**Residential applications are due by June 30, 2022, for residential installations completed during the 2021 calendar year. All other 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, modifies the Iowa Solar Energy System Tax Credit for residential installations completed prior to the 2022 calendar year. This legislation does two things:
- The legislation allows 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 begun the process of contacting affected applicants and will place these applications back under review. Each application will be reviewed in full to determine whether it qualifies for an Iowa Solar Energy System Tax Credit award. If your application was previously denied because it expired under Iowa law, you do not need to reapply. Reapplying may cause additional delays in the review of your application. If additional information is needed, you will be contacted by the Department. If your application is approved, you will receive a tax credit certificate that may be claimed on your 2022 Iowa income tax return (i.e. the return that will be filed in 2023).
- The legislation re-opens and extends the application deadline for residential installations completed during the 2021 calendar year. Taxpayers who completed a residential solar installation during the 2021 calendar year who have not yet applied for the Iowa Solar Energy System Tax Credit must submit an application by June 30, 2022, in order to have their application considered. Applications must be submitted online within the Tax Credit Award, Claim & Transfer Administration System (CACTAS). Instructions are available below. The Department will review valid and timely applications in the order they are received. The Department may contact you for additional information. If your application is approved, you will receive a tax credit certificate that may be claimed on your 2022 Iowa income tax return (i.e. the return that will be filed in 2023).
Residential Solar Energy System Tax Credit applications described above are 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.