection 7, Code 2016, is
amended to read as follows:
7. The utility replacement tax task force created in
section 437A.15 shall study the effects of the replacement
tax on local taxing authorities, local taxing districts,
consumers, and taxpayers through January 1, 2016 2019. If
the task force recommends modifications to the replacement
tax that will further the purposes of tax neutrality for
local taxing authorities, local taxing districts, taxpayers,
and consumers, consistent with the stated purposes of this
chapter, the department of management shall transmit those
recommendations to the general assembly.
Sec. 10. Section 476C.1, subsection 6, paragraph d, Code
2016, is amended to read as follows:
d. Was initially placed into service on or after July 1,
2005, and before January 1, 2017 2018.
Sec. 11. Section 476C.3, subsection 4, paragraph b,
subparagraph (3), Code 2016, is amended to read as follows:
(3) (a) Of the maximum amount of energy production
capacity equivalent of all other facilities found eligible
under this chapter, ten megawatts of nameplate generating
capacity or energy production equivalent shall be reserved for
solar energy conversion facilities with that meet all of the
following requirements:
(i) The facility has a generating capacity of one and
one=half megawatts or less.
(ii) The facility is owned, in whole or in part, directly
or indirectly, or is contracted for, by utilities described
in section 476C.1, subsection 6, paragraph "b", subparagraphs
(4) and (5).
(iii) The facility is located in this state.
(iv) The facility meets the requirements of section
476C.1, subsection 6, paragraphs "d" through "f".
(b) A solar energy conversion facility that meets the
requirements of and is found eligible under subparagraph
division (a) shall be considered an "eligible renewable energy
facility" for purposes of this chapter, notwithstanding any
contrary provisions of section 476C.1, subsection 6.
Sec. 12. Section 476C.3, subsection 7, Code 2016, is
amended to read as follows:
7. a. An owner meeting the requirements of section 476C.1,
subsection 6, paragraph "b", shall not be an owner of more than
two eligible renewable energy facilities. A person that has
an equity interest equal to or greater than fifty=one percent
in an eligible renewable energy facility shall not have an
equity interest greater than ten percent in any other eligible
renewable energy facility. This paragraph "a" shall not apply
to facilities described in section 476C.3, subsection 4,
paragraph "b", subparagraph (3).
b. An entity described in section 476C.1, subsection 6,
paragraph "b", subparagraphs (4) or (5), shall not have an
ownership interest in more than four facilities described in
section 476C.3, subsection 4, paragraph "b", subparagraph (3).
Sec. 13. Section 476C.5, Code 2016, is amended to read as
follows:
476C.5 Certificate issuance period.
A producer or purchaser of renewable energy shall receive
renewable energy tax credit certificates for a ten=year
period for each eligible renewable energy facility under
this chapter. The ten=year period for issuance of the tax
credit certificates begins with the date the purchaser of
renewable energy first purchases electricity, hydrogen fuel,
methane gas or other biogas used to generate electricity,
or heat for commercial purposes from the eligible renewable
energy facility for which a tax credit is issued under this
chapter, or the date the producer of the renewable energy
first uses the energy produced by the eligible renewable
energy facility for on=site consumption. Renewable energy tax
credit certificates shall not be issued for renewable energy
purchased or produced for on=site consumption after December
31, 2026 2027.
Sec. 14. SOLAR ENERGY SYSTEM TAX CREDIT
APPLICATIONS. Notwithstanding the provision in section
422.11L, subsection 3, paragraph "d", which requires
applications for the solar energy system tax credit to be
filed by May 1 following the year of the installation, all
of the following shall apply:
1. Applications for the solar energy system tax credit
filed after May 1, 2015, for solar energy systems installed
during the 2014 calendar year, shall be eligible for approval
under section 422.11L. Such applications shall be accepted
and approved on a first=come, first=served basis and shall
first be eligible for approval for the tax year during which
the application is received, but not before the tax year
beginning January 1, 2016.
2. Applications for the solar energy system tax credit
filed after May 1, 2016, for solar energy systems installed
during the 2015 calendar year, shall be eligible for approval
under section 422.11L. Such applications shall be accepted
and approved on a first=come, first=served basis and shall
first be eligible for approval for the tax year during which
the application is received, but not before the tax year
beginning January 1, 2017.
Sec. 15. EFFECTIVE UPON ENACTMENT. The section of this
Act providing for the approval of solar energy tax credit
applications filed after May 1 following the year of the
installation for solar energy systems installed during the
2014 and 2015 calendar years, being deemed of immediate
importance, takes effect upon enactment.
Sec. 16. EFFECTIVE UPON ENACTMENT. The following
provision or provisions of this Act, being deemed of immediate
importance, take effect upon enactment:
1. The section of this Act enacting section 421.48.
2. The section of this Act amending section 423.3,
subsection 80.
3. The section of this Act amending section 429.2.
4. The section of this Act amending section 437A.15.
5. The section of this Act amending section 437B.11.
6. The section of this Act amending section 476C.1.
7. The sections of this Act amending section 476C.3.
8. The section of this Act amending section 476C.5.
Sec. 17. EFFECTIVE DATE. The following provision or
provisions of this Act take effect January 1, 2017:
1. The section of this Act enacting section 422.10A.
2. The section of this Act amending section 422.12A.
Sec. 18. RETROACTIVE APPLICABILITY. The following
provision or provisions of this Act apply retroactively to
January 1, 2015, for construction contracts entered into on
or after that date:
1. The section of this Act amending section 423.3,
subsection 80.
Sec. 19. RETROACTIVE APPLICABILITY. The following
provision or provisions of this Act apply retroactively to
January 1, 2016:
1. The section of this Act amending section 437A.15.
2. The section of this Act amending section 437B.11.
Sec. 20. RETROACTIVE APPLICABILITY. The following
provision or provisions of this Act apply retroactively to
January 1, 2015, for tax years beginning on or after that
date:
1. The section of this Act enacting section 422.11L,
subsection 6.
Sec. 21. RETROACTIVE APPLICABILITY. The following
provision or provisions of this Act apply retroactively to
January 1, 2016, for tax years beginning on or after that
date:
1. The section of this Act amending section 476C.1.
2. The section of this Act amending section 476C.5.
Sec. 22. RETROACTIVE APPLICABILITY. The following
provision or provisions of this Act apply retroactively to
January 1, 2015, for tax years beginning on or after that
date:
1. The sections of this Act amending section 476C.3.
Sec. 23. RETROACTIVE APPLICABILITY. The following
provision or provisions of this Act apply retroactively to
applications for the renewable energy tax credit made on or
after June 26, 2015:
1. The sections of this Act amending section 476C.3.
Sec. 24. RETROACTIVE APPLICABILITY. The following
provision or provisions of this Act apply retroactively to May
22, 2015:
1. The section of this Act amending section 429.2.
Sec. 25. APPLICABILITY. The section of this Act enacting
section 422.10A applies to qualified geothermal heat pump
property expenditures incurred on or after January 1, 2017.
Sec. 26. APPLICABILITY. The following provision or
provisions of this Act apply to tax years beginning on or
after January 1, 2017:
1. The section of this Act amending section 422.12A.
Sec. 27. APPLICABILITY. The section of this Act amending
section 423.3, subsection 80, applies to purchases made on or
after the effective date of the section of this Act amending
section 423.3, subsection 80.
LINDA UPMEYER
Speaker of the House
PAM JOCHUM
President of the Senate
I hereby certify that this bill originated in the House and
is known as House File 2468, Eighty=sixth General Assembly.
CARMINE BOAL
Chief Clerk of the House
Approved , 2016
TERRY E. BRANSTAD
Governor
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