Electricity Laws and Incentives in Iowa
The list below contains summaries of all Iowa laws and incentives related to electricity.
Alternative Fuel Infrastructure Loans
The Iowa Economic Development Authority (IEDA) Energy Infrastructure Revolving Loan Program (EIRLP) provides individuals, businesses, and utilities with low-interest loans for energy infrastructure projects that facilitate electricity, biofuel, and renewable natural gas transmission, storage, or distribution. For more information, see the IEDA EIRLP website.
(Reference Iowa Administrative Code 261.406)
Alternative Fuel Vehicle (AFV) Grants
The Iowa Economic Development Authority (IEDA) provides grants for projects that benefit Iowa ratepayers and support the implementation of the Iowa Energy Plan, including the purchase of AFVs. Eligible applicants include Iowa businesses, colleges and universities, private and nonprofit organizations. For more information, including eligibility requirements, see the IEDA Iowa Energy Center Grant Program website.
(Reference Iowa Administrative Code 261.404)
Diesel Emission Reduction Project Funding
The Iowa Department of Transportation (IowaDOT) provides funding for the replacement, retrofit, or conversion of medium- and heavy-duty (MHD) on-road diesel vehicles with new diesel or alternative fuel vehicles. Grants are also available for off-road diesel vehicle replacements and repowers. Grants are available for MHD school buses, transit buses, and trucks. Non-road vehicles and equipment may also be eligible for funding. Eligible applicants include government, nonprofit, and private entities that own or operate diesel fleets and equipment. Additional restrictions apply. This grant program is partially funded by Iowa’s portion of the Volkswagen Environmental Mitigation Trust. For more information, including eligible vehicles, see the IowaDOT Diesel Emission Reduction Act Website.
Electric Vehicle (EV) Charging Infrastructure Funding
The Iowa Department of Transportation (IowaDOT) provides funding for publicly accessible Level 2 and direct current fast charging (DCFC) stations. This grant program is funded by Iowa’s portion of the Volkswagen Environmental Mitigation Trust. For more information, including how to apply, see the IowaDOT Volkswagen Clean Air Act Partial Settlements website.
Iowa's National Electric Vehicle Infrastructure (NEVI) Planning
The U.S. Department of Transportation’s (DOT) NEVI Formula Program requires the Iowa Department of Transportation (Iowa DOT) to submit an annual EV Infrastructure Deployment Plan (Plan) to the DOT and U.S. Department of Energy (DOE) Joint Office of Energy and Transportation (Joint Office), describing how the state intends to distribute NEVI funds. The submitted plans must be established according to NEVI guidance.
For more information about Iowa’s NEVI planning process, see the Iowa DOT Electric Vehicle Infrastructure Deployment website. To review Iowa’s NEVI plan, see the Joint Office State Plans for EV Charging website.
Laws and Regulations
Alternative Fuel Tax
Alternative fuels used as vehicle fuel are taxed as follows:
- Compressed natural gas is subject to the state fuel excise tax of $0.31 per gasoline gallon equivalent, measured at 5.66 pounds (lbs.) or 126.67 cubic feet at a base temperature of 60 degrees Fahrenheit and a pressure of 14.73 lbs. per square inch;
- Liquefied natural gas is subject to the excise tax of $0.325 per diesel gallon equivalent (DGE), measured at 6.06 lbs.;
- Propane is subject to the excise tax of $0.30 per gallon;
- E85 is subject to the excise tax of $0.290 per gallon;
- B20 is subject to the excises tax of $0.295 per gallon;
- B100 is subject to the excise tax of $0.325 per gallon;
- Hydrogen is subject to the excise tax of $0.65 per DGE, measured at 2.49 lbs.; and
- Electricity will be subject to the excise tax of $0.026 per kilowatt-hour of fuel delivered or placed into a battery or other energy storage device of an electric motor vehicle at any location in Iowa other than a residence.
(Reference Iowa Code 452A.2, 452A.3, 452A.41, and 452A.86)
Alternative Fuel Vehicle (AFV) Conversion Registration
When a motor vehicle is modified to use a different fuel type or more than one type of fuel, the vehicle’s registered owner must notify the county treasurer of the new fuel type or alternative fuel types within 30 days. If the vehicle is able to use a special fuel, the county treasurer will issue a special fuel identification sticker.
(Reference Iowa Code 321.41)
Alternative Fuel Vehicle (AFV) Demonstration Grant Authorization
The Iowa Department of Natural Resources (Department) may award demonstration grants to individuals who purchase vehicles that operate on alternative fuels, including but not limited to E85, biodiesel, compressed natural gas, electricity, solar energy, or hydrogen. Individuals may use the grants to conduct research connected with the fuel or vehicle. Grant funding to purchase the vehicle is available if the Department retains the title of the vehicle, the vehicle is used for research, and the proceeds from the eventual sale of the vehicle are used for additional research. Grants are subject to funding availability.
(Reference Iowa Code 214A.24)
Alternative Fuel Vehicle Acquisition Requirements
At least 10% of new vehicles purchased by institutions under the control of the state fleet director, including the Iowa Department of Transportation, Board of Directors of Community Colleges, Board of Regents, Commission for the Blind, and Department of Corrections must be capable of operating on alternative fuels. Alternative fuels include E85, B20, natural gas, propane, and electricity. Vehicles and trucks purchased and directly used for law enforcement and off-road maintenance work are exempt from this requirement.
