Renewable Energy Production Tax Credit (Personal) (Iowa)

This is the approved revision of this page, as well as being the most recent.
Jump to: navigation, search

Summary

Last modified on February 12, 2015.

Financial Incentive Program

Place Iowa

Name Renewable Energy Production Tax Credit (Personal)
Incentive Type Personal Tax Credit
Applicable Sector Commercial, Industrial, Residential, Schools, Rural Electric Cooperative, Agricultural, Institutional
Eligible Technologies Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind, Biomass, Municipal Solid Waste, CHP/Cogeneration, Hydrogen, Anaerobic Digestion, Renewable Fuels
Active Incentive Yes

Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs
Amount 0.015/kWh or 0.01/kWh for 10 years after facility begins producing energy

Carryover Provisions Credits in excess of tax liability in a given year may be carried forward up to 7 years


Eligible System Size Iowa Code 476B: 2 MW – 30 MW generally for applications after March 1, 2008; Schools, Hospitals: Minimum 750 kW for applications after June 30, 2009
Iowa Code 476C: Non-wind facilities may be no more than 60 MW nameplate capacity. Facilities that consume energy on-site must be at least 750 kW nameplate capacity. For both wind and non-wind facilities, an individual facility's capacity eligibility is limited to 2.5 MW per qualifying owner.

Equipment Requirements Facilities must be certified by the Iowa Utilities Board (IUB)
Start Date 2005-06-15
Expiration Date 2017-01-01

















Program Administrator Iowa Utilities Board
Website http://www.state.ia.us/government/com/util/energy/renewable_tax_credits.html
Date added to DSIRE 2005-06-27
Last DSIRE Review 2014-08-25



References DSIREDatabase of State Incentives for Renewables and Efficiency[1]


Summary

In June 2005, Iowa enacted legislation creating two separate production tax credit programs for energy generated by eligible wind and renewable energy facilities. An eligible facility can qualify for only one of the two credits.


Wind and Other Renewable-Energy Facilities Tax Credit (Iowa Code § 476C)


Eligible types of renewable energy under this tax credit include wind, biogas recovery, biomass, methane gas recovery, solar, or “refuse”. The tax credit available to producers or purchasers of these types of renewable energy is in the amount of:


  • $0.015 per kilowatt-hour (kWh) of electricity,
  • $4.50 per million British thermal units (BTUs) of heat for a commercial purpose,
  • $4.50 per million BTUs of biogas or methane gas used to generate electricity, or
  • $1.44 per thousand cubic feet of hydrogen fuel generated by and purchased from an eligible renewable energy facility or used for on-site consumption.

This tax credit may be applied toward the state's personal income tax, business tax, financial institutions tax, or sales and use tax.


To qualify for the credit, a renewable energy facility must be at least 51% owned by specifically defined qualifying owners, be approved as eligible by the Iowa Utilities Board (IUB), and placed into service within 30 months of IUB approval. Furthermore, facilities must be placed into service on or after July 1, 2005, and before January 1, 2017. Renewable energy facilities may use generated renewable energy for on-site consumption and still qualify for the tax credit unless they are smaller than 0.75 megawatts (MW) (see H.F. 672).


The maximum total amount of wind-generating nameplate capacity eligible for this credit is 363 MW. The maximum total eligibility for other renewable technologies is 53 MW, with 10 MW of nameplate capacity reserved for natural gas, methane and landfill gas, or biogas cogeneration facilities incorporated within or associated with an ethanol plant engaged in the sale of ethanol to states to meet a low carbon fuel standard. An individual facility's capacity eligibility is limited to 2.5 MW per qualifying owner, and facility owners may not have an ownership interest in more than two eligible facilities. In addition, for non-wind applications filed on or after July 1, 2011, the total nameplate capacity size of the facility may not exceed 60 MW, and the facility's total capacity eligibility is limited to 10 MW.

After eligibility status is granted, the facility may apply for tax credit certificates over a 10-year period, beginning when the facility initiates energy production. Credits will not be issued for renewable energy produced or purchased for on-site consumption after December 31, 2026. Credit certificates in excess of a taxpayer’s liability for a taxable year may be carried forward for a maximum of seven years. Certificates may be transferred or sold one time to a third party, and transferred certificates may be used against a different type of tax than that noted on the original certificate.


Solar facilities taking a credit under this provision cannot claim a credit under the Solar Energy Systems Tax Credit.


Wind-Energy Facilities Tax Credit (Iowa Code § 476B)


A production tax credit of $0.01 per kWh is available for electricity generated by eligible wind energy facilities, including electricity that is sold or used for on-site consumption. In May 2011, the maximum total program eligibility was reduced from 150 MW to 50 MW.


The tax credit may be applied toward the state's personal income tax, business income tax, financial institutions tax, sales and use tax, or energy replacement generation tax.


To qualify for the credit, a wind energy facility must be approved as eligible by the IUB and placed into service on or after July 1, 2005 but before July 1, 2012. For applications filed on or after March 1, 2008, the total nameplate capacity of the facility cannot be less than 2 MW or greater than 30 MW. Applications from schools, colleges, universities, and hospitals filed on or after July 1, 2009 must have a minimum nameplate capacity of 750 kilowatts (kW). Facilities must be operational within 18 months of IUB approval to maintain eligibility status unless they file for an extension.


There are no specific ownership criteria for individual projects; however, facility owners may not own more than two eligible facilities, and must have an executed power purchase agreement or interconnection agreement (except when the electricity is used for on-site consumption).


Once the IUB determines that a facility is eligible, facility owners may apply for wind energy tax credit certificates over a 10-year period, beginning with the initial production of electricity. Credit certificates in excess of a taxpayer’s liability for a taxable year may be carried forward for a maximum of seven years. Certificates are freely transferable (i.e., they can be transferred more than once), and transferred certificates may be used against a different type of tax than that noted on the original tax credit certificate.


Incentive Contact

Contact Name Brenda Biddle
Department Iowa Utilities Board

Address 1375 E. Court Avenue

Place Des Moines, Iowa
Zip/Postal Code 50319
Phone (515) 725-7305


Email Brenda.biddle@iub.iowa.gov
Website http://www.state.ia.us/iub
Contact Name Public Information - Revenue
Department Iowa Department of Revenue

Address Hoover State Office Building
Address 2 1305 E. Walnut
Place Des Moines, Iowa
Zip/Postal Code 50319
Phone (800) 367-3388
Phone 2 (515) 281-3114


Website http://www.iowa.gov/tax/index.html
Contact Name Ellen Shaw
Department Iowa Utilities Board

Address 1375 E. Court Avenue

Place Des Moines, Iowa
Zip/Postal Code 50319
Phone (515) 725-7348


Email ellen.shaw@iub.iowa.gov
Website http://www.state.ia.us/iub

Authorities (Please contact the if there are any file problems.)

Authority 1: IA Code § 476C
Date Effective 2005-06-15
Date Enacted 6/15/2005 (subsequently amended)


Authority 2: IA Code § 476B
Date Effective 2005-06-15
Date Enacted 6/15/2005 (subsequently amended)


Authority 3: IAC 199-15.18 et seq.




Authority 4: S.F. 2343
Date Effective 2014-07-01
Date Enacted 2014-05-30
















  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]

References

  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency"