Geothermal Heat Pump Tax Credit

Program Geothermal Heat Pump Tax Credit
Category Financial Incentive
Implementing sector State
Last Update
State Iowa
Administrator Iowa Department of Revenue
Website https://tax.iowa.gov/legislative-summaries/geothermal-heat-pump-income-tax-cred…
Start Date
Sectors Residential

In May 2012 Iowa enacted a series of tax incentives for residential geothermal incentives. Geothermal heat pumps installed on residential property in Iowa are eligible for a tax credit equal to 20% of the Federal Tax Credit. Because the federal tax credit is set at 30%, the state tax credit is equal to 6% of the system cost . Any credit in excess of the tax payer's liability may be carried forward for up to 10 years. The credit may be applied retroactively to systems installed beginning January 1, 2012, and expires after December 31, 2016. The tax credit must be claimed using Form IA 148, and must be submitted with Federal Form 5695.

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