Renewable Energy Production Tax Credit

A producer or purchaser of renewable energy from a facility approved by the Iowa Utilities Board (IUB) is entitled to a tax credit equal to one and one half cents per kilowatt-hour of electricity, or $4.50 per million BTUs of heat, methane gas, or other biogas. The electricity or methane biogas must be sold to an unrelated party. A producer or purchaser can receive the tax credit certificates for a ten year period. Any tax credit in excess of the tax liability can be carried forward for seven years.

To qualify for the credit, a renewable energy facility must be at least 51 percent owned by specifically defined qualifying owners, and must be approved as eligible by the IUB. Furthermore, facilities must be placed into service on or after July 1, 2005, and before January 1, 2015.