476B.1 DEFINITIONS.
For purposes of this chapter, unless the context otherwise
requires:
1. "Board" means the utilities board within the utilities
division of the department of commerce.
2. "Department" means the department of revenue.
3. "Qualified electricity" means electricity produced from
wind at a qualified facility.
4. "Qualified facility" means an electrical production
facility that meets all of the following:
a. Produces electricity from wind.
b. Is located in Iowa.
c. Was originally placed in service on or after July 1, 2005,
but before July 1, 2012.
d. (1) For applications filed on or after March 1, 2008,
consists of one or more wind turbines connected to a common gathering
line which have a combined nameplate capacity of no less than two
megawatts and no more than thirty megawatts.
(2) For applications filed on or after July 1, 2009, by a private
college or university, community college, institution under the
control of the state board of regents, public or accredited nonpublic
elementary and secondary school, or public hospital as defined in
section 249J.3, for the applicant's own use of qualified electricity,
consists of wind turbines with a combined nameplate capacity of
three-fourths of a megawatt or greater. Section History: Recent Form
2004 Acts, ch 1175, §409, 418; 2005 Acts, ch 179, §163; 2006 Acts,
ch 1135, §1, 12; 2008 Acts, ch 1128, §4, 5, 15; 2009 Acts, ch 80, §1,
9
Referred to in § 476B.6A Footnotes
2008 amendments to subsection 4 take effect May 1, 2008, and apply
to tax years beginning on or after January 1, 2008; 2008 Acts, ch
1128, § 15
2009 amendment to subsection 4, paragraph d, subparagraph (1)
takes effect April 23, 2009, and applies retroactively to tax years
beginning on or after January 1, 2008; 2009 Acts, ch 80, §9
476B.2 GENERAL RULE.
The owner of a qualified facility shall, for each kilowatt-hour of
qualified electricity that the owner sells or uses for on-site
consumption during the ten-year period beginning on the date the
qualified facility was originally placed in service, be allowed a
wind energy production tax credit to the extent provided in this
chapter against the tax imposed in chapter 422, divisions II, III,
and V, and chapter 432, and may claim a refund of tax imposed by
chapter 423 or 437A for any tax year within the time period set forth
in section 423.47 or 437A.14. Section History: Recent Form
2004 Acts, ch 1175, §410, 418; 2008 Acts, ch 1128, §6, 15 Footnotes
2008 amendment to this section takes effect May 1, 2008, and
applies retroactively to tax years beginning on or after January 1,
2008; 2008 Acts, ch 1128, § 15
476B.3 CREDIT AMOUNT.
The wind energy production tax credit allowed under this chapter
equals the product of one cent multiplied by the number of
kilowatt-hours of qualified electricity sold or used for on-site
consumption by the owner during the taxable year. Section History: Recent Form
2004 Acts, ch 1175, §411, 418; 2005 Acts, ch 179, §164; 2008 Acts,
ch 1128, §7, 15 Footnotes
2008 amendment to this section takes effect May 1, 2008, and
applies retroactively to tax years beginning on or after January 1,
2008; 2008 Acts, ch 1128, § 15
476B.4 LIMITATION.
The wind energy production tax credit shall not be allowed for any
kilowatt-hour of electricity that is sold to a related person. For
purposes of this section, persons shall be treated as related to each
other if such persons would be treated as a single employer under the
regulations prescribed under section 52(b) of the Internal Revenue
Code. In the case of a corporation that is a member of an affiliated
group of corporations filing a consolidated return, such corporation
shall be treated as selling electricity to an unrelated person if
such electricity is sold to such a person by another member of such
group. Section History: Recent Form
2004 Acts, ch 1175, §412, 418; 2005 Acts, ch 179, §165; 2009 Acts,
ch 80, §2, 7, 9 Footnotes
2009 amendment to this section takes effect April 23, 2009, and
applies retroactively to tax years beginning on or after January 1,
2008; aggregate limit and proration of funds on refund claims for
taxes, interest, or penalties paid on sales of wind energy conversion
property, exempt from sales tax under section 423.3, subsection 54,
which occurred between January 1, 2008, and April 23, 2009; October
1, 2009, refund filing deadline; 2009 Acts, ch 80, §7, 9
476B.5 DETERMINATION OF ELIGIBILITY.
