Iowa residential solar energy incentives

Renewable energy production tax credit:

-There are two separate production tax credit programs for energy generated by eligible wind and renewable energy facilities in the state of Iowa; Iowa Code 476C Tax Credit (wind and other renewable energy facilities) and Iowa Code 476B Tax Credit (wind energy facilities only).
-Eligible energy facilities include solar thermal electric, solar photovoltaics, wind, biomass etc and may only qualify for one of these two tax credits.
-Under the Iowa Code 476C Tax Credit the production tax credit available for energy generated is 1.5 cents per kilowatt-hour and sold by renewable energy facilities.
-Production tax credit may be applied for up to 10 years after facility starts producing energy.

Property tax exemption:

-100% of the value added to a property by a renewable energy system such as solar or wind, is exempt from Iowa State’s property tax.
-This exemption can be used for five full assessment years.
-Eligible systems must be capable of using natural means to collect, store and distribute solar or wind energy.

Wind and solar energy equipment exemption:

-This sales tax exemption is for the total cost of a renewable solar or wind energy system including installation.

Alternate energy revolving loan program:

-This program provides loans for those who wish to build renewable energy production facilities in Iowa.
-Funding is provided by Iowa state investor-owned utilities and administered by the Iowa Energy Center.
-Eligible renewable energy technologies include solar, wind, biomass and hydro. -The loan is divided into two parts. 50% of the loan is provided by the alternate energy revolving loan program and is set at 0% interest. The remainder of the loan is provided by a lender at a varied rate.
-Qualified applicants will receive one loan and are given a maximum 20 year payback option.

Farmer’s Electric Cooperative – Renewable energy rebates – Kalona:

-This rebate is offered by Farmer’s Electric Cooperative to customers who install solar photovoltaic and wind systems.
-The rebate amount is $1,000 per peak kilowatt.
-Maximum rebate is $5,000 per site.
-Equipment must be new and installed for permanent use.

Independence Light and Power – Renewable energy rebates:

-Independence Light and Power provides rebates to customers within their service territory who install renewable energy systems.
-Qualifying systems include; solar photovoltaics, solar thermal, wind energy systems and solar water heating systems.
-Rebates vary upon the type of system installed.

Preston Municipal Electric Utility – Renewable energy rebates:

-Preston Municipal Electric provides rebates to customers within their service territory who install renewable energy systems.
-Qualifying systems include; solar photovoltaics, solar thermal, wind energy systems and solar water heating systems.
-Rebates vary upon the type of system installed.

Residential renewable energy tax credit:

-This personal tax credit allows the taxpayer to claim a credit of 30% of expenditures including labor costs and installation of qualified residential solar-electric systems, solar water heating systems or fuel cells. Small wind-energy systems and geothermal heat pumps can also be accredited for.
-Solar-electric systems and solar water heaters have a maximum incentive of $2,000 if placed in service before 2009. There is no maximum incentive for systems placed after 2008.
-The excess amount of the federal tax credit may be carried forward to the next taxable year if it exceeds tax liability.
-This can be carried forward until 2016, but after that, it is unknown if the unused credit will be able to be forwarded.

Residential energy conservation subsidy exclusion:

-This is a personal exemption of 100% of energy conservation subsidies provided by public utilities.
-The value of a purchase or installation of any energy conservation measure by a customer such as solar water heat, solar space heat or photovoltaics will not be included in the customer’s gross income.
-Customers of an electric utility company, who participate in the utility’s energy conservation program, may receive a rate reduction of electricity furnished or a nonrefundable credit against the purchase price of the electricity on each monthly electric bill.

Energy-efficient mortgages:

-This is a federal loan program where homeowners can use EEM (energy-efficient mortgages) to finance renewable energy technologies in a home.