Iowa Code Chapter 476B establishes a state production tax credit of 1.0¢ per kilowatt-hour (kWh) for energy generated by qualified wind energy facilities and sold or consumed on-site. The total nameplate generating capacity of all facilities qualified for the tax credits is 50 megawatts (MW). The program capacity limit has been reached. The tax credit certificates are transferrable and may be applied toward the state's individual income, corporation income, franchise, insurance program, sales and use, or replacement tax.
Iowa Code Chapter 476C establishes a state production tax credit of 1.5¢ per kWh for energy sold by eligible wind energy facilities and certain non-wind renewable energy facilities. For eligibility applications filed after July 1, 2011, tax credits are also available for on-site consumption of renewable energy from facilities with a nameplate capacity of not less than 750 kW.
The total nameplate generating capacity of all facilities eligible for the 476C wind tax credits cannot exceed 363 MW. The total nameplate generating capacity of all facilities eligible for the 476C non-wind tax credits cannot exceed 63 MW. Of the 63 MW total, 10 MW are reserved for solar facilities with a generating capacity of one and on-half MW or less that are owned or contracted for by a municipal utility, a rural electric cooperative, or an investor-owned utility.
For non-wind facilities seeking eligibility on or after July 1, 2011, applications are limited to facilities with a nameplate capacity of 60 MW or less, and total eligibility for each non-wind facility is limited to 10 MW. The tax credit certificates are transferrable and may be applied toward the state's individual income, corporate income, franchise, insurance premium, sales and use, or replacement tax.
To qualify for the tax credits
Wind and other renewable energy facilities must first receive a preliminary eligibility determination from the Iowa Utilities Board. The information required in eligibility applications is available for viewing or download. Eligibility applications must be filed using the Board’s Electronic Filing System. The Board's rule at 199 IAC 15.19 describes the 476C eligibility application process.
An updated list of facilities granted preliminary eligibility determination or pending review by the Board is available for viewing or download in MS Excel format.
Following a preliminary eligibility determination, owners of eligible facilities may apply for tax credit certificates over a 10-year period, which begins with the initial sale or on-site consumption of renewable energy produced by the eligible facility. Tax credit applications are processed via the web-based (Tax) Credit Award, Claim, and Transfer Administration System (CACTAS).
Applicants can access the CACTAS system using the following web address https://taxcredit.iowa.gov/home. A frequently asked questions document about the application process is available at https://rew-taxcredit.iowa.gov/Faq.
If you have any questions, please contact the Iowa Utilities Board by email to firstname.lastname@example.org or by telephone at 515.725.7300.