476C.1 DEFINITIONS.
For purposes of this chapter, unless the context otherwise
requires:
1. "Anaerobic digester system" means a system of components
that processes plant or animal materials based on the absence of
oxygen and produces methane or other biogas used to generate
electricity, hydrogen fuel, or heat for a commercial purpose.
2. "Biogas recovery facility" means an anaerobic digester
system that is located in this state.
3. "Biomass conversion facility" means a facility in this
state that converts plant-derived organic matter including, but not
limited to, agricultural food and feed crops, crop wastes and
residues, wood wastes and residues, or aquatic plants to generate
electricity, hydrogen fuel, or heat for a commercial purpose.
4. "Board" means the utilities board within the utilities
division of the department of commerce.
5. "Department" means the department of revenue.
6. "Eligible renewable energy facility" means a wind energy
conversion facility, a biogas recovery facility, a biomass conversion
facility, a methane gas recovery facility, a solar energy conversion
facility, or a refuse conversion facility that meets all of the
following requirements:
a. Is located in this state.
b. Is at least fifty-one percent owned by one or more of any
combination of the following:
(1) A resident of this state.
(2) Any of the following as defined in section 9H.1:
(a) An authorized farm corporation.
(b) An authorized limited liability company.
(c) An authorized trust.
(d) A family farm corporation.
(e) A family farm limited liability company.
(f) A family trust.
(g) A revocable trust.
(h) A testamentary trust.
(3) A small business as defined in section 15.102.
(4) An electric cooperative association organized pursuant to
chapter 499 that sells electricity to end users located in this
state.
(5) An electric cooperative association that has one or more
members organized pursuant to chapter 499.
(6) A cooperative corporation organized pursuant to chapter 497
or a limited liability company organized pursuant to chapter 489 or
490A whose shares and membership are held by an entity that is not
prohibited from owning agricultural land under chapter 9H.
(7) A school district located in this state.
c. Has at least one owner that meets the requirements of
paragraph "b" for each two and one-half megawatts of nameplate
generating capacity or the energy production capacity equivalent for
hydrogen fuel or heat for a commercial purpose of the otherwise
eligible renewable energy facility.
d. Was initially placed into service on or after July 1,
2005, and before January 1, 2012.
7. "Energy production capacity equivalent" means the amount
of energy in a standard cubic foot of hydrogen gas or the number of
British thermal units that are equal to the energy in a kilowatt-hour
of electricity. For the purposes of this chapter, one kilowatt-hour
shall be deemed equivalent to three thousand three hundred
thirty-three British thermal units of heat or ten and forty-five one
hundredths of standard cubic feet of hydrogen gas.
8. "Heat for a commercial purpose" means the heat in British
thermal unit equivalents from refuse-derived fuel, methane, or other
biogas produced in this state sold to a purchaser of renewable energy
for use for a commercial purpose in this state or for use by an
institution in this state.
9. "Hydrogen fuel" means hydrogen produced in this state from
a renewable source that is used in a fuel cell or hydrogen-powered
internal combustion engine.
10. "Methane gas recovery facility" means a facility in this
state which is used in connection with a sanitary landfill or which
uses wastes that would otherwise be deposited in a sanitary landfill,
that collects methane gas or other gases and converts the gas into
energy to generate electricity, hydrogen fuel, or heat for a
commercial purpose.
11. "Producer of renewable energy" means a person who owns an
eligible renewable energy facility.
12. "Purchaser of renewable energy" means a person who buys
electric energy, hydrogen fuel, methane gas or other biogas used to
generate electricity, or heat for a commercial purpose from an
eligible renewable energy facility.
13. "Refuse conversion facility" means a facility in this
state that converts solid waste into fuel that can be burned to
generate heat for a commercial purpose in this state.
14. "Solar energy conversion facility" means a solar energy
facility in this state that collects and converts incident solar
radiation into energy to generate electricity.
15. "Wind energy conversion facility" means a wind energy
conversion system in this state that collects and converts wind into
energy to generate electricity. Section History: Recent Form
2005 Acts, ch 160, §7, 14; 2006 Acts, ch 1135, §5--8, 12; 2008
Acts, ch 1162, §136, 155
Referred to in § 476C.3 Footnotes
For future amendment to subsection 6, paragraph b, subparagraph
(6), effective December 31, 2010, see 2008 Acts, ch 1162, § 154, 155
476C.2 TAX CREDIT AMOUNT -- LIMITATIONS.
1. A producer or purchaser of renewable energy may receive
renewable energy tax credits under this chapter in an amount equal to
one and one-half cents per kilowatt-hour of electricity, or four
dollars and fifty cents per million British thermal units of heat for
a commercial purpose, or four dollars and fifty cents per million
British thermal units of methane gas or other biogas used to generate
electricity, or one dollar and forty-four cents per one thousand
standard cubic feet of hydrogen fuel generated by and purchased from
an eligible renewable energy facility.
2. The renewable energy tax credit shall not be allowed for any
kilowatt-hour of electricity, British thermal unit of heat for a
commercial purpose, British thermal unit of methane gas or other
biogas used to generate electricity, or standard cubic foot of
hydrogen fuel that is purchased from an eligible renewable energy
facility by a related person. For purposes of this subsection,
persons shall be treated as related to each other if either person
owns an eighty percent or more equity interest in the other person.
Section History: Recent Form
2005 Acts, ch 160, §8, 14
476C.3 DETERMINATION OF ELIGIBILITY.
1. A producer or purchaser of renewable energy may apply to the
board for a written determination regarding whether a facility is an
eligible renewable energy 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 or
energy production capacity equivalent.
c. Information regarding the facility's initial placement in
service.
d. Information regarding the type of facility and what type
of renewable energy the facility will produce.
e. A copy of the power purchase agreement or other agreement
to purchase electricity, hydrogen fuel, methane or other biogas, or
heat for a commercial purpose which shall designate either the
producer or purchaser of renewable energy as eligible to apply for
the renewable energy tax credit.
