10% Iowa Geothermal Tax Credit
On April 29, 2016 the Iowa Legislature passed HF 2468, which provides for a 10 percent standalone tax credit for residential installations of geothermal heat pumps (GHP). Under the legislation, a “qualified geothermal heat pump property” means any equipment that uses the ground or groundwater as a thermal energy source to heat the dwelling unit of the taxpayer or as a thermal energy sink to cool such dwelling unit, which equipment meets the requirements of the federal energy star program in effect at the time that the expenditure for such equipment is made.
The 10% Iowa geothermal tax credit takes effect January 1, 2017. The measure is not capped, and does not offer a tax credit for commercial installations.
Solar System Tax Credits
Federal and state tax credits are currently available for homeowners and businesses to promote energy efficiency, encourage the use of renewable energy sources, and support efforts to conserve energy and lessen pollution.
Currently, Iowa’s upfront solar tax credit provides a match of the federal incentive. Starting in 2016, the match is 50%. The combined Iowa and federal incentives total 45% which offsets nearly half of the upfront costs associated with a new solar system. To request a Solar Energy System Tax Credit, you are required to complete an application. The application requesting an award for installations on or after January 1, 2016 must be received by May 1 following the year of the installation. Some restrictions apply.
Depending on where you live, you may qualify for energy rebates through your utility company when you purchase a high-efficiency home comfort system. So, on top of the money you save in the form of federal tax credits, you can potentially pocket a return from your local electric utility provider.