Geothermal tax credits

Residential Renewable Energy Tax Credit

Geothermal currently qualifies for a 30% Federal Tax Credit on residential installations that are owned by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is at a new home, the “placed in service” date is the date of occupancy by the homeowner. Expenditures include labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year.

 

  • 30% for systems placed in service by 12/31/2019
  • 26% for systems placed in service after 12/31/2019 and before 01/01/2021
  • 22% for systems placed in service after 12/31/2020 and before 01/01/2022
  • There is no maximum credit for systems placed in service after 2008.
  • Systems must be placed in service on or after 1/1/08, and on or before 12/31/21.
  • The geothermal heat pump must meet federal Energy Star criteria.
  • System does not have to be installed in the taxpayer’s principal residence.
Business Energy Investment Tax Credit

The credit is equal to 10% of expenditures, with no maximum credit limit stated. Eligible geothermal energy property includes geothermal heat pumps and equipment used to produce, distribute or use energy derived from a geothermal deposit.  For geothermal heat pumps, this credit applies to eligible property placed in service after October 3, 2008.

 

  • 10% for systems placed in service 12/31/2021

 

Iowa Solar Tax Credits 
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 solar tax credit provides a 50%* match of the federal incentive on installations that occur after January 1, 2016. The combined Iowa and Federal incentives total 45% which offsets nearly half of the upfront costs associated with a new solar system.  Under current legislation, the Federal tax credit is scheduled to start sunsetting next year.  2019 will be the last year to take advantage of the combined 45% Federal and Iowa State Solar Investment Tax Credit (ITC).

 

  • 30% for systems placed in service by 12/31/2019
  • 26% for systems placed in service after 12/31/2019 and before 01/01/2021
  • 22% for systems placed in service after 12/31/2020 and before 01/01/2022
  • There is no maximum credit for systems placed in service after 2008.
  • Systems must be placed in service on or after 1/1/06, and on or before 12/31/21.
  • System does not have to be installed in the taxpayer’s principal residence.
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    * Residential installations are equal to 50% of the Federal credit up to $5,000.  Commercial installations are equal to 50% of the Federal credit up to $20,000.

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.  

GET MORE DETAILS HERE.


 
Iowa Geothermal Utility Rebates
Utility Rebates

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.