Iowa: Wind and Solar Energy Equipment Exemption

This statute exempts from the state sales tax 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. The original language (IA Code § 422.45, Sec. 48) pertaining to wind energy equipment was enacted in 1993, although it was subsequently recodified as IA Code § 423.3 in 2004. 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. As of July 2008, the Iowa sales tax rate is 6%.