How do I calculate the Iowa Wind Energy Production Tax Credit?
A Wind Energy Production Tax Credit is equal to one cent per kilowatt-hours of electricity sold or used for on-site consumption by a wind energy production facility approved by the Iowa Utilities Board. Approved facilities must have been placed in service on or after July 1, 2005, but before July 1, 2012, to qualify for the tax credit and the aggregate of approved facilities are limited to 50 megawatts of nameplate capacity.
For applications filed on or after March 1, 2008, the facility must also consist of one or more wind turbines connected to a common gathering line which has a combined nameplate capacity of no less than two megawatts and no more than 30 megawatts.
When the tax credit is awarded by the Iowa Department of Revenue, the taxpayer receives a tax credit certificate number. The Wind Energy Production Tax Credit is transferable.
Any tax credit in excess of tax liability can be carried forward and applied against tax liability for the following seven years or until depleted, whichever is earlier. In cases where the applicant is a partnership, limited liability company, S corporation, estate, trust, or other reporting entity which elects to have income taxed directly to an individual and the applicant is also eligible to receive renewable electricity production tax credits, the credit does not have to be based upon the individual's pro rata share of earnings from the entity.
For applications filed on or after March 1, 2008, the facility must also consist of one or more wind turbines connected to a common gathering line which has a combined nameplate capacity of no less than two megawatts and no more than 30 megawatts.
When the tax credit is awarded by the Iowa Department of Revenue, the taxpayer receives a tax credit certificate number. The Wind Energy Production Tax Credit is transferable.
Any tax credit in excess of tax liability can be carried forward and applied against tax liability for the following seven years or until depleted, whichever is earlier. In cases where the applicant is a partnership, limited liability company, S corporation, estate, trust, or other reporting entity which elects to have income taxed directly to an individual and the applicant is also eligible to receive renewable electricity production tax credits, the credit does not have to be based upon the individual's pro rata share of earnings from the entity.