1. An owner may apply to the board for a written determination
regarding whether a facility is a qualified facility by submitting to
the board a written application containing all of the following:
a. Information regarding the ownership of the facility
including the percentage of equity interest held by each owner.
b. The nameplate generating capacity of the facility.
c. Information regarding the facility's initial placement in
service.
d. Information regarding the type of facility.
e. Except when electricity is used for on-site consumption, a
copy of an executed power purchase agreement or other agreement to
purchase electricity upon completion of the project. An executed
interconnection agreement or transmission service agreement shall be
accepted by the board under this paragraph if the owner of the
facility has agreed to sell electricity from the facility directly or
indirectly to a wholesale power pool market.
f. Any other information the board may require.
2. The board shall review the application and supporting
information and shall make a preliminary determination regarding
whether the facility is a qualified facility. The board shall notify
the applicant of the approval or denial of the application within
thirty days of receipt of the application and information required.
If the board fails to notify the applicant of the approval or denial
within thirty days, the application shall be deemed denied. An
applicant who receives a determination denying an application may
file an appeal with the board within thirty days from the date of the
denial pursuant to the provisions of chapter 17A. In the absence of
a timely appeal, the preliminary determination shall be final. If
the application is incomplete, the board may grant an extension of
time for the provision of additional information.
3. A facility that is not operational within eighteen months
after issuance of an approval for the facility by the board shall
cease to be a qualified facility. However, a facility that is
approved as qualified under this section but is not operational
within eighteen months due to the unavailability of necessary
equipment shall be granted an additional twelve months to become
operational. A facility that is granted and thereafter loses
approval may reapply to the board for a new determination.
4. The maximum amount of nameplate generating capacity of all
qualified facilities the board may find eligible under this chapter
shall not exceed one hundred fifty megawatts of nameplate generating
capacity.
5. An owner shall not be an owner of more than two qualified
facilities. Section History: Recent Form
2004 Acts, ch 1175, §413, 418; 2005 Acts, ch 179, §166; 2006 Acts,
ch 1135, §2, 3, 12; 2008 Acts, ch 1128, §8, 15; 2009 Acts, ch 80, §3
Footnotes
2008 amendment to subsection 1, paragraph e, takes effect May 1,
2008, and applies retroactively to tax years beginning on or after
January 1, 2008; 2008 Acts, ch 1128, § 15
476B.6 TAX CREDIT CERTIFICATE PROCEDURE.
1. a. If a city or a county in which a qualified facility is
located has enacted an ordinance under section 427B.26 and an owner
has filed for and received special valuation pursuant to that
ordinance, the owner is not required to obtain approval from the city
council or county board of supervisors to apply for the wind energy
production tax credit pursuant to subsection 2.
b. (1) If neither a city nor a county in which a qualified
facility is located has enacted an ordinance under section 427B.26,
or a qualified facility is not eligible for special valuation
pursuant to an ordinance adopted by a city or a county under section
427B.26, the owner must receive approval of the applicable city
council or county board of supervisors of the city or county in which
the qualified facility is located in order to be eligible to receive
the wind energy production tax credit. The application for approval
may be submitted prior to commencement of the construction of the
qualified facility but shall be submitted no later than the close of
the owner's first taxable year for which the credit is to be applied
for. The application must contain the owner's name and address, the
address of the qualified facility, and the dates of the owner's first
and last taxable years for which the credit will be applied for.
Within forty-five days of the receipt of the application for
approval, the city council or county board of supervisors, as
applicable, shall either approve or disapprove the application.
After the forty-five-day time period has expired, the application is
deemed to be approved.
