Energy Replacement Generation Tax Exemption (Iowa)

Summary

Last modified on December 17, 2014.

Financial Incentive Program

Place	Iowa
Name	Energy Replacement Generation Tax Exemption
Incentive Type	Corporate Exemption
Applicable Sector	Commercial, Industrial, Residential, Local Government
Eligible Technologies	Landfill Gas, Wind, Hydroelectric
Active Incentive	Yes
Implementing Sector	State/Territory
Energy Category	Renewable Energy Incentive Programs
Amount	100% exemption for self-generators, landfill gas and wind Reduced rate for large hydro
Start Date	01/01/2008 (retroactively effective)
Maximum Incentive	None
Program Administrator	Iowa Department of Revenue
References	DSIREDatabase of State Incentives for Renewables and Efficiency

Summary

Iowa imposes a replacement generation tax of $0.0006 per kilowatt-hour (kWh) on various forms of electricity generated within the state. This tax is imposed in lieu of a property tax on generation facilities.

Under the Energy Replacement Generation Tax Exemption, the following facilities are exempt from the replacement tax:

• All energy generated by methane gas conversion property to the extent the property is used in connection or conjunction with a publicly-owned sanitary landfill or used to collect waste that would otherwise be collected by or deposited with a publicly-owned sanitary landfill,
• Wind energy conversion property that is eligible for a tax credit or that is subject to the special valuation of wind energy conversion property, and
• Self-generators with on-site facilities. In order to qualify for the exemption, self -generators must wholly own or lease the facility in question and produce electricity solely for their own consumption, except for inadvertent unscheduled deliveries to their electric utility. However, facilities that do not consume all energy on-site are not required to pay the replacement tax on energy that is used to operate the facility.

In addition, large hydroelectric generators (100 megawatt or more) pay a reduced generation tax equivalent to $0.000001847 per kWh.

Incentive Contact

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 § 437A.6
Date Enacted	2000

Authority 2:	Iowa Code § 437A.3(27)

• Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.