Establishing a solar installation tax credit available against the individual and corporate income taxes, the moneys and credits tax, and the franchise tax, and including effective date and retroactive applicability provisions

This bill establishes a solar installation tax credit available against the individual and corporate income taxes, the moneys and credits tax, and the franchise tax.11L, except the solar installation credit established in the bill couples with current federal law. The credit is equal to percent of the federal residential energy efficient property credit related to solar energy provided in section 25D of the Internal Revenue Code, not to exceed $5,000, and percent of the federal energy credit related to solar energy systems provided in section of the Internal Revenue Code, not to exceed $20,000. The credit is nonrefundable, but may be carried forward for years, or until depleted. The bill provides that an individual may claim the tax credit allowed a partnership, limited liability company, S corporation, estate, or trust based upon the individual’s pro rata share of the earnings. A taxpayer who is eligible to claim a credit under the bill shall not be eligible to claim a renewable energy tax credit under Code chapter 476C.11L for the same installation. Further, the bill restricts the cumulative total of solar energy systems tax credits issued for all taxpayers to an amount not exceeding $5 million annually. Of this amount, at least $1 million shall be reserved for claims associated with or resulting from residential solar installations. In the event that the total amount of claims submitted for residential solar installations in a tax year is an amount less than $1 million, the remaining unclaimed reserved amount shall be made available for claims associated with or resulting from nonresidential solar installations received for the tax year. If an amount of tax credits available for a tax year goes unclaimed, the amount of the unclaimed tax credits shall be made available for the following tax year in addition to, and cumulated with, the $5 million amount available for the following tax year. The bill contains reporting requirements regarding the number and value of tax credits claimed, and any other information the department may deem relevant and appropriate. The bill takes effect upon enactment, and applies retroactively to tax years beginning on or after January 1, 2023.