Anaerobic digesters for dairies

From the 2024 DOR Tax Exemption Study

82.08.900(1)(b); 82.12.900(2) - Anaerobic digesters for dairies Description Persons establishing or operating anaerobic digesters are exempt from sales and use taxes on certain purchases, including labor charges. The exemption covers installation, construction, repairs, cleaning, altering or improvements to an anaerobic digester and the equipment necessary to process the biogas into marketable coproducts. A person claiming this exemption must keep records necessary for the department to verify eligibility and provide an exemption certificate to the seller. Purpose To support anaerobic digesters in order to stimulate investment in biogas capture and conditioning, compression, nutrient recovery, and use of renewable natural gas for heating, electricity generation, and transportation fuel. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.306 $0.306 $0.306 $0.306 Local Taxes $0.088 $0.088 $0.088 $0.088 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.281 $0.306 $0.306 Local Taxes $0.000 $0.073 $0.088 $0.088 Assumptions - Th