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Iowa Solar Energy System Tax Credit – Business
Iowa — state programup to $20,000; credit rate 15% (construction began 2016–2019), 13% (2020), 11% (2021), 0% (2022 or later); rate drops to 5% for property placed in service 2024 or later (for construction begun 2016–2021)
A state tax credit for business solar energy system installations (qualified business energy property) that began construction before January 1, 2022. The credit rate is based on 50% of the applicable federal rate under IRC Section 48, capped at $20,000. Applications are due May 1 for installations completed by December 31 of the previous year.
Program details
- Type
- tax-credit
- Amount
- up to $20,000; credit rate 15% (construction began 2016–2019), 13% (2020), 11% (2021), 0% (2022 or later); rate drops to 5% for property placed in service 2024 or later (for construction begun 2016–2021)
- Eligibility
- Businesses with solar installations that began construction before January 1, 2022, that meet the criteria for the federal energy efficient property credit under IRC sections 48(a)(2)(A)(i)(II) or 48(a)(2)(A)(i)(III). Installations that begin construction after December 31, 2021 are not eligible. Subject to $5 million aggregate annual award limitation.
- Status
- open
- Administrator
- Iowa Department of Revenue
Source: Iowa — state program. Confirm current terms with the administering agency before applying.