Working with a food processing plant in Cedar Rapids served by Alliant Energy. They're paying Iowa sales tax on their electric bills but I believe they should qualify for the manufacturing exemption under Iowa Code 423.3. Has anyone successfully obtained refunds for manufacturing clients in Iowa? The monthly tax is about $800 so it could add up to significant savings over 3 years.
Iowa Sales Tax Exemption for Manufacturing
Iowa manufacturing exemptions are definitely available but you need to be careful about what qualifies. The electricity has to be used directly in the manufacturing process, not just in a manufacturing facility. Administrative offices, break rooms, general lighting often don't qualify. I've had good success with Iowa Department of Revenue on these claims - they're pretty reasonable if you document the usage properly.
Jan is absolutely right about the direct use requirement. Food processing typically qualifies well since most of the electricity goes to production equipment. You'll want to get detailed usage breakdowns and possibly do some submetering analysis. Iowa allows refund claims going back 3 years, so at $800/month you're looking at potential recovery of nearly $29,000. Worth pursuing for sure. Document everything and consider getting the client's production manager involved to verify equipment usage.