Iowa Bill Seeks Bigger Geothermal Heat Pump Tax Credit
Iowa Rep. Dawn Pettengill (R) introduced a bill (HF226) in the Iowa House of Representatives to increase an existing state tax incentive for geothermal heat pump (GHP) installations. Current law allows an individual income tax credit for a GHP system equal to 20% of the federal residential energy efficient property tax credit for GHPs. HF226 raises the Iowa credit to 60% of the federal credit.
The Iowa bill also provides an individual and corporate income tax credit in an amount equal to 60% of the federal energy credit provided by Section 48 of the Internal Revenue Code for a commercial GHP system, if the property is located in Iowa. Any credit in excess of the tax liability is nonrefundable, but may be carried forward for up to 10 years. The Geothermal Exchange Organization (GEO) has conferred with the Iowa Geothermal Association (IGA) about the legislation since its inception.
“IGA decided the bill should move forward with its connection to federal credits for geothermal heat pump installations (30% residential/10% commercial) because there is still reason to believe that GEO and its allies will be successful in extending the federal incentives through 2020,” said GEO President Doug Dougherty. “Even if that’s not the case, the Iowa legislation can be amended for a standalone credit beyond 2016.” Read the bill here.