Iowa Commercial Solar Incentives
Century Electric is dedicated to establishing a solid foundation of which solar systems can be implemented commercially in a practical manner such that your company can gain access to the social prestige and economic security that follows. Our qualified personnel have compiled a set of applicable incentives that will maximize the return on the investment while simultaneously providing a minimal effect on your bottom line.
Business Energy Investment Tax Credit (ITC)
The federal government has established a tax credit, synonymous to that of the residential renewable tax credits, for commercial application to account for 30% of the total system and installation cost of a solar array.
Qualifications
Qualifications
- System must be placed in service before December 31, 2019
- The company must be located in the United States
- The company must pay taxes
- The company must not furnish/be used for lodging (exceptions being hotels and motels)
Modified Accelerated Cost-Recovery System (MACRS)
This federal program allows companies to recover renewable investments through depreciation deductions with an additional 50% first year bonus depreciation for systems placed in service before January 1, 2018.
Qualifications
Qualifications
- Company must own solar system (non-lease)
- Must retain records detailing business, investment, & personal use of system
Rural Energy for America Program Grants (REAP)
The USDA developed this program to provide financial assistance for the purchase and installation of solar systems. Qualifying locations may receive up to 25% of the proposed system cost; $2,500 minimum, $500,000 maximum.
Qualifications
Qualifications
- Must be a rural small business located in a rural area
- Must be an agricultural producer with 50% of gross income from agricultural operations (rural/non-rural)
- Must maintain an active System for Awards Management (SAM) registration
- Must own system and system location
Solar Energy Property Tax Exemption
The Iowa Department of Revenue, under Iowa Code §441.21(8)(b), mandates that the value of a solar system be excluded from the taxable property value for a period of 5 years.
Qualifications
Primary purpose of the solar facility is to store or provide for on-site electrical demand
Qualifications
Primary purpose of the solar facility is to store or provide for on-site electrical demand
Iowa State Tax Credits
Parallel to the business ITC, Iowa has established their own credits that allow companies to acquire additional savings equal to 50% of the federal tax credit up to $20,000.
(30% × 50% = 15% of the total system cost)
Qualifications
OR
Renewable Energy Certificates (RECs)*
The state of Iowa has implemented an alternative program that provides companies the opportunity to sell the electricity produced by their solar system at a rate of $.015 per kWh for a ten-year period.
Qualifications
*In accordance with Iowa Code §476C.2(3), “any taxpayer eligible to claim a renewable energy tax certificate credit shall not be eligible to claim an Iowa state tax credit”
**For eligibility purposes, the allowable system capacity is no more than 63 MW, however, the maximum amount applicable for the procurement of renewable energy certificates is limited to 10 MW
***Upon election to sell all produced electricity from the solar facility, the company forfeits the right to make the claim that they USE renewable energy. The company may, however, make the claim that they PRODUCE renewable energy.
****In accordance with Iowa Code §476C.1(7)(e), to remain eligible to claim a renewable energy certificate, upon election to consume all produced electricity from the solar facility, the solar system capacity must be no less than 750kW of nameplate generating capacity
(30% × 50% = 15% of the total system cost)
Qualifications
- Must meet requirements for the ITC
- Installation and company location must reside in the state of Iowa
OR
Renewable Energy Certificates (RECs)*
The state of Iowa has implemented an alternative program that provides companies the opportunity to sell the electricity produced by their solar system at a rate of $.015 per kWh for a ten-year period.
Qualifications
- System must be placed in service before January 1, 2018
- Installation location and the company must reside in Iowa
- System capacity must not exceed 63 MW**
- Solar facility must be 51% owned by specifically defined qualifying owners
- The company must elect to either: sell all their electricity produced*** or consume all their electricity produced****
*In accordance with Iowa Code §476C.2(3), “any taxpayer eligible to claim a renewable energy tax certificate credit shall not be eligible to claim an Iowa state tax credit”
**For eligibility purposes, the allowable system capacity is no more than 63 MW, however, the maximum amount applicable for the procurement of renewable energy certificates is limited to 10 MW
***Upon election to sell all produced electricity from the solar facility, the company forfeits the right to make the claim that they USE renewable energy. The company may, however, make the claim that they PRODUCE renewable energy.
****In accordance with Iowa Code §476C.1(7)(e), to remain eligible to claim a renewable energy certificate, upon election to consume all produced electricity from the solar facility, the solar system capacity must be no less than 750kW of nameplate generating capacity
Need more reasons to install solar panels? Check out this article by The Verge.com:
