Iowa
Incentives/Policies for Renewables & Efficiency
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Last DSIRE Review: 11/04/2009
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Summary:
This statute allows any city or county to pass an ordinance assessing wind energy conversion equipment at a special valuation for property tax purposes, beginning at 0% of the net acquisition cost in the first assessment year and increasing annually by five percentage points to a maximum of 30% of the net acquisition cost in the 7th and succeeding years. If a city or county repeals the ordinance, the wind energy property shall be valued at the special rate until the end of the 19th assessment year following the first assessment year. Once this period has ended, the property is valued at the market value rather than 30% of net acquisition cost. The taxpayer must file for the special valuation by February 1 of the assessment year in which the wind system is first assessed for property tax purposes.
An October 2008 opinion from the Iowa Department of Revenue clarifies that Iowa Code § 427B.26 does not allow for partial assessments of wind energy property and that wind plants are not subject to assessment until they are completed.
If an ordinance has not been adopted, or if the taxpayer fails to file for the special valuation, the system shall be assessed under Iowa Code 428.24 to 428.29 and 441.21(8), which provide that the assessable and taxable value of property shall not increase with the new construction of wind or solar energy systems for five years.
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Please note: The information on the DSIRE web site provides an overview of incentives and other policies, but it should not be used as the only source of information when making purchasing decisions, investment decisions, tax decisions or other binding agreements. Please refer to the individual contact provided in each record to verify that a specific incentive or other policy is applicable to your specific project.
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