Establishing a solar electricity generation replacement tax corporate tax credit for electricity generated on certain property and including applicability provisions

This bill establishes a tax credit against the corporate income tax under Code chapter 422, subchapter III.6 on each solar energy conversion facility owned or operated by the taxpayer during the applicable tax year if the tax year begins within years following the date the facility was initially placed into service and if all of the following conditions are met: (1) a portion of the land upon which the facility is located is used by a person who is actively engaged in a farming operation on the land; (2) the facility is situated on the land in a manner that facilitates the establishment or continuation of a farming operation; (3) a conservation buffer strip at least feet in width is maintained between all streams on the land, if any, and any source of nitrogen, manure, or any other regulated contaminant that is applied on the land in conjunction with a farming operation; and (4) if the farming operation on the land includes actively maintaining a habitat for pollinating insects, the total area of the habitat for that purpose does not exceed percent of the total area of the land. The bill establishes a maximum amount of taxes imposed on each solar energy conversion facility that may be used for the calculation of the credit allowed under the bill. 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 tax years or until depleted, whichever is the earlier. To receive the credit under the bill, the person subject to the tax imposed on electric generation shall annually file an application with the local assessor to, in cooperation with the soil and water conservation district in which the land is located, inspect and certify that all of the conditions of the bill have been met. The bill requires the department of revenue to adopt rules to administer the credit, including prescribing forms for applications filed with the local assessor and the form of certifications issued by the local assessor. The bill applies to tax years beginning on or after January 1, 2023.