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Combined Heat and Power Partnership

Renewable Energy Production Tax Credit (Personal)

Date Last Updated11/16/2012
Incentive TypeTax
State/FederalIA
Incentive Administrator/Contact OfficeIowa Utilities Board
Incentive Initiation Date6/15/2005
Incentive Size and Funding SourceThe State of Iowa offers a production tax credit of $0.015 per kWh for energy generated by eligible renewable energy facilities. In addition, Iowa offers $4.50 per million BTUs of biogas used to generate either electricity or heat for commercial purposes, or $1.44 per thousand cubic feet of hydrogen fuel generated and sold by an eligible renewable energy facility. These credits may be applied toward the state's personal income tax, business tax, financial institutions tax or sales and use tax and last for a 10-year period.
Eligible RecipientA renewable energy facility must must be approved as eligible by the IUB and be at least 51% owned by one or more or any combination of the organization types listed in the "Other Selected Eligibility Criteria" section.
Eligible FuelBiogas; Woody Biomass; Hydrogen; Landfill Gas; Other
Eligible Project Size (MW)The maximum total eligibility for other renewable technologies (non-wind) is 53 MW. Non-wind facilities may be no more than 60 MW nameplate capacity. Facilities that consume energy on-site must be at least 0.75 MW nameplate capacity. For both wind and non-wind facilities, an individual facility's capacity eligibility is limited to 2.5 MW per qualifying owner.
Minimum Efficiency Required (%)Does Not Specify
Other Selected Eligibility Criteria
  • A resident of Iowa.
  • An authorized farm corporation, authorized limited liability company or authorized trust, as defined in Iowa Code section 9H.1.
  • A family farm corporation, family farm limited liability company or family farm trust, as defined in Iowa Code section 9H.1.
  • A revocable trust as defined in Iowa Code section 9H.1.
  • A testamentary trust as defined in Iowa Code section 9H.1.
  • A small business as defined in Iowa Code section 15.102.
  • An electric cooperative association organized pursuant to Iowa Code chapter 499 that sells electricity to end users located in Iowa or has one or more members organized pursuant to Iowa Code chapter 499.
  • A cooperative corporation organized pursuant to Iowa Code chapter 497 or a limited liability corporation organized pursuant to Iowa Code chapter 490A whose shares and membership are held by an entity that is not prohibited from owning agricultural land under Iowa Code chapter 9H.
  • A school district located in Iowa.
Facilities must be placed into service on or after July 1, 2005, and before January 1, 2015, and must be operational within 30 months of IUB approval to maintain eligibility status. If the facility is not operational within the initial 30-month period, a 12-month extension can be requested. Afterward, further 12-month extensions can be requested if the facility is still expected to become operational. If the applicant does not apply for extensions, the facility will lose its eligibility status.
Application Form(s)Application Portal
Other Incentive DetailsAfter eligibility status is granted, the facility may apply for tax credit certificates over a 10-year period, beginning when the facility initiates energy production. The IUB will verify the number of kilowatt-hours or BTUs sold by each eligible facility. The Iowa Department of Revenue will review the tax credit application and IUB verification, and issue and track the tax credit certificates. Credit certificates in excess of a taxpayer's liability for a taxable year may be carried forward for a maximum of 7 years. Certificates may be transferred or sold one time to a third party. Transferred certificates may be used against a different type of tax than that noted on the original certificate.
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