Renewable Energy Equipment Exemption (Iowa)

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Summary

Last modified on February 12, 2015.

Financial Incentive Program

Place Iowa

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
Active Incentive Yes

Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs
Amount 100% of sales tax







Start Date Wind: 1993

Solar: 07/01/2006
Hydro: 2013








Maximum Incentive None










Program Administrator Iowa Department of Revenue
Website http://www.state.ia.us/tax/educate/salespubs.html
Date added to DSIRE 2000-01-01
Last DSIRE Review 2014-08-18



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


Summary

Iowa allow a sales tax exemption for solar, wind, and hydroelectricity equipment. As of August 2014, the Iowa sales tax rate is 6%.


Wind


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.


Solar


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.


Hydroelectricity


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.


Incentive Contact

Contact Name Taxpayer Services - DOR
Department Iowa Department of Revenue

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


Website http://www.state.ia.us/tax/index.html
     
     

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

Date Enacted 2013-05-01


















  • 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"