This bill establishes a solar installation tax credit applicable against individual and corporate income taxes, the moneys and credits tax, and the franchise tax, effective for installations occurring on or after January 1, 2025. The credit is set at 50% of the federal residential clean energy credit and the federal energy credit related to solar energy systems, with maximum limits of $5,000 and $20,000, respectively. The credit is nonrefundable but can be carried forward for up to ten years. Taxpayers must apply for the credit, which will be approved on a first-come, first-served basis until the cumulative annual cap of $5 million is reached, with at least $1 million reserved for residential installations.

Additionally, the bill specifies that individuals can claim credits based on their pro rata share of earnings from partnerships or other entities, but those eligible for this credit cannot claim a renewable energy tax credit under chapter 476C or the solar energy tax credit under section 422.11L for the same installation. The bill also includes provisions for reporting the number and value of credits claimed and takes effect immediately, with retroactive applicability to tax years beginning on or after January 1, 2025.

Statutes affected:
Introduced: 422.12, 422.60, 476C.2, 422.10C