422.12N Geothermal heat pump tax credit.
1. The taxes imposed under this subchapter, less the credits allowed under section 422.12, shall be reduced by a geothermal heat pump tax credit equal to twenty percent of the federal residential energy efficient property tax credit allowed for geothermal heat pumps provided in section 25D(a)(5) of the Internal Revenue Code for residential property located in Iowa.
2. Any credit in excess of the tax liability is not refundable but the excess for the tax year may be credited to the tax liability for the following ten years or until depleted, whichever is earlier.
3. a. A taxpayer must submit an application with the department for each geothermal heat pump installation. The application must be approved by the department prior to claiming the credit, and the application must be filed by May 1 following the year of installation of the geothermal heat pump.
b. The department shall accept and approve applications on a first-come, first-served basis until the maximum amount of tax credits that may be claimed pursuant to subsection 4 is reached. If for a tax year the aggregate amount of tax credits applied for exceeds the amount specified in subsection 4, the department shall establish a wait list for tax credits. Valid applications filed by the taxpayer by May 1 following the year of the installation but not approved by the department shall be placed on a wait list in the order the applications were received and those applicants shall be given priority for having their applications approved in succeeding years. Placement on a wait list pursuant to this subsection shall not constitute a promise binding the state. The availability of a tax credit and approval of a tax credit application pursuant to this section in a future year is contingent upon the availability of tax credits in that particular year.
4. a. The cumulative value of tax credits claimed annually by applicants pursuant to this section shall not exceed one million dollars.
b. If an amount of tax credits available for a tax year pursuant to paragraph “a” goes unclaimed, the amount of the unclaimed tax credits shall be made available for the following tax year in addition to, and cumulated with, the amount available pursuant to paragraph “a” for the following tax year.
5. The director of revenue shall adopt rules to implement this section.
2019 Acts, ch 152, §67 – 69; 2020 Acts, ch 1062, §94; 2021 Acts, ch 86, §8, 10, 11
Referred to in §422.16
2021 amendment to subsection 3 applies retroactively to January 1, 2019, for tax years beginning on or after that date; 2021 Acts, ch 86, §11
Legislative intent regarding 2021 amendment to subsection 3;
2021 Acts, ch 86, §9
Subsection 3 amended
Structure Iowa Code
Chapter 422 - INDIVIDUAL INCOME, CORPORATE, AND FRANCHISE TAXES
Section 422.1 - Classification of chapter.
Section 422.2 - Purpose or object.
Section 422.3 - Definitions controlling chapter.
Section 422.4 - Definitions controlling subchapter.
Section 422.5 - Tax imposed — exclusions — alternative minimum tax.
Section 422.6 - Income from estates or trusts.
Section 422.7 - “Net income” — how computed.
Section 422.8 - Allocation of income earned in Iowa and other states.
Section 422.9 - Deductions from net income.
Section 422.10 - Research activities credit.
Section 422.10A - Geothermal tax credit.
Section 422.10B - Renewable chemical production tax credit.
Section 422.11 - Franchise tax credit.
Section 422.11A - New jobs tax credit.
Section 422.11B - Minimum tax credit.
Section 422.11C - Workforce housing investment tax credit.
Section 422.11D - Historic preservation tax credit.
Section 422.11E - Beginning farmer tax credit program.
Section 422.11F - Investment tax credits.
Section 422.11G - Venture capital fund investment tax credit.
Section 422.11H - Endow Iowa tax credit.
Section 422.11I - Geothermal heat pump tax credit.
Section 422.11J - Tax credits for wind energy production and renewable energy.
Section 422.11K - Economic development region revolving fund contribution tax credit.
Section 422.11L - Solar energy system tax credits.
Section 422.11M - Agricultural assets transfer tax credit.
Section 422.11N - Ethanol promotion tax credit.
Section 422.11O - E-85 gasoline promotion tax credit.
Section 422.11P - Biodiesel blended fuel tax credit.
Section 422.11Q - Iowa fund of funds tax credit.
Section 422.11R - From farm to food donation tax credit.
Section 422.11S - School tuition organization tax credit.
