Scope
Iowa Code section 423.3(95) (Code 2026) exempts from sales tax the computers, equipment and infrastructure used by a data center business, and backup-generation fuel and electricity purchased for the data center, when the business has at least 5,000 square feet and invests at least $200 million within six years, meets the stated sustainable-design standards, registers, and files annual reports. The fuel and electricity exemptions have no duration limit for data centers operating before 6 June 2025, but are limited to the first 10 or 15 years of operation, depending on the size of the city, for new construction or additions on or after that day.
- Geographic scope
- Iowa
- Jurisdiction
- State
- Authority type
- Legislature
- Issuing authority
- Iowa General Assembly
Dates
- Adopted
- No adoption day is recorded
- Effective
- Several dates apply; see the source
- Scheduled expiration
- See completion condition
- Ended
- Not recorded as ended
- Completion condition
- The opened Code text states no end date for the exemption. The annual report deadline is a compliance date, and the 10- and 15-year fuel and electricity periods run per facility.
- Source document
- The source page states no document date
- Last checked
- 23 September 2026 (earlier than tracker date 5 October 2026; not an automatic status change)
Summary
Iowa Code section 423.3(95) exempts qualifying data center businesses from sales tax on data center equipment and infrastructure, backup generation fuel and electricity. A business qualifies with at least 5,000 square feet and a $200 million investment within six years, subject to design, registration and annual-report conditions. Since 2025 Iowa Acts chapter 148, the fuel and electricity exemptions for construction or additions on or after 6 June 2025 last only for the first 10 or 15 years of operation, while existing operations keep an unlimited duration.
What this does not establish
- The source is the Code 2026 compilation. The original enactment date of subsection 95 was not opened, so no adoption or effective day is stored.
- The 2025 duration limits are recorded separately as the amending act.
- Eligibility of any named facility was not checked.
- append: "2026 Iowa Acts chapter 1040 (House File 2357, approved 16 April 2026), section 116, directs the Code editor to change the census wording throughout section 423.3. The legislature's table of Code sections amended in the 2026 session lists no other change to subsection 95."
Unresolved questions
None recorded.
Relationships
Supersession means a later instrument replaces the earlier legal effect. Repeal links identify the repeal instrument and the measure it ends. A later implementation or related letter is not treated as a replacement unless the record says so.
- Related, not a replacement 2025 duration limits on data center fuel and electricity exemptions (In effect)
- Related, not a replacement Data center sales and use tax refunds (Iowa Code 423.4) (In effect)
- Related, not a replacement Revenue rules implementing the data center exemption and refunds (In effect)
Sources
https://www.legis.iowa.gov/docs/code/423.3.pdf