(Iowa) Geothermal Tax Credit


In May 2012, Iowa enacted a series of tax incentives for residential geothermal incentives. Geothermal heat pumps installed on residential property in Iowa are eligible for a tax credit equal to 20% of the Federal Tax Credit. Because the federal tax credit is set at 30%, the state tax credit is equal to 6% of the system cost.

Any credit in excess of the tax payer’s liability may be carried forward for up to 10 years. The credit may be applied retroactively to systems installed beginning January 1, 2012. The Iowa Department of Revenue must issue rules for implementing the credit.

Program Overview:
State: Iowa
Incentive Type: Personal Tax Credit
Eligible Renewable/Other Technologies: Geothermal Heat Pumps
Applicable Sectors: Residential
Amount: 20% of the Federal Tax Credit, equivalent to 6% of the system cost
Carryover Provisions: Excess credits may be carried over for up to 10 years
Start Date: 01/01/2012
Authority 1:
Date Enacted:
Date Effective:
S.F. 2342

Public Information – Revenue
Iowa Department of Revenue
Hoover State Office Building
1305 E. Walnut
Des Moines, IA 50319
Phone: (800) 367-3388
Phone 2: (515) 281-3114
Fax: (515) 242-6487
Web Site: http://www.iowa.gov/tax/index.html

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