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All of Iowa · Tax exemption

Geothermal Heating & Cooling System Property Tax Exemption

Run by City or county assessor (Iowa Department of Revenue form 54-011)

Iowa homeowners who install a geothermal heating or cooling system pay no property tax on the value it adds to the home for ten years. File form 54-011 with your city or county assessor by February 1 of the first year you claim it.

Open Checked Oct 28, 2026

Amounts

How much you get

The value the geothermal system adds to the property (equipment, labor, ductwork and the owner's share of the well field) is exempt from property tax for ten consecutive years. The assessor sets the exempt value; it isn't based on what you paid.

Eligibility

Do I qualify?

You need to meet all 4 of these.

  • Your home is in Iowa.

  • The property must be classified as residential, and stay residential for the exemption to continue.

  • A new or refitted geothermal heating or cooling system installed on or after July 1, 2012.

  • The property owner files the claim with the local assessor.

Applying

How to apply

You apply in person. By February 1 of the first assessment year the exemption is claimed; no refiling for the ten years after that.

  1. Install the geothermal system and keep the paperwork.

    You'll need documents showing the date installed and the actual cost.

  2. File form 54-011 with your city or county assessor by February 1.

    File by February 1 of the first assessment year you want the exemption. Assessor contacts are at Iowa-Assessors.org.

    Go to revenue.iowa.gov

  3. The exemption continues for ten years without refiling.

    As long as the property stays classified as residential.

What you'll need

  • Geothermal Heating & Cooling System Property Tax Exemption application (54-011)

  • Documentation of the installation date and actual cost

Forms and instructionsTax Credits and Exemptions - Iowa Department of Revenue · Iowa Code section 427.1 (2026)

Your address

Next steps

Check that it covers your address. Then, if you want, ask for a contractor quote.

FAQ

Questions

How much does Geothermal Heating & Cooling System Property Tax Exemption pay?

The value the geothermal system adds to the property (equipment, labor, ductwork and the owner's share of the well field) is exempt from property tax for ten consecutive years. The assessor sets the exempt value; it isn't based on what you paid.

Do renters qualify?

The property owner files the claim with the local assessor.

What’s the deadline?

Due February 1 each year.

Is it still available?

Yes. It was open when we last checked, on October 28, 2026.

References

Sources

This page is built from these official pages, run by the program itself.

  1. Tax Credits and Exemptions - Iowa Department of Revenuerevenue.iowa.gov · Read Oct 28, 2026 · Re-checked monthly
  2. Geothermal Heating & Cooling System Property Tax Exemption application (54-011)revenue.iowa.gov · Read Oct 28, 2026 · Re-checked monthly
  3. Iowa Code section 427.1 (2026)legis.iowa.gov · Read Oct 28, 2026 · Re-checked monthly

When one of these pages changes, we re-check this page against it.

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