(2) Upon approval of an application submitted pursuant to
subparagraph (1), the owner may apply for the tax credit as provided
in subsection 2. In addition, approval of the application submitted
pursuant to subparagraph (1) is acceptance by the applicant for the
assessment of the qualified facility for property tax purposes for a
period of twelve years and approval by the city council or county
board of supervisors, as applicable, for the payment of the property
taxes levied on the qualified property to the state. For purposes of
property taxation, the qualified facility receiving approval of an
application submitted pursuant to subparagraph (1) shall be centrally
assessed and shall be exempt from any replacement tax under section
437A.6 for the period during which the facility is subject to
property taxation. The property taxes to be paid to the state are
those property taxes which make up the consolidated tax levied on the
qualified facility and which are due and payable in the twelve-year
period beginning with the first fiscal year beginning on or after the
end of the owner's first taxable year for which the credit is applied
for. Upon approval of the application, the city council or county
board of supervisors, as applicable, shall notify the county
treasurer to designate on the tax statement which lists the taxes on
the qualified facility the amount of the property taxes to be paid to
the department. Payment of the designated property taxes to the
department shall be in the same manner as required for the payment of
regular property taxes and failure to pay designated property taxes
to the department shall be treated the same as failure to pay
property taxes to the county treasurer.
c. Once the owner of the qualified facility receives approval
under paragraph "b", subsequent approval under paragraph "b"
is not required for the same qualified facility for subsequent
taxable years.
2. An owner of a qualified facility may apply to the board for
the wind energy production tax credit by submitting to the board all
of the following:
a. A completed application in a form prescribed by the board.
b. A copy of the determination granting approval of the
facility as a qualified facility by the board.
c. A copy of a signed power purchase agreement or other
agreement to purchase electricity.
d. Sufficient documentation that the electricity has been
generated by the qualified facility and sold to a purchaser.
e. For a facility in which electricity is used for on-site
consumption, the requirements of paragraphs "c" and "d" shall
not be applicable. For such facilities, the owner must submit a
certification under penalty of perjury that the claimed amount of
electricity was generated by the qualified facility and consumed by
the owner.
f. Any other information the board deems necessary.
3. The board shall notify the department of the amount of
kilowatt-hours generated and purchased from a qualified facility or
generated and used on-site by a qualified facility. The department
shall calculate the amount of the tax credit for which the applicant
is eligible and shall issue the tax credit certificate for that
amount or notify the applicant in writing of its refusal to do so.
An applicant whose application is denied may file an appeal with the
department within sixty days from the date of the denial pursuant to
the provisions of chapter 17A.
4. Each tax credit certificate shall contain the owner's name,
address, and tax identification number, the amount of tax credits,
the first taxable year the certificate may be used, the type of tax
to which the tax credits shall be applied, and any other information
required by the department. The tax credit certificate shall only
list one type of tax to which the amount of the tax credit may be
applied. Once issued by the department, the tax credit certificate
shall not be terminated or rescinded.
5. A tax credit certificate may be filed pursuant to any of the
following, to the extent applicable:
a. If the tax credit application is filed by a partnership,
limited liability company, S corporation, estate, trust, or other
reporting entity all of the income of which is taxed directly to its
equity holders or beneficiaries, for the taxes imposed under chapter
422, division II or III, the tax credit certificate shall be issued
directly to equity holders or beneficiaries of the applicant in
proportion to their pro rata share of the income of such entity. The
applicant shall, in the application made under this section, identify
its equity holders or beneficiaries, and the percentage of such
entity's income that is allocable to each equity holder or
beneficiary.
b. If the tax credit applicant under this section is eligible
to receive renewable electricity production credits authorized under
section 45 of the Internal Revenue Code, as amended, and the tax
credit applicant is a partnership, limited liability company, S
corporation, estate, trust, or other reporting entity all of the
income of which is taxed directly to its equity holders or
beneficiaries, for the taxes imposed under chapter 422, division II
or III, the tax credit certificate may be issued to a partner if the
business is a partnership, a shareholder if the business is an S
corporation, or a member if the business is a limited liability
company in the amounts designated by the eligible partnership, S
corporation, or limited liability company. In absence of such
designation, the credits under this section shall flow through to the
partners, shareholders, or members in accordance with their pro rata
share of the income of the entity. The applicant shall, in the
application made under this section, identify the holders or
beneficiaries that are to receive the tax credit certificates and the
percentage of the tax credit that is allocable to each holder or
beneficiary.
