Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 304 - Adjustments to Computed Tax and Tax Credits › Rule 701-304.28 - Renewable Energy Tax Credit

Current through Register Vol. 47, No. 3, July 24, 2024
Effective for tax years beginning on or after July 1, 2006, a
				  purchaser or producer of renewable energy whose facility has been approved by
				  the Iowa utilities board may claim a renewable energy tax credit for qualified
				  renewable energy against a taxpayer's Iowa individual income tax
				  liability.
(1)
Eligible
				facility application process.
a.
Eligible facility application process, generally.
A producer
				or purchaser of a renewable energy facility must be approved as an eligible
				renewable energy facility by the Iowa utilities board in order to qualify for
				the renewable energy tax credit. The eligible renewable energy facility can be
				a wind energy conversion facility, biogas recovery facility, biomass conversion
				facility, methane gas recovery facility, solar energy conversion facility or
				refuse conversion facility. The facility must be located in Iowa and placed in
				service on or after July 1, 2005, and before January 1, 2018. The
				administrative rules for the certification of eligibility for the renewable
				energy tax credit for the Iowa utilities board may be found in rule
				199-15.19(476C).
b.
Limitations on maximum energy production and nameplate generating
				capacity.
The maximum amount of nameplate generating capacity of all
				wind energy conversion facilities cannot exceed 363 megawatts. For tax years
				beginning prior to January 1, 2015, the maximum amount of energy production
				capacity for biogas recovery facilities, biomass conversion facilities, methane
				gas recovery facilities, solar energy conversion facilities and refuse
				conversion facilities cannot exceed a combined output of 53 megawatts of
				nameplate generating capacity and 167 billion British thermal units of heat for
				a commercial purpose. For tax years beginning on or after January 1, 2015, the
				maximum amount of energy production for biogas recovery facilities, biomass
				conversion facilities, methane gas recovery facilities, solar energy conversion
				facilities and refuse conversion facilities cannot exceed a combined output of
				63 megawatts of nameplate generating capacity and, annually, 167 billion
				British thermal units of heat for a commercial purpose. A facility that is not
				operational within 30 months after issuance of approval from the utilities
				board will no longer be considered a qualified facility. However, if the
				facility is a wind energy conversion property and is not operational within 18
				months due to the unavailability of necessary equipment, the facility may apply
				for a 12-month extension of the 30-month limit. Extensions can be renewed for
				succeeding 12-month periods if the facility applies for the extension prior to
				expiration of the current extension period. A producer of renewable energy, who
				is the person who owns the renewable energy facility, cannot own more than two
				eligible renewable energy facilities. A person that has an equity interest
				equal to or greater than 51 percent in an eligible renewable energy facility
				cannot have an equity interest greater than 10 percent in any other renewable
				energy facility. However, for tax years beginning on or after January 1, 2015,
				an entity described in Iowa Code section
				476C.1(6)
"b"
(4) or (5) may have an ownership interest in up to four
				solar energy conversion facilities described in Iowa Code section
				476C.3(4)
"b"
(3).