Iowa

State of Iowa

Iowa Utility Sales Tax Exemption

Iowa allows businesses to claim exemption on the portion of utility consumed in processing that is directly applied in the actual processing of tangible personal property and/or agriculture use.

Iowa Sales and Use Tax Guide 78-530

Iowa Sales Tax Exemption Certificate

The 31-113 Exemption Certificate is the document that must be filed in Iowa in order for a business to claim the Utility Sales Tax Exemption. This exemption certificate is only valid for up to three (3) years, at which point it must be renewed.

Energy Study Requirement

In Iowa, a detailed energy study must be performed to identify the exact percentage of utility that is exempt from sales tax. This includes calculating the annual consumption for each device that is consuming the utility and then distinguishing between production devices and non-production devices.

Our Process
01. Discovery

SmartSave investigates client’s current utility situation, and quickly identifies if the company is eligible to save on its utility sales tax through the exemption.

02. Energy Study

A SmartSave energy specialist performs an in-depth study at the business location to determine the exact proportion of energy use that is exempt from taxation.

03. Request

All necessary information is compiled into a report and submitted to the required utility companies and state agencies. SmartSave works hand-in-hand with these entities to ensure that all reports are accurate and compliant with statute.

04. Certification

Once the exemption request is approved, your company receives a refund on the past 2-4 years of overpaid utility sales tax, and stops paying sales tax on all certified production items, generating significant savings for the business each month moving forward.

Smart Save

Are you a business
in Iowa?

Reach out to SmartSave and start saving today.