1.Thetaxesimposedunderthissubchapter, lessthecreditsallowedundersection422.12,
shall be reduced by a solar energy system tax credit equal to the sum of the following:
a.Sixty percent of the federal residential energy efficient property credit related to solar
energy provided in section 25D(a)(1) and section 25D(a)(2) of the Internal Revenue Code,
not to exceed five thousand dollars.
b.Sixty percent of the federal energy credit related to solar energy systems provided in
section 48(a)(2)(A)(i)(II) and section 48(a)(2)(A)(i)(III) of the Internal Revenue Code, not to
exceed twenty thousand dollars.
c.Notwithstanding paragraphs “a” and “b” of this subsection, for installations occurring
on or after January 1, 2016, the applicable percentages of the federal residential energy
efficiency pro
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1. Thetaxesimposedunderthissubchapter, lessthecreditsallowedundersection422.12,
shall be reduced by a solar energy system tax credit equal to the sum of the following:
a. Sixty percent of the federal residential energy efficient property credit related to solar
energy provided in section 25D(a)(1) and section 25D(a)(2) of the Internal Revenue Code,
not to exceed five thousand dollars.
b. Sixty percent of the federal energy credit related to solar energy systems provided in
section 48(a)(2)(A)(i)(II) and section 48(a)(2)(A)(i)(III) of the Internal Revenue Code, not to
exceed twenty thousand dollars.
c. Notwithstanding paragraphs “a” and “b” of this subsection, for installations occurring
on or after January 1, 2016, the applicable percentages of the federal residential energy
efficiency property tax credit related to solar energy and the federal energy credit related
to solar energy systems shall be fifty percent.
2. Any credit in excess of the tax liability is not refundable but the excess for the tax year
may be credited to the tax liability for the following ten years or until depleted, whichever is
earlier. The director of revenue shall adopt rules to implement this section.
3. a. An individual may claim the tax credit allowed a partnership, limited liability
company, S corporation, estate, or trust electing to have the income taxed directly to the
individual. The amount claimed by the individual shall be based upon the pro rata share of
the individual’s earnings of the partnership, limited liability company, S corporation, estate,
or trust.
b. A taxpayer who is eligible to claim a credit under this section shall not be eligible to
claim a renewable energy tax credit under chapter 476C.
c. A taxpayer may claim more than one credit under this section, but may claim only one
credit per separate and distinct solar installation. The department shall establish criteria, by
rule, for determining what constitutes a separate and distinct installation.
d. (1) A taxpayer must submit an application to the department for each separate and
distinct solar installation. The application must be approved by the department in order
to claim the tax credit. The application must be filed by May 1 following the year of the
installation of the solar energy system.
(2) The department shall accept and approve applications on a first-come, first-served
basis until the maximum amount of tax credits that may be claimed pursuant to subsection
4 is reached. If for a tax year the aggregate amount of tax credits applied for exceeds the
amount specified in subsection 4, the department shall establish a wait list for tax credits.
Valid applications filed by the taxpayer by May 1 following the year of the installation but not
approved by the department shall be placed on a wait list in the order the applications were
received and those applicants shall be given priority for having their applications approved in
succeeding years. Placement on a wait list pursuant to this subparagraph shall not constitute
a promise binding the state. The availability of a tax credit and approval of a tax credit
application pursuant to this section in a future year is contingent upon the availability of tax
credits in that particular year.
4. a. Except as provided in subsection 7, the cumulative value of tax credits claimed
§422.11L, INDIVIDUAL INCOME, CORPORATE, AND FRANCHISE TAXES 32
annually by applicants pursuant to this section shall not exceed five million dollars. Of this
amount, at least one million dollars shall be reserved for claims associated with or resulting
from residential solar energy system installations. In the event that the total amount of
claims submitted for residential solar energy system installations in a tax year is an amount
less than one million dollars, the remaining unclaimed reserved amount shall be made
available for claims associated with or resulting from nonresidential solar energy system
installations received for the tax year.
b. If an amount of tax credits available for a tax year pursuant to paragraph “a” goes
unclaimed, the amount of the unclaimed tax credits shall be made available for the following
tax year in addition to, and cumulated with, the amount available pursuant to paragraph “a”
for the following tax year.
5. On or before January 1, annually, the department shall submit a written report to the
governor and the general assembly regarding the number and value of tax credits claimed
under this section, and any other information the department may deem relevant and
appropriate.
6. Forpurposesofthissection, “InternalRevenueCode”meanstheInternalRevenueCode
of 1954, prior to the date of its redesignation as the Internal Revenue Code of 1986 by the
Tax Reform Act of 1986, or means the Internal Revenue Code of 1986 as amended and in
effect on January 1, 2016. This definition shall not be construed to include any amendment
to the Internal Revenue Code enacted after January 1, 2016, including any amendment with
retroactive applicability or effectiveness.
7. a. Notwithstanding any other law to the contrary, the department may review or
reconsider the following as if the credit did not expire:
(1) Applications for installations that were completed prior to the 2022 calendar year that
were denied solely due to the expiration of the credit provided in subsection 1, paragraph “a”,
regardless of whether the applicant appealed the denial.
(2) Pending applications and new applications for the credit provided in subsection 1,
paragraph “a”, for installations that were completed during the 2021 calendar year as long as
the application is received by June 30, 2022.
(3) Thedepartmentshallusetheoriginalsubmissiondateofapplicationsdescribedinthis
paragraph to determine the order for reviewing such applications.
b. The cumulative value of tax credits in subsection 3, paragraph “d”, subparagraph (2),
shall not limit the amount of annual tax credits that may be awarded for valid applications
that qualify pursuant to this subsection.
c. A tax credit awarded pursuant to this subsection may be first claimed for the tax year
beginning during the 2022 calendar year.