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 an eligible renewable energy 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 unless the application is placed on a waiting list as
described in subsection 5. 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 thirty months after
issuance of an approval for the facility by the board shall cease to
be an eligible renewable energy facility. However, a wind energy
conversion facility that is approved as eligible under this section
but is not operational within eighteen months due to the
unavailability of necessary equipment shall be granted an additional
twenty-four 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
wind energy conversion facilities the board may find eligible under
this chapter shall not exceed three hundred thirty megawatts of
nameplate generating capacity. The maximum amount of energy
production capacity equivalent of all other facilities the board may
find eligible under this chapter shall not exceed a combined output
of twenty megawatts of nameplate generating capacity and one hundred
sixty-seven billion British thermal units of heat for a commercial
purpose. Of the maximum amount of energy production capacity
equivalent of all other facilities found eligible under this chapter,
fifty-five billion British thermal units of heat for a commercial
purpose shall be reserved for an eligible facility that is a refuse
conversion facility for processed, engineered fuel from a multicounty
solid waste management planning area. The maximum amount of energy
production capacity the board may find eligible for a single refuse
conversion facility is fifty-five billion British thermal units of
heat for a commercial purpose.
5. The board shall maintain a waiting list of facilities that may
have been found eligible under this section but for the maximum
capacity restrictions of subsection 4. The priority of the waiting
list shall be maintained in the order the applications were received
by the board. The board shall remove from the waiting list any
facility that has subsequently been found ineligible under this
chapter. If additional capacity becomes available within the
capacity restrictions of subsection 4, the board shall grant approval
to facilities according to the priority of the waiting list before
granting approval to new applications. An owner of a facility on the
waiting list shall provide the board each year by August 31 with a
sworn statement of verification stating that the information
contained in the application for eligibility remains true and correct
or stating that the information has changed and providing the new
information.
6. An owner meeting the requirements of section 476C.1,
subsection 6, paragraph "b", shall not be an owner of more than
two eligible renewable energy facilities. A person that has an
equity interest equal to or greater than fifty-one percent in an
eligible renewable energy facility shall not have an equity interest
greater than ten percent in any other eligible renewable energy
facility. Section History: Recent Form
2005 Acts, ch 160, §9, 14; 2006 Acts, ch 1135, §9, 12, 13; 2006
Acts, ch 1171, §8, 9; 2009 Acts, ch 80, §5, 6
476C.4 TAX CREDIT CERTIFICATE PROCEDURE.
1. A producer or purchaser of renewable energy may apply to the
board for the renewable energy 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 an eligible renewable energy facility by the board.
c. A copy of a signed power purchase agreement or other
agreement to purchase electricity, hydrogen fuel, methane or other
biogas, or heat for a commercial purpose from an eligible renewable
energy facility which shall designate either the producer or
purchaser of renewable energy as eligible to apply for the renewable
energy tax credit.
d. Sufficient documentation that the electricity, heat for a
commercial purpose, methane gas or other biogas, or hydrogen fuel has
been generated by the eligible renewable energy facility and sold to
the purchaser of renewable energy.
e. Any other information the board deems necessary.
2. The board shall notify the department of the amount of
kilowatt-hours, British thermal units of heat for a commercial
purpose, British thermal units of methane gas or other biogas used to
generate electricity, or standard cubic feet of hydrogen fuel
generated and purchased from an eligible renewable energy 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.
3. Each tax credit certificate shall contain the person'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.
4. 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.
5. The department shall not issue a tax credit certificate if the
facility approved by the board as an eligible renewable energy
facility is not operational within eighteen months after the approval
is issued.
6. The department shall not issue a tax credit certificate to any
person who has received a tax credit pursuant to chapter 476B.
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. Section History: Recent Form
2005 Acts, ch 160, §10, 14; 2006 Acts, ch 1135, §10, 12
Referred to in § 476C.6
476C.5 CERTIFICATE ISSUANCE PERIOD.
A producer or purchaser of renewable energy may receive renewable
energy tax credit certificates for a ten-year period for each
eligible renewable energy facility under this chapter. The ten-year
period for issuance of the tax credit certificates begins with the
date the purchaser of renewable energy first purchases electricity,
hydrogen fuel, methane gas or other biogas used to generate
electricity, or heat for commercial purposes from the eligible
renewable energy facility for which a tax credit is issued under this
chapter. Renewable energy tax credit certificates shall not be
issued for renewable energy purchased after December 31, 2021. Section History: Recent Form
2005 Acts, ch 160, §11, 14; 2006 Acts, ch 1135, §11, 12
476C.6 TRANSFERABILITY AND USE OF TAX CREDIT
CERTIFICATES -- REGISTRATION.
1. Renewable energy tax credit certificates issued under this
chapter may be transferred to any person. A tax credit certificate
shall only be transferred once. However, for purposes of this
transfer provision, a decision between a producer and purchaser of
renewable energy regarding who claims the tax credit issued pursuant
to this chapter shall not be considered a transfer and must be set
forth in the application for the tax credit pursuant to section
476C.4. 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 new 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 tax credit certificate must contain the
information required under section 476C.4, subsection 3, 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 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. The replacement tax credit certificate may reflect a
different type of tax than the type of tax noted on the original tax
credit certificate.
The transferee may use the amount of the tax credit transferred
against 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 the 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.
2. To claim a renewable energy 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 tax years or until the credit is depleted,
whichever is 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.
3. The department shall develop a system for the registration of
the renewable energy 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
2005 Acts, ch 160, §12, 14
476C.7 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 160, §13, 14