Section 422.11T - Hoover presidential library tax credit.
Section 422.11U - Third-party developer tax credit.
Section 422.11V - Redevelopment tax credit.
Section 422.11W - Charitable conservation contribution tax credit.
Section 422.11X - Disaster recovery housing project tax credit.
Section 422.11Y - E-15 plus gasoline promotion tax credit.
Section 422.11Z - Innovation fund investment tax credits.
Section 422.12 - Deductions from computed tax.
Section 422.12A - Adoption tax credit.
Section 422.12B - Earned income tax credit.
Section 422.12C - Child and dependent care or early childhood development tax credits.
Section 422.12D - Income tax checkoff for the Iowa state fair foundation fund.
Section 422.12E - Income tax return checkoffs limited — notification of repeal.
Section 422.12F - Income tax checkoff for child abuse prevention program fund.
Section 422.12H - Income tax checkoff for fish and game protection fund.
Section 422.12I - Income tax checkoff for the Iowa state fair foundation fund.
Section 422.12J - Income tax checkoff for Iowa election campaign fund.
Section 422.12K - Income tax checkoff for child abuse prevention program fund.
Section 422.12M - Income tax form — indication of dependent child health care coverage.
Section 422.12N - Geothermal heat pump tax credit.
Section 422.13 - Return by individual.
Section 422.14 - Return by fiduciary.
Section 422.15 - Information at source.
Section 422.16A - Job training withholding — certification and transfer.
Section 422.16B - Pass-through entity composite returns.
Section 422.17 - Certificate issued by department to make payments without withholding.
Section 422.19 - Scope of nonresidents tax.
Section 422.20 - Information confidential — redactions — penalty.
Section 422.21 - Form and time of return.
Section 422.22 - Supplementary returns.
Section 422.23 - Return by administrator.
Section 422.24 - Payment — interest.
Section 422.24A - Start-up business tax deferment.
Section 422.25 - Computation of tax, interest, and penalties — limitation.
Section 422.25A - Reporting and treatment of certain partnership adjustments.
Section 422.25B - State partnership representative.
Section 422.26 - Lien of tax — collection — action authorized.
Section 422.27 - Final report of fiduciary — conditions.
Section 422.28 - Revision of tax.
Section 422.29 - Judicial review.
Section 422.30 - Jeopardy assessments — posting of bond.
Section 422.31 - Statute applicable to personal tax.
Section 422.33 - Corporate tax imposed — credit.
Section 422.34 - Exempted corporations and organizations.
Section 422.34A - Exempt activities of foreign corporations.
Section 422.35 - Net income of corporation — how computed.
Section 422.37 - Consolidated returns.
Section 422.38 - Statutes governing corporations.
Section 422.39 - Statutes applicable to corporations and corporation tax.
Section 422.40 - Cancellation of authority — penalty — offenses.
Section 422.41 - Corporations.
Section 422.60 - Imposition of tax — credit.
Section 422.62 - Due and delinquent dates.
Section 422.63 - Amount of tax.
Section 422.65 - Allocation of revenue.
Section 422.66 - Department to enforce.
Section 422.67 - Generally — bond — approval.
Section 422.68 - Powers and duties.
Section 422.69 - Moneys paid and deposited.
Section 422.70 - General powers — hearings.
Section 422.71 - Assistants — salaries — expenses — bonds.
Section 422.73 - Correction of errors — refunds, credits, and carrybacks.
Section 422.74 - Certification of refund.
Section 422.75 - Statistics — publication.
Section 422.85 - Imposition of estimated tax.
Section 422.86 - Payment of estimated tax.
Section 422.88 - Failure to pay estimated tax.
Section 422.89 - Exception to penalty.
Section 422.90 - Penalty not subject to waiver.
Section 422.91 - Credit for estimated tax.
Section 422.92 - Rules for short taxable year.
Section 422.93 - Public utility accounting method.
Section 422.100 - Allocation to the child care credit fund.
Section 422.110 - Income tax credit in lieu of refund.
Section 422.111 - Fuel tax credit as income tax credit.