Bill Text: IA SF2342 | 2011-2012 | 84th General Assembly | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: A bill for an act relating to state taxation by providing specified tax credits for the construction and installation of solar energy systems and geothermal heat pumps, modifying sales and use tax provisions related to property purchased for resale, and creating a sales tax exemption for certain items purchased for use in providing vehicle wash and wax services and including effective date and retroactive and other applicability provisions. (Formerly SSB 3204.) Effective 5-25-12.
Spectrum: Committee Bill
Status: (Passed) 2012-05-25 - Signed by Governor. S.J. 950. [SF2342 Detail]
Download: Iowa-2011-SF2342-Amended.html
Bill Title: A bill for an act relating to state taxation by providing specified tax credits for the construction and installation of solar energy systems and geothermal heat pumps, modifying sales and use tax provisions related to property purchased for resale, and creating a sales tax exemption for certain items purchased for use in providing vehicle wash and wax services and including effective date and retroactive and other applicability provisions. (Formerly SSB 3204.) Effective 5-25-12.
Spectrum: Committee Bill
Status: (Passed) 2012-05-25 - Signed by Governor. S.J. 950. [SF2342 Detail]
Download: Iowa-2011-SF2342-Amended.html
Senate
File
2342
-
Reprinted
SENATE
FILE
2342
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
SSB
3204)
(As
Amended
and
Passed
by
the
Senate
April
26,
2012
)
A
BILL
FOR
An
Act
relating
to
state
taxation
by
providing
specified
tax
1
credits
for
the
construction
and
installation
of
solar
2
energy
systems
and
geothermal
heat
pumps,
modifying
sales
3
and
use
tax
provisions
related
to
property
purchased
for
4
resale,
and
creating
a
sales
tax
exemption
for
certain
items
5
purchased
for
use
in
providing
vehicle
wash
and
wax
services
6
and
including
effective
date
and
retroactive
and
other
7
applicability
provisions.
8
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
9
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2342
DIVISION
I
1
GEOTHERMAL
HEAT
PUMP
TAX
CREDITS
2
Section
1.
NEW
SECTION
.
422.11I
Geothermal
heat
pump
tax
3
credit.
4
The
taxes
imposed
under
this
division,
less
the
credits
5
allowed
under
section
422.12,
shall
be
reduced
by
a
geothermal
6
heat
pump
tax
credit
equal
to
twenty
percent
of
the
federal
7
residential
energy
efficient
property
tax
credit
allowed
for
8
geothermal
heat
pumps
provided
in
section
25(D)(a)(5)
of
the
9
Internal
Revenue
Code
for
residential
property
located
in
Iowa.
10
Any
credit
in
excess
of
the
tax
liability
is
not
refundable
11
but
the
excess
for
the
tax
year
may
be
credited
to
the
tax
12
liability
for
the
following
ten
years
or
until
depleted,
13
whichever
is
earlier.
The
director
of
revenue
shall
adopt
14
rules
to
implement
this
section.
15
Sec.
2.
Section
427.1,
Code
Supplement
2011,
is
amended
by
16
adding
the
following
new
subsection:
17
NEW
SUBSECTION
.
38.
Geothermal
heating
and
cooling
system.
18
a.
The
value
added
by
any
new
or
refitted
construction
or
19
installation
of
a
geothermal
heating
or
cooling
system
on
or
20
after
July
1,
2012,
on
property
classified
as
residential.
21
The
exemption
shall
be
allowed
for
ten
consecutive
years.
22
The
exemption
shall
apply
to
any
value
added
by
the
addition
23
of
mechanical,
electrical,
plumbing,
ductwork,
or
other
24
equipment,
labor,
and
expenses
included
in
or
required
for
the
25
construction
or
installation
of
the
geothermal
system,
as
well
26
as
the
proportionate
value
of
any
well
field
associated
with
27
the
system
and
attributable
to
the
owner.
28
b.
A
person
claiming
an
exemption
under
this
subsection
29
shall
obtain
the
appropriate
forms
from
the
assessor.
The
30
forms
shall
be
prescribed
by
the
director
of
revenue.
The
31
claim
shall
be
filed
no
later
than
February
1
of
the
first
32
assessment
year
the
exemption
is
requested
and
shall
contain
33
information
pertaining
to
all
costs
and
other
information
34
associated
with
construction
and
installation
of
the
system.
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Once
the
exemption
is
allowed,
the
exemption
shall
continue
to
1
be
allowed
for
ten
consecutive
years
without
further
filing
as
2
long
as
the
property
continues
to
be
classified
as
residential
3
property.
4
c.
The
director
shall
adopt
rules
to
implement
this
5
subsection.
6
Sec.
3.
IMPLEMENTATION.
Section
25B.7
does
not
apply
to
the
7
property
tax
exemption
enacted
in
this
division
of
this
Act.
8
Sec.
4.
EFFECTIVE
UPON
ENACTMENT.
This
division
of
this
9
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
10
enactment.
11
Sec.
5.
RETROACTIVE
APPLICABILITY.
The
following
provision
12
or
provisions
of
this
division
of
this
Act
apply
retroactively
13
to
January
1,
2012,
for
tax
years
beginning
on
or
after
that
14
date:
15
1.
The
section
of
this
division
of
this
Act
enacting
section
16
422.11I.
17
Sec.
6.
APPLICABILITY.
The
following
provision
or
18
provisions
of
this
division
of
this
Act
apply
to
assessment
19
years
beginning
on
or
after
January
1,
2013:
20
1.