The state fleet must fuel diesel vehicles with biodiesel blends between 2% and 99%, and gasoline vehicles with ethanol blends between 15% and 85%. This requirement does not apply if such blends are not approved by the U.S. Environmental Protection Agency or the vehicle manufacturer. Additional exemptions apply. Vehicles that use the biodiesel and ethanol blends must display a brightly colored, highly visible renewable fuel sticker. Beginning July 1, 2023, and annually thereafter, the Iowa Department of Administrative Services must submit a report detailing the use of ethanol and biodiesel blends in state fleet vehicles to the governor and Iowa General Assembly.
Electric Vehicle (EV) Charging Station Inspection
The Iowa Department of Agriculture and Land Steward (Department) must inspect EV charging stations owned by licensed electric fuel dealers or users on a biennial basis to ensure electricity is being accurately metered. The Department must use standards published in the National Institute of Standards and Technology Handbook 44 and must notify the Iowa Department of Revenue of noncompliant charging stations.
(Reference House File 666, 2023)
Electric Vehicle (EV) Fee
EV owners must pay an annual fee in addition to standard registration fees. All-electric EV owners must pay an annual fee of $130 and plug-in hybrid electric vehicle owners must pay an annual fee of $65.
(Reference Iowa Code 321.116)
Electric Vehicle (EV) Infrastructure Study
The Iowa Economic Development Authority (IEDA), in collaboration with the Iowa Department of Transportation and Iowa utility industry, conducted a study of EV charging infrastructure to evaluate costs and benefits associated with different options for EV infrastructure support. IEDA submitted the study report to the general assembly in February 2019. For more information, see the IEDA Energy Plans and Reports website.
Electricity Dealer License
A person may not sell or dispense electricity as a vehicle fuel at a location other than a residence or otherwise act as a licensed electricity fuel dealer or user unless the person holds a valid license issued by the Iowa Department of Revenue (Department). To obtain a license, a person must file an application with the Department.
Public Utility Definition
An entity providing electricity for the purpose of electric vehicle charging is not considered a public utility. Regulated public utilities cannot prohibit or restrict the sale of electricity at an electric vehicle charging station.
(Reference 199 Iowa Administrative Code Rule 20.20(476))
Utility / Private Incentives
Electric Vehicle (EV) Charging Station Rebates - Iowa Association of Electric Cooperatives (IAEC)
Members of IAEC may offer rebates to residential and commercial customers for the installation of qualifying Level 2 EV charging stations. Local cooperatives that may currently offer these incentives include:
- Access Energy Cooperative
- Allamakee-Clayton Electric Cooperative
- Associated Electric Cooperative
- Atchison-Holt Electric Cooperative
- Basin Electric Power Cooperative
- Boone Valley ELectric Cooperative -Calhoun County Electric Cooperative Association
- Central Iowa Power Cooperative
- Chariton Valley Electric Cooperative
- Clarke Electric Cooperative -Consumers Energy
- Corny Belt Power Cooperative
- Diaisyland power Cooperative
- East-Central Iowa Rural Electric Cooperative
- Eastern Iowa Light & Power Cooperative
- Farmers Electric Cooperative
- Franklin Rural Electric Cooperative
- Guthrie County Rural Electric Cooperative
- Grundy County Rural Electric Cooperative
- Grunt Electric Cooperative
- Harrison County Rural Electric Cooperative
- Heartland Power Cooperative
- Iowa Area Development Group
- Iowa Lakes Electric Cooperative
- L&O Power Cooperative
- Linn County Rural Electric Cooperative
- Lyon Rural Electric Cooperative
- Maquoketa Valley Electric Cooperative
- Midland Power Cooperative
- MiEnergy Cooperative
- Nishnabotna Valley Rural Electric Power Cooperative
- North Central Misssouri Electric Cooperative
- Northwest Rural Electric Cooperative
- Northeast Missouri Electric Power Cooperative
- Northwest Iowa Power Cooperative
- N.W. Electric Power Cooperative
- Osceola Electric Cooperative
- Pella Cooperative Electric Association
- Prairie Energy Cooperative
- Raccoon Valley Electric Cooperative
- Southern Iowa Electric Cooperative
- Southwest Iowa Rural Electric Cooperative
- T.I.P. Rural Electric Cooperative
- United Electric Cooperative
- Western Iowa Power Cooperative
- Woodbury County Rural Electric Cooperative
For more information, including a full list of member cooperatives and available incentives, see the IAEC website.
Electric Vehicle (EV) Infrastructure Support
Iowa utilities joined the National Electric Highway Coalition (NEHC), committing to create a network of direct current fast charging (DCFC) stations connecting major highway systems from the Atlantic Coast to the Pacific of the United States. NEHC utility members agree to ensure efficient and effective fast charging deployment plans that enable long distance EV travel, avoiding duplication among coalition utilities, and complement existing corridor DCFC sites. For more information, including a list of participating utilities and states, see the NEHC website.
More Laws and Incentives
To find laws and incentives for other alternative fuels and advanced vehicles, search all laws and incentives.