Iowa’s tax credit for installing solar-energy systems is no longer in place, but Iowa Democratic lawmakers are working to renew the credit this session.
The Iowa Department of Revenue reports more than 1,400 applications were ultimately denied even though property owners already made the substantial investment, hoping this would be offset by the credit. Currently, the State of Iowa is sitting on a $1.2 billion surplus.
Before it expired at the end of 2021, the credit for installing a residential solar system averaged $3,200, with the average installation cost at more than $25,000. Over the last 10 years, the state awarded $41.6 million in credits. There were 4,608 residential installations and 2,666 business installations.
Democratic lawmakers tried to extend the solar tax credit last year. During debate about extending the credit, Republican lawmakers suggested this did not align with the need to implement broader tax relief.
According to the Iowa Solar Energy Trade Association, across the state, there are 6,213 active solar projects and counting. In addition, all 99 of Iowa’s counties have seen investments in solar, as it benefits both rural and urban areas.