Methane Gas Conversion Property Tax Exemption

May 25, 2023


Under Iowa's methane gas conversion property tax exemption, real and personal property used to decompose waste and convert the waste to gas, collect the methane or other gases, convert the gas to energy, or collect waste for these purposes is exempt from property tax. This section was formerly written to only apply to facilities operated in connection with or in conjunction with a publicly-owned sanitary landfill. 

For facilities that are not connected with or in conjunction with a publicly-owned sanitary landfill, the exemption may only be claimed if the facility is placed in service between January 1, 2008, and December 31, 2012, and is only limited to 10 years. The 10-year restriction is not placed on facilities at a publicly-owned sanitary landfill. If other fuels in addition to methane are burned, the exemption is equal to the ratio of methane in the overall fuel mix. 

The claimant must file an application (Form 54-065) annually with the local assessor by February 1 of each year in order to claim the exemption.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Iowa
Incentive Type: Property Tax Incentive
Web Site:
Administrator: Iowa Department of Revenue
Start Date: 01/01/2008 (retroactive)
Eligible Renewable/Other Technologies:
  • Biomass
  • Landfill Gas
  • Anaerobic Digestion
Incentive Amount: 100% exemption (as long as the property is utilized for methane gas conversion)
Varies for property that also consumes fuel other than methane
Equipment Requirements: Beginning January 1, 2013, the exemption only applies to property connected to or in conjunction with publicly-owned sanitary landfills.


Name: Iowa Code § 427.1(29)
Effective Date: (subsequently amended)


Name: Energy Divison
Organization: Iowa Economic Development Authority
Address: 200 East Grand Avenue
Des Moines IA 50309
Phone: (515) 725-0434

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.