Solar Energy Systems Tax Credit (Corporate)

Program Solar Energy Systems Tax Credit (Corporate)
Category Financial Incentive
Implementing sector State
Last Update
State Iowa
Administrator Iowa Department of Revenue
Website http://www.iowa.gov/tax/business/solarcredits.html
Budget $5,000,000 cumulative limit per year (corporate and personal)
Start Date
Technologies Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat, Solar Photovoltaics

Iowa offers a 15% corporate tax credit for solar energy systems. Specifically, the law allows individuals and corporations to claim a state tax credit worth 50% of the Federal Investment Tax Credit, which is set at 30% of installed costs (50% * 30% = 15%). 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. 

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 personal tax credit is limited to $5,000,000 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 to reserve the tax credit. The application for the Iowa credit cannot be made for individuals until the installation of the solar energy system is complete. An application for the Iowa credit for businesses cannot be made until the installation of the solar system is complete and the system is placed in service. 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.

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