IOWA AND GEOTHERMAL
On May 25, 2012, Iowa Governor Terry Branstad signed SF 2342 into law which enacted a series of Iowa tax incentives for residential geothermal incentives. Geothermal heat pumps installed on residential property in Iowa are eligible for a tax credit equal to 20% of the Federal Tax Credit. Because the federal tax credit is set at 30%, the state tax credit is equal to 6% of the system cost . Any credit in excess of the tax payer's liability may be carried forward for up to 10 years. The credit may be applied retroactively to systems installed beginning January 1, 2012. The Iowa Department of Revenue must issue rules for implementing the credit.
Iowa has a number of rebate and loan programs to install your new Geothermal System in your home:
Utility Loan Program
- Interstate Power and Light (Alliant Energy) - Low Interest Energy Efficiency Loan Program
- MidAmerican Energy (Gas and Electric) - Residential EnergyAdvantage Loan Program
Utility Rebate Program
- Residential Energy Efficiency Rebate (Offered by Several Cooperative Utilities)
- Rural Electric Cooperatives Energy Efficiency Rebate Programs (Offered by 12 Utilities)
- Ames Electric Department - Residential Energy Efficiency Rebate Programs
- Cedar Falls Utilities - Residential Energy Efficiency Rebate Program
- Cedar Falls Utilities - Residential New Construction Program
- Farmers Electric Cooperative (Kalona) - Residential Energy Efficiency Rebate Program
- Indianola Municipal Utilities - Energy Efficiency Rebate Program
- Interstate Power and Light (Alliant Energy) - Residential Energy Efficiency Rebate Programs
- Linn County Rural Electric Cooperative - Residential Energy Efficiency Rebate Program
- MidAmerican Energy (Gas and Electric) - Residential Energy Efficiency Rebate Programs
- Muscatine Power and Water - Residential Energy Efficiency Rebates
- Waverly Light & Power - Residential Energy Efficiency Rebates
The Federal incentive covers 30% of the expenditures in the year the incentive is taken, up to a cap of $2,000 if the property was installed prior to January 1, 2009. Qualifying geothermal heat pump property installed after December 31, 2008 is eligible for 30% of the installed cost without a cap, as provided under the American Recovery and Reinvestment Tax Act of 2009 (ARRA) . The incentive is available for taxpayers installing qualifying equipment at their primary residence or a second home, but not for a rental property. This incentive is available till December 2016.
To qualify, tax payers will need to have evidence regarding:
- - the cost of the system,
- - when it was placed in service
We strongly encourage Iowa residences to check out our friends at the Iowa Geothermal Association.
IA Geothermal Testimonials
chad harkins from Van meter says:
My total electric bill for a 1930\'s two story brick with original windows runs $130.00 a month. This home runs on all electric NO gas in the home.
Installed by: A- One Geothermal
Anonymous from Williamsburg says:
Our GeoComfort System was installed in our 1800 sq. ft. ranch with a walk-out basement in the fall of 2009. The homes heating PEAK dropped from $500-600 per Month down to under $100. Overall - We are saving almost $2,000 annually. BONUS -- Our finished basement is more comfortable now since my GeoComfort system heats the home more evenly.
Anonymous from Van Horne says:
I have a 2000sq ft 1970\'s built home. Switched from propane to GeoComfort geothermal 4 years ago. I now heat & cool my home for less than $500 a year!!!
Installed by: Rabe Hardware
Anonymous from Ames says:
We love our new Geo Comfort System that C&K Heating installed for us in our new home last year not only is our utility bill much less than our last home that was much smaller the whole experience of working with them was great also.
Keokuk teacher from Keokuk says:
I had a GeoComfort system installed two years ago and heat/cool for less than $500.00 a year. The installation was very smooth and clean compared to next door when they had it installed.
Installed by: Kraus & Son Inc.
Anonymous from Oelwein says:
I recently had a GeoComfort system installed in my home and drastically reduced my heating and cooling cost. I am currently heating and cooling for under 800 dollars a year
Anonymous from Postville says:
I contacted Ken\'s Electric out of Oelwein for a new furnace, and was proposed a GeoComfort geothermal system as a second option. Once I saw the payback it was a no brainer. Our heating and cooling bills are remarkable
Installed by: Ken\'s Electric Inc.
Mike Burdette from Keokuk says:
We have had a geothermal for 13 years when it was hit by lightning. We called Wm.J. Kraus & Son in Keokuk to quote a new one. We had a 4 ton in our home at the time and found out that it was oversized for our house. Kraus\'s installed a 3 ton geo and since then we have had less humidity in our home. The 4 ton was actually cooling our house so fast that we weren\'t getting the humidity out of the house. And we found black mold in the old unit. The 3 ton GeoComfort geothermal has lowered the humidity in our home and our electric bill has went down since the install. We pay a budget payment each month and the utility company sent us our usual bill. Which told us not to pay anything for the month because we had credit on our account. We also add a Sanuvox filtration system since my husband had very bad allergies. Kraus and Sons preformed the installation quickly and everything looks very neat. Adam Kraus is very informative about geothermals and he and is staff are very friendly and easy to work with. I give them an A+.
Installed by: Wm.J. Kraus & Sons, Inc.