Iowa Adopts Amendments to Align State’s Solar Energy System Tax Credits with Federal Credits

Thursday, April 22, 2021 - 8:15am

The Iowa Department of Revenue adopted amendments to the state’s solar energy system tax credits, effective May 26. The rules pertain to the relationship between Iowa’s solar energy system tax credit and federal energy credits. They also include a table of Iowa tax credit rates based on the solar property involved, the calendar year that construction starts and when the property is placed in service. The rules also provide for other issues, including the recomputation of the credit for solar installations that are used for both residential and business purposes.

The Novogradac 2021 Spring Renewable Energy and Environmental Tax Credits Virtual Conference will include discussions of local incentives. The April 27 Tax Credit Tuesday podcast will focus on the interaction of state and local taxes with renewable energy.