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Combined Heat and Power Partnership

Energy Replacement Generation Tax Exemption

dCHPP Glossary (PDF) (2 pp, 53K)

Date Last Updated11/16/2012
Incentive TypeTax
State/FederalIA
Incentive Administrator/Contact OfficeIowa Department of Revenue and Finance
Incentive Initiation Date1/1/2008
Incentive Size and Funding SourceUnder the Energy Replacement Generation Tax Exemption, the state of Iowa provides a 100% exemption for self-generators and landfill gas systems. Iowa imposes a replacement generation tax of $0.0006 per kWh on various forms of electricity generated within the state. This tax is imposed in lieu of a property tax on generation facilities.
Eligible RecipientCommercial, industrial, residential and local government facilities are eligible for this exemption. All energy generated by methane gas conversion property, to the extent the property is used in connection or conjunction with a publicly owned sanitary landfill or used to collect waste that would otherwise be collected by or deposited with a publicly owned sanitary landfill, is exempt.
Eligible FuelDoes Not Specify
Eligible Project Size (MW)Does Not Specify
Minimum Efficiency Required (%)Does Not Specify
Other Selected Eligibility CriteriaFacilities with self-generators with on-site facilities must wholly own or lease the facility in question and produce electricity solely for their own consumption, except for inadvertent unscheduled deliveries to their electric utility. However, facilities that do not consume all energy on-site are not required to pay the replacement tax on energy that is used to operate the facility.
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