c. If an applicant under this section is eligible to receive
renewable electricity production credits authorized under section 45
of the Internal Revenue Code, as amended, and the tax credit
applicant is a partnership, limited liability company, S corporation,
estate, trust, or other reporting entity all of the income of which
is taxed directly to its equity holders or beneficiaries, for the
taxes imposed under chapter 422, division II or III, the tax credit
certificates and all future rights to the tax credit in this section
may be distributed to an equity holder or beneficiary as a
liquidating distribution or portion thereof, of a holder or
beneficiary's interest in the applicant entity. The applicant shall,
in the application made under this section, designate the percentage
of the tax credit allocable to the liquidating equity holder or
beneficiary that is to receive the current and future tax credit
certificates under this section.
d. If the tax credit application is filed by a partnership,
limited liability company, S corporation, estate, trust, or other
reporting entity, all of whose income is taxed directly to its equity
holders or beneficiaries for the taxes imposed under chapter 422,
division V, or under chapter 423, 432, or 437A, the tax credit
certificate shall be issued directly to the partnership, limited
liability company, S corporation, estate, trust, or other reporting
entity.
6. The department shall not issue a tax credit certificate if the
facility approved by the board as a qualified facility is not
operational within eighteen months after the approval is issued.
7. Once a tax credit certificate is issued pursuant to this
section, the tax credit may only be claimed against the type of tax
reflected on the certificate.
8. A tax credit certificate shall not be used or attached to a
return filed for a taxable year beginning prior to July 1, 2006. Section History: Recent Form
2004 Acts, ch 1175, §414, 418; 2005 Acts, ch 179, §167; 2006 Acts,
ch 1135, §4, 12; 2008 Acts, ch 1128, §9--11, 15; 2009 Acts, ch 80,
§4, 9
Referred to in § 476B.7 Footnotes
2008 amendments to this section take effect May 1, 2008, and apply
retroactively to tax years beginning on or after January 1, 2008, for
issuance of wind energy tax credits; 2008 Acts, ch 1128, § 15
2009 amendment to subsection 1 takes effect April 23, 2009, and
applies retroactively to tax years beginning on or after January 1,
2008; 2009 Acts, ch 80, §9
476B.6A ALTERNATIVE TAX CREDIT QUALIFICATION -- PILOT
PROJECT.
Notwithstanding any other provision of this chapter to the
contrary, the board shall establish a pilot project which will allow
for a wind energy production tax credit of one and one-half cents
multiplied by the number of kilowatt-hours of qualified electricity
sold or used for on-site consumption by up to two qualified
facilities selected for participation in the project. To be eligible
for the project, a qualified facility shall meet all eligibility
requirements otherwise applicable pursuant to this chapter, and in
addition shall be located in a county in this state with a population
of between forty-four thousand one hundred fifty and forty-four
thousand five hundred based on the 2006 census, and with a combined
nameplate generating capacity of at least one megawatt per applicant.
For purposes of the pilot project, the two megawatt minimum
requirement for qualification pursuant to section 476B.1, subsection
4, paragraph "d", shall not be applicable. The board shall
reduce the remaining credits available under this chapter by a dollar
amount equal to the amount of credits awarded pursuant to the
project. Section History: Recent Form
2009 Acts, ch 179, §143
476B.7 TRANSFER OF TAX CREDIT CERTIFICATES.
