State Solar Tax Credit Danger: Apply NOW
If you have installed a solar system recently but not yet sent in your state tax credit application, we suggest you do so immediately. First, talk to your installer to check whether they submitted it for you. If they did not, visit this Iowa Department of Revenue page to learn more.
If your system became operational in 2016, you must apply for the tax credit by May 1. There are two IMPORTANT reasons not to wait.:
- The credit is capped at $5 million annually, is already over 95% claimed for 2016, and many 2016 installations have likely not yet applied. Once the cap is reached, your application will be held for the following tax year.
- The Iowa Legislature will be cutting roughly $100 million from the current budget year, and possibly more going forward. The credits could be eliminated, but if you have your paperwork submitted at least you have a chance of receiving the credit.