Solar Energy Systems Tax Credit (Personal) (Iowa)
Last modified on February 12, 2015.
Financial Incentive Program
|Name||Solar Energy Systems Tax Credit (Personal)|
|Incentive Type||Personal Tax Credit|
|Applicable Sector||Commercial, Residential, Agricultural|
|Eligible Technologies||Passive Solar Space Heat, Solar Water Heat, Solar Thermal Electric, Solar Thermal Process Heat, Photovoltaics|
|Energy Category||Renewable Energy Incentive Programs|
|Carryover Provisions|| Excess credit may be taken for up to 10 years
|Expiration Date|| 2016-12-31
|Maximum Incentive|| Residential: 5,000|
|Program Budget|| $4,500,000 cumulative limit per year (personal and corporate)
|Program Administrator||Iowa Department of Revenue|
|References||DSIREDatabase of State Incentives for Renewables and Efficiency|
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 Name||Public Information - Revenue|
|Department||Iowa Department of Revenue|
|Address||Hoover State Office Building|
|Address 2||1305 E. Walnut|
|Place||Des Moines, Iowa|
|Phone 2|| (515) 281-3114
Authorities (Please contact the if there are any file problems.)
|Authority 1:||S.F. 2342|
|Date Enacted|| 2012-05-25
|Authority 2:||701 IAC 42.48|
|Date Enacted|| 2012-10-03
|Authority 3:||S.F. 2340|
|Date Enacted|| 2014-05-30
- Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.
- "Database of State Incentives for Renewables and Efficiency" Cite error: Invalid
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