State budget crunch could affect part of solar energy tax credits

The state budget crunch has Winneshiek Energy District Executive Director Andy Johnson worried.

In 2016, the State of Iowa approved spending $5 million in state funds on a Solar Energy System Tax Credit.  The program has been a big hit--so far the state has received $4,963,000 in tax credit applications from solar energy systems owners.

In past years, when the maximum tax credit total was reached, the state rolled over applications into the next year and solar panel owners still got the credit--just a little later.  But with the state legislature having to make $117.8 million in budget cuts to remaining Fiscal Year 2017 spending, Johnson says the state tax credit could be vulnerable.

Johnson wants solar energy supporters to rally to the defense of the state tax credit.  He also notes that even if the state tax credit is eliminated or reduced, the federal tax credit of 30 percent of a solar system's cost will remain in effect until at least 2019.