Iowa – Exemption Certificates for Energy Used in Processing and Agriculture

SALT Report 1763 – The Iowa Department of Revenue issued guidance regarding the sales tax exemption for energy used directly in processing and agriculture. ┬áMany taxpayers use the IA 843 Claim for Refund form to obtain a refund for taxes already paid on these exempt purchases. However, the Department offers another option that allows taxpayers to claim a sales tax exemption at the time of purchase and eliminate the need to file a claim for refund later.

To claim an exemption at the time of purchase, complete the Iowa Sales Tax Exemption Certificate for Energy Used in Processing/Agriculture Form 31-113 and give it to your supplier or utility company. When filling out the exemption certificate you will need to show what percentage of your total energy consumption is being used for exempt purposes.  Most utility companies will require an updated form every three years as well as documentation that verifies how the energy is being used.

For Further Information:

Iowa Department of Revenue – Iowa e-news