The
section
of
this
division
of
this
Act
enacting
section
21
427.1,
subsection
38.
22
DIVISION
II
23
SOLAR
ENERGY
SYSTEM
TAX
CREDITS
24
Sec.
7.
NEW
SECTION
.
422.11L
Solar
energy
system
tax
25
credits.
26
1.
The
taxes
imposed
under
this
division,
less
the
credits
27
allowed
under
section
422.12,
shall
be
reduced
by
a
solar
28
energy
system
tax
credit
equal
to
the
sum
of
the
following:
29
a.
Fifty
percent
of
the
federal
residential
energy
efficient
30
property
credit
related
to
solar
energy
provided
in
section
31
25D
of
the
Internal
Revenue
Code,
not
to
exceed
three
thousand
32
dollars.
33
b.
Fifty
percent
of
the
federal
energy
credit
related
to
34
solar
energy
systems
provided
in
section
48
of
the
Internal
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S.F.
2342
Revenue
Code,
not
to
exceed
fifteen
thousand
dollars.
1
2.
Any
credit
in
excess
of
the
tax
liability
is
not
2
refundable
but
the
excess
for
the
tax
year
may
be
credited
3
to
the
tax
liability
for
the
following
ten
years
or
until
4
depleted,
whichever
is
earlier.
The
director
of
revenue
shall
5
adopt
rules
to
implement
this
section.
6
3.
a.
An
individual
may
claim
the
tax
credit
allowed
a
7
partnership,
limited
liability
company,
S
corporation,
estate,
8
or
trust
electing
to
have
the
income
taxed
directly
to
the
9
individual.
The
amount
claimed
by
the
individual
shall
be
10
based
upon
the
pro
rata
share
of
the
individual’s
earnings
of
11
the
partnership,
limited
liability
company,
S
corporation,
12
estate,
or
trust.
13
b.
A
taxpayer
who
is
eligible
to
claim
a
credit
under
this
14
section
shall
not
be
eligible
to
claim
a
renewable
energy
tax
15
credit
under
chapter
476C.
16
4.
The
cumulative
value
of
tax
credits
claimed
annually
17
by
applicants
pursuant
to
this
section
shall
not
exceed
one
18
million
five
hundred
thousand
dollars.
19
5.
On
or
before
January
1,
annually,
the
department
shall
20
submit
a
written
report
to
the
governor
and
the
general
21
assembly
regarding
the
number
and
value
of
tax
credits
claimed
22
under
this
section,
and
any
other
information
the
department
23
may
deem
relevant
and
appropriate.
24
Sec.
8.
Section
422.33,
Code
2011,
is
amended
by
adding
the
25
following
new
subsection:
26
NEW
SUBSECTION
.
29.
a.
The
taxes
imposed
under
this
27
division
shall
be
reduced
by
a
solar
energy
system
tax
credit
28
equal
to
fifty
percent
of
the
federal
energy
credit
related
to
29
solar
energy
systems
provided
in
section
48
of
the
Internal
30
Revenue
Code,
not
to
exceed
fifteen
thousand
dollars.
31
b.
The
taxpayer
may
claim
the
credit
pursuant
to
this
32
subsection
according
to
the
same
requirements,
conditions,
and
33
limitations
as
provided
pursuant
to
section
422.11L.
34
Sec.
9.
Section
476C.2,
Code
Supplement
2011,
is
amended
by
35
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S.F.
2342
adding
the
following
new
subsection:
1
NEW
SUBSECTION
.
3.
A
taxpayer
who
is
eligible
to
claim
2
a
renewable
energy
tax
credit
under
this
chapter
shall
not
3
be
eligible
to
claim
a
solar
energy
system
tax
credit
under
4
section
422.11L
or
422.33.
5
Sec.
10.
EFFECTIVE
UPON
ENACTMENT.
This
division
of
this
6
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
7
enactment.
8
Sec.
11.
RETROACTIVE
APPLICABILITY.
This
division
of
this
9
Act
applies
retroactively
to
tax
years
beginning
on
or
after
10
January
1,
2012.
11
DIVISION
III
12
SALES
TAX
EXEMPTIONS
13
Sec.
12.
Section
423.1,
subsection
39,
paragraphs
b
and
c,
14
Code
Supplement
2011,
are
amended
to
read
as
follows:
15
b.
The
property
is
transferred
to
the
user
of
the
service
16
in
connection
with
the
performance
of
the
service
in
a
form
17
or
quantity
capable
of
a
fixed
or
definite
price
value
,
or
18
the
property
is
entirely
consumed
in
connection
with
the
19
performance
of
an
auto
body
repair
service
purchased
by
the
20
ultimate
user
.
21
c.
The
sale
is
evidenced
by
a
separate
charge
for
the
22
identifiable
piece
of
property
unless
the
property
is
entirely
23
consumed
in
connection
with
the
performance
of
an
auto
body
24
repair
service
purchased
by
the
ultimate
user
.
25
Sec.
13.
Section
423.3,
Code
Supplement
2011,
is
amended
by
26
adding
the
following
new
subsection:
27
NEW
SUBSECTION
.
96.
The
sales
price
from
the
sale
of
water,
28
electricity,
chemicals,
solvents,
sorbents,
or
reagents
to
a
29
retailer
to
be
used
in
providing
a
service
that
includes
a
30
vehicle
wash
and
wax,
which
vehicle
wash
and
wax
service
is
31
subject
to
section
423.2,
subsection
6.
32
Sec.
14.
EFFECTIVE
UPON
ENACTMENT.
This
division
of
this
33
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
34
enactment.
35
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