Solar Energy System Tax Credits

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2012 Solar Energy System Tax Credits Awarded to Date (updated 04/15/14):

$ 647,804

2013 Solar Energy System Tax Credits Awarded to Date (updated 04/15/14):

The cap has been met.

2014 Solar Energy System Tax Credits Awarded to Date (updated 04/15/14):

$ 953,088

CHANGES TO SOLAR ENERGY SYSTEMS TAX CREDIT APPLICATIONS

The Department is informing taxpayers of the proper procedure and changes to request an Iowa solar energy systems tax credit.

An Iowa Solar Energy Systems Tax Credit is available for individuals equal to 50% of the federal residential energy credit provided in section 25D of the Internal Revenue Code.  An Iowa Solar Energy Systems Tax Credit is also available for businesses equal to 50% of the federal energy credit provided in Section 48 of the Internal Revenue Code.

The aggregate amount of credits awarded per calendar year is capped at $1.5 million. The credits will be issued on a first-come, first-served basis until the $1.5 million cap is reached each year. If the Department receives applications for tax credit awards in excess of the $1.5 million available in a year, the applications will be prioritized by the date received.

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.  This is consistent with the determination of the year in which the federal solar energy credits can be claimed.   Business applications will be required to submit a completion sheet from the local utility company that verifies that the system has been placed in service.

The Department has developed separate applications for individuals and businesses for the Iowa Solar Energy Systems Tax Credits. 

The Department awards the tax credit once the following information is provided:

  • The completed application

  • A copy of the invoice or other documentation showing the cost of the installed system

  • The date the installation was completed

  • If you are a business applicant, the date the system was placed in service and the utility completion sheet from your utility company

  • A document verifying that the system qualifies for the federal tax credit

  • The amount of the Iowa tax credit to be reserved

Please complete an application for the year the installation was completed.

2013 Solar Energy System Tax Credit Application for an Individual

2013 Solar Energy System Tax Credit Application for a Business

2014 Solar Energy System Tax Credit Application for an Individual

2014 Solar Energy System Tax Credit Application for a Business

Use the form below to amend a previous application.

Amended Solar Energy System Tax Credit Application

Taxpayers should send the information to the Department at this address:

Iowa Department of Revenue
Tax Research and Program Analysis Section
P.O. Box 14461
Des Moines, IA 50306-3461

Once the amount of the tax credit is verified, the Department will send a letter to the taxpayer verifying the amount of the tax credit and providing a certificate number. Taxpayers can then claim the credit on an Iowa tax return by including the certificate number on form IA 148, Tax Credit Schedule.