Building
Green & Healthy

The Energy Policy Act of 2005 created the Energy Efficient Commercial Buildings Deduction, which allows building owners to deduct the entire cost of a lighting or building upgrade in the year the equipment is placed in service, subject to a cap.

Home builders are eligible for a $2,000 tax credit for a new energy efficient home that achieves 50% energy savings for heating and cooling over the 2004 International Energy Conservation Code (IECC) and supplements. At least 1/5 of the energy savings has to come from building envelope improvements. This credit also applies to contractors of manufactured homes conforming to Federal Manufactured Home Construction and Safety Standards.

This Iowa tax credit applies Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind, Biomass, Hydrogen, Anaerobic Digestion Systems for the Commercial, Industrial, Schools, Rural Electric Cooperative, Agricultural and Institutional sectors. 1.5 cents per kWh for 10 years after facility begins energy production.

In Iowa, the market value added to a property by a solar or wind energy system is exempt from the state's property tax for five full assessment years. This applies to Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Photovoltaics, Wind Systems for Commercial, Industrial, Residential and Agricultural sectors.

Commercial building owners and lessees who purchase and install energy-saving products in their businesses can qualify for a tax deduction under EPACT. Buildings must achieve a 50 percent reduction in annual energy costs as compared to a base building defined by the industry standard ASHRAE/IESNA 90.1-2001. The Emergency Economic Stabilization Act of 2008 (HR-1424), approved and signed on October 3, 2008, extends the benefits of the Energy Policy Act of 2005 through December 31, 2013.

This federal tax credit is for existing homes and for your primary residence. The credit includes Biomass Stoves, HVAC, Insulation, Roofs, Water Heaters, Doors and Windows, Geothermal Heat Pumps, Small Wind Turbines, Solar Energy Systems and Fuel Cells. 10% of the cost up to $500.00, valid through December 31, 2011.

This statute exempts from the state sales tax the total cost of wind energy equipment and all materials used to manufacture, install or construct wind energy systems. Effective July 1, 2006 solar energy equipment is also exempt from the state sales tax. Solar equipment means any equipment that is used to convert incident solar radiation to energy, or equipment used to transform the converted energy to storage or to some point of use.