1.A producer or purchaser of renewable energy may apply to the commission for the
renewable energy tax credit by submitting to the commission all of the following:
a.A completed application in a form prescribed by the commission.
b.A copy of the determination granting approval of the facility as an eligible renewable
energy facility by the commission.
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 b
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1. A producer or purchaser of renewable energy may apply to the commission for the
renewable energy tax credit by submitting to the commission all of the following:
a. A completed application in a form prescribed by the commission.
b. A copy of the determination granting approval of the facility as an eligible renewable
energy facility by the commission.
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. To the extent the produced electricity, hydrogen fuel, methane or other biogas, or heat
for a commercial purpose is used for on-site consumption, the requirements of paragraphs
“c” and “d” shall not be applicable. For such renewable energy production, the owner
must submit a certification under penalty of perjury that the claimed amount of electricity,
hydrogen fuel, methane or other biogas, or heat for a commercial purpose was produced by
the eligible facility and consumed by the owner.
f. Any other information the commission deems necessary.
2. The commission 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 or generated and used by the producer
for on-site consumption. 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, subchapter
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. (1) 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, subchapter
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.
§476C.4, RENEWABLE ENERGY TAX CREDIT 6
(2) The applicant shall, in the application made under this section, identify the equity
holders or beneficiaries that are to receive the tax credit certificates and the percentage of
the tax credit that is allocable to each equity holder or beneficiary.
c. (1) 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, subchapter 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.
(2) 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 the income of which is taxed directly
to its equity holders or beneficiaries for the taxes imposed under chapter 422, subchapter 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
commissionasaneligiblerenewableenergyfacilityisnotoperationalwithineighteenmonths
after the approval is issued, subject to the extension provisions of section 476C.3, subsection
3.
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.