Preserving Solar in Iowa

Since 2012, Iowa’s solar tax incentive program has provided critical cost offsets that have enabled homeowners, farmers and businesses to install solar projects across the state. As a result, solar has seen impressive growth in recent years.

Iowa’s solar tax incentive currently offsets up to 15% of the cost of a solar system and provides a 50% match to the 30% federal tax incentive. Combined, the state and federal incentives – which are coupled together – can offset up to 45% of the cost of a solar system. However, the future of this important program is at risk.

Congress recently extended the federal solar tax credit through 2022. As such, Iowa's upfront solar tax credit should have automatically continued in parallel with the federal solar tax credit. However, earlier this session, the Legislature made changes to the Iowa Code that resulted in an unintentional technical error that uncoupled the federal and state solar tax incentives, thus cutting off access to Iowa’s solar tax incentive at the end of 2016. This would put solar out of reach for many Iowans and deal a devastating blow to Iowa’s growing solar market.

Both the House and Senate have an opportunity to fix the error via two bills HSB658 and SSB3190. The Legislature may adjourn this week, so time is of the essence. Contact your legislators today and ask them to support SSB3190 and HSB658 with the committee amendment.

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1. clean energy
2. solar power
3. solar tax credits