Residential installations are no longer eligible for the Solar Energy System Tax Credit.
Business installations that began construction before January 1, 2022 may qualify for the Solar Energy System Tax Credit. Applications are due May 1 for installations completed by December 31 of the previous year.
Important Update on the Solar Energy System Tax Credit
Legislation (Senate File 2367, Division X) signed by Governor Reynolds on June 17, 2022, modified the Iowa Solar Energy System Tax Credit for residential installations completed prior to the 2022 calendar year. This legislation did two things:
- The legislation allowed the Department to review applications for residential installations that were both completed prior to the 2022 calendar year and previously denied without review due to the expiration of the residential Iowa Solar Energy System Tax Credit. The Department has completed the process of contacting affected applicants and issuing eligible tax credit certificates related to this legislation.
- The legislation re-opened and extended the application deadline for residential installations completed during the 2021 calendar year. Taxpayers who completed a residential solar installation during the 2021 calendar year were eligible to submit an Iowa Solar Energy System Tax Credit application by June 30, 2022.
Residential Solar Energy System Tax Credit applications described above were not subject to the $5 million aggregate annual award limitation under Iowa law. All other installations, including business installations, remain subject to the annual aggregate award limitation.