Sales and use tax exemption for anaerobic digesters and equipment used to process biogas from landfills and anaerobic digesters
Available to:
- Owners or operators of anaerobic digesters.
- Owners or operators of landfills that convert biogas into marketable coproducts.
- People or businesses that process biogas from anaerobic digesters or landfills into marketable products.
Qualifying activity:
Purchases of tangible personal property that becomes a component of an anaerobic digester. Construction, installation, repairs, and improvements to:
- Anaerobic digesters that process any type of organic material, not just livestock manure.
- Equipment that processes anaerobic digester biogas and digestate into marketable products.
- Equipment that processes biogas from a landfill into marketable products.
- Biogas processing equipment.
Reporting/documentation:
Buyers must:
- Provide a completed Buyers’ Retail Sales Tax Exemption Certificate or a Farmers’ Certificate for Wholesale Purchases and Sales Tax Exemptions.
- Complete the buyer’s sales and use tax preference addendum in My DOR when filing your excise tax returns.
Note: No Annual Tax Performance report is required.
Sellers must:
- Keep a copy of the exemption certificate obtained from the buyer (see above) in your records for five years.
- Report the sales tax exemptions for anaerobic digesters and landfill biogas processing equipment when you file your excise tax return.
Expires January 1, 2029.
For questions about the exemption program, call Taxpayer Account Administration at 360-705-6218.