Renewable Energy Equipment Exemption

You are here

Eligibility: 
Commercial
Residential
Agricultural
Savings Category: 
Solar Water Heat
Solar Space Heat
Solar Thermal Electric
Solar Thermal Process Heat
Solar Photovoltaics
Wind (All)
Hydroelectric
Solar Pool Heating
Wind (Small)
Hydroelectric (Small)
Maximum Rebate: 

None

Program Info
Sector Name: 
State
Administrator: 
Iowa Department of Revenue
State: 
Iowa
Program Type: 
Sales Tax Incentive
Rebate Amount: 

100% of sales tax

Summary: 
Iowa allow a sales tax exemption for solar, wind, and hydroelectricity equipment. As of February 2016, 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.