Denied Solar Tax Credits May See Funding in Iowa Legislature

A recent announcement (simplified) by State Rep. Chuck Isenhart of Dubuque on Solar Tax Credits in Iowa:

“Are you one of the hundreds of homeowners in Iowa who have been told you are not getting the tax credit you were promised when you installed a solar array on your roof by 2021? Well, a sun ray of hope shined in the Capitol on March 8. After several attempts over the past two years to get the State to follow through on its commitments […] the House Ways and Means Committee […] voted to fund the outstanding credits for people on the waiting list. The bill must now be approved by the whole House and then the Senate before it can go to the governor for her signature.”

“In December, the Iowa Department of Revenue issued its annual report on the solar energy system tax credit, which includes both residential and business components. On the residential side, more than 4,600 qualifying installations have been incentivized by the program since 2012, with $114 million in investments. State tax credits covered 12.4 percent of those costs. The number of awarded projects has been rising steadily, from 158 in 2012 to 828 in 2021. Including business projects, which continue to be funded, total investment has been more than $337 million. Dubuque County is among the top five counties for the program, with more than 400 projects. Every county in Iowa has had at least one project. Projects awarded state credits since 2014 have accounted for more than 116 megawatts of new electricity production capacity. (2014 was the first year this information was gathered.) That much solar power means over $1 billion in savings over the lifetime of the systems. This offsets 3.6 million tons of harmful carbon dioxide, equal to planting 86 million trees or removing 647,396 cars from the road for an entire year. Statewide, as of December, 1,409 residential applications averaging more than $3,000 each have been denied because money for the program has “run out” and the program “sunset” in 2021. Most homeowners with projects completed in 2020 and 2021 are sucking eggs. The denied applications represented $4.5 million in credits owed. Applications can continue to be filed until May.”

If you’ve been waiting to receive your tax credit for solar, or if you are interested in getting solar and would have like to have the tax credit remain an option in the future, keep an eye on the Iowa Legislature and contact your representatives about voting in support of this tax credit funding. If the people who are already owed their tax credit cannot receive it due to a supposed lack of funding, the growth of affordable clean energy in Iowa becomes much harder to motivate.