Property Tax Exemption for Renewable Energy Systems (Iowa)
From Open Energy Information
Summary
Last modified on April 18, 2013.
Financial Incentive Program
| Place | Iowa |
|---|---|
| Name | Property Tax Exemption for Renewable Energy Systems |
| Incentive Type | Property Tax Incentive |
| Applicable Sector | Agricultural, Commercial, Industrial, Residential |
| Eligible Technologies | Geothermal Heat Pumps, Passive Solar Space Heat, Photovoltaics, Solar Space Heat, Solar Thermal Electric, Solar Water Heat, Wind |
| 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 | 01/01/1978 |
| Maximum Incentive | Not specified |
| Program Administrator | Iowa Department of Natural Resources |
| Date added to DSIRE | 2000-01-01 |
| Last DSIRE Review | 04/18/2013 |
| Last Substantive Modification to Summary by DSIRE |
06/05/2012 |
| References | DSIRE[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 five full assessment years. Residential geothermal systems are exempt for 10 years. Eligible systems include (1) 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; (2) 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; (3) 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 | (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 | 01/01/1978 |
| Authority 2: | S.F. 2342 |
|---|---|
| Date Effective | 07/01/2012 |
| Date Enacted | 05/25/2012 |
| 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