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Iowa

Iowa

Incentives/Policies for Renewables & Efficiency

Printable Version
Solar Energy Systems Tax Credit (Personal)   

Last DSIRE Review: 06/18/2014
Program Overview:
State: Iowa
Incentive Type: Personal Tax Credit
Eligible Renewable/Other Technologies: Passive Solar Space Heat, Solar Water Heat, Solar Thermal Electric, Solar Thermal Process Heat, Photovoltaics
Applicable Sectors: Commercial, Residential, Agricultural
Amount:18%
Maximum Incentive:Residential: $5,000
Commercial: $20,000
Carryover Provisions:Excess credit may be taken for up to 10 years
Program Budget:$4,500,000 cumulative limit per year (personal and corporate)
Start Date:01/01/2012
Expiration Date:12/31/2016
Web Site: http://www.iowa.gov/tax/business/solarcredits.html
Authority 1:
Date Enacted:
Date Effective:
S.F. 2342
05/25/2012
01/01/2012
Authority 2:
Date Enacted:
Date Effective:
701 IAC 42.48
10/03/2012
11/07/2012
Authority 3:
Date Enacted:
Date Effective:
S.F. 2340
05/30/2014
01/01/2014
Summary:

Iowa offers an 18% individual tax credit for solar energy systems. The credit is based on the federal tax credits for solar; individuals can claim 60% of the Federal Residential Tax Credit. The federal tax credit is 30%, making the Iowa credit 18%. Each taxpayer may claim up to $5,000 for residential systems and $20,000 for commercial systems under this program, and any excess credits may be carried over for up to 10 years.

An individual may claim the tax credit allowed an LLC, S corporation, trust, estate, or partnership that elects to have the income taxed directly to the individual. The amount that the individual can claim is based upon the share of the individual's earnings of the corporate entity.

A taxpayer may claim a credit for each separate and distinct solar installation. The cumulative value of the tax credits claimed by applicants under this program and the corporate tax credit is limited to $4,500,000 per year, with a minimum of $1,000,000 reserved for credits for residential solar installations. Because of this limit, a taxpayer must complete an application for each separate and distinct solar installation to reserve the tax credit. Credits will be reserved on a first-come, first-serve basis.

Taxpayers taking a credit under this provision cannot claim a credit under the Iowa Production Tax Credit.


 
Contact:
  Public Information - Revenue
Iowa Department of Revenue
Hoover State Office Building
1305 E. Walnut
Des Moines, IA 50319
Phone: (800) 367-3388
Phone 2: (515) 281-3114
Fax: (515) 242-6487
Web Site: http://www.iowa.gov/tax/index.html
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2013 - 2014 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.