Iowa
Financial Incentives
Tax Benefits: Methane gas generators at publicly-owned landfills and wind generators are
exempt from Iowa’s replacement generation tax on electricity, and large hydro generators pay a
reduced rate.1 Certain wind, solar, hydrogen, and biomass generators are eligible for a production
tax credit of 1.5¢ per kWh. Up to 330 MW of wind systems, and up to 20 MW of other
renewable energy systems, may receive this credit.2 Certain wind facilities are eligible for a
separate production tax credit of 1¢ per kWh.3 Both residential and corporate facilities are
eligible for these two production tax credits. Property used to generate methane gas from waste
or convert methane gas to energy are exempt from property tax,4 and the market value added to a
property by a solar or wind energy generation system is exempt from property tax for five years
after construction.5 Iowa does not levy a sales tax against the equipment or materials used to
manufacture or install wind or solar energy systems.6 Iowa also provides a tax credit of $0.065
per gallon of ethanol that has been blended into gasoline sold by any retailer that sells a certain
percentage of renewable fuels as part of their total gasoline sales.7
Loan Programs: Iowa’s Alternate Energy Revolving Loan Program provides loans of up to 50
percent of the cost, up to $1 million, of constructing a solar, landfill gas, wind, biomass, or small
hydro facility.8
Grants: The Iowa Energy Center provides grants for research, demonstration and educational
projects related to renewable energy and energy efficiency.9
Rules and Regulations
Renewable Portfolio Standard: Iowa's two IOUs must own or contract for a total of 105 MW
of biomass, hydro, wind, solar, landfill gas, municipal solid waste, or anaerobic digestion
generation capacity.10
Facility Siting and Permitting: Iowa residents can voluntarily agree to create an easement for
access to sunlight to operate a solar energy system. Persons unable to obtain a voluntary solar
easement can apply to the city or county solar access regulatory board.11 The Department of
Natural Resources has designated areas of concern for wind farm siting and established
guidelines for wind developers.12
Building Codes, Appliance, and Equipment Standards: Iowa’s residential and commercial
building codes are based on the 2009 IECC and incorporate ASHRAE 90.1-2004 for commercial
buildings.13
Electricity Transmission, Interconnection and Storage: The Iowa Utilities Board has
established interconnection standards for certain DG facilities up to 10 MW in capacity.14
Renewable energy systems up to 500 kW can benefit from net metering. Iowa’s two IOUs grant
customer-generators credits for their NEG, to be used towards future utility payments.15 All
utilities must provide their customers with alternative energy options.16
Government Procurement: State agencies are required to reduce their natural gas and
electricity consumption by 15 percent from 2008 levels by 2015.17 The state's Energy Excellent
Buildings Task Force has developed a Green Government Master Plan recommending energy
saving measures for government agencies.18
Policies, Plans and Governmental Affiliations
Policies and Plans: In December 2008, the Iowa Climate Change Advisory Council released its
final report, which presents two scenarios designed to reduce statewide GHG emissions by 50
percent and 90 percent from a 2005 baseline by 2050. The report also identifies 56 policy options
to achieve the more stringent emissions reduction scenario.19 The Iowa Office of Energy
Independence developed a renewable fuels marketing plan to promote the state’s biofuels
industry.20
Government Entities: Iowa Climate Change Advisory Council,21 Iowa Department of
Economic Development,22 Iowa Department of Natural Resources,23 Iowa Department of
Revenue,24 Iowa Energy Center,25 Iowa Office of Energy Independence,26 Iowa Utilities Board.27
Regional Memberships: Iowa is a member of the MGGRA and the MGA.
1
Iowa Code § 437A.6; Iowa Code § 437A.3(27); Senate File 478 (2009), § 225.
Iowa Code § 476C; Iowa Admin. Code §§ 199-15.19 and 199-15.21.
3
Iowa Code § 476B; Iowa Admin. Code §§ 199-15.18 and 199-15.20.
4
Iowa Code § 427.1(29); http://www.iowa.gov/tax/locgov/prop071409.html.
5
Iowa Code § 441.21(8).
6
Iowa Code § 423.3(54); Iowa Code § 423.3(90); http://www.iowa.gov/tax/educate/salespubs.html.
7
Iowa Code § 422.11N; Iowa Code § 422.33.
8
Iowa Code § 476.46 ; http://www.energy.iastate.edu/AERLP/index.htm.
9
Iowa Code § 266.39C; http://www.energy.iastate.edu/Funding/index.htm.
10
Iowa Code § 476.41 et seq.; Iowa Admin. Code § 199-15.11(1); Iowa Utilities Board Order, Docket No. AEP-071.
11
Iowa Code § 564A.
12
www.iowadnr.gov/wildlife/diversity/files/wind_wildliferecs.pdf.
13
Iowa Admin. Code § 661-303 et seq.
14
Iowa Admin. Code § 199-15.10; Iowa Utilities Board Order, Docket No. RMU-2009-0008.
15
Iowa Code § 476.41 et seq.; Iowa Admin. Code § 199-15.11(5); Iowa Utilities Board Order, Docket No. PURPA
Standard 11.
16
Iowa Code § 476.47; Iowa Admin. Code § 199-15.17.
17
Executive Order No. 6 (2008); http://www.energy.iowa.gov/green_govt/index.html.
18
http://www.energy.iowa.gov/green_govt/docs/Green%20Government%20Master%20Plan.pdf.
19
http://www.iaclimatechange.us/capag.cfm.
20
http://www.energy.iowa.gov/renewable_fuels/files/RenewableFuelsMarketingPlan.pdf.
21
http://www.iowadnr.gov/iccac/index.html.
22
http://www.iowalifechanging.com/.
23
http://www.iowadnr.gov/.
24
http://www.iowa.gov/tax/.
25
http://www.energy.iastate.edu/.
26
http://www.state.ia.us/government/governor/energy/.
27
http://www.state.ia.us/iub/.
2