To request a Solar Energy System Tax Credit, you are required to complete an application. The application must be received by May 1 following the year of the installation of the solar energy system or the application will be denied.
The 2020 award cap has been met and the Department is in the process of issuing 2020 awards. The Department is also continuing to review 2020 applications. Once your application is reviewed, it will either be denied or updated to waitlisted status. If your 2020 application is updated to waitlisted status, the earliest you may be awarded a credit is for award year 2021. An application in waitlisted status shall not constitute a promise binding the state; the credit is contingent upon availability of tax credits for that particular year. Tax credit certificates for the 2021 award year will not be issued until after May 1, 2021.
The application for the Iowa credit cannot be made for individuals until the installation of the solar energy system is complete.
Qualifying installations must meet the criteria for the federal residential energy efficient property credit related to solar energy provided in sections 25D(a)(1) and 25D(a)(2) of the Internal Revenue Code. Installations that occur after January 1, 2016 are equal to 50% of the federal credit up to $5,000.
An application for the Iowa credit for businesses cannot be made until the installation of the solar system is complete and the system is placed in service. Qualifying installations must meet the criteria for the federal energy efficient property credit related to solar energy provided in sections 48(a)(3)(A)(i) and 48(a)(3)(A)(ii) of the Internal Revenue Code. Installations that occur after January 1, 2016 are equal to 50% of the federal credit up to $20,000.
*The Department has received a high volume of Solar Energy System Tax Credit applications. The Department has already awarded and issued the 2019 awards. The Department is in the process of awarding and issuing 2020 awards. If your application is not awarded, your application will be considered for an award in 2021 or later. Tax credit awards for the 2021 award year will first be issued after May 1, 2021. Once the 2021 cap is reached, the remaining applications will be placed on the 2022 award waitlist.
The credits will be issued on a first-come, first-served basis until the $5 million cap is reached each year. If the Department receives applications for tax credit awards in excess of the $5 million available in a year, the applications will be prioritized by the date and time your completed application is successfully submitted. To create a completed application to submit, you must have electronic copies of the following required documents:
Although you have the option to save a partially completed application and return to finish it later, a saved application is NOT considered submitted. Failure to submit the application by May 1 following the installation year will result in a denial of the application. However, submission of a completed application at any time before the due date does not guarantee that you will be awarded a Solar Energy System Tax Credit.
Once your application is approved, a tax credit certificate will be mailed to you.