How do I calculate the Iowa Geothermal Heat Pump Tax Credit (installed and awarded after tax year 2018 or installed prior to 2017)?
The Geothermal Heat Pump Tax Credit is not available for residential installations completed after December 31, 2023.
Effective for installations between January 1, 2012 and December 31, 2016, and for installations between January 1, 2019 and December 31, 2023, a Geothermal Heat Pump Tax Credit was available for individual income taxpayers equal to 20% of the federal residential energy efficient property tax credit allowed for geothermal heat pumps provided in section 25D(a)(5) of the Internal Revenue Code for residential property located in Iowa.
Beginning with 2019 installations, the geothermal tax credit is capped at $1 million total credits per year and is subject to award by the Iowa Department of Revenue. Tax credit applications must have been submitted to the Iowa Department of Revenue by May 1, 2024 or the application will be denied.
For installations completed between 2012 and 2016, no certificate number is provided or needed. For installations completed between 2019 and 2023, the Iowa Department of Revenue issued tax credit certificates to approved applicants which will have a unique certificate number.
Any tax credit in excess of tax liability can be carried forward and applied against tax liability for the following ten years or until depleted, whichever is earlier.
Effective for installations between January 1, 2012 and December 31, 2016, and for installations between January 1, 2019 and December 31, 2023, a Geothermal Heat Pump Tax Credit was available for individual income taxpayers equal to 20% of the federal residential energy efficient property tax credit allowed for geothermal heat pumps provided in section 25D(a)(5) of the Internal Revenue Code for residential property located in Iowa.
Beginning with 2019 installations, the geothermal tax credit is capped at $1 million total credits per year and is subject to award by the Iowa Department of Revenue. Tax credit applications must have been submitted to the Iowa Department of Revenue by May 1, 2024 or the application will be denied.
For installations completed between 2012 and 2016, no certificate number is provided or needed. For installations completed between 2019 and 2023, the Iowa Department of Revenue issued tax credit certificates to approved applicants which will have a unique certificate number.
Any tax credit in excess of tax liability can be carried forward and applied against tax liability for the following ten years or until depleted, whichever is earlier.
