Iowa Tax Reform Bill Puts Solar Tax Credit on the Chopping Block

The state’s solar tax credit is set to begin phasing out next year, but a massive tax bill passed by the state Senate last week would end the program on July 1.

A tax credit that’s helped motivate many fiscally conscious Iowa farmers to install solar panels would see an early demise under a sweeping tax reform bill that cleared a major legislative hurdle last week.

Iowa is the only state in the Midwest and one of just a dozen nationally that still offers a state solar tax credit. The Iowa Legislature created the 15 percent tax credit in 2012. Since then it’s provided a total of $21.6 million in incentives for nearly 4,000 projects.

As Trump Bows Out, States Set to Fill Void on Climate Change

As President Donald Trump scales down federal efforts to combat climate change, states are ramping up.

California’s Air Resources Board broke with Trump and voted to uphold auto fuel efficiency rules, while Illinois offered a bail out to carbon-free nuclear producers. Iowa and Michigan have moved to increase incentives for renewable energy, and Maryland’s Republican Governor Larry Hogan is poised to sign a statewide ban on fracking.

Wind Power Reaches Lofty Milestones in Iowa

With the first three quarters of 2016 now in the books, it’s time to pause and take stock of where things stand. Here’s what I see: a homegrown industry achieving milestones that seemed far-fetched just a few years ago.

Wind becomes vital to state electricity mixes

The biggest news so far this year is that Iowa has set yet another wind power record: it generated over 35 percent of its electricity using wind from August 2015 through August 2016, the most recent month with available data. That makes Iowa the first state to generate over a third of its electricity using wind.

Bill Expected to Accelerate Solar Energy Growth in Iowa

 Gov. Terry Branstad on Friday signed into law HF 645, a bill that increases Iowa’s solar energy tax credits and adds production tax credits for utility solar projects.

“Solar works for Iowa,” said Senator Rob Hogg (D-Cedar Rapids) who floor managed the bill in the Iowa Senate, where it passed with unanimous bipartisan support. “This legislation will accelerate the growth of the solar energy industry in Iowa. That’s good for the environment and our economy. Solar energy is already working for thousands of businesses, farmers and homeowners across our state.”

Branstad Signs Biofuels Bill into Iowa Law

Gov. Terry Branstad traveled to the POET Bio-refining facility in Coon Rapids Wednesday to sign legislation into law that promotes the development of bio-butanol and bio-butanol blended gasoline.

Senate File 2344 also modifies the rate of the E-15 promotion tax credit and extends provisions for the biodiesel production refund. Backers say the bill will strengthen and diversify Iowa’s leadership position in the area of biofuels.

“Iowa is a biofuels leader in this country and having states step to the plate with legislation supporting America’s Advanced Biofuel, biodiesel, is a win for our industry,” said Steven J. Levy, chairman of the National Biodiesel Board. “Our champions in Iowa have shown that hard work to grow this still-young industry pays off.”

Iowa tax credit approved late by legislature will help Mason City ethanol plant

A $12-million tax credit for a north central Iowa ethanol plant is almost secured, thanks to provisions in one of the last bills to clear the 2012 Iowa legislature this past week. The so-called “standings” bill is a sort of “catch-all” that covers many topics.

Lawmakers included a fix for the Golden Grain Ethanol plant in Mason City in the bill. Legislators approved tax breaks for several renewable energy companies last year, but officials in the state agency that handles the money found some mistakes in the way the law was written — putting the tax credit for the Mason City ethanol plant in limbo.

How blue state policy is greening up red states too

Increasingly, red states are also benefitting from the development of local renewable energy to meet renewable energy standards (RES) in blue states.

A legislative task force in very red state South Dakota recently proposed changes favoring wind farm construction (tip from regular reader Bob Wallace). Coal rich and empty, South Dakota has no RES requiring renewable energy, and little local demand for new energy, but the task force was concerned that much lower taxes on wind farms to encourage renewable energy development in neighboring windy states led to South Dakota being out-competed for wind farm development.

Iowa gets $20 million energy grant

Iowa has received a $20 million grant from the National Science Foundation to study and promote bioenergy, wind energy, energy efficiency and energy policy.

The project will be led by Dr. Robert Brown at Iowa State University, who already heads ISU’s renewable energy studies. The new grant, awarded to smaller states that historically receive lesser shares of NSF grants, is a five-year award and will pull in talent from the University of Iowa, University of Northern Iowa, Iowa’s community and private colleges and even K-12 schools.