Renewable Energy Equipment Exemption (Iowa)
Last modified on February 12, 2015.
Financial Incentive Program
|Name||Renewable Energy Equipment Exemption|
|Incentive Type||Sales Tax Incentive|
|Applicable Sector||Commercial, Residential, General Public/Consumer, Agricultural|
|Eligible Technologies||Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat, Photovoltaics, Wind, Hydroelectric, Solar Pool Heating, Small Hydroelectric|
|Energy Category||Renewable Energy Incentive Programs|
|Amount||100% of sales tax|
|Start Date|| Wind: 1993|
|Program Administrator||Iowa Department of Revenue|
|Date added to DSIRE||2000-01-01|
|Last DSIRE Review||2014-08-18|
|References||DSIREDatabase of State Incentives for Renewables and Efficiency|
Iowa allow a sales tax exemption for solar, wind, and hydroelectricity equipment. As of August 2014, the Iowa sales tax rate is 6%.
For wind energy the exemption includes the total cost of wind energy equipment and all materials used to manufacture, install, or construct wind energy systems. The exemption does not apply to equipment used to construct a plant to manufacture wind energy systems.
Effective July 1, 2006, solar energy equipment is also exempt from the state sales tax. Solar equipment means any equipment that is used to convert incident solar radiation to energy, or equipment used to transform the converted energy to storage or to some point of use.
In May 2013 a sales tax exemption was also added for hydroelectricity conversion equipment. This includes, but is not limited to, generators, turbines, powerhouses, intakes, coffer dams, walls, water conduits, tailraces, other concrete components, electric equipment substations, poles, wires, transformers, breakers, and switches used to convert water, water power, or hydroelectricity to a form of usable energy.
|Contact Name||Taxpayer Services - DOR|
|Department||Iowa Department of Revenue|
|Address||Hoover Building, Taxpayer Services|
|Address 2||1305 E. Walnut|
|Place||Des Moines, Iowa|
|Phone 2||(800) 367-3388|
Authorities (Please contact the if there are any file problems.)
|Authority 1:||Iowa Code § 423.3|
|Date Enacted||05/26/1993 (subsequently recodified, amended)|
|Authority 2:||H.F. 630|
- Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.