Iowa’s solar industry is growing with the help of successful policies that create jobs, promote installation and expand businesses.
Iowa’s solar tax incentive, enacted in 2012, offsets up to 15 percent of the cost of a solar system for businesses and residences, and provides a 50 percent match to the federal tax incentive. Combined, the state and federal tax credits can offset up to 45 percent of the cost of a solar system. To date, Iowa solar tax incentives worth $11.6 million have resulted in 1,821 solar projects and a total investment of more than $85 million in 92 counties.
In 2014, Iowa had 900 jobs in solar installation, manufacturing and supply, according to the Solar Foundation, and 47 Iowa companies engaged in the solar industry supply chain.
In 2015, with strong bipartisan support, the Legislature expanded Iowa’s upfront solar tax incentive, resulting in significant economic opportunities and improved access to solar for businesses, farmers and homeowners. To encourage smaller projects throughout the state, residences qualify for up to $5,000 in tax incentives and businesses up to $20,000.
Demand for the tax incentives exceeds the $5 million available per year, meaning Iowa could further expand the program for even greater economic growth and leadership in the industry. A proposed bill to increase solar tax credits to $7.5 million could leverage more private investment and federal dollars, reduce the waiting list for credits after installing solar and create jobs.