Iowa EV Tax Credits Guide
The state of Iowa currently does not extend tax credits, rebates or other incentives to buyers or lessees of electric vehicles.
That’s despite nearly three-fifths of electricity generated in Iowa coming from renewable resources, primarily from wind. In 2021 the state was the second largest source of wind power next to Texas. Also, around 1,000 megawatts of new wind power generating capacity was scheduled to come online in 2022. As of 2021, about a third of Iowa’s electric power still comes from coal-fired plants.
Does Iowa Have Tax Credits For Buying New EVs?
No, Iowa does not offer any tax credits, rebates or other incentives to buyers of new electric vehicles or plug-in hybrid vehicles. However, MidAmerican Energy – a utility company operating in Iowa – grants its residential customers a rebate of $500 for the purchase or lease of a new electric vehicle.
Does Iowa Have Tax Credits For Buying Used EVs?
No, Iowa does not offer any tax credits, rebates or other incentives to buyers of used electric vehicles or plug-in hybrid vehicles.
Does Iowa Have Credits For Installing Home Charging Stations?
No, Iowa does not offer incentives to subsidize the purchase or installation of home electric car charging stations.
However, Iowa residents are eligible for a federal tax credit of 30% of the cost of the equipment and installation, up to $1,000, to help cover the cost of residential electric vehicle chargers.
Does Iowa Have Credits For Installing Solar Panels?
Iowa doesn’t have credits for installing solar panels placed in service after December 21, 2021. However, installations placed in service between 2016 and 2021 are eligible for credits of between 11% and 15%.
This is in addition to a federal tax credit of 30% to have solar panels installed, which includes the cost of materials, labor and related fees, including necessary permits.
Does Iowa Penalize EV Buyers?
Yes, Iowa charges non-commercial electric car owners an annual supplemental license fee of $130.
Also, Iowa will begin levying an $0.026 per kilowatt excise tax at public EV charging stations beginning on July 1, 2023.
What Other EV Incentives Can I Get in Iowa?
Those purchasing an EV in Iowa may qualify for the Federal Electric Car Tax Credit of up to $7,500. As of this writing, it’s limited to EVs (and plug-in hybrids) assembled in the U.S. and is subject to price and family income thresholds.
Effective January 1, 2023, used electric vehicles will be eligible for a one-time federal tax credit of up to $4,000, or 30% of the purchase price, provided it costs less than $25,000, is more than two years old and is being sold by a licensed dealer. It’s also subject to family-income restrictions.
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