1. Wind energy production tax credit certificates issued under
this chapter may be transferred to any person or entity. Within
thirty days of transfer, the transferee must submit the transferred
tax credit certificate to the department along with a statement
containing the transferee's name, tax identification number, and
address, and the denomination that each replacement tax credit
certificate is to carry and any other information required by the
department. Within thirty days of receiving the transferred tax
credit certificate and the transferee's statement, the department
shall issue one or more replacement tax credit certificates to the
transferee. Each replacement certificate must contain the
information required under section 476B.6 and must have the same
effective taxable year and the same expiration date that appeared in
the transferred tax credit certificate. Tax credit certificate
amounts of less than the minimum amount established by rule of the
board shall not be transferable. A tax credit shall not be claimed
by a transferee under this chapter until a replacement tax credit
certificate identifying the transferee as the proper holder has been
issued. A replacement tax credit certificate may reflect a different
type of tax than the type of tax noted on the original tax credit
certificate.
2. The tax credit shall be freely transferable. The transferee
may use the amount of the tax credit transferred against the taxes
imposed under chapter 422, divisions II, III, and V, and chapter 432
for any tax year the original transferor could have claimed the tax
credit. The transferee may claim a refund under chapter 423 or 437A
for any tax year within the time period set forth in section 423.47
or 437A.14 for which the original transferor could have claimed a
refund. Any consideration received for the transfer of the tax
credit shall not be included as income under chapter 422, divisions
II, III, and V. Any consideration paid for the transfer of the tax
credit shall not be deducted from income under chapter 422, divisions
II, III, and V. Section History: Recent Form
2004 Acts, ch 1175, §415, 418; 2005 Acts, ch 179, §168; 2008 Acts,
ch 1128, §12, 15 Footnotes
2008 amendments to this section take effect May 1, 2008, and apply
retroactively to tax years beginning on or after January 1, 2008;
2008 Acts, ch 1128, § 15
476B.8 USE OF TAX CREDIT CERTIFICATES.
To claim a wind energy production tax credit under this chapter, a
taxpayer must attach one or more tax credit certificates to the
taxpayer's tax return, or if used against taxes imposed under chapter
423, the taxpayer shall comply with section 423.4, subsection 4, or
if used against taxes imposed under chapter 437A, the taxpayer shall
comply with section 437A.17B. A tax credit certificate shall not be
used or attached to a return filed for a taxable year beginning prior
to July 1, 2006. The tax credit certificate or certificates attached
to the taxpayer's tax return shall be issued in the taxpayer's name,
expire on or after the last day of the taxable year for which the
taxpayer is claiming the tax credit, and show a tax credit amount
equal to or greater than the tax credit claimed on the taxpayer's tax
return. Any tax credit in excess of the taxpayer's tax liability for
the taxable year may be credited to the taxpayer's tax liability for
the following seven taxable years or until depleted, whichever is the
earlier. If the tax credit is applied against the taxes imposed
under chapter 423 or 437A, any credit in excess of the taxpayer's tax
liability is carried over and can be filed with the refund claim for
the following seven tax years or until depleted, whichever is
earlier. However, the certificate shall not be used to reduce tax
liability for a tax period ending after the expiration date of the
certificate. Section History: Recent Form
2004 Acts, ch 1175, §416, 418; 2005 Acts, ch 179, §169; 2008 Acts,
ch 1128, §13, 15 Footnotes
2008 amendments to this section take effect May 1, 2008, and apply
retroactively to tax years beginning on or after January 1, 2008;
2008 Acts, ch 1128, § 15
476B.9 REGISTRATION OF TAX CREDIT CERTIFICATES.
The department shall develop a system for the registration of the
wind energy production tax credit certificates issued or transferred
under this chapter and a system that permits verification that any
tax credit claimed on a tax return is valid and that transfers of the
tax credit certificates are made in accordance with the requirements
of this chapter. The tax credit certificates issued under this
chapter shall not be classified as a security pursuant to chapter
502. Section History: Recent Form
2004 Acts, ch 1175, §417, 418; 2005 Acts, ch 179, §170
476B.10 RULES.
The department and the board may adopt rules pursuant to chapter
17A for the administration and enforcement of this chapter. Section History: Recent Form
2005 Acts, ch 179, §171