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Currently under Iowa Code § 476B, a state production tax credit of 1.0¢ per kilowatt-hour (kWh) is available for energy either sold or generated for on-site consumption by eligible wind energy facilities. The maximum total amount of wind generating capacity eligible for the tax credits is 150 megawatts (MW). The tax credit may be applied toward the state's personal income tax, business income tax, or financial institutions tax.
Under Iowa Code § 476C, a state production tax credit of 1.5¢ per kWh is available for energy sold by eligible wind energy facilities and certain other renewable energy facilities. For wind energy facilities, the maximum total eligibility for wind energy facilities is 330 MW. For other renewable facilities, the maximum total eligibility is 20 MW. The tax credit is NOT available for facilities that generate energy for the owner's self-use. The tax credit may be applied toward the state's personal income tax, business income tax, financial institutions tax, or sales and use tax.
To qualify for the tax credits, wind and other renewable energy facilities must be approved as eligible by the IUB. IUB rule 199 IAC 15.18 describes the 476B eligibility application process. IUB rule 199 IAC 15.19 describes the 476C eligibility application process. Eligibility applications should be filed using the Board’s Electronic Filing System.
Applications in excess of maximum capacity limits are placed on waiting lists in the order received. Specific details about the 476B and 476C waiting lists and approved applications (updated 02/09/10) are available for viewing or download in MS Excel format. If there is a reduction in capacity for eligible facilities, or if facilities are not operational within the time specified, released capacity will become available to those on the waiting list who either did not receive a full allocation of their requested capacity, or filed an application after capacity limits were fully subscribed. If any capacity is released, applications will be processed in the order received.
Eligible facilities apply for 476B tax credit certificates based on the kWh they sell or produce for on-site consumption. Under 476C, eligible facilities apply for tax credit certificates based only on the kWh they sell. The IUB will verify the number of kWh produced and sold by the facility. The Iowa Department of Revenue will review the tax credit application and IUB verification, and issue and track the tax credit certificates. Certificates issued under 476C may be transferred or sold only once to a third party. Certificates issued under 476B may be transferred or sold without limit. IUB rule 199 IAC 15.20 describes the 476B tax credit application process. IUB rule 199 IAC 15.21 describes the 476C tax credit application process.
If you have any questions, please contact Brenda Biddle at 515-242-0218 or John Pearce at 515-281-5679.
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