Proyectos de ley › 89.ª Asamblea General
Relating to the solar energy system tax credit, and including effective date and retroactive applicability provisions
Presentado por el comité Ways and Means de la Cámara
Temas:Energy & utilitiesTaxesTax credits & incentivesWind & solar
Dónde está ahora
- Hecho: Presentado15 de febrero de 2022
- Hecho: Subcomité15 de febrero de 2022
- Hecho: Comité de la Cámara8 de marzo de 2022
- Hecho: Lo aprueba la Cámara30 de marzo de 202294–0
- Se detuvo: Comité del SenadoMurió al terminar la Asamblea General
- Sigue: Lo aprueba el Senado
- Sigue: A gobernador(a)
- Sigue: Firmado como ley
Murió al terminar la sesión La sesión de 2022 terminó el 24 de mayo de 2022, la última sesión ordinaria de la Asamblea General. Los proyectos que no pasaron por ambas cámaras murieron. ¿Qué es el embudo (funnel)?
Qué contiene
Resumen con IA Certain homeowners who installed solar energy systems in 2021 can still claim a tax credit even though the program previously expired. The bill also removes the $5 million yearly limit on these tax credits for specific people. It extends the deadline for some 2021 applications and helps those who were on a waiting list or had their applications denied. (Todavía no está traducido al español.)1
Lea la explicación oficial (en inglés)
This bill relates to the solar energy system tax credit available against the individual and corporate income tax, the franchise tax, and the moneys and credits tax. BACKGROUND. Currently, the solar energy system tax credit expired for residential installations completed after December 31, 2021, due to conforming with a version of federal law that no longer applies. Additionally, a maximum of $5 million of both residential and commercial solar energy system credits may be annually claimed in the aggregate, and a wait list exists for installations completed on or prior to December 31, 2021. CHANGES IN THE BILL. The bill changes the solar energy system tax credit application due date for residential installations that were completed during the 2021 calendar year from May 1, 2022, to June 30, 2022. The bill also removes the annual maximum $5 million limit placed on residential solar energy system tax credit claims for certain applicants. The bill does not extend the residential solar energy system tax credit for installations that are completed after December 31, 2021. The following residential solar energy system tax credit applicants are eligible to claim the solar energy system tax credit for the 2022 tax year as if the residential solar energy system tax credit did not expire: an applicant with a valid application who was on the wait list as of December 31, 2021, and who did not receive the credit; an applicant whose application went through the review process of the department of revenue and who otherwise had a valid application but was nevertheless sent a denial letter by the department of revenue for the 2021 award year regardless of whether or not the applicant appealed the denial letter; an applicant whose application was in the review process of the department of revenue but whose application expired due to the expiration of the credit; and an applicant who has not submitted an application for an installation that was completed during the 2021 calendar year. The bill takes effect upon enactment and applies retroactively to the tax year beginning on or after January 1, 2022, but before January 1, 2023.
Senate subcommittee
Named April 4, 2022. It hasn’t reported yet.
- Sen. Tim Goodwin R
- Sen. Dan Dawson REmail
- Sen. T. Taylor
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
Nota fiscal
Resumen con IA This bill allows homeowners with residential solar energy systems completed in 2021 or those on a waiting list to receive a solar energy system tax credit. It is estimated that these tax credits will reduce individual income tax liability and General Fund revenue by $2.5 million in fiscal year 2023, $1.1 million in fiscal year 2024, $0.5 million in fiscal year 2025, and $0.3 million each fiscal year from fiscal year 2026 through fiscal year 2030. (en inglés)3
Lea la nota fiscal (en inglés)
Description
House File 2556 allows taxpayers with residential solar energy system installations that were completed during calendar year (CY) 2021 or are on the wait list to receive the Solar Energy System Tax Credit. The Bill notwithstands the current May 1, 2022, deadline for credit applications to be filed for CY 2021 installations and instead requires application by June 30, 2022. The residential installations that are approved for the tax credit under the provisions of the Bill are not to be counted as part of the annual $5.0 million aggregate tax credit cap for all solar energy system installations. The changes are effective upon enactment and apply retroactively to tax year 2022.
Background
The Solar Energy System Tax Credit has been available since January 1, 2012. The Iowa tax credit is equal to a percentage of the federal tax credit that was available for the same purpose. For installations completed on or after January 1, 2016, the Iowa credit is equal to the 50.0% of the federal credit.
The federal tax credit ended for residential installations completed after December 31, 2021. Iowa law limits the total aggregate amount of tax credits approved under the program in a calendar year to $5.0 million. The full CY 2021 allocation has been awarded, and a wait list exists for projects that qualify for the credit but will not receive an award under current law because of the annual cap.
The tax credits are not transferable or refundable, but unused tax credits may carry forward for up to 10 fiscal years.
Assumptions
Based on tax credit applications from residential projects completed during CY 2018 through CY 2020, the Department of Revenue estimates that a total of $5.6 million in applications will be approved under the provisions of the Bill.
The Legislative Services Agency estimates that awarded tax credits will be redeemed over eight fiscal years as follows:
- FY 2023 — 45.0%
- FY 2024 — 20.0%
- FY 2025 — 10.0%
- FY 2026 through FY 2030 — 5.0% each fiscal year
Fiscal Impact
The redemption of Solar Energy System Tax Credits that are assumed to be issued under the provisions of the Bill are projected to reduce individual income tax liability and General Fund revenue by the following amounts:
- FY 2023 — $2.5 million
- FY 2024 — $1.1 million
- FY 2025 — $0.5 million
- FY 2026 through FY 2030 — $0.3 million each fiscal year
There is no projected fiscal impact beyond FY 2030.
Source
- Department of Revenue
- Solar Tax Credit · 17 de marzo de 2022
- Solar Tax Credit · 14 de marzo de 2022
Lo que cambia del Código de Iowa (Iowa Code)
Modifica§422.11L
Cabildeo
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