§ 476C.6 — Transferability and use of tax credit certificates — registration

Iowa § 476C.6

• Jurisdiction: Iowa
• Title XI: NATURAL RESOURCES
• Ch. 476C: RENEWABLE ENERGY TAX CREDIT

Text

1. a. 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
7 RENEWABLE ENERGY TAX CREDIT, §476C.7
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.
b. The transferee may use the amount of the tax credit transferred against taxes imposed
under chapter 422, subchapters II, III, and V, and chapter 432 for any tax year the original
transferorcouldhaveclaimedthetaxcredit. Thetransfereemayclaimarefundunderchapter
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, subchapters
II, III, and V. Any consideration paid for the transfer of the tax credit shall not be deducted
from income under chapter 422, subchapters II, III, and V.
2. To claim a renewable energy tax credit under this chapter, a taxpayer must include
one or more tax credit certificates with 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. Ataxcreditcertificateshallnotbeusedorincludedwithareturnfiledforataxable
year beginning prior to July 1, 2006. The tax credit certificate or certificates included with
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.