Property Tax Exemption for Renewable Energy Systems (Iowa)

This is the approved revision of this page, as well as being the most recent.
Jump to: navigation, search

Summary

Last modified on February 12, 2015.

Financial Incentive Program

Place Iowa

Name Property Tax Exemption for Renewable Energy Systems
Incentive Type Property Tax Incentive
Applicable Sector Commercial, Industrial, Residential, Agricultural
Eligible Technologies Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Photovoltaics, Wind, Geothermal Heat Pumps
Active Incentive Yes

Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs
Amount Solar and wind: 100% exemption for 5 years

Geothermal: 100% exemption for 10 years








Start Date 1978-01-01







Maximum Incentive Not specified










Program Administrator Iowa Department of Natural Resources

Date added to DSIRE 2000-01-01
Last DSIRE Review 2014-08-18



References DSIREDatabase of State Incentives for Renewables and Efficiency[1]


Summary

In Iowa, the market value added to a property by a solar or wind energy system is exempt from the state's property tax for 5 full assessment years. Residential geothermal systems are exempt for 10 years. Eligible systems include:


  • a system of equipment capable of collecting and converting incident solar radiation or wind energy into thermal, mechanical, or electrical energy and transforming these forms of energy by a separate apparatus to storage or to a point of use which is constructed or installed after January 1, 1978;
  • a system that uses the basic design of the building to maximize solar heat gain during the cold season and to minimize solar heat gain in the hot season and that uses natural means to collect, store, and distribute solar energy which is constructed or installed after January 1, 1981; and
  • a residential geothermal system, new or retrofitted, installed on or after July 1, 2012, including all equipment included in the installation or labor required for the construction, as well as the proportionate value of any well field associated with the system or attributed to the owner.

The Iowa Department of Revenue (DOR) has issued an opinion determining that the solar and wind exemption can be applied to systems whose "primary purpose" is to store or provide electricity for use at the site where the system is located. This clarifies that solar and wind systems which periodically export electricity to the grid (e.g., net metered systems) are eligible to claim the exemption as long as they are used primarily to serve on-site electricity demand.


For the geothermal tax exemption, the person claiming an exemption must submit the appropriate forms to the assessor and must file the forms no later than February 1st of the first assessment year that the exemption is requested. The exemption may be taken for tax years beginning on or after January 1, 2013.


Incentive Contact

Contact Name Energy Team
Department Iowa Economic Development Authority

Address 200 East Grand Avenue

Place Des Moines, Iowa
Zip/Postal Code 50309

Phone 2 (515) 725-0434


Website http://www.energy.iowa.gov/
Contact Name Public Information - Revenue
Department Iowa Department of Revenue

Address Hoover State Office Building
Address 2 1305 E. Walnut
Place Des Moines, Iowa
Zip/Postal Code 50319
Phone (800) 367-3388
Phone 2 (515) 281-3114


Website http://www.iowa.gov/tax/index.html
     

Authorities (Please contact the if there are any file problems.)

Authority 1: Iowa Code § 441.21(8)
Date Effective 1978-01-01



Authority 2: S.F. 2342
Date Effective 2012-07-01
Date Enacted 2012-05-25


Authority 3: Iowa Code § 427.1



















  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]

References

  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency"