Solar & Battery Regulation & Incentive Programs
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.
Name | Enacted Date | Effective Date | Expired Date |
---|---|---|---|
Iowa Code § 423.3 | 05/26/1993 (subsequently recodified, amended) | ||
H.F. 630 | 5/1/2013 |