Iowa awarded $1.36 million worth of tax credits to individuals and businesses in 2013 for installing solar energy panels and related equipment, almost hitting the annual cap of $1.5 million for the green energy tax breaks.
The Iowa Department of Revenue, in an annual report released Thursday, reported it awarded 264 tax credits for solar energy systems through Dec. 27. The agency said that number could still grow as not all applications received in 2013 were processed at the time of the report’s release.
The solar energy credits awarded in 2013 were substantially more than the $621,100 awarded in 2012.
The Department of Revenue, in its forecast of potential future tax credit liabilities, expects $817,403 worth of solar energy tax credits in fiscal year 2014, $1.3 million in FY 2015, $1.4 million in FY 2016 and $1.5 million in FY 2017 before the total falls below $1 million in FY 2018.
Iowa businesses received 97 of the solar energy tax credits in the last year worth $987,830. The other 167 credits were given to individuals for a total of $368,329.
Companies on average were awarded $10,184 for each tax credit, while individuals on average were awarded $2,206 for each credit.
Iowa’s solar energy tax credit was was enacted in May 2012, but was retroactive to solar energy systems placed in service on or after Jan. 1, 2012.
The Iowa tax credit for individuals cannot exceed $3,000. The tax credit for a corporation cannot exceed $15,000.
If the Iowa Department of Revenue receives applications for tax credit awards in excess of the $1.5 million available each year, the applications are prioritized by the date received.