Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 501 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-501.27 - 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 corporation 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 of nameplate
				generating capacity. 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, which 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).