How do I calculate the Iowa Solar Energy System Tax Credit?
The Solar Energy System Tax Credit is not available for residential installations completed after Dec 31, 2021.
A Solar Energy System Tax Credit was available for the installation costs of solar energy systems in Iowa. In order to claim the tax credit, an application had to be completed by May 1, 2022 and a tax credit certificate received from the Iowa Department of Revenue.
For business installations, the Solar Energy System Tax Credit is equal to 50% of the federal energy property tax credit related to solar energy equipment in section 48(a)(2)(A)(i)(II) of the Internal Revenue Code. The Iowa tax credit for business installations cannot exceed $20,000. The federal business credit, and thus the Iowa business credit, is available for property if construction begins on the property before January 1, 2022. The federal business credit is claimed on federal form 3468, investment credit.
When the tax credit is awarded by the Iowa Department of Revenue, the taxpayer receives a tax credit certificate number that must be reported on the IA 148 Tax Credits Schedule when the tax credit is claimed using tax credit code 22. Any tax credit in excess of tax liability may be carried forward and applied against tax liability for the following ten years or until depleted, whichever is earlier. If the tax credit is awarded to a partnership, limited liability company, S corporation, estate, or trust, the tax credit shall be claimed by the individual based on the pro rata share of the income of the entity.
Taxpayers who claim this credit are not eligible to receive an award of a Renewable Energy Tax Credit for solar energy production under Iowa Code chapter 476C.
A Solar Energy System Tax Credit was available for the installation costs of solar energy systems in Iowa. In order to claim the tax credit, an application had to be completed by May 1, 2022 and a tax credit certificate received from the Iowa Department of Revenue.
For business installations, the Solar Energy System Tax Credit is equal to 50% of the federal energy property tax credit related to solar energy equipment in section 48(a)(2)(A)(i)(II) of the Internal Revenue Code. The Iowa tax credit for business installations cannot exceed $20,000. The federal business credit, and thus the Iowa business credit, is available for property if construction begins on the property before January 1, 2022. The federal business credit is claimed on federal form 3468, investment credit.
When the tax credit is awarded by the Iowa Department of Revenue, the taxpayer receives a tax credit certificate number that must be reported on the IA 148 Tax Credits Schedule when the tax credit is claimed using tax credit code 22. Any tax credit in excess of tax liability may be carried forward and applied against tax liability for the following ten years or until depleted, whichever is earlier. If the tax credit is awarded to a partnership, limited liability company, S corporation, estate, or trust, the tax credit shall be claimed by the individual based on the pro rata share of the income of the entity.
Taxpayers who claim this credit are not eligible to receive an award of a Renewable Energy Tax Credit for solar energy production under Iowa Code chapter 476C.
