The Iowa Solar Energy System Tax Credit is a nonrefundable Iowa income tax credit available only to taxpayers who were issued a Solar Energy System Tax Credit certificate under the former Iowa Solar Energy System Tax Credit program. No new credits are issued under this program; however, taxpayers with a valid credit certificate may continue to claim the credit in accordance with Iowa law and the applicable credit provisions.
Repealed: In order to claim the tax credit, an application had to be completed by May 1, 2022 and a tax credit certificate had to be received from the Iowa Department of Revenue.
Eligibility and Claiming the Credit
- You must have a valid Solar Energy System Tax Credit certificate issued under the former Iowa Solar Energy System Tax Credit program.
- Claim the credit on the IA 148 Iowa Tax Credits Schedule using the designated line for the Solar Energy System Tax Credit.
- Enter the tax credit certificate number when claiming the credit, as required by the IA 148 instructions.
- Nonresidents and part-year residents must calculate the allowable credit using the applicable Iowa apportionment rules provided in the IA 1040 Expanded Instructions.
Important Notes
- The credit is nonrefundable and may reduce your Iowa income tax liability to zero, but any excess credit is not refunded.
- The credit is available only for previously issued tax credit certificates under the former Iowa Solar Energy System Tax Credit program.
- Taxpayers should retain their tax credit certificate and any supporting documentation in case the Iowa Department of Revenue requests verification of the credit claimed.
Reporting Requirements
Report the credit on the IA 148 Iowa Tax Credits Schedule and include the schedule with your Iowa income tax return. If applicable, complete any required worksheets or schedules referenced in the IA 1040 Expanded Instructions when calculating the allowable credit.
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Disclaimer: Always verify details with the official Federal or State Department of Revenue Forms and Instructions. For complex situations, consult a CPA or tax attorney.