Senate Study Bill 3201 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON BOLKCOM) A BILL FOR An Act modifying provisions applicable to the solar energy 1 system tax credit, and including retroactive applicability 2 provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 6111XC (2) 85 rn/sc

S.F. _____ Section 1. Section 422.11L, subsection 1, paragraphs a and 1 b, Code 2014, are amended to read as follows: 2 a. Fifty Seventy-five percent of the federal residential 3 energy efficient property credit related to solar energy 4 provided in section 25D of the Internal Revenue Code, not to 5 exceed three five thousand dollars. 6 b. Fifty Seventy-five percent of the federal energy credit 7 related to solar energy systems provided in section 48 of the 8 Internal Revenue Code, not to exceed fifteen twenty thousand 9 dollars. 10 Sec. 2. Section 422.11L, subsection 4, Code 2014, is amended 11 to read as follows: 12 4. The cumulative value of tax credits claimed annually by 13 applicants pursuant to this section shall not exceed one four 14 million five hundred thousand dollars. 15 Sec. 3. RETROACTIVE APPLICABILITY. This Act applies 16 retroactively to January 1, 2014, for tax years beginning on 17 or after that date. 18 EXPLANATION 19 The inclusion of this explanation does not constitute agreement with 20 the explanation’s substance by the members of the general assembly. 21 This bill relates to the solar energy system individual and 22 corporate income tax credit. 23 Currently, the tax credit is equal to the sum of 50 percent 24 of the federal residential energy efficient property credit 25 related to solar energy provided in section 25D of the Internal 26 Revenue Code, not to exceed $3,000, and 50 percent of the 27 federal energy credit related to solar energy systems provided 28 in section 48 of the Internal Revenue Code, not to exceed 29 $15,000. The bill increases these amounts to 75 percent of the 30 federal residential energy efficient property credit related 31 to solar energy, not to exceed $5,000, and 75 percent of the 32 federal energy credit related to solar energy systems, not to 33 exceed $20,000. 34 Additionally, currently the cumulative value of solar energy 35 -1- LSB 6111XC (2) 85 rn/sc 1/ 2

S.F. _____ system income tax credits able to be claimed annually cannot 1 exceed $1.5 million. The bill increases this cumulative amount 2 to $4.5 million annually. 3 The bill’s provisions apply retroactively to January 1, 4 2014, for tax years beginning on or after that date. 5 -2- LSB 6111XC (2) 85 rn/sc 2/ 2