Iowa § 422.12N Geothermal heat pump tax credit

Iowa Statutes

§ 422.12N — Geothermal heat pump tax credit

Iowa § 422.12N

Title XFINANCIAL RESOURCES

Ch. 422INDIVIDUAL INCOME, CORPORATE, AND FRANCHISE TAXES

This text of Iowa § 422.12N (Geothermal heat pump tax credit) is published on Counsel Stack Legal Research, covering Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Iowa Code § 422.12N (2026).

Text

1.Thetaxesimposedunderthissubchapter, lessthecreditsallowedundersection422.12, shall be reduced by a geothermal heat pump tax credit equal to twenty percent of the federal residential energy efficient property tax credit allowed for geothermal heat pumps provided in section 25D(a)(5) of the Internal Revenue Code for residential property located in Iowa.

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.

3.

a.Ataxpayermustsubmitanapplicationwiththedepartmentforeachgeothermalheat pump installation. The application must be approved by the department prior to claiming the credit, and the application must be filed by May 1 following the year of

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1. Thetaxesimposedunderthissubchapter, lessthecreditsallowedundersection422.12,
shall be reduced by a geothermal heat pump tax credit equal to twenty percent of the federal
residential energy efficient property tax credit allowed for geothermal heat pumps provided
in section 25D(a)(5) of the Internal Revenue Code for residential property located in Iowa.
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.
3. a. Ataxpayermustsubmitanapplicationwiththedepartmentforeachgeothermalheat
pump installation. The application must be approved by the department prior to claiming the
credit, and the application must be filed by May 1 following the year of installation of the
geothermal heat pump.
b. Thedepartmentshallacceptandapproveapplicationsonafirst-come,first-servedbasis
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 subsection 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. The cumulative value of tax credits claimed annually by applicants pursuant to this
section shall not exceed one million dollars.
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. The director of revenue shall adopt rules to implement this section.
6. This section does not apply to a geothermal heat pump installation occurring after
December 31, 2023.
7. This section is repealed January 1, 2034.