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.