Methane Gas Conversion Property Tax Exemption

If you own residential property with methane gas conversion equipment (such as anaerobic digesters that capture biogas from waste), you may qualify for a property tax exemption on the equipment and related property used to decompose waste and convert it to energy. To claim the exemption, you must file Form 54-065 annually with your local assessor by February 1. If your facility was placed in service between January 1, 2008, and December 31, 2012, the exemption is limited to 10 years; facilities connected to publicly-owned sanitary landfills face no time restriction.

Methane gas conversion systems—including equipment for waste decomposition, gas collection, and energy conversion—qualify for property tax exemption in Iowa, making projects more attractive to residential, agricultural, commercial, and industrial customers. You should inform clients that exemption eligibility depends on when the facility is placed in service and whether it connects to a publicly-owned sanitary landfill; the exemption applies proportionally if other fuels are also burned. Clients must file Form 54-065 with the local assessor by February 1 each year to maintain the exemption.

Iowa's methane gas conversion property tax exemption removes equipment and property from the assessment base for facilities that decompose waste, collect methane, and convert gas to energy across all sectors. Facilities connected to publicly-owned sanitary landfills receive indefinite exemptions; those placed in service January 1, 2008–December 31, 2012, and not connected to public landfills receive 10-year exemptions only. The exemption scales with the methane ratio in mixed-fuel operations. Claimants must apply annually using Form 54-065 by February 1 with the local assessor to maintain eligibility.