Iowa Bitcoin Mining Hosting Facility 1

State-Level Property Tax Exemption

Iowa offers a significant state tax advantage for hardware ownership. Industrial machinery, equipment, and computers acquired for use in a commercial enterprise are exempt from property tax in the state. This critical exemption ensures that your core mining assets (ASIC servers) are not subject to annual state-level property taxes, preserving capital and optimizing long-term net returns.

Accelerated Federal Depreciation

The acquisition of mining hardware is a high-value asset purchase that serves as a powerful tool for federal tax mitigation. For investors and business entities, qualifying equipment purchases may be eligible for:

• Section 179 Expense Deduction: Allows for the immediate expensing of the full purchase price of qualifying equipment (up to a limit, such as $2,500,000 for 2025) in the year it is placed in service.
• 100% Bonus Depreciation: This key provision allows for the immediate deduction of the remaining cost of qualifying assets in the first year, after the Section 179 limit is reached.

Leveraging these provisions allows investors to potentially deduct the entire cost of their hardware in the first year of operation, delivering superior cash flow generation and providing a direct offset against other forms of taxable income.

To learn how to “Turn Tax Code Into Alpha” and maximize your after-tax yield, download our investor guide on accelerated depreciation and entity structuring.