(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.
|Incentive Type:||Personal Tax Credit|
|Eligible Renewable/Other Technologies:||Geothermal Heat Pumps|
|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|