End of state tax credit expected to impact Iowa clean energy growth

The race is on to finish about a dozen large renewable energy projects in Iowa after state lawmakers did not act on renewing a key tax credit. The state’s production tax credit of 1.5 cents per kilowatt hour will not be available for any projects that go into operation after Dec. 31, 2017. The Iowa Legislature did not vote on renewing the credit during the session that ended in late April. The impact will be twofold: projects now in process won’t get the credit if they aren’t operating by the end of the year, and there will be no state tax credit as of Jan. 1 for larger solar projects.