Recycling Tax Exemptions
Tax incentives designed to help improve Iowa's Economy and Environment
As part of Iowa's commitment to providing a great quality of life to all of our citizens recycling tax incentives have been established. There are two types of tax exemptions for recycling, pollution control equipment and machinery: (1) property tax exemption and (2) sales tax exemption.
Property Tax Exemption
Industrial machinery, equipment, computers and their replacement parts are exempt from property tax, if they are used primarily in the recycling or reprocessing of waste plastic, wastepaper products, waste paperboard, waste glass, or waste wood, or used primarily in the abatement of air and water pollution control.
For certification information concerning your specific process or equipment, please contact the Iowa Department of Natural Resources (IDNR) at the following numbers:
- Solid waste machinery and equipment - used for recycling paper, cardboard or plastic products - 515.281.8176.
- Waste water and animal waste pollution control equipment - 515.242.5260.
- Air quality pollution control equipment - 515.242.5100.
To obtain a property tax exemption two steps are required:
STEP ONE: Obtain the certification form for the recycling machinery and equipment or pollution control equipment. Fill out the Request for Property Tax Exemption and Certification form [www.state.ia.us/tax/forms/54064.pdf] and forward to the Iowa Department of Natural Resources (IDNR), as directed by the form.
STEP TWO: Your business must file an application for property tax exemption. If your property is assessed locally, your application must be filed with the city or county assessor. If you are a public utility assessed by the Department of Revenue and Finance, your application must be filed with that agency. If you have questions regarding the application filing process, please contact your city or county assessor's office [www.iowacounties.org], or the Department of Revenue at 515.281.3114.
Sales Tax Exemption
Industrial machinery, equipment, computers and replacement parts are exempt from tax if used directly and primarily in the recycling or reprocessing of waste products. This sales tax exemption does not require certification by IDNR.
The sale or rental of air or water pollution control equipment is taxable unless the equipment is used directly and primarily by a manufacturer in processing. (This does not include noise pollution equipment). No certification is required by the IDNR.
When making a qualifying purchase, simply fill out the "Iowa Sales Tax Exemption Certificate" [www.state.ia.us/tax/forms/31014.pdf] and submit this form when paying for the equipment. For updates on machinery and/or pollution control equipment, legislative issues and changes to the Iowa Administrative Code, please contact: David Casey, Policy Section, Department of Revenue, 515.281.6163.
View Sales Tax on Industrial Machinery, Equipment and Computers online [www.state.ia.us/tax/educate/78530.html] or call 1.800.367.3388 for the free booklet.
To Learn More:
Phone: 515.242.4906 or 800.245.4692
E-mail: recycleiowa@iowalifechanging.com
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