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No Sales and Use Tax

on Machinery & Equipment

The purchase of industrial machinery and computers assessed as real property and used in manufacturing or the processing of data by insurance companies, financial institutions or certain commercial enterprises, is exempt from Iowa sales or use tax.

No sales tax is due on purchases of electricity or natural gas used in the manufacturing process.

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No Property Tax on New Industrial Machinery & Equipment

There is no property tax on new industrial machinery and equipment.

Pollution control equipment is eligible for exemption from property tax. An application must be filed for exemption.

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No Personal Property (Inventory) Tax

Personal property is not assessed for tax purposes. In Iowa, personal property includes corporate inventories of salable goods, raw materials and goods-in-process.