Solar Energy Equipment Exemption


Program Type Sales Tax Exemption
Technologies Photovoltaics, Solar Thermal Electric, Solar Water Heating (including pool heating), Solar Space Heat,       and Wind
Amount 100 Percent of sales tax exempt
Required Documentation Receipt for services and equipment purchased
Official Web Site http://www.state.ia.us/tax/educate/salespubs.html

Iowa’s tax laws exempt purchasers of wind and solar systems from sales tax. This includes tax exemptions for the total cost of wind energy equipment and all materials used to manufacture, install, or construct wind energy systems.

The statutes originally only applied to wind equipment, but were expanded to solar equipment in 2006.