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IA

Iowa Sales and Use Tax Exemption – Manufacturing Machinery and Equipment

Iowa exempts manufacturers from sales or use tax on the purchase of industrial machinery, equipment, and computers assessed as real property; also exempts electricity and natural gas used directly in the manufacturing process.

About this program

Visit the program website for full details.

Eligibility

Iowa businesses engaged in manufacturing that purchase qualifying industrial machinery, equipment, or computers used directly in the manufacturing process, or purchase electricity or natural gas used directly in manufacturing.

Requirements

  • Iowa-based manufacturer
  • Purchase qualifying industrial machinery, equipment, or computers for manufacturing use
  • Electricity and natural gas used directly in the manufacturing process also exempt