A Joyful & Urgent Action Alert – 2020 & 2021 Solar Installs are eligible for a State Tax Credit

Hip! Hip! Hooray! for Energy Democracy! In the final moments of the 2022 Iowa legislative session, the Iowa Legislature acted to fund the Iowa solar tax credit waitlist. 

All residential solar owners who installed a solar system before December 31, 2021, are eligible for a State of Iowa tax credit. The deadline to apply is Jun 30, 2022.   Eligible solar owners who did not apply before December 31, 2021, should do so immediately! Iowa Solar Tax Credit Application – Iowa Department of Revenue. According to the bill, those who already applied and received a denial letter should be automatically reconsidered, which is excerpted here (found in Division X, p28). 

Since 2021 when the Iowa Legislature voted not to extend the Iowa solar tax credit, the Clean Energy Districts of Iowa (CEDI) has been working on the waitlist issue. The Iowa credit had an annual funding cap and was oversubscribed. Without further funding, thousands of Iowa solar homeowners were slated to lose an average of over $3,000 in promised tax credits. 

Thanks to the advocacy efforts of so many of you, the leadership of Representative Bergan, Representative Isenhart, and Senator Klimesh and their colleagues, and the work of partners, including the Iowa Solar Energy Trade Association, the funding was included at the very last minute in the revenue bill SF2367/H8382 (Division X, p28).

To recap: Clayton County, new solar owners be sure to act before Jun 30, 2022 to claim your promised state tax credit.