The federal government is offering a tax credit of 30% of the cost of a qualifying solar project. And Governor Branstad recently signed into law a new Iowa tax credit for solar projects that amounts to 50% of the federal credit, up to $3,000.
The catch on the Iowa credit is that the state has a limited amount of funds available for the credit and you have to apply in advance with the state for approval to “reserve” a credit on your 2012 tax return.
Qualifying projects include things such as solar electric projects and solar water heaters added to your main home or a second home. Projects at rental properties DO NOT qualify.
If you think you qualify for the credit, you should contact a tax professional such as me to get the application in to the state for approval.
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