HOUSE REPUBLICAN STAFF ANALYSIS Bill: Committee: Floor Manager: Date: Staff:
House File 2452 Ways and Means Rep. Pettengill Final Kristi L. Kious (2-5290)
House Ways & Means: House Floor: Senate Floor: Governor:
PASSED on March 30 (24-0) PASSED on April 21 (91-5)
Geothermal Tax Credit • This bill creates a geothermal tax credit available against the individual income tax equal to 10 percent of the cost of the installation. • Fiscal Note – FY 18: $1.5 million FY 19: $2.0 million
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Section by Section Analysis Section 1 – Geothermal Tax Credit This new section creates a geothermal tax credit equal to 10 percent of the cost of the installation of a qualified geothermal heat pump. The credit is only available to residential installations in Iowa that are used by the taxpayer. The tax credit is nonrefundable but can be carried forward for up to ten years. This section also provides that a person can’t claim a geothermal credit twice (once under this legislation and also the current geothermal credit in 422.11I) for the same expenditure. The credit established in this legislation is in addition to the current geothermal heat pump tax credit available in 422.11I. That credit is tied to the federal credit that is set to expire at the end of this year. That credit provides a tax credit equal to 20 percent of the federal credit. Section 2 – Effective Date This makes the legislation effective January 1, 2017. Section 3 – Applicability This section makes the legislation apply to expenditures incurred on or after January 1, 2017.
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