For decades Iowa has been a clean energy leader. Countless Iowans have innovated, invested, advocated, and built our way to the front of the pack in the race for a hopeful, abundant, environmentally sustainable energy future. While so much has been invested in this race, the single most important variable in our leadership has been smart, bi-partisan public policy. Iowa’s clean energy legacy continues this year with House File 221. We invite you to share this hopeful message with your member of the Iowa House by participating in our action alert supporting House File 221.
HF 221 maintains and improves the state tax credit for Iowans investing in solar energy on their farms, in their homes, and at their businesses. Even churches and schools can benefit by using renewable power purchase agreements (PPAs). In a PPA the builder owns the system and sells the power through a PPA. The builder uses the credits to lower the cost of the energy sold through the PPA, thereby providing a benefit to the non-taxpaying entity such as a church or school.
This program has assisted Iowans in all 99 counties by encouraging customer-owned solar development. The credit has been responsible for leveraging about $7 for every $1 of state investment. Iowans invest in solar to reduce energy costs and support environmental leadership. These projects strengthen local economies when energy savings can be put back into a home or business. Some farms and companies use the savings to increase wages and hiring.
This bill does three important things to secure Iowa’s continued leadership in advancing clean energy solutions.
1. Secures a meaningful future for Iowa’s 15% solar tax credit even if the federal credit, scheduled to phase out in 2022, is not renewed. The bill will extend supporting solar energy with the state tax credit until 2031.
2. Creates a one-time economic stimulus payment to clear the waitlist of solar projects eligible for the tax credit. Every year the wait list gets longer and in 2020 over 99% of the tax credit was committed before the year even started.
3. Doubles the state tax credit to $10 million a year to support Iowans who want to install solar on their homes, farms, and businesses.
To increase renewable solar energy in Iowa, HF 221 would pay down the current waitlist, raise the annual cap for the program, and de-couple the state credit from the ever-changing federal solar credit.
Iowa Interfaith Power & Light supporters have been important in the bi-partisan efforts to help our state be a leader in bold and just climate action. Please help advance this important state policy by contacting your member of the Iowa House. You can do that by using our online advocacy tool with a text you can further edit to ask for your member’s support.
You can also join your fellow Iowans passionate about environmental justice at the Iowa Environmental Council’s Environmental Advocacy Day on February 25 from noon to 3:00. Participate from anywhere this year as the event is virtual. Iowa IPL is a member of IEC. We work closely together on clean energy and climate action. This is a great opportunity to become an even more effective advocate and meet other Iowans from around the state.
And don’t forget to sign the Uphold and Upheave: Iowa Interfaith Statement on Climate Action. We’ll deliver this statement to Iowa elected leaders in March.
Our faith calls us to climate action. Together we are creating a hopeful future for our state, our country, and our world.