Local Option - Special Assessment of Wind Energy Devices

Last updated: August 13, 2019

Program Overview

Implementing Sector:State
Category:Financial Incentive
State:Iowa
Incentive Type:Property Tax Incentive
Web Site:http://www.state.ia.us/tax/locgov/propwindcode.html
Administrator:Iowa Department of Natural Resources
Start Date:01/01/1994
Eligible Renewable/Other Technologies:Wind (All), Wind (Small)
Incentive Amount:Property valued at 0% of the net acquisition cost in the first assessment year, increasing annually by 5 percentage points to a maximum of 30% of the net acquisition cost in the 7th and succeeding years

Authorities

Name:Iowa Code § 427B.26
Name:IAC 701-80.13(1)

Summary

Any city or county in Iowa may 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 (DOR) 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 by the DOR under Iowa Code 428.24 to 428.29 and 441.21(8). These statutes 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. See the entry for Property Tax Exemption for Renewable Energy Systems for more details.

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