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Form 31-113a - Iowa Sales Tax Exemption Certificate - Energy Used In Processing Or Agriculture - 2013 Page 2

Iowa Sales Tax Exemption Certificate

Energy Used in Processing or Agriculture

To claim exemption, complete the Iowa Sales Tax Exemption Certificate for Energy Used in Processing

or Agriculture (31-113) and give it to your supplier. Your utility company will require an updated form at

least every three years and will need documentation showing how the energy is used.

Energy includes heat, steam, electricity, gas, or any other tangible personal property consumed in

creating heat, power, steam, or for generating electric current.

Energy consumed in processing or agricultural production is exempt from Iowa sales and use tax. Energy

used for the purpose of general heating, ventilating or lighting of buildings, and any use other than that of

direct processing or agricultural production is taxable.

When filling out the exemption certificate for your utility company, you will need to show what percent of

your total energy consumption is for exempt purposes. Separate meters for production and non-

production use are ideal for determining the exempt and nonexempt energy percentages; however, a

separate meter for non-production use is not practical in some cases.

If it is impractical to separately meter and bill the energy, the exemption certificate must be supported by

a study showing how the exemption percentage was determined. The study must show the taxable use

and the nontaxable use to correctly report the exempt percentage.

The following are available on the Department’s website at to assist in determining the

correct exemption percentage:

• Worksheet and Example for Determining Electricity used in Processing / Agriculture

• Worksheet and Example for Determining Natural Gas used in Processing / Agriculture

Your utility company may also be able to provide assistance, or you may seek the help of an energy

consultant.

Seller: Keep this certificate in your files.

Purchaser: Keep a copy of this certificate for your records.

Do not send to the Iowa Department of Revenue.

31-113b (07/17/13)

Form 31-113a - Iowa Sales Tax Exemption Certificate - Energy Used In Processing Or Agriculture - 2013 Page 2