Iowa Code Chapter 476B is a state production tax credit of 1.0¢ per kilowatt-hour (kWh) 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 50 megawatts (MW). The tax credit certificates are transferrable and may be applied toward the state's personal income tax, business income tax, or financial institutions tax.
Iowa Code Chapter 476C is a state production tax credit of 1.5¢ per kWh available for energy sold by eligible wind energy facilities and certain other non-wind renewable energy facilities. For applications filed after July 1, 2011, tax credits are also available for on-site consumption of renewable energy from facilities with a nameplate capacity of not less than 750 kW. Otherwise, for earlier facilities, tax credits continue to be available only for energy that is sold.
For wind energy facilities, the maximum total eligibility is 363 MW. For other non-wind renewable facilities, the maximum total eligibility is 53 MW. For non-wind facilities seeking eligibility on or after July 1, 2011, applications are limited to facilities with a nameplate capacity of 60 MW or less, and total eligibility for each non-wind facility is limited to 10 MW. The tax credit certificates are transferrable and 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 01/23/14) 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.
Following eligibility, facility owners may apply for wind and renewable energy tax credit certificates over a 10-year period, beginning with their initial production of renewable energy. The IUB will verify the number of kWh produced and sold by the facility. Owners will attest to any on-site consumption. 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 515.725.7305 or Ellen Shaw at 515.725.7348.