HOUSE FILE 640

BY  LUKAN

A BILL FOR

An Act providing a sales tax exemption for the sale of certain biomass fuel-burning stoves.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

   Section 1.  Section 423.3, Code 2011, is amended by adding the following new subsection:
   NEW SUBSECTION.  96.  The sales price of a biomass fuel-burning stove. For purposes of this subsection,“biomass fuel-burning stove” means a stove qualifying as energy-efficient building property under section 25C(d)(3)(E) of the federal Internal Revenue Code.
EXPLANATION
   This bill provides a sales tax exemption for certain biomass fuel-burning stoves that qualify as energy-efficient building property under section 25C(d)(3)(E) of the federal Internal Revenue Code.
   By operation of Code section 423.6, an item exempt from the imposition of the sales tax is also exempt from the use tax imposed in Code section 423.5.