Iowa has become very proactive as a state in regards to clean, renewable energy. Solar energy panels are now available for residential and commercial use as a means to combat elevated energy costs while simultaneously reducing the impact on the environment. The state knows that this is going to be very beneficial for Iowa solar energy in the long run, but also understand that the initial installation on a solar energy system is expensive. This is why they have incentivized this purchase for progress with a tax credit. However, there are a couple of things that you need to be aware of if you plan on using solar energy for your business or home.
The first thing that you should be aware of is that the tax credit is applied retroactively so you will still be responsible for the initial costs. The tax credit is an incredible incentive toward clean energy if you have access to that kind of cash or credit. Initial costs of both the purchase and the installation of a solar energy system can be expensive which is why the state government of Iowa are offering the tax credit in the first place. Unfortunately, this is not particularly helpful to those who do not have a means to purchase and install a system in the first place.
The other crucial thing that you should know is that this tax credit can only be awarded to Iowa citizens who provide the specific documents requested. The first of these documents would be an invoice or some other kind of official statement that states exactly how much the installation of the system cost. You will also need to obtain something from your utility company called a utility completioin sheet. This is where it may get a little bit tricky. It has been rumored that the utility companies of Iowa are being less than cooperative because solar energy is being offered by a thrid party and therefore is losing them business. So while they are required to provide this to you, it may take a while. Be sure and factor in a moderate waiting period for this document just in case. You will also need to fill out and sign a Tax Credit Applicant Certification document. If you are a business you will need to supply some kind of verification of the date in which the service was placed in service along with all the other necessary documentation mentioned. It is only with all of these that a tax credit can be awarded.
There are all kinds of variations on what the tax credit does and doesn’t cover depending on the kind of system you buy and a number of other variables that should be discussed with a professional before installation. The important things to remember are that you will be required to provide payment for the initial costs and that the tax credit will not be awarded to those who do not provide the proper documents to the Iowa Department